Pacific reported 4Q15 results that were below expectations and year-end 2015 reserves decreased substantially due to negative technical revisions and economic factors. We value the Company’s 2P reserves at approximately C$2.5 billion, versus net debt at C$7.8 billion. Given that the debt far exceeds the value of the 2P reserves, and current interest payments are not being paid to preserve cash, Pacific is attempting to find a solution to recapitalize the Company. We reiterate our target price of ....
22 Mar 2016
Reports Disappointing Year-End Results, Recapitalization Required
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Reports Disappointing Year-End Results, Recapitalization Required
Pensana Plc (PRE:LON) | 23.4 -0.3 (-5.8%) | Mkt Cap: 66.7m
- Published:
22 Mar 2016 -
Author:
Darren B. Engels -
Pages:
9
Pacific reported 4Q15 results that were below expectations and year-end 2015 reserves decreased substantially due to negative technical revisions and economic factors. We value the Company’s 2P reserves at approximately C$2.5 billion, versus net debt at C$7.8 billion. Given that the debt far exceeds the value of the 2P reserves, and current interest payments are not being paid to preserve cash, Pacific is attempting to find a solution to recapitalize the Company. We reiterate our target price of ....