TORC Oil & Gas Ltd. T.TOG

RE:Cashflow Impact

[gruc]

This is how it played out in the late 90's when oil fell to less than $10 a barrel...
 
When a company's cash flow was at risk, the banks would scale back loans...in turn the capital programs would be scaled back resulting in an immediate problem in replacing the depletion rates of existing wells…so companies would start to sell their land to maintain cash flow (i.e. maintain stock price)…once the selling of land started, it took about 2 quarters before depressing news announcements tried to paint a rosy picture about selling the company for pennies on the dollar…
 
I’m hoping that TOG is one of those companies that can hold off the banks and buy other oil companies for pennies on the dollar…let’s just hope that oil stays above $55 a barrel and the banks will allow TOG to increase their borrowing during nervous times in the oil patch…