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Constellation Energy Partners, Ltd. Şti. Message Board

  • ofir_menkes ofir_menkes Mar 1, 2013 9:52 AM Flag

    CEP post sale

    Production is 6BCF+ per year (no new wells drilled) + 120,000 barrels per year (last run rate I saw, more
    info on current and future expansion to be given at 3/5/13 on the conference call) and still left with
    hedges of two years of sold production (did not find it at the list of items included in sale).
    1 access to the Osage concession (560,000 acres), 80,000 acres held by production, 24,000 of which
    have all rights.
    2 cherokee basin land of 200,000 acres outside of the concession with full rights (can not value for oil
    purposes - not enough information).
    Bank debt - $34M
    Cash - $12M
    Excess Hedges - 85% * 7.6BCF = 6.4BCF * ($5 - Average current Nymex 2013-2014 forward price of $4)
    = $6.4M - liquidation discount = ~$6M

    On going expense rate is a big question mark...

    Conclusion: the phase of survival is almost over. the debt is now modest and the question is how to obtain
    the money for oil exploration expansion.
    Good luck to cep and to us.

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