Daybreak Oil and Gas Inc (DBRM)

[alsobirdman]

I have not dug out the filings yet to refresh my memory which I will do, but as you recall, App is paying a premium in order to borrow money from Daybreak for the drilling. Daybreak borrows from Max, lends it to App and pockets a profit from that deal. When Daybreak renegotiated the loan terms back in August, there was no reduction in the amount App is paying us. That means a couple things; we are making more money on the interest from App, and it also may increase the likelihood that App can't make the payments.

As Mavy says, I'm not sure if taking over 100% would make JW happy or not. On the surface it seems like a good thing, but only if cost of production is significantly lower than the price they are getting.

Interesting times for sure. I'm betting on JW. He's a sharp oil man and knows what he is doing.