ZAR can sell nat gas assets (AECO at C$2.50) & RF the notes Some posters here are novice investors without understanding the basics in the sector. Don't let these posters/sellers who sell because ZAR is a tax loss selling candidate cloud your judgement.
ZAR's debt is not bank debt, ZAR's debt is in convertible notes that mature in December 2019, it does not mature this year.
So ZAR's convertible notes can be refinanced before December 2019. ZAR does not need to re-invent the wheel here. Refinancing happens every day in the corporate world. Numerous companies refinance their convertible debt buying time in order to sell some of their assets at premium prices and record significant profits.
ZAR can refinance its convertible notes in early 2019 and replace them with new notes maturing in 2021 (if it does not want to convert these notes into shares), so it can buy time this way.
When the oil spreads in Canada narrow by early 2019, it can sell some of its assets at premium prices.
Note that its Noth Dakota oily asset has been printing cash because it is not affected by the Canadian oil spreads but receives premium Bakken pricing.
Note also that AECO jumped at C$2.50 per mcf yesterday because the pipeline damage at Prince George was fixed by ENB yesterday. ZAR produces more than 10% dry natural gas, so it can sell its natural gas weighted properties at good prices now with the stabilization of AECO. Outlook for natural gas in Canada is very positive too, so AECO will remain at these levels. Henry Hub hit $3.50 in the U.S. yesterday and we are still at the very beginning of the winter.