CONA RESOURCES LTD T.CONA

Waterous screw things up

[tvstock]

According to what I heard...cannot be confirmed....so correct me if I was wrong.

Becasue of the change in major shareholder,  the bond holders had the right to demand early redemption.  That is why CONA needs to repurchase all those bonds and borrow high interest loans to cover, Watrerous  was NOT t doing its homework thoroughly  if that is true. 

However CONA  had been stressing  so much for their dividend safety , but they cut it 3 times to zero.  So this managment lost all credibility.

Also how the Plover site is doing remains undisclosed.  Given management's poor credibility,  buyers are  scared away.

[xbox360]

Yes, Waterous takeover cost the company millions in change of control cost too in addition to the high interest that is on-going. Not even sure why he took over just 67%, if he is going to incur all those costs anyway. Although recent share price drop is due to the WCS, having pipeline problems. If he took over 100%, he would've saved millions in administration cost. If he is not going to do

[tvstock]

My guess is that if Waterous take 100% all those bonds and debts will appear on its own balance sheet. He can't risk too much. Am I correct ? I do not have sufficient accounting knowledge . Say worst case scenario, if CONA bankrupt, Waterous currently has no obligation to repay those bonds ? Am i correct?

[dalerules88]

They're not going banrupt; lots of production, good netbacks for the type of oil, low decline rates; the interest drag on the netbacks is say $4-5/barrel. With the free cash flow, the debt will come down pretty quick and that will improve the netbacks handsomly.  The debt is costly, interest-wise, but the forex risk has been eliminated - with the cad/us swings between 0.92-1.56 in the

[dalerules88]

IMO, these guys are investors, not oil men. As an investor, what is the primary objective? Make money by selling your shares eventually. If they took it private, they would have to then later somehow bring it to the markets again. This way, @ 67% they have full control yet still have access to public markets. My guess is, they (new management, under Watrous "guidance") will make CONA