Rooster Energy PRBEQ

ongoing story

[westcoast1000]

The Sedar filings tell us pretty much what we have learned from the recent posting and the sum of activities since June. The company has a large contract amounting to 21. million gross for decommissioning that will be completed and thus paid by the end of the year. If the funds are not received by year end, then the revenue will show up in the next quarter. They have costs associated with these activities, but a major share should go to the bottom line. 

Overall gas, oil and decom revenues are down substantially from 2015 Q2 beccause of oil prices and the lack of capitial to close off wells, I presume. 

The interest rates on the debt outstanding continue to be high with libor plus 3 and also 8% until the year end. Aside from everything else, the scale of these interest rates concern me.

The going concern statements about refinancing at year end are still there. but the contract noted above will provide EBITDA to pay the interest. 

Overall, we wait for oil prices to recover. No more, no less.