Long Run Explor Ltd Ord WFREF

Covenants

[Sumcan2]

I agree with you ppp, that they should not have trouble through 2015 paying their debt. What are the consequences of being in non-compliance of their covenants if that happens even though they will still be cash flow positive. They stated in the last update that they were being proactive and talking to their bankers prior to the May review. We just need to be patient. Most of us agree that the market is under valuing LRE

[JonCom]

Im sure the Banks will be understanding. Look what happened  in 2008. A lot of these companies pulled through and went on to make lots of money in the years ahead. Why should this be any different? Why does everyone act like this is the end of the world???

[emmitt]

It's not the end of the world but this is deffinitely different then 2008.For one It doesn't seem like there will be an OPEC cut this time. Rig count dropped below 200 last time, we are still at over 1000...etc. Many differences and many concerns. I don't see a V shaped price recovery this time. I am long LRE and do think the company will be fine.

[tvstock]

Bankers will be foolsih to trigger a credit crisis throughout the whole industry with only 633million of debt, while the company is still generating cash and can pay down loans gradually on top of interest payments, although at a slower pace.  633 million shared by a number of banks is no disaster, but creating a credit crisis will be. Look back at the case of STP and CLL,  banks make

[2015ideaman]

Long story, I sense some fear here?

[tvstock]

Yes, I always fear on any of my investments.  I don't do so much research on oil stocks before the oil rout. But I lose so much money, first on BTE,   therefore I do a lot of research and that makes me understand this industry more...and hence the long story.

[JonCom]

How did you lose money on BTE? its one of my stocks. When did you buy?

[2015ideaman]

... you have some real dumb questions here dude......he probably bought low, is that the way you lose money getting in when its lower? 

[JonCom]

Thanks dude!

[tvstock]

That BTE is around 50 at last summer highs. Call me naive as I don't have lots of knowledge for junior oils by then. (Who knows when all the brokers are pushing oil stocks and nobody mentions that). I am not buying at the top, and when their last quarterly results out, saying that they can fully fund their dividend and CAPEX at WTI 80(WTI has dropped 20 dollars to around 85 by then), I

[2015ideaman]

I understand and agree it's always great to research an industry and it's stocks...good luck with your investments inthe future. Cheers...from ideaman