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WAFD takes security over certain assets. It periodically reviews the assets, the oil price, the reserves, the production, NTOG's cash position and cashflow. If it was renewed in 2020, it is not an issue to renew it now.
WAFD is cold on using the facility to purchase assets but is happy for producing assets to be switched to the facility and will then lend based on its review of the factors above. It is cheap money, not many O&G companies of NTOG's size would such a facility. When I say cold, it doesn't mean that it can't be done but they are not keen.
Each time it is renewed, they set new terms and a drawdown cap. All the factors since the last renewal should lead to the same terms or better and a higher drawdown cap. Likely Caballos Creek will get switched over to it and the current third party facility will get repaid.
In the past WAFD has required some of NTOG's production to be hedged. It may be at renewal that they want some more production to be hedged: I don't know. It may be that they agree with the rising oil price prognosis and don't want hedging at this time.
DYOR
Lofgran will continue to dilute the crap out of the Sp.
When he took over in 2009, it was placing after placing after placing. He quadrupled the original SP and then consolidated the shares.
It’s all heading in that direction again
This is from the 8th January 2018 RNS
'The Facility is not restricted to geographical region. Nostra Terra can deploy funds from the Facility for operational purposes and acquisitions in its current areas of operation, in the USA and Egypt, or in other areas should the opportunity arise.'
The current funds provided by the facility were not provided to do an acquisition the funds were provided on the assets NTOG already had. Clearly, if WAFD agrees then further funds could be deployed to enable NTOG to do an acquisition. Any increase or decrease of the funds that can be drawn down outside of doing an acquisition is based on the performance of those exisiting oil fields/ wells and oil price. The funds can be used as NTOG determines. WAFD takes security over the oil fields/ wells and is only concerned about that as a last resort.
No bank would give lofgran money to spend as he sees fit. They can only use the lending facility to buy producing assets. Ntog have to dilute every time they want to squander money or pay wages. 8 times the number of shares now from when i mistakenly invested in this sham.
I have not posted for a while and have watched the debate go back and forth.
I think NTOG is in a better position now to pre Covid as it has more assets/ production and the oil price is a the top of the traded range over the last few years.
My recollection was that WAFD provided funding on the basis that it could be spent as the Company deemed fit.
I do not see a link between WAFD providing funds to NTOG and an increased facility ending up in WAFDs pocket. I understand that interest has to be paid and ultimately the principle paid back but there seems to be an implication that the asset will be forfeit ?
Could WAFD not like what NTOG are proposing to do in Tunisia?
Now 15% down and no I do not miss the point. You can ramp this oil spill up all you want but until Lofgran goes, things are not going to change. A increased faculty from WAFD with/or better terms is only going to end up in their pockets or if they are feeling generous, a couple of Dinar in tips might end up in their waiters pocket when they are on holiday in Tunisia.
Fine. You miss the point but heyho!
The Caballos deal was a good deal and the Cypress deal was a good deal. More headroom on the facility means that NTOG can do other deals and/or fund the next Cypress well. I expect we will hear something on the next Cypress well when, NTOG does its next operations update.
DYOR
Lets just look at the current share price - down 10% and it has been static for the last few weeks.
Helpful. You can bang on as much as you want about reserves, assets even the cash flow positive line. But! At the end of the day, Lofgran is still ****e at his job and thats what's holding us back.
Listen, I know you are a bit slow but if you read this slowly you might get it.
The WAFD facility has been in place for a number of years. A number of RNSs have disclosed the terms. It is rebased twice a year, as has been confirmed in RNSs.
It is now lateish May, next month is June. When does the facility get renewed? Next few week's maybe? Look at the RNSs.
Has anything changed since the last renewal? Well yes: the Cypress well is online and producing, more reserves have been added, we have acquired more acreage next the Cypress well which brings more reserves in, plus we have the Caballos wells and reserves. Plus the oil price is higher and NTOG is cashflow positive.
Let's pretend you are intelligent and we are interested in your opinion: how do you reckon that the renewal will go?
Once the renewal is done, how much more headroom will NTOG have to fund asset acquisition?
DYOR
Who said buy from frightened men and sell to greedy men.
Ismailia... stop thinking.. you know fook all
Having thought about it I think that what we need now is a raise so we can buy some cheaper stock.
We all know you are LOGFRANs mouthpiece on here , he feeds you information during your cozy phone chats.
Ha! Has anyone ever told you that you have a bit of a fixation?
We just have to wait. All will be revealed. Why not ask when the Washington Federal facility is up for renegotiation and the likely basis of the renewal. That should give you plenty to foam and froth about.
DYOR
Let’s welcome a new pumper to the board , FINE AND DANDY
He will be an assest to UNHELPFUL and his pumping crew
Buyers loading up here today.