SandRidge Energy Inc. (OTCMKTS:SDOCQ) emerges from its reshuffle with a debt-light capital arrangement. In essence, the first lien credit deal is the major class of claims to come out from the reorganization with reasonably minor impairments.

The highlights 

Despite the anticipated massive debt write-off and interest through the Chapter 11, the revamp will not resolve company’s strategic issues. Having made a big bet on the Mississippian plan, investing borrowed dollars at an immediate pace, SandRidge Energy ended up in a state where it effectively does not reflect an asset platform to continue as a development firm in the existing commodity price environment.

SandRidge’s oil production in mid-continent continues to drop at a rapid pace despite outspending. In fact, vast downward revisions of verified oil reserves have turned into an almost yearly occurrence, increasing concerns that the wells keep on underperforming the firm’s indicated type curves.

The details

SandRidge’s corporate level proceeds on new capital invested are not at par with the well-level return projections shown in investor presentations. The seismicity resulting from water disposal indicates potential liability for the firm and needs to be considered into economic assessments. The company’s recent measure to move away from the Mississippian play by buying a large prospect in Colorado remains an unsure bet.

It is still in early assessment phase and it is not the best time to have confidence pertaining to its commerciality. Given the firm’s poor operational performance, the fact that this capital-intensive measure may end up without success cannot be ignored at this point.

Later SandRidge may have problem retaining a credible technical team and new senior management to help control the continuing value degradation, provided that the firm does not have a viable asset base for the team. With no radical movement from the capital allocation measures, there is an increased risk that SandRidge will again burn its cash pile.

Pluristem Therapeutics Inc. (NASDAQ:PSTI) Gets FDA Approval For Phase III trial of PLX-PAD in Critical Limb Ischemia

Pluristem Therapeutics Inc. (NASDAQ:PSTI) has moved a step closer to flexing its muscle in the $12 billion a year critical limb ischemia market. The FDA has reportedly issued a positive feedback on the proposed Phase III trial on the use of PLX-PAD cells to treat the unmet medical condition.

The company can now move forward and carry out the Phase III trial as part of a randomized placebo-controlled trial in 250 patients. Enrolments will be carried out both in the US and Europe. The primary endpoint of the trial will be amputation as well as death (amputation-free survival)

Critical Limb Ischemia is a medical condition synonymous with fatty deposits blocking arteries in the leg which most of the time leads to reduced blood flow causing uncomfortable pain at rest.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg,,, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.