Canacol Energy Ltd T.CNE

Gamba Factor Lives on...!!!!!

[oilwatcher13]

Earnings suck but they blame the peso... 

CNE Shareholder Risk - Gamba is using CNE to finance the next pipeline which CNE can only own 30% of by law. So CNE shareholders take all the risk, he sells the remaining 70% to his buddies after it's built. And CNE pays 4.7% interest and an additional commitment fee... really???? If it's such a great idea then why arn't investors breaking down the doors to participate? Might be built by 2024 says Gamba - 121 mil @ 4.75% for 2 1/2 years or more... see below...  

On July 31, 2020, the Corporation entered into a $46 million senior unsecured revolving credit facility (the “RCF”) and a $75 million senior unsecured bridge term loan (the “Bridge Loan”) with a syndicate of banks. The Bridge Loan is intended to be used to construct and own a pipeline from the Corporation’s operations to Medellin, Colombia (the “Project”). The Bridge Loan includes an interest rate of LIBOR + 4.25%, a two-year term, and the Corporation’s ability to repay the Bridge Loan at any time within the term without penalty. The RCF includes an interest rate of LIBOR + 4.75%, a three-year term, and the Corporation’s ability to repay/redraw the RCF at any time within the term without penalty. Canacol will pay a commitment fee on the Bridge Loan and RCF of 30% of the respective interest margins of 4.25% and 4.75% on any undrawn amounts throughout the term.

CNE Gamba Gas Sales Projections - so the last pipeline was to deliver 200 MMscfpd when completed, never met that target ever... then covid19.. reduced demand for some months and now we are back to 6% of normal demand and CNE still won't get near their 200 MMscfpd... over promise and under deliver Gamba man...

The 2020 year started with national gas demand slightly above 2019 levels in the January and February 2020 time period. In the month of April 2020, with Colombia under a country-wide lockdown related to COVID-19, the national gas demand decreased 25% relative to the same period in 2019, 721 MMscfpd versus 957 MMscfpd respectively. Since May 2020, the national gas demand has slowly recovered as economic activity resumed following the lockdown. In the month of October 2020, the national gas demand stood at 837 MMscfpd, down only 6% from 892 MMscfpd in October 2019. In order to increase interruptible gas sales during the period May through to August 2020, the Corporation sold interruptible volumes at competitive prices to gain market share. Since September 2020, with higher levels of national demand, the Corporation’s pricing for interruptible volumes has recovered. Although the Corporation expects national gas demand to increase in 2021 from 2020 levels, given the ongoing spread of COVID-19 in Colombia, uncertainty remains with respect to both future gas demand and interruptible pricing depending upon the trajectory of the pandemic in Colombia.

Gamba and Hibberd Factor is alive and well...

JMHO

[cyber37]

Oil….do you really dislike Gamba that much or your posts are just revers sociology plot to promote CNE? Anyway, I’m glad this stock is moving in the right direction; maybe I will be able to recover my money. But for now I will keep my 5.25% dividends. G37

[oilwatcher13]

GAMBA is a clown act, treats shareholders like mushrooms and acts like CNE is his personal bank account... always making shady deals that you hear glimpses of one or two years later.... An example is today's press release which is a waste of time. We had disputed take or pay contracts with Promigas and the only thing the news release says is that they have been re-negotiated... at what terms