Devon Shire's  Instablog

ATP presentation slides on their website today for a presentation tomorrow. Have a look at page 12. Monetization tranche debt at the end of Jan $146mil vs $161mil. That means that the $155mil that they received for the Gomez sale didn't have to have 75% of it go to debt repayment.

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzcwOTIyfENoaWxkSUQ9MzY3ODIxfFR5cGU9MQ==&t=1

If you go to page 32 of the credit suisse presentation that they did it shows that they had $119mil cash at Dec 31, 2009.

http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MzY3NzA2fENoaWxkSUQ9MzYzMjI5fFR5cGU9MQ==&t=1

So that means that they had $119mil plus likely $140mil from the Gomez sale of available liquidity for Q1. And cash available pre Titan sale and pre Telemark production increase (which is about to happen) was one last concern for me.

Also positive on the liquidity front is that the Atwater 63 well was drilled using the NPI program.

All adds up to much better cash position than I expected.   It's been a long wait, but I believe this share price is about to move much, much higher.

In presentation slides on the company website.  10,700 BOE per day was the rate of the flow test.  It was 87% oil.

Keep in mind this is a company that produced 13,600 BOE per day in Q4 09.

They will exit Q1 2010 having added this well 10,700, plus the Gomez well 4,600 and 3 Canyon Express wells 3,500.

That means Q1 exit rate is going to be 32,400 per day vs the Q4 09 exit rate of 13,600.  2.3x higher.  In other words a totally different company leaving the quarter than the one that came into it.

More good news should be on the way.  The first Mirage well will be added in April/May and given that they found 3 times the pay sands that they had modelled 5,000 BOE production from it could also be a big one.

Then more wells coming in the year make for 60,000 BOE per day for total production in late 2010 or early 2011.  What a dramatic increase from the 13,600 they entered the year with.

Oh, and the Titan monetization which will radically change the balance sheet is also still expected in the next month or two.

All in all.  Great news.

Looks like ATP will release well results in the presentation slides for Enercom on their website in the morning tomorrow.

Here is the press release.

http://phx.corporate-ir.net/phoenix.zhtml?c=123846&p=irol-newsArticle&ID=1391396&highlight=