October payment was an issue!!!7 Sep 2018 08:20
Here is from the release.
"In May, the Group's improved cash generating capacity enabled the early cancellation of $50 million of the Group's credit facility. In August, an additional $25 million was voluntarily cancelled early, with a further reduction of $195 million due in October.
The Group has agreed $175 million of financing with funds managed by Oz Management. The financing, which is at a lower cost than the current interest on EnQuest's existing senior credit facility, is ring-fenced on a 15% interest in the Kraken oil field, the affiliate transfer for which is subject to normal regulatory approval, and will be repaid out of the cash flows associated with the 15% ring-fenced interest over a maximum of five years."
I do hope that the people who called me this and that are now eating humble pie. Obviously, my concerns were spot so. Who are the trolls now? The ones of us who present a balanced view of reality, or the ones who have difficulty in dealing with it?
At any rate, I am relived management had worked out a solution for the October payment and are securing less costly loans. That is good and the market should appreciate it.
Revenue about $100M lower than I expected. EBIDTA was fine, but CAPEX too high, given what is still left to do. But net debt reduced in the same amount that PMO's net debt reduced, i.e., peanuts.
I leave it to MO, E121, Chilting and others to interpret what the report says about the performance of the fields. There is a sentence in there abut Kraken that worries me: "Lower water injection rates in the second quarter, due to additional maintenance of the sea water coarse filters, impacted reservoir pressure which in turn drove lower average production. Following completion of the required filter maintenance, water injection rates were significantly increased and gross production has improved, averaging c.33,000 Bopd in July and August."
AK signed off!!! but ENQ only got $15M?
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