GREY:LSTMF - Post by User
Comment by
JohnDDon Mar 21, 2016 9:47pm
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Post# 24686208
RE:Andy Hall: Oil Prices Could Be Headed To $80 In Next 12 Mont
RE:Andy Hall: Oil Prices Could Be Headed To $80 In Next 12 Mont
If LTS is able to get through this next reassessment of their credit facility, I think they should be in the clear, as prices should be materially higher at the next reassessment this fall.
Given the reserves evaluation valued the company at $2.2 billion and the credit facility lenders are first in line, their risk is actually low especially given that the credit facility at $550 million represents only 25% of the $2.2 billion. I understand the current market value is much lower - but not even close to the value of the credit facility debt.
I expect the company will get through this next hurdle. It helps that prices in the $40's and trending up.