Originally posted by Value_Hunter
lolz ......you answerd your own question a coupla times ......
they have basically admitted breaching loan covenants.......
they have brought themselves some time .......
at the expense of 10-50% of projects equity, and nil upfront reduction in funding costs (NPI's excluded).......
the chg in yr end will enable a write-back of asset value (madden gas) as a result .......
either way - its going to require (signififcant??) cash to pay out the hedge book during a refi .......
I hope for the sake of all investors, that Grieve actually starts to produce as envisaged ..........otherwise - its going to get messy .....
rgds
V_H
Can you provide some colour around the Grieve reserve estimate. It sounds like they didn’t take into account recent production info and they are reviewing pricing. Not sure what the pricing the reserves are at ... is there a chance they could infact increase? Is that why the company has asked for it to be redone? Then borrow off the larger reserve - that part of the plan?
