RE: Bond interest payment23 Jul 2023 18:11
Current production from H2 is 32 mmscf/d , averaging at 70p therm, Elgood will be a good thing to boost up flow rates and condensate.
The bond was always going to be restructured as Rupert Newall stated last year. It’s in the process now of restructuring the bond into a new bond or a bank facility that frees up restrictions, that’s a fact.
The three year restrictions on the current bond terms can now be changed or repaid. We know the repayment option is not possible but even if it was it wouldn’t be a very efficient capital structure , so the best option is to restructure the bond into new bond or bank facility and extend the term for another 5 year’s and that would take the pressure off the balance sheet and give’s time to build cash and drill Kelham and Godard early 2024.
This is the best way and will instantly bring back shareholder value.
All the board are shareholders so in their interests to deliver high returns.
I think a lot of shorters are forgetting that the company is now producing free cash flow at a very low carbon, and cash burn.
The company now has many choices and that’s why the board started a positive update on the bond negotiations.
We will soon see.
Atb holders.