GREY:ROAOF - Post by User
Post by
GreatSwamion Dec 18, 2008 3:04pm
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Post# 15655053
I suspect that they will have to sell...
I suspect that they will have to sell......a couple of the crown jewels here to get funds to pay off debt. Once the debt is paid off they will probably see one of the Rig leases go with the asset sale to the acquirer. (Just guessing here?!)
Shelley production is probably one of the financing "conditionals" as would be adding production around the Balmoral/Brenda core area.
After selling assets, paying down debt, maybe shedding some staff and reducing G & A, losing a rig contract and getting Shelley on stream - Oilexco will simply be a North Sea focused oil company with from 30-35,000 bopd production, some interesting projects to continue with in better times ahead (they will come!), some 290 million shares outstanding and some sore egos...
What the company will be worth then is hard to say - but they will then be in a position to look at perhaps merging with some other company(s) and becoming somewhat bigger and generating some win/win kinds of synergies.
Just my way of viewing it all - but really its all a crap shoot from here.
GS