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Indy0105, I disagree. I think in the distant long run it will come good. But in the short run, it might not. the numbers on Friday will disappoint. Whether the SP will go down or not will be driven by the oil market sentiment, not the fundamentals at the moment. I agree with you that the production numbers are not looking good. Also that 15 million in compensation for AK not doing its job is way too low, (Enq needs the oil now to lower its deb asapt!!!). I fear that some people suffer from confirmation bias, ignoring any information that goes against their initial views.

E121,

They only need to repay $220M, given that they have paid $50M at the end of May. The issue is that they will not have the $220M by October. Do run the numbers to see why. The interest rate on the upper tier of the RCF s not 7.5%, but above 10% (you need to compound the interest from the PIK. That is why I say the creditors have the upper hand once again. Of course, we shareholders would like reality to be different but it is not. It will be if they can deal with the debt. That is why it will not be easy to exercise the 75% Magnus purchase option, unless a clever way is found to bring it into the fold (payment in cash for 75% Magnus purchase would be $100M up front).

RCF:
"Borrowings in excess of $890.7 million subject to interest at LIBOR plus a margin of 5.25%, paid in cash, with a further 3.75% interest accrued and added to the Payment In Kind (‘PIK’) amount at maturity of each loan’s maturity period;
• PIK amount repayable at maturity and subject to 9.0% interest, which is capitalised and added to the PIK amount on each 30 June and
31 December"

epiphany121,

I would want you to be correct, but I urge you to run the numbers before saying with confidence that the $270M payment of the RCF will be made.
Bear in mind that OPEX for H1 2018 will be close to $100M, and that 7.5Mbbol was hedged at $62 for this year, that oil from Magnus is being use to repay BP, and that a cash loan of close to $100M obtained at the end of 2017 has to be repaid this year with oil, at a maximum price of $65. So, unless JS is clever, the cash will not be there.

p.s.: I am long ENQ.

MO, Unfortunately, absolutely no chance they will have such cash available by October. Bear in mind that interest on borrowings is being paid in cash due to oil price above $65. So, I am afraid that creditors will extract some of the shareholders' future profit again.

RCF payment in October is $270M, but $50M were paid at the end of May. I am afraid there won't be enough money to pay the remainder, i.e., $220M, and so there will be another agreement with the banks that it will cost $20M in fees, and with a higher interest rate, unless the CFO was smart i(in a way that I will detail later in managing liquidity up to now ..... (more later...) In the end, it does not matter how much oil you pump if the proceeds end up in the pockets of the creditors, not the shareholders.