GREY:WFREF - Post by User
Post by
VentureCapital3on Jun 02, 2015 12:01pm
198 Views
Post# 23789164
I'm back in LRE
I'm back in LREI'm not surprise by the banc call. I think it is much better today for LRE than two months ago. I'm expecting another CAPEX cut. For me it will be a good news since there is no return investing in drilling at the current price. They are better to reduce their debt. Base on March 31 FS, I think they have to find $176M. Since than, LRE has probably generate around $20M in net CF + $10M by selling some assets. So, we are talking of maybe something like $146M. If they cut the Q3 and Q4 CAPEX, they will reach this objective by the end of 2015. When oil will be higher, they can renegociate the deal and resume drilling... Anyway, they are ok for at least the next 12 months.