Quattro Exploration and Production Ltd QEXXF

IS anyone else concerned?

[DemiGold]

Is any one else concerned about this company?

It looks cheap on a reserve basis to Enterprise value...

But is the debt serviceable based on existing production cashflows?

They had announced a buy back a year ago and didn't use it! They diluted shareholders with the new prefererence A shares issued....

what do people think of these preference A shares?

[bullmarkets]

they have huge abandoment issues. and the AER is getting tough.

[DemiGold]

What are the abandoment issues? Management don't highlight anything in their reports... What is AER? Thanks,

[bullmarkets]

The LMR is 1.23   So it is not high enough to do any acquisitions. The AER ( Alberta energy regulator) recent rule change says it needs to be 2.   On the financial statements there is a 35 million abandonment obligation.  

[DemiGold]

Thanks Bullmarkets, Are you long this company or just watching given the issues you detected? How long have they had an LMR of 1.23 though? Because they have made 4 acqusitions in the last 6 months with the issuance of preference A shares.... Have you spoken/communicated with management at all?

[Newbern]

What concerns me is the continued delays in production increases. The goal in the last presentation is to exit 2016 at 6000 BOE/D. It doesn't look like this will happen. But I do think this sell off is temporary. QXP has a lot of potential. One reason I continue to hold is the chances of LNG export from BC. Plus there is Guatamala. QXP has been able to sell preferred shares to make

[DemiGold]

Yes the production goals are ridiculous. They have been saying 2500 boepd to end 2015. That is now 2016....To me they are not goals but lies/marketing. I wish management could just be honest. You set up failures when the market finds you fall short of these goals. These preferred shares are very odd. They are convertible to ordinary at 40 to 1. I don't get how they were able to sell them at

[bullmarkets]

You can google LMR Alberta and you will get a pdf list of all the producers -  don't own it. Allways that is was flaky, with some interesting accounting.