Energy summary on 14th P
https://www.investorvillage.com/groups.asp?mb=13681&mn=49945&pt=msg&mid=16093198
One junior is apparently eager to take advantage of any excitement stirred up by Penn West's newfound focus on the Alberta Viking. Toro Oil & Gas Ltd. (TOO: $0.24, halted), which focuses on the Hamilton Lake and Consort areas of the Alberta Viking, halted trading this morning in the wake of yesterday's after-the-close announcement of a $10-million to $12-million overnight offering. It plans to issue units, each comprising a share and half a warrant, at a price to be determined by the market. Such an offering could roughly double its current share count of about 57 million. The proceeds will be used for two main purposes, one of which is debt reduction. Toro's bank is currently reviewing the company's $18-million development credit facility and its $7-million operating credit facility, and has warned that after the review, the development facility will no longer be available and the operating facility may be reduced. Though Toro has never used the development facility, it was about $6.2-million drawn on the operating facility as of March 31, so a large reduction would mean trouble. Toro said yesterday that its bank has sent it a draft credit agreement specifying, among other things, a maximum of $4-million available under the operating facility. Talks are still in progress. Still, the offering proceeds should alleviate concerns on that front.