bafflegab and nonsense Here's my spin on the press release. Mr. Gusella didn't like the sale/JV offers coming in, so he decided to try to grow production by 2000 boe/d over the next two years in the hope he can get a better price for the company before the debt comes due. This is precisely what OPTI tried, and lead to the loss of all shareholder value.
The current management disagreed with this extremely risky strategy, and were fired. Their payouts will be reflected in the Q1 G&A, along with a ton of money paid to Goldman and Rothschilds.
Mr. Gusella trots out nonsense and gibberish about future EBITDA and Netbacks, which are meaningless for a company like Connacher who pays $23MM per month in interest and G&A costs (before the generous settlements with ex staff and financial advisors).
He announces that the 2012 exit rate will be 16000boe/d, which is higher than the 14000 boe/d exit in 2011. Did anybody notice the 2011 exit rate is below guidance given in the Q3 financials?
BTW, he's going to get the Board to authorise a $5MM expenditure to see if some lands actually have reserves under them, unlike several "underperforming" wells that are currently producing (or not).
Nowhere in the press release does Mr. Gusella say how he's going to pay down the $850MM debt that they're paying $72MM per interest on.
And that, boys and girls, is why the share price dropped 15% this morning.