RE: RE: RE: Dundee again...2nd largest hold of sha RPL is a totally different fish. They have embarked on a strategic review (code for we are in deep dodoo) and changed board members in favour of those able to handle highly debt leveraged work outs. Their debt to cash flow is an order of magnitude higher, and they have to deal with the dividend payments further dragging cash. They are probably dealing with wells not performing to expectation because something has drastically affected their business model expectations in a very short period of time, and it isn't macro such as commodity pricing.
Pinecrest does not have the same cash flow issues, but needs the water-flood to demonstrate that they can properly manage production declines and maximize recovery. They expect to end the year with 1x debt to forward cash flow, very manageable.
Only if the waterflood is a complete bust does this company have issues. For that to happen, they would have to either see no response or an extremely high water cut, where the injected water flows straight through to the producers. Early response to their pilot and the first 100% company owned project showed no such issues.
Much to learn with the quarterly report after market on May 13.
Terr