Today's New Release - purchase of Woodcote land/productionToday OBE announced it has completed the purchase of land and production from Woodcote. About 1700 barrels.
This purchase was announced on May 28.
Today's announcement contained two pieces of new information.
1. The effective date is May 1
The effective date is significant, because it means OBE will add about 1,700 barrels of production during the time Woodland Cree were blocking access to some of OBE's oil.
From May 5 - May 11, about 1275 barrels were shut in
From May 11 - June 11, about 4500 barrels were shut in
This means the net shut in amount will drop to about 78,000 bbls, from about 149,000 bbls. ie, the net shut in oil is more or less cut in half by making the Woodcote purchase date May 1!
and
2. The purchase price $80.5 ish million, is being paid in part with a $50 million term loan.
This purchase was originally going to be paid using their line of credit. It would of used most of it.
They need $60 million of free space on their credit line to buyback back shares (NCIB).
At the same time, OBE's Viking assets have been offered for sale - with bids due in June. One could draw the assumption that Viking was being swapped for Woodcote, with OBE using its credit line for bridge financing.
It appears from the new $50 million term loan that Viking is not going to be sold, and $60 million in free space on the credit line will be maintained.
If correct, it follows that share buy backs will continue, and production is now 1700 barrels higher than it was.
On May 28, OBE accounced their production (including the 4500 shut in by the Woodland Cree blockade) was about 40,000 boe. Some of that 40,000 boe may of declined in the month since, but whatever it is, will now be about 1700 boe higher. It follows that OBE is probably now officially at 40k plus boe.
An expected news release, with an unexpected, positive twist!
Advantage OBE!