Thanks BVE. I've been going over the 2nd Qtr financials, dated 8/14/14, found some interesting things:
!(Warrant divy for present shareholders)
!(2.4 million bb oil sold 1st half 2014)
!(appraised amount(equity value) of the restructured company of US$1.5 billion
2. Restructuring of debts: In addition to obtaining new funds, it is essential that the Company restructures debt incurred with its general creditors, as well as with post- petition creditors who expressly adhere to the Plan.
The DIP Financing, after certain conditions precedent are fulfilled, will be convertible into shares issued by OGX Petróleo e Gás S.A. which will represent, provided that all stages of the Court-Supervised Reorganization Plan are fully implemented, 65% of the total capital stock of the restructured company. After the conversion of the DIP Financing, OGpar’s creditors will be holders of shares representing 25% of the total capital stock of the restructured company.The Company’s current shareholders, after the dilution resulting from the conversion of the credits into capital, including the DIP Financing, will remain holders of shares representing, in the aggregate, 10% of the total capital stock of the restructured company. Additionally, the current shareholders will receive subscription warrants of the restructured company with the following main conditions: (i) exercise term of 5 years; and (ii) number of common shares to be subscribed representing, in the aggregate, fifteen percent (15%) of the total capital stock of the restructured company, considering an issue price based on the appraised amount (equity value) of the restructured company of US$1.5 billion.
The restructuring of debts will be effected, provided that certain conditions precedent are fulfilled, by means of conversion of the claims into OGX Petróleo e Gás S.A. capital stock, while the unsecured creditors that wish so may receive the amount of up to R$30,000.00 cash, and the remainder of the claims will be converted into capital stock under the terms and conditions set forth in the Plan.
In the first half of 2014, the Company’s net income came to R$516 million, versus losses of R$5.5 million in the same period last year, primarily due to: (i) a production portfolio that is currently focused on the Tubarão Martelo field, which ended the quarter with two producing wells and generated EBITDA of R$141 million; (ii) resumption, in February 2014, of production in the Tubarão Azul field, which contributed with an EBITDA of R$32 million; (iii) gains on foreign exchange variation, especially unrealized, of R$760 million; and (iv) the 43% reduction in general and administrative expenses, with a leaner headcount that is in line with the Company’s needs and a cost reduction program which includes moving to a new office and the renegotiation of agreements with service providers. These impacts were partially offset by: (v) restructuring costs totaling R$52 million; (vi) the constitution of a provision for inventory losses of R$155 million; (vii) the constitution of a provision for contingencies of R$54 million, due to the enforcement, by the ANH, of bank guarantees of the exploratory program of the Cesar Rancheria Basin in Colombia; and (viii) income taxes payable, totaling R$145 million, which were offset with tax losses.
Sales revenues The sales carried out by the Company over the course of the First Half of 2014 totaled R$ 513 million, corresponding to the sale of 2.4 million barrels of oil.
Tubarão Azul Tubarão Martelo T O T AL
127,324 386,468 5 1 3 , 7 9 2
605 1,788 2 , 3 9 3
R$/bbls US$ / bbls *
211 96 216 98
????(*) Translated into Brazilian Reais (R$) at the closing exchange rate for the 2nd Quarter (US$ 1.00 = R$ 2.2025).