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Re: None

Monday, 06/15/2015 11:03:45 AM

Monday, June 15, 2015 11:03:45 AM

Post# of 509
Unsecured creditors will recover zero/secured 11% or less

I just had a chance to get a copy of the statement of financial affairs (document #65) and summary of schedules (document #66).

Interesting points from these documents:

1: Lawyer fees for the filing totaled $564K, and started as early as 03/18/2015.

2: Revenue for 2105, up to the filing date, was 9.4 million, annualized that would be $28 million. 2014 revenue was $60 million and 2013 revenue was $42 million. Even with more wells, revenue is way down (but we knew that anyways.)

3: Total assets are $21 million, total liabilities are $181 million.

4: There is not enough to pay off the secured creditors so the unsecured creditors are all going to get zero. The secured can only expect at best 11% (21/181) and will probably end up with less as the oil production declines and the lawyer fees continue to run.

5: The last trade I see for the bond was from 02/05/2015 at 39, which is way too high. I wouldn't even consider buying the bond unless they were selling at 6 or less. (cost $60 per $1,000 bond)

Louis J. Desy Jr.

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