GREY:VFGGF - Post by User
Comment by
terroiron May 08, 2013 7:41am
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Post# 21351016
RE: So what happens to the shareprice??
RE: So what happens to the shareprice?? Thinking about the release:
- Unlike PWT's recent announcement, the Board announcement is nothing of note
- The financial side is good and bad, good that they were able to syndicate and expand the facility indicating that financial covenants are met and no reserve downgrade on the horizon, bad that the risk got too hot for a single bank, bad that they needed expansion and only got $10 million...a fairly short leash.
No doubt that the company is struggling with decline rates and weak new wells. Critically the water-flood has to show continued positive effect. Debt is increasing, as is cash flow, but they are perilously close to a precipice that other carbonate players have slipped over where they can no longer fund replacement production.