Andy,
Just my speculation here, but I think management has been holding back its trump card as long as possible, given that the stock price has remained above $1 even without having played the card.
An item of background: PQUE has appealed its removal from the Nasdaq Small Caps market and a hearing has been set for October. Although nothing is guaranteed, it would seem that if they can keep the price above $1 consistently in the months leading up to that meeting, they should be in good shape to get reinstated.
PQUE's stock price was staying over $1 last week even without the announcement, just due to high O&G prices. So this gave them the luxury of waiting another week before putting out the announcement.
Also, by waiting until now they can combine it with the annoucement of hitting that other offshore well.
About Ron's point --- I believe that the cash flow from High Island is payable to the lender for the 1st three months of production, but that this cash flow is actually PQUE's revenue, which, when paid over to the lender, serves to reduce the debt that PQUE owes to them. So the cash flow still gets recorded, for accounting purposes, as PQUE earnings and cash flow.
For anyone who has been watching on the sidelines, it is rapidly approaching the point where you will have to either ante up for this or just pass on it entirely. We have all the stuff I mentioned earlier on this coming out shortly, plus 2nd quarter earnings will be out next month, which will be significantly better than 1st quarter solely due to commodity price increases. |
