RE:RE:RE:RE:RE:RE:Covenants That BTE is around 50 at last summer highs. Call me naive as I don't have lots of knowledge for junior oils by then. (Who knows when all the brokers are pushing oil stocks and nobody mentions that).
I am not buying at the top, and when their last quarterly results out, saying that they can fully fund their dividend and CAPEX at WTI 80(WTI has dropped 20 dollars to around 85 by then), I bought in around 32. Thinking that a 30%+ drop provides good risk/reward ratio.
That is the trouble.
When oil goes sub 60, I bail out.
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The breakeven cost above is 41, 41, 47 and I dare not step back in with WTI sub 50. If oil price stay here I would guess BTE's situation is worse than LRE.
Up to this date I still dare not buy back BTE as Eagle Ford is a shale play and can have troubles. But who knows BTE have already gone up a lot from the lows. Even COS doubles from the bottom.
I
mainly own the LRE debentures now. 14% cash yield with the potential of a double if LRE survives.