Cash and unused bankline vs 2015 future spendingCanacol anounced that they have $45 million cash and $25 million of undrawn debt that they can access, lets assume this is their cash position as at end of July and that they don't have payables in excess of receivables.
How does this $70 million of available capital compare to the remaining cash outlays in 2015?
As at end of May Canacol had $52 million of spending remaining in the 2015 capital program (including $43 million for 2 wells at Clarinette and pipeline to Jobo)
Canacol's interest payments equate to approximately $5 million per quarter, payable quarterly. So $10 million for August to end of December.
Canacol's G&A is $1.7 million per month, so 5 months at $1.7 million = $8.5 million
Canacol and Altenesol executed an agreement pursuant to which Canacol has the option to participate in the revenues generated by the sale of the LNG through an equity ownership position in Altenesol of approximately 26% in exchange for investing US$ 13 million in the project. Payment is due in August.
TOTAL CAPEX, INTEREST, G&A AND LNG INVESTMENT IS = $52 million + $10 million + $8.5 million + $13 million = $83.5 million
Compared to $70 million of avaiable capital.
I estimate Canacol's field operating income at approx $5 million per month, or $25 million for the remainder of the year.
Looks like capital will be very thight, but Canacol should be able to make it through the remainder of 2015. If the pipeline is delayed at all Canacol will be in a very percarious position and managment's lack of credibility will be even further impaired given that they have never once contemplated delays and continue to assure investors that the gas will be flowing in December as scheduled.