NSE 0.00% 0.4¢ new standard energy limited

You think. If I were a shareholder I be asking some direct...

  1. 10,693 Posts.
    lightbulb Created with Sketch. 3482
    You think. If I were a shareholder I be asking some direct questions.

    Earlier this morning in replying to Anatol I wrote
    "The lender not be stupid requires hedging. But how much. On the premise that shale wells in development mode payback the D&C capital in 18mths +/- 12 months we see lots of companies hedging around 75% of FTM production"

    Plus the hedging requirement was in the debt announcement, Looks to me like Credit Suisse (the lender and possibly the counterparty of the hedge) thinks $78 for 80% of all production from next 2 years is what they need for NSE to pay 2 1/2 yrs interest and principal repayments ($9M or has more been drawn)? Would that be about $12M

    That leaves a couple of open questions you might wish to take up with Mr Thick.

    a. What was the cost (maybe it is a deferred cost) of purchasing those puts - my guess is they were purchased at end of Oct 2014 and it would be useful to know how they are spread over the 2 years.

    b. References 80% of expected forward production but then in the very next paragraph says 80% of current production. If indeed they are the same number does that not imply that NSE is not going to grow production but merely only replace declines from existing wells.

    c. Exactly how many Bbbls are hedged? I would think that's real important for shareholders to know. Is it 200MBO over 2 years, 400MBO over 2 years....

    Better to be hedged than not.
 
watchlist Created with Sketch. Add NSE (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.