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Bridge Resources Corp V.BUK



TSXV:BUK - Post by User

Comment by mjl777on Mar 04, 2009 6:22pm
466 Views
Post# 15821202

RE: RE: RE: Backout = NG futures

RE: RE: RE: Backout = NG futuresI don't think any ST compensation will be in the cards. A portion of the company's cash flow will be directed towards the retirement of LTD which should be renegotiated and amortized over a longer term if the backout doesn't move in the company's favour. I'm not certain how much flexibility they have to renegotiate this debt with RBS. The balance will go towards operating costs and cap ex. The kind of share price appreciation we want will only come with another successful well so we are better off if the company retains the earnings. Averaging down is a good idea. I've done it myself, but quite franky I never forsaw BUK trading at its current levels.
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