RE:$130 Million Debt.....But Still Look beyond itThe earliest any debt would have to be repaid is 2015 according to a statement from their Q3 statements. Thus, if the bank doesn't renew in May 2014, the undrawn portion gets cancelled and the drawn portion turns into a 366 day non-revolving term debt with the drawn balance due by the 366 day. Obviously not having access to credit in May 2014 would be a bad situation. I would imagine the bank is using a borrowing base which is very conservative. One would need to look back to April 2013 to see what production was to see if they increased the borrowing amount on conservative production numbers.
From Q3 statements In April 2013, the Company’s borrowing base was increased
from $155.0 million to $165.0 million as a result of the banks’ semi-annual review. The credit facility is secured by a $300.0
million general debenture and a general security interest on all of the present and future acquired assets of the Company. The
credit facility is a 364 day committed facility, available on a revolving basis until May 16, 2014, at which time it may be extended
for a further 364 day period if requested by the Company and accepted by the lender. If the revolving period is not extended, the
undrawn portion of the facility will be cancelled and the amount outstanding will convert to a 366 day non-revolving term facility
which is required to be repaid at the end of the non-revolving term which is currently May 16, 2015.