Interesting post on NOP debt in Tgram tonight.11 Mar 2021 00:18
Interesting find. Given Art was already in discussion with Atomic at the end of August???? I guess the debt remains to Atomic? Again great find. Maybe NOP is in the bag already!!
Post from PeteB at 23:55
Some very interesting background to the Nop - Cuda Oil
From their Q2 2020 results
Financial Position
At June 30, 2020, the Company has a working capital deficiency (including the credit facilities, the convertible debentures and the promissory note) of $59,053,802 and an accumulated deficit of $66,309,794. For the three and six months ended June 30, 2020, the Company reported net losses of $5,387,345 and $4,470,119 respectively and cash flows from operating activities of $387,947 and $1,346,809, respectively.
The COVID-19 health pandemic resulted in a sudden decline in economic activity and an unprecedented decline in crude oil prices during the second quarter. The pandemic impacted the Company's performance in the quarter by reducing realized oil prices and production from both its Wyoming and Alberta assets. With ongoing uncertainty related to current economic circumstances, the operator and
Company has elected to focus Capital Spending in Wyoming, at the "SSRU"- Shannon Secondary Recovery Unit through Increased Miscible Gas Injection for the remainder of 2020. The Company estimates net costs of approximately USD $1.2 million in 2020 to return the Shannon Reservoir to initial pressures maximizing production response and oil revenue.
At June 30, 2020, the Company had $46.7 million outstanding under the Credit Facilities which matured on July 30, 2020 and remain unpaid which constitutes an event of default under the loan agreement. No waiver has been obtained for the event of default, however, the Company is working with the lender to amend the loan agreement, including extend the maturity date and cure the event of default.
At June 30, 2020, the Company had $1.5 million outstanding under the convertible debentures which matured on July 21, 2020 and remain unpaid. The debenture holder provided the Company with a 20day notice period to pay the amounts owing. The Company requested an extension to the 20-day notice period and received a 30-day extension to September 23, 2020 to avoid a situation of default.
On July 22, 2020 the Company received formal notification from the operator of the Wyoming asset that the Company was in default of its payment obligations under the Unit Operating Agreement in respect of outstanding joint interest billings. The Notice demanded that the Company pay the outstanding amounts in full within 30 days of notice. The Company has been unable to pay the outstanding amounts in the time period set out in the notice and requested that the operator extend the period of time to cure the default. On August 26, 2020, the Company received notification from the operator that it has granted the Company a 60-day extension to September 20, 2020 to cure the default.
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