Question-and-Answer Session
Operator
(Operator instructions) Our first question comes from the line of Robert Chesman [ph].
Robert Chesman
Well, how are you today?
Paul Ching
I am fine, Robert, and how do you find yourself?
Robert Chesman
Pretty good, pretty good. It’s pretty nice in Boca Raton these days. I want to compliment you and your team on the expense side of the equation. I am very pleased to see that, but I have a question for you relative to the debt covenants and the credit facility. If we are so fortunate enough to reach some kind of conclusion by the end of next week, can you give us some idea what that would mean in regards to drilling and what one could anticipate what funds would be allocated to that? That’s the first question. Second question is, what one anticipate in the next two quarters relative to your comment that the expenses are still going to be heading down as to how that would impact someone like myself who would run a model on your company?
Paul Ching
Thank you, Robert for those questions. Those are very good questions. Your first question was how and signing the forbearance agreement? How will that open us up to continue to do things? Well, one of the things, I will have to begin to amortize debt and what it does though is it opens us up to allow us to continue to pursue our options that we have for repayment and the future of the company. And those options are that we have before us of course, as my fiduciary to everyone in the company including the shareholders is to look at our potential sales of strategic and non- strategic assets, and getting capital infused from other sources.
Robert Chesman
May I interrupt you and just ask you something in regards to that? It was my understanding and that’s what the company has been doing all along through the last three or four month process, exploring those alternatives. Is there anything that you can shed light on in that respect?
Paul Ching
Robert, we have found ourselves in a position and probably one of the worst credit markets, the worst financial markets in capital markets history, and that has made it difficult. We have – we have danced with quite a few people to try and come to solutions and there is always – it always comes down to issues around financing and so we’ve not been able to – we don’t have anything in front of us that we can announce. We are working a number of things that could come about. We are not, as you can read, from all of this from a standpoint of the cash availability to pay down our borrowing deficiency, we are not in a very good position to lay out a strong deal, but we have good assets and we continue to try and bring what I believe is value to the shareholders and creditors and everybody else. I can’t give you specifics, all I can tell you is that we are working a number of issues to – in some manner bring this company down to the next path which allows us to be able to continue to drill, to convert our non-producing assets to producing assets and to continue the company in some way. But I can’t – I just can’t give any details at this time, but we are working it very hard. I know Robert that’s not you would like to hear that we are doing such and such and such, but I can not release any kind of details or anything that–
- To read the full transcript on Seeking Alpha, click here »
