Exactly. I think that BPZ's production is going to be a lot higher a year from now than it is today - thank to PR. BPZ mgt can take a long coffee break at this point and production is still going to be ramping up.
Bull market, more capital, management and higher investor confidence. Also rules changed so that govt regs were relaxed. Also they are building a reputation so more companies come to them.
I'm a recent investor with an average costs of just over $2, so I can't speak to their 10 year record - although agree with you it's mediocre. Block z-1 is where they are actually doing production drilling and Paicifc Rubiales is doing that. Yes, I suppose BPZ could screw up the exploratory drilling in the other blocks, but what happens with Pacific Rubiales over the next year is what counts for the stock price. Pacific Rubiales has a fantastic track record and I don't think they paid big bucks for a 49% interest to waste their time and money.
Pacific Rubiales is the operator for block Z-1. They are a leading driller and very successful company. Look at the filings. They bought a 49% interest and are also carrying some drilling costs for BPZ.
Yes, but still way behind the Obummer lie meter. Assuming the liar-in-chief has given 1,000 speeches since he took office and averaged about 100 lies a speech that would put President Pinocchio at around 100,000. I'd support adding Obummer to Mt. Rushmore as long as he was carved with a 200 foot nose.
Yes of course Apollo can issue waivers. They collect their fees and allow Mill to do what's in the best interest of Mill and Apollo. Of course they don't need a waiver to issue more pref-d stock.
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That's a somewhat meaningless stat since the bulk of their exposure is from direct loans to PR agencies. DRL also has major indirect exposure to munis which influence the overall PR economy. If a PR muni default was likely it would be time to get out of dodge.
Fortunately a default is not likely. Munis are trading off their lows. Many of the recent hit pieces (forbes and Barrons especially) are misleading. They typically compare PR debt to state debt level. This is just wrong since PR residents don't pay federal taxes. To compare state debt to PR debt you need to add-in the 54k per capita in Federal debt for non-Puerto Rican US residents..
They might be able to borrow at a low rate on a secured real estate loan. Preferred stock is a very different thing. It's equity capital, it's unsecured and the company can defer dividends at well. Investors want a higher rate for that.
Apollo tier II will be refinanced before the rate reverts in Jan. It was essentially a bridge loan. If that's your thesis for shorting, you might want to find another one.
Also Mill has cash flow ramping up due to higher production including Sword. Hope you have some calls as a hedge in case they announce higher reserve #'s, refinancing of Apollo tier II & financing for the acquisition,, closing of the accretive acquisition, production increases at RU5 and new well results. Took some profits on the run from 6 (picked up many shares there) to current levels, but I don't think shorts understand the fire they are playing with.
Rechecked and they do have non-operated wells. Guess all the cash they are getting from those wells is no good - LOL.
Pacific Rubiales is already doing the drilling. Not too much left for BPZ to screw up. They may surprise us and find a partner for other leases as well.
Sorry, meant Q4 report. Think Haoleboy has the timing right that something happens in Q1. Investment bankers must already be on speed dial.
I agree that they should issue more well updates. The drilling with Pacific Rubiales is off to a decent start though:
The CX15-1D well is being evaluated with one of four intervals open during the last 10 days, and gross production of approximately 500 bopd over the last 24 hour
Many Liberals like Foulger and Obummer seem to think "truth" is any propaganda that they can get people to believe. Someone should setup an Obummer Lie Counter. Put it next to the debt clock and watch both continue to spin higher.