LGO has provided an operational and financial update, which we view negatively. The Company reported 3Q15 production volumes of 896 bbl/d, which was well below our 2H15e production forecast. Our 2015e production forecast has decreased 26% to 1,024 bbl/d and our cash flow estimate has decreased to negative US$4 mm. LGO is financially constrained, which negatively impacts capital reinvestment in 2016e. As such, our 2016e production outlook decreases 43% to 890 bbl/d and our cash flow estimate d
04 Nov 2015
Reduced Production Outlook and Financing Risk Results in Strategic Investment Process
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Reduced Production Outlook and Financing Risk Results in Strategic Investment Process
Columbus Energy Resources (CERP:LON) | 0 0 0.0%
- Published:
04 Nov 2015 -
Author:
Darren B. Engels -
Pages:
5
LGO has provided an operational and financial update, which we view negatively. The Company reported 3Q15 production volumes of 896 bbl/d, which was well below our 2H15e production forecast. Our 2015e production forecast has decreased 26% to 1,024 bbl/d and our cash flow estimate has decreased to negative US$4 mm. LGO is financially constrained, which negatively impacts capital reinvestment in 2016e. As such, our 2016e production outlook decreases 43% to 890 bbl/d and our cash flow estimate d