GREY:HNTHF - Post by User
Comment by
bpeterson Mar 28, 2014 7:50am
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Post# 22380066
RE:RE:RE:smell something
RE:RE:RE:smell somethingI smell $$.
MY take on the GOR buydown is as follows:
Only $1M is immediately payablet re buydown of GORs on April 15 as the $10M Deb financing closes April 4th. The other $4M payable June 30th, to me, infers another $$$$ Equity this time?
This leaves ample $$$ to
- put production equipment on existing wells to maximize cash flow after elimination of restricted production
- Pay for land purchases
- Have enough $$ to drill maybe 2 wells after spring break?
Increase production prior to going for equity financing at higher levels in June?
Elimination of high GORs paves the way for a sale of HN as future buyers have less $$ going towards GOR payments. IMO, this makes HN an attractive takeover candidate in the near future.