Long Run Explor Ltd Ord WFREF

May 2016

[canne]

LRE is going to have to pay off the $245 million in non-revolving debt in May. If everything goes OK with Marathon, they will contribute less than $100 million and that leaves $150 million to cover, the only real option is selling properties. It will be interesting to see what the company looks like at the end of that. The private placement with Marathon will substantially increase the share count and the sale of properties will severely shrink the asset base - shareholders will be squeazed from both ends but the alternative is worse, the stock price is building all this in, I don't think the stock price has been this low in all the history of Galleon & LRE.

[Iamwcw]

This post has been removed in accordance with Community Policy

[dowd]

If MIE holdings closes the PP then LRE will survive. They can easily sell off some asset for $150 million before May.  But if MIE bails out and does not do the PP then LRE need an Opec cut and oil price rise.  If no PP and no Opec cut then LRE needs to have some luck and sell the compnay whole.  The good news is that we will no very shortly. mie holdings has until 11/30 to put up