Early days for Grieve EOR, page-11

"carefully" read it ........

do you truly believe grive prod profile in the rpt

then chk the c/flow statement forecast ..........cash falls, and debt increases ........

then chk whats incld in the valn ...... aneth "near term growth" .......which requires >200m in capex .......

getting rid of the preffs / convertibles .......and its a good story (imho)

"
Re-financing: Reducing high cost of debt
ELK’s capital structure is complex due to a range of debt structures that have been used to support historical acquisitions. These are outlined below:
 US$58m senior term loan with Benefit Street Partner for the Grieve Project JV. Interest rate is based on a fixed spread over LIBOR and the term loan matures in mid-2019.
 A US$14.4m convertible note used to finance the Madden/Log Cabin transaction; 11% annual interest convertible at A$0.103 maturing in March 2020.
 US$98m senior debt facility used for the acquisition of Aneth. Loan term to 30 September 2021 with interest based on the greater of prime rate, a federal funds effective ratio of +0.5% and adjusted LIBOR +1%, plus an 8% margin.
 A US$60m preferred stock facility that includes overriding royalties and a net profit royalty interest over Grieve and Madden for capital repayment and a coupon at 15% (of which 3% can be paid in kind in issuing further preferred stock). "

entertainingly - they also don't havethe net interest in the c/flow forecasts ........

when one inclds that - one will get a rather different picky .......(imho)....

rgds

Value_Hunter