With assets values gaining, ND/MT alone will be $540M in summer, if Nio test well comes in good (i.e. 1000 BOPD+), the EV could be $800M by Dec.
There are 6.3M common shares at $5-$6. The $80M worth of preffered stocks do not have voting rights. The debt notes ($407M) are just more than 1/2 secured. The EV is gainning, may be $800M or more in 10 months.
The raiders must be droowing with sliva hanging a foot long. Like my old wolfdog watching me gutting the 5-pointer back in the Big South Fork.
What has me concerned is their comment about not having enough 'support' yet for their proposed debt and/or equity financing. I found that a strange thing to say publicly, especially in a press release. Why not wait until earnings as clearly nothing good was going to come from creating this doubt. I can't think what their motivation was? And to whose support were they referring? I can understand the debt financing but can't they issue more stock without anyone's approval? It makes me wonder if there is something in the GSO deal that limits their ability to issue more equity?
Another question i have is that without any debt due for ~2 years,what does a company do that needs capital to execute their plan but let's say can't get it? Do they file BK? Under what grounds? I would think they would have to sell assets first but are their hands tied there as well?
Just trying to understand what realistic options does GMXR have at this point?
Ivan & Butterfly, you have started to read between the lines of the Feb 8 PR. I called it an un-necessary PR except for me to buy some more, 1000's, cheap shares. But it did have something for us to think about, it was a PR after a long period of silence. It was worded strangely, like words slipped the tongue halfway.
But it resulted some devastating reactions, so they quickly released the great well result to halt the slide. That Feb 8 PR may not have been approved by all the board members or concuured by GSO/Blackstone. However, it hinted us somethings big are going on, good or bad.
Anyway, the raiders have their sights on this very oily company, tiny maket cap, easy to swallow.
Thanks Joe. GMX got $69 mil for a portion of their Cotton Valley land. If worst comes to worst, why can't GMX just sell more of their land to finance Bakken and Niobrara drilling? Seems like they could pretty easily get $100-150 mil and drill 10-15 wells. Surely selling more land is a better option than declaring BK.