RE:RE:Policy with respect to distributions
I kind of agree with debt payments, as they are almost equivalent to the distribution you get in the form of a dividend, similar to buying back shares. I am not sure what their debt will ultimately be, or if ultimately all this capex spend will result in higher production. The debt would likely not be an issue if they could acheive the design plant capacity they highlight in the presentation of 128,000 boe a day. I would like them to adhere to a policy of management does the least thinking possible. Any money that comes in above their forecast for 2014, goes directly to the shareholders. The issue with paying back debt, is that although they refused to hedge oil at higher prices, they do hedge currency by borrowing in US dollars. That works well and our debt is going up and up and up as the dollar goes down and down and down. Not only did they borrow a lot more money then they needed they decided to hedge the currency which is another bad mistake. I am wondering how much money has simply evaporated in consulting fee's, interest paid on money sitting in the bank, and now currency exposure. Management should avoid simply pass the money through and not trouble themselves with thinking about anything other then getting produciton up and keeping the plant operational.