all shareholders and prospective should read this.https://www.moodys.com/research/Moodys-assigns-a-B2-CFR-to-Ithaca-Energy-Inc-outlook--PR_302554?WT.mc_id=NLTITLE_YYYYMMDD_PR_302554
as i mentioned earlier, this shows that debt to cf is definitely higher than 2/1, it also proves my point that these notes will be a higher interest rate than most people think.
Londoner, i didn't say your 5 yr payback was wrong, nor did i say that of debeaude's 3 yr calc. what i did say was 5 years is a long time for payback in this industry on a deal like this. i don't know what the payback will be, too many factors. oil price decline rates workover costs etc.
iae is also benefiting from tax exemptions and loss reserves, when these are used up net c/f will not look as good as it does, factor that into the future.
i also believe the mess in iraq, as far as oil production will get cleaned up sooner than expected and could exert downward pressure on oil prices. i much prefer the nat gas stocks in canada and the us for now. i still don't think b1 will boost the price much with over 1 year to wait for stella production. if it does shoot up much i'll sell into it and buy back again later. still a lot of sellers out there. this is no slam dunk by any means imho
cheers ferret