Even if the debt is refinanced, it seems like this will only delay LPR's problems. Their recent earnings reports have been awful. Part of the reason is they cannot cover the $7 million in quarterly interest payments and fund additional development of their properties. Without additional development, production and revenues will continue their long, slow slide downhill. Additional refinancing will have higher interest rates, so the quarterly interest payments will increase. Given this scenario, why do you think LPR's share price is going up?
My impression is the current stock price is like buying an option on much higher energy prices, which could save LPR from bankruptcy. Current energy prices and LPR's high fixed costs though are not be viable long-term. No updates on the Core Asset Review indicate that LPR cannot sell the firm or their properties to more than cover their debt, so refinancing may be the only option left. It is not what we were hoping for, but it looks like it is the only remaining option.