Rooster Energy PRBEQ

RE:RE:RE:Whats ur opinion on the 3q 2016 result?

[wasagastar]

snootchybootchy wrote:

wasagastar wrote: The current market cap of $5m is equal to one quarter of ebitdax. Cash flow from this quarter almost as much as the market cap.  They will get refinanced since they are proving their ability to pay down debt and generate cash.  Current SP beyond ridiculous.  Could go up 4x and still be ridiculous. 

Current sp is a reflection of our debt liabilities.  The share price is ridiculously low because there are obviously concerns about the company's survival.  Q3 was much better than Q2 but am I the only one expecting significantly more from our decommissioning contracts?  And why are we getting $5 a barrel less for our crude?  I know there is a small spread between LLS and WTI benchmarks but it's not a $5 spread.  This is annoying only because at these low crude prices, we need to maximize what we get for our oil & gas.

Does anyone have any concerns about the Bureau of Ocean Energy Management requesting that Rooster post an additional $5M in surety bonds?  Seems like a lot to ask at a time we are already in default of debt covenants.  Maybe these are the types of pressures on small oil & gas companies that may potentially get relaxed under a Trump presidency.

Good report but was expecting (maybe unrealistically) more.

Oh don't worry I have the debt in mind.  SP still very ridiculous.  I see companies with debt or little debt and no oil production with market caps of $100 and $200 and $300 million.  COQ will have over $20m in EBITDAX 2016 and produce 1800 BOED.   This SP could go to 10 cents and investors could still see plenty of value. We just need oil to stay in this range and they will be fine.