Rooster Energy PRBEQ

Venting!

[Burnerman]

I am starting to lose faith in the management of this company. I started purchasing this one at .14 and averaged down, patiently waiting for management to do something, just to watch it fall to this ridiculous low level. What is the point of repeating the " going concern " line! How can a company talk about aquisitions and then say " oh, by the way, we might not be a going concern " .  It almost feels like they want the stock price to be this low. If you send them an email you will get a reply. Approximately 3 weeks later and they give you a political response. Does anyone else feel something is amiss here or am I just getting impatient?           GLTA

[westcoast1000]

Burner, The going concern statement is a pro forma legal requirement for a company in this situation. It's a fact: if they cannot renegotiate their debt, they are in default. That is not really news. They could also go bankrupt WITHOUT making such a statement. But most likely they will do OK keeping things going at current oil prices.  At $55 US per barrel, I would expect the share

[Papagallo]

I feel as frustrated as you. I have written to Mr. Murphy on several occasions to ask questions but rarely get a reply. The only thing that keeps me hopeful is the decom business in GOM is a huge growth opportunity. Companies are mandated by law to P&A "idle iron". The fact that the senior note holders have not pulled the plug for covenant breach may mean that they see the decom

[Olive777oil]

For sure nobody is glad about the situation and the share price of Rooster right now. But I am just thinking about if the company was in a so bad or risky financial situation, why would not they try to sell some assets or issue new shares now to decrease the debt? If they don't do anything like that, it means that they don't seem to care too much about the debt and probably think that they

[Olive777oil]

At the end of last year, crude oil was at around 37$ per barrel when the company started to talk about renegociating its big debt. Now crude oil is at around 46 to 47$ and recently at almost 52$. The price of natural gas is also much higher now than last year. And now they have a big contract of about 22 millions US$. Am I right to say that now the company seems to be in a much better financial

[redgreen66]

Thats about what I am thinking too. This plays into something you mentioned on your previous post: "why would not they try to sell some assets or issue new shares now to decrease the debt?" In my observations, I would assume that a reasonably competent BoD or President would make use of issuing new shares as an opportunity to get out of the debt committments and live to see another day

[westcoast1000]

Olive, I would also say they have cut costs substantially, if I recal correctly.  So clearly they have more revenues and lower costs, as well as the expansion of GOM reclamation work. So they surely are in better financial shape. 

[Burnerman]

Thanks everyone for your reply posts. The next  quarterly report should shed some more light on the condition of the company. If Opec members come to an agreement late September maybe we could see a spike above $50 a barrel and an increase to the revenues of COQ.        GLTA