Spyglass Resources Corp SGLRF

RE:The remaining 50% of Dixonville

[seatleslim]

Probably more accurate to characterize it as some breathing room. Few of these marginal companies are out of the woods if commodity pricing doesn't recover. Though is interesting that the (post opec meeting) renewed lending facility is $200mm. It seems to me that in this market banks would have given no more than 50% on proven reserves (or at least extremely cautious underwriting terms). That would suggest equity of $200mm vs current stock price of c50mm. One problem is that they continue to make non-credible utterances; the most recent being the "buyback". They obviously cannot buy back stock until they sell more assets (there is so little room on the new line), so why bother with the headline. This thing is probably a reasonable speculation for making 3 or 4x if you believe the new guy can shake of the bullshitting ways of the past regime and prices recover. But you can't own this without accepting the possibility of zero.