The RBL I can understand, it's costing money to retain while they have delayed it's use, presume there is a substantially larger one waiting. Shame in the end they'd not kicked off with that one and re-negotiated larger facility based on the improved reserves while they were going along with the old plan 1a/b. The way the ceo was talking at the AGM what with Bank cash, what was left of West Face, Esousa etc., XEL looked to be ok to FDP, they can't spend before that then they could draw on an RBL. Only thing left, if West Face is not being repaid and there's some private agreement around re a jv partner's cash later, could be a well or two into 9/3c and d unless DECC are prepared to extend those leases.
Hi how are you doing these days? Bit of a tumble here in the sp but because of the delays. Will all still come good in the long run. I have to say I have my money in BLVN right now as I think that will move first, but hopefully I can get back in here again before it's too late. I believe the $140 m refinancing was necessary as I I think the existing unsecured loan needed to be repaid by the end of 2014 anyway. I see this simply as a way to pay of f the $80m and leave sufficient funds to cover the next 6-12 months while they finalise FDP. I'm sure a new and much larger RBL will follow in due course, coupled with A Farm Out to fund the new production plan currently being finalised. All still good in my opinion, though very frustrating for those holding right now. GL. & best regards.
I must say it has been somewhat confusing trying to decipher the reason for the $140 million bonds and the $80 million loan (i.e are we paying the $80 million off from the $140 million?, I did email Henry but got an automated rely that he is out of office until the 23rd June).........
But logically why refinance an unsecured loan with a secured loan at this juncture?
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