RE:RE:RE:RE:RE:RE:Any Guesses ?Casperwy17 wrote: risk53 wrote: jbeneswww wrote: For what its worth... I've had in person conversations with both Garth and Karen (CFO), both have reiterated that another equity dilution is not on the table. Also know their banker at ATB and they are quite happy with management and the business and ready to grow the line of credit with the business as reserves are converted. Keep in mind the line is secured by only a portion of proven reserves - refer to slide 11 of their latest presentation... pretty small portion of total (~9% of land). Obviously leverage ratios need to be managed accordingly. Good condensate yields and high prices are pretty impactful though. Costs and performance from each additional well will be very telling on the short term price impact in the market.
GL
This seems to be the most logical scenario for BBI funding needs. Have another survey done to add to their 1P numbers most likley after the 7 wells that will be drilled can be added as proven reserves, then ATB will just keep extending credit until BBI can stand on it's own.
Parato estimated they need will be 40 to 80 m ..........Excerpt......."
To fund this growth, Blackbird will, according to the report, have a modest need funding of CA$40–80 million (CA$40–80M) that the company plans to obtain via a nondilutive method, perhaps an industry transaction, debt and/or deferred payments. Following the investment, Blackbird "can recycle cash flow to fund further growth as payback on new wells."
I tend to agree. By the end of 2019, our cash flow should be able to support a debt of over $100 million, and that borrowing capacity will increase as further production comes on line.
The last thing I want to see is BBI give away part of the upside in a farmout, or any other financial structure that eats away at our assets.
And I sure as 'ell don't want the company sold before they tie into Tidewater, and have the opportunity to really show what this land package can produce.
We know that BBI can purchase up to 20% in the Tidewater facility. Is there a timeline for the payment? Or can BBI say, "yes, we take the 20% and pay it step by step"?