Caza Oil & Gas Share Discussion Threads

[pavey ark] 13/8/2015 08:24

Plenty to take in.
Certainly generating cash albeit greatly helped from swap gains but then again the management knew that if prices stayed low this money would come in and obviously factored this into their decision making.
I have been prattling on about the Wolfcamp plays for weeks now so very pleased to see that getting a big plug.

The financing statement looks good with the usual caveat that if you say that something is at the "advanced negotiations " stage you must also say that it may not happen.
That being said the recent price fall couldn't have helped Caza's case and I have always been of the mind that MF is trying for a big deal that will see them through to the end (sale ?) at a good interest rate.
Although the Apollo deal is always in the background I think this finance deal is much bigger than just allowing Caza to overcome the covenant breach in the Apollo agreement so if things remain tough and a satisfactory large deal can't be struck on advantageous terms perhaps plan B could be based on a lesser deal and wait this situation out.

Just a little ramble: second coffee time and a look at such joys as differential,netbacks, operation costs etc.

[buywell3] 13/8/2015 08:07

China devalues for a 3rd day

10% now being forecast

I think that will be the case by this xmas

Another 10% to follow next year

Many cash strapped OILIES will go bust

[lord gnome] 13/8/2015 08:04

Something for both the bulls and the bears to feast on in that statement. I wish to accentuate the positive, however. This statement on the refinancing gives hope:

'In this regard, the Company and its advisers have been actively considering all available financing options. Management has recently narrowed its focus and is currently in advanced negotiations with a proposed financing partner to establish a funding structure. However, given the current level of conditionality and the current pricing environment, there is no certainty that any such refinancing will be concluded on acceptable terms.'

[sleveen] 13/8/2015 08:03

The above was in a period when oil bounced to circa $58 and netbacks were $29.5, oil is now back to circa $43 which means netbacks will be circa $20 (based on the info provided for Q1) for Q3.

The interest payments are eye watering using most of the cash generated, derivatives losses are equivalent to gains.

Without the Yorkville CAZA would have been in a negative cash position

[sleveen] 13/8/2015 07:49

And also:

Caza had a cash and cash equivalents balance of US$2,438,024 as of June 30, 2015 compared to US$6,046,098 at March 31, 2015.

The Company has drawn an aggregate of US$45MM from the Note Purchase Agreement with Apollo Investment Corporation, an investment fund managed by Apollo Investment Management.


Consistent with Management's previously-stated strategy, our near term objective is to conclude a financing or a complete refinancing structure that will enable the Company to retire the Apollo and Yorkville facilities and provide sufficient additional capital to continue developing our Bone Spring assets...

... the Company and its advisers have been actively considering all available financing options. Management has recently narrowed its focus and is currently in advanced negotiations with a proposed financing partner to establish a funding structure. However, given the current level of conditionality and the current pricing environment, there is no certainty that any such refinancing will be concluded on acceptable terms.

[bobsidian] 13/8/2015 07:20

"Due to current economic conditions and prices, compliance with financial covenants is highly dependent on realized oil pricing. The Company is currently not in compliance with all financial covenants. The Company is proactive in managing debt levels and is seeking financial alternatives to be able to be compliant with its financial covenants. Although the Company has received a waiver of such non-compliance until September 30, 2015, sustained low WTI prices could cause the Company to not be in compliance with all financial covenants through all of 2015 and there can be no assurance that further waivers will be available. The Company's ability to continue as a going concern is dependent upon its ability to raise capital, restructure its debt, maintain positive cash flow and / or the continued support of its lenders. There is no certainty that such events will occur and that sources of financing will be obtained on terms acceptable to management. These material uncertainties cast significant doubt about the Company's ability to continue as a going concern."

"In February 2015, the Company and Apollo executed a Third Amendment to the Note Purchase Agreement that provides a waiver of the financial covenants until September 30, 2015. As a result the Company has reclassified the outstanding balance owing as a current liability at June 30, 2015 and December 31, 2014."

"If the Company is unsuccessful in raising additional capital, the Company may have to sell or farm out certain properties. If the Company cannot sell or farm out certain properties, it will be unable to participate with joint interest partners and may forfeit rights to some of its properties."

Given what has happened to the oil price since 30 June and given the nature of the above uncertainties it will be interesting to see what happens to the share price during the course of today.

[suetballs] 13/8/2015 07:15

Trading update - lot's of if's and but's however some crumbs of comfort.
Suet

[miguelh21] 11/8/2015 19:27

6 year low in WTI to hit. $35 dollars next

[cashandcard] 11/8/2015 09:30

hxxp://uk.businessinsider.com/the-new-structure-of-the-oil-market-2015-8?r=US&IR=T

[colcard] 11/8/2015 09:11

Just cant understand why it hasn,t happened already i.e as soon as the saudis started playing with the oil price!

[pavey ark] 11/8/2015 08:24

Here I am at the country estate and about to head for the hills (fells) but rather disappointed that there has been no comment on the US oil export ban.
The last I heard was that the US oil export ban could be lifted "as soon as the year end" or H1 2016 but it now looks that there is a real chance that this ban could be lifted in September.
Given that the ban removal would/could add several dollar to the price received by US oil producers AND remove/reduce the wellhead differential I would have thought that someone here would have mentioned it.

[lord gnome] 10/8/2015 10:16

Then again, PA. It could have been their selling that pushed the share price over the edge.

[pavey ark] 10/8/2015 08:02

Couldn't help but notice the claim that the Junior Oil Trust had sold out of Caza.If this is based on their monthly list of top holdings it should be pointed out that this list is constructed from market cap and value of the holding to the trust. Caza's steep share price decline,especially from November 2014 would push them down the list and out of the top holdings without the trust selling.

[gkp heros] 09/8/2015 19:20

Junior oils started selling from June 2014, and kept reducing until February 2015 when they have completely sold out. They had 13.3% of their portfolio in CAZA now they hold zero stock. The junior oil portfolio made good money on the caza shares

[buywell3] 09/8/2015 10:10

The chart indicates something here is broken

See my previous post for possible fix

[gkp heros] 09/8/2015 10:06

I've fully exited here and advised my mates that are left to. To dangerous now something is better than nothing as I am making over at JLP

[daz181] 09/8/2015 06:39

JOT

hxxp://www.junioroils.com/wp-content/uploads/Junior_Oils_FactSheet_201506_update.pdf

Sold out of caza

[buffythebuffoon] 08/8/2015 15:31

Sadly I didn't.....

Buffy

[fiaz1983] 08/8/2015 12:58

The Permian basin seems to have popularity then. I would therefore favour caza’s intentions to do a stock split and subsequently do an offering. How much they would raise I don’t know but if they register on a reputable exchange they could potentially attract the attention of bigger credentials.
I would hope that after this offering the funds are to such an extent that all debts can be paid and some money left in the kitty for further E&P.
Are my hopes too much?

[pavey ark] 08/8/2015 08:21

labond1, just beat me to it.
On DT's suggestion I looked at the Seekingalpha site and there are many recent articles on the oil companies, OXY,Concho etc all singing the praises of the Permian Basin and putting their money where their mouth is by spending a very large part of their current (and future) Cap. ex. in the Permian.

I don't think anything like the proper attention has been given to the stacked play potential here.
Caza management (not known for their OTT statements) have repeatedly pointed out the advantages and recently said that people should think of Caza's acreage as 30000 acres rather than 5000 acres due to the number of stacked plays.

A further point: when Caza and their partners started drilling at MRE they put in a gas line collection extension, roadway etc and I expect these costs were out against the first well.(they would certainly have to be paid up front)

I notice that Caza intend to put in very large well pads in future wells in MRE.
These well pads are again an up front cost but even after Caza drills the first few wells on the lease they will have all the roads,pads,oil and gas connections all set up and paid for with 20 odd wells available to drill.

An increasing number of wolfcamp wells are now being drilled in the New Mexico Permian and that certainly has not been factored in.

Caza is getting into the Wolfcamp with 7000ft long lateral wolfcamp wells planned at Forehand.
(I'm only looking at the plans/potential here but certainly aware that much has to be done on the financial side,some distance from the wells head.)

[labond1] 08/8/2015 07:22

Extract re Permain from yesterdays Oilprice article.....

"The Permian Basin in West Texas remains one of the few bright spots compared to other shale basins in North America. Drilling there is still profitable, with low costs and existing infrastructure. A series of pipelines have come online in West Texas over the past year, eliminating the discount that Permian oil traded at compared to the WTI benchmark. The Wall Street Journal notes that RSP Permian (NYSE: RSPP), a Permian driller, successfully sold new equity, a sign that investors are still keen on drillers in the basin. RSP sought to raise funds to complete acquisitions and the company raised $157.5 million by selling new stock this week. There is a lot of speculation about when and to what extent lenders and equity investors will pull out of the shale sector, but RSP’s successful offering demonstrates that there is still an appetite for shale companies among investors.

Just in case you need some more evidence that the Permian is the place to be, ExxonMobil (NYSE: XOM) just announced the finalization of two deals to increase its exposure to the Permian. The deals include a farm-in agreement and an acquisition of acreage adjacent to positions held by XTO Energy (a subsidiary of Exxon) in Martin and Midland Counties. The two deals give the oil major the rights to 48,000 acres in the Permian. “The recent emergence of strong Lower Spraberry results, combined with the established Wolfcamp intervals, demonstrates the significant potential of the stacked pays in the Midland Basin core,” XTO’s President said in a statement."

full article....