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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (185824)	2/22/2009 6:35:17 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 306849

Very solid. They have a revolver open with Natixis, that is being renegotiated for 90 million. The proceeds for that are to go primarily for a gas powered electric plant in Peru (their oil fields are offshore Peru). Other than that they have no debt to speak of. The problems they've had over the past 6 months relate to speculation re: how quickly they can complete their drilling program and bring more production on line. They currently produce about 4800 bbl/dy and have indicated that would increase to 6000 BOE/dy by the end of the year. Every well they've drilled to date has produced (the most recent one is still up in the air). They have about 45 million in cash as of the latest secondary. At this point after the revolver is financed they should be essentially self-financing. The revolver is expected to be finalized by the end of this quarter.