RE: RE: RE: RE: Wall St Journal: NG below $1 summe I look into further details. In 2011 Celtic production is around 75% Natural gas and 25% liquid. This is very worrisome Celtic is a gas producer and NG price will be close to 0 this summer (NG can be sold in Canada today at around $1.5/mcf and losing 2-3 cents every day)
We will see but I am not sure they can survive to a
-
.5/mcf NG price environement for more than 6 months. The company has close to $350MM debt. How can they pay the interest with such low NG price ?
Calgary-based Compton, an intermediate whose production is 83 per cent natural gas, must repay $30 million in outstanding debt resulting from a credit drawdown by May 7, the company announced Monday. Compton’s syndicate of lenders revised lower the firm’s maxed-out credit facility of $140 million to $110 million, which the company blamed largely on a lower gas price outlook from the banks.
Many companies like CLT that are NG producer are force by the bank to pay back their credit facility because Bank wants to get back their money before they files for bankruptcy.
CLT doesn't have the cash to do so.... Anyway future is very dark here
See you at $5 this summer