Long Run Explor Ltd Ord WFREF

market value of LRE

[canne]

at $2.39 / share with 193 million shares outstanding, the present market value of LRE is $ 462.5 million. If barney's numbers are correct and LRE is $716 million in debt, we have a problem and that problem is that the debt is today' reality as is the collapse of oil prices. Lending institutions begin to get nervous when asset values that back the loans drop like they have lately, often these loans are structured so that the lending institution can demand payment when the assets no longer support the loan, banks are only your friend when you make your payments and their azz is protected.
  There are a couple of circumstances here that bear mentioning. Firstly, LRE has a large gas production and the price of gas has not declined, secondly, in my view, the overproduction of oil has been relatively gradual but the oil price collapse has been virtually instantaneous - have the realities of the marketplace really changed so much that a 35% decline in price in 4 months is justified ??? Does 1 million extra barrels a day on a baseline of 30 million justify this response ?? 
We are in a time of economic manipulation by governments and large financial institutions. The degree of intervention these days is unprecedented and the old rules of supply and demand simply do not apply. States like Saudi Arabia can order actions that have no economic justification and are simply politically motivated. 
 Which brings us to a bigger question. If the economy is doing so well, why is the price of virtually every commodity declining?? It used to be that when things were chugging along and the economy was getting better, commodities increased in price.