RE:FS Release DayUsing the Consolidate December 31, 2023 Financial Statements.....
The Debt/Asset ratio is 55 % which is good, and judged by management commentary, will improve (.e. be lowered) over the next two years. Total debt is $ 152,880,000, approximately 10 % of which is a 13 % prommissory note to a director issued regarding the Boulder purchase. This prommissory note should be retired by July 1, 2025.
HAM's liabilities at the end of Q3/23 was $ $ 141,740,000 and at the end of Q4/23 was $ 152,880,000.
A good portion of that increase in debt would be for the two wells drilled in Q4/24. Money well spent.
In other words, $ 15,000,000 will need to be raised over the next 15 months to retire the note.
The bank loan ceiling is set at $ 100,000,000. Bank debt at end of Q4/23 was $ 72,464,000.
So lots of cushion if funds needed t retire the prommissory note.
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In regards to revenue, we only need to concern ourselves with oil and gas production in the last quarter of 2023, first quarter of 2024 and current production.
From HAM's management notes:
Achieved record corporate production of 4,035 boe/d in the fourth quarter of 2023. As a result of an effective capital program in the fourth quarter of 2023 and early 2024, first quarter 2024 production is expected to average approximately 4,900 boe/d and current production is greater than 6,500 boe/d.
HAM is 3 1/2 months into 2024 and looks to be meeting or exceeding 2024 guidance.
That is great news. Note that all 5 wells scheduled to be drilled in first four months of 2024 were actually drilled in the first quarter of 2024, again great news.
All the 2024 wells are currently producing at higher than their average production rate, The average current production rate is 442 boe/d. The average production rate would have much higher but for the Mannville well producing 37 boe/d. This well was a multilateral open hole well, so a very big disappointment.
Overall - great news !
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In the year ended 2023, the company's earnings per share was $ 4.75 ($ 4.67 if fully dilluted).
Our shares cloased at $ 6.10/share today.
Wow !!!!!!!
I can see nothing but upside to the stock price.