"The net proceeds from our $24 million debenture financing (expected to close in the next few days), will leave us with a healthy balance sheet. It will also provide sufficient capital to fund our 2009 capital expenditure plans, including bringing on production from the last ten of our 68 wells and upgrading the battery to reduce operating costs", said Peter Pelensky, CEO of Bronco.

As I understand debentures, they are raising this $24M against total assets of $168,039,955. They are not currently earning, so will be unable to service the debt unless there are serious price increases. I do not do 'Oil' but my gut feeling is that they are gambling. How professional are they with their web site a shambles?

Recent increases in the WTI forward curve along with improving heavy oil differentials, have had a positive impact on our realized commodity prices. Management remains optimistic that anticipated improvements in production volumes, heavy oil prices and newly introduced cost control and marketing initiatives will result in positive operating netbacks by the end of Q2 2009.

I think that they have answered you question. I hope that your friend knows something that I do not. Clavis

First Quarter 2009 Financial Results