perdikaoilgas wrote: The progress has been taking place in so many fronts during the last months, although all these clueless resident bashers who are SOCIAL OUTCASTS, LOSERS IN LIFE and ALONERS, were POLLUTING the board by posting their allegations on a daily basis without any link, without any source, without any proven information!
Keep it in mind next time you see them here. Do not forget it! So:
- PTA will pay off the notes with the double digit interest rate (11.5%) and it will establish a new debt facility by Q2 2015 with MUCH LOWER interest rate, so the company will save money from this move on an annual basis.
- After paying the C$35 million notes for US$28 million, PTA still has cash US$25 million and ZERO DEBT:
53 - 28 = US$25 million
Those notes were made when PTA was an EXPLORER with zero production back in late 2011. This is why, the interest rate was so high.
Things worked fine, PTA discovered oil and now PTA is a proven and established producer with 5,500 boepd
excluding the production from Langur-2, Calatea and Garza Roja in the first half of 2015! So after paying the notes, PTA has
Negative Net Debt US$25 million ! - It hedged a significant part of its production
without limiting the upside, which is also another very good thing.
I quote:
The Company currently has approximately $53 million in cash and short-term investments, and using cash-on-hand, intends to pay off a $35 million Canadian dollar denominated debenture at maturity on April 19 , 2015. In order to take advantage of a strong US dollar, the Company has purchased $30 million Canadian dollars for approximately US $24.6 million at an average exchange rate of US $0.8191 for each Canadian dollar. The Company plans to purchase the final $5 million Canadian dollar tranche prior to the debenture maturity date.
Additionally, the Company is currently engaged in advanced discussions with several parties to establish a new debt facility. It is expected that this new facility will be finalised and in place in the second quarter of 2015.
The Company has purchased puts for 3,000 barrels of oil per day at $50 per barrel ICE Brent for March through May 2015 , effectively setting a price floor without limiting the upside in a volatile oil market.
The Company anticipates releasing its 2014 year-end financial statements, management discussion and analysis and annual information form in April of 2015.