The debt facility can be income based or RBL facility.
A reserve base facility (RBL), is debt secured on the reserves of the company's assets, for Goudron we have a 2012 CPR that places sufficient reserves for a RBL in my opinion. Lender would not need to wait for a new CPR, I am sure that provisional calculations from LGO are already available, although the bank may have done their own sums as well.
In order to have a RBL, a bank would want to see the reserves given over from Petrotrin to LGO (securitisation), at least for the period up to 2024 contract. Petrotrin are happy to oblige, and this has already been done.
The income / cash based facility would require a convenants, cash reserves and various other terms, but with a income exceeding $700k per month NET to the company, and more importantly, it is currently moving for the foreseeable future on a upward scale, even while WTI is going the opposite way. Can anyone see a issue in LGO securing either debt deals?
As shareholders we have some idea of the forward plan, but not all. Business plans are based on 12 to 24 months, and I am sure we are way beyond the expected cash / production for this period.
This Quarter is important, we have new CPR, new production peak for group, new fields and two new pads constructed, put that with LACT and possible debt facility, and you have a opportunity to increase your wealth.
As always, this board is a great tool for information sharing, but ones own research, and constant research cannot be replaced. If the conclusion of your own research informs you that the development of LGO is at its early stage, and there is much more to come, then being a holder of this stock today is more a investment then a punt.
Martinesman I totally agree with every word of your 11.32 post and thoroughly recommend it. I bought In before the court case and have added every step of the way since including at 4.45p around Xmas and at 3.34p last week. I am comfortable with my investment and see the longer term benefits to LGO of the current low oil price which includes probable better rates and more choice of rigs to hire, availability of skilled local work force as other companies cut back and the longer the WTI remains low the quicker and higher it will rebound in my opinion. Exciting week ahead which will hopefully result in announcements of the progress the company is making on several fronts and hopefully this is reflected in a rise in share price. All gains made now will enable higher gains to be made when CPR is published and when the WTI price recovers. Finally, the board has been a pleasure to read these last few days and I thank all the Informative posters for sharing on behalf of myself and the silent majority - your efforts are very much appreciated!
Hi, nomoney. I've had a similar feeling myself. They haven't posted long enough for me to compare accurately with previous names. I have some ideas. As I said the other day, I expect to see Gunner back in another guise(s). Remember these posters will only be visiting strong companies. Just up to BOD to make sure all info water-tight and timings of news not given away, making it as difficult as possible for the shorters et al, Regards MM/Dave
Just gone through all the posts from last night to now. I do have a feeling we have the idiot brigade back under new names, I may be wrong but seems like there thing weekends to slate the board and when we have news due or we have a rise in the SP.
> Perhaps it is you that is underestimating... I hope you're right Stotters, selfishly that's more upside for me .... which would more than offset the pain of holding my hands up and admitting I was off-base my expectations of how things would shake out with respect to the debt structure.
FWIW - Albion's couple of previous posts are on the right track in my opinion, issuance of loan notes versus "senior debt" in the strictest sense of the definition.
profit / growth / forward plan / great areas / key guys/ kpi's still ticking the boxes , when oil recovers , the low cost oilers will get the most attention in a oil range of $80 , pop goes the high cost, low margin players , bringing with it a big hit on the financial groups that put up the dosh ! I would not be overly bothered being in lgo , I would take a double check if you hold one of the banks funding the high cost oilers , low cost = first in the recovery ! jmo
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.