You're going to lose all your money susan!!!Approximately $200 million of debt affected
Toronto, December 05, 2012 -- Moody's Investors Service downgraded Lone Pine Resources Inc.'s (Lone Pine) Corporate Family Rating (CFR) and Probability of Default Rating (PDR) to Caa1 from B3. The Caa2 rating on Lone Pine's senior unsecured notes was affirmed. The Speculative Grade Liquidity was changed to SGL-4 from SGL-3 and the rating outlook was changed to negative from stable.
Stop inducing distorted facts and panic into this forum koolmart. Read the documentation provided on LPR's site. The 82 million dollar asset deal will be closing today and all of that will be going towards paying down debt. Their credit rating isn't going anywhere but back up after the deal. In addition they already have an asset assessment in hand to then sell Narrawy/Ojay holding with proven reserves in the trillions of cubic feet. Credit Suisse estimates that sell will fetch a share price of approx. $2.4/sh.
My advice to Susan is too hold long and strong. 2013 will be a great year putting LPR into the black. When Forest Oil spun them off they gave them a ton of debt and they have consistently whittled away at that debt in a very responsible way. This company is far from going broke. I'm siding with the institutional investors on this one. They have been buying in at millions of shares at these levels. There will be a January effect, future assets sales, a potential JV or even asset sale at EVI. EVI waterflooding is going to increase oil production and that has and continues to be their plan going forward. There is a reason Wells Fargo has a NAV of upwards of 7 dollars on this company. Their entire company could even be put up for sale as early as October of Next year. Which should fetch a VERY handsome price even if mgmt. did nothing all of next year. Far from going BK and a very far cry from going to zero! There will be a rebound as early as next quarter in the New Year! Next week will be better once deal is closed. Increased oil production numbers for this quarter will be a boon and NG and Oil prices have been consistently climbing.