MBTT - haven't gone anywhere either, and I do understand the debt issue vs investment in new activity but I was only reacting to what SOS said at the back end of 2013 about being very close to 'self funding'.
If it was a big enough deal to mention then, I'd have thought it worthy of a mention if we had actually achieved it.
However, I begin to care less what the market thinks of this share as I don't think we will see fair value delivered here until sell off happens, or we turn into a mega profit machine from massively increased production and just become a cash cow, paying dividend after dividend (nice thought lol). After all, if majors are finding it tough here maybe we should just become our own and continue what we are doing so well.
Imagine getting a 1p dividend every 6 months from an investment of 2p/share now
Now there's a different point of view - think on........
As a few posters below have referenced, self funding is, surely, not a definitive target. It's more of a "Moveable Feast". No matter what our revenues amount to Rita can always invest more, particularly as she is continuing to receive appealing proposals from a number of other companies.
At the current rate of 4.25 % - and rates are probably not going anywhere fast - it makes sense to borrow to invest. In the absence of any "Black Swans" the returns will more than justify such borrowing.
I take it as a positive that the bank is increasing the facility at this time, before the reserves update. So, I guess we will get a further amount released when we get the update, which should not be too far away.
I remain pretty optimistic on this share and I havn't "gone away". :-)
I am sure 3p will come soon this is quietly building value ready for the explosion of the SP. I would be delighted to see 3p but I think the proper value is more likely 6p.
Significantly, PDP reserves are used by lenders to determine reserves based lending such as Magnolia's $5 million (£3.06 million) credit facility which in turn helps fund further drilling.
The combination of the above, along with the considerably lower exploration risk associated with increased density wells, and the time and cost savings on offer through drilling multiple wells from the same pad or consecutively, helps explain the surge in infill well proposals we have seen since the turn of the year.
It is reasonable to expect that the opportunities to participate in new drilling is now outstripping income streams and reasonable to increase our borrowing based on the ASSET SECURED lending facility we have. This means our assets have increased to enable this to happen. great news IMHO DYOR. Robsky
The onshore US oil and gas group that has 142 wells in total across Oklahoma and North Dakota added that revenues are still on course to grow by 240% year-on-year.
Proactive Investors To take advantage of an increasing number of offers to participate in new wells it has also increased the borrowing limit on its credit facility to US$2.1mln from US$1.6mln.
This limit is reassessed on a six monthly basis using Magnolia’s developed producing reserves and the higher limit is an endorsement of the progress it is making said Rita Whittington, Magnolia’s chief operating officer.
Shouting about a Mags trip has dragged me from my cabin !! IMVHO re increase in credit line is for a jump up in well % that couldn't be met from existing revenue stream. We have been successful in the slow and steady approach, safe but not exciting or sp shifting. Time to up the exposure. BOD know what they are doing. Been here for a long time and not going anywhere....GLA GandTx
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