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Spread is 25% above , now cheaper then I paid 9th May 2022.
After today's RNS.
Bowleven PLC, down 41% at 1.78p, 12-month range 2.5p-6.5p. The Africa-focused oil and gas firm warns of a "significant risk" that its current cash and liquid financial reserves may be fully utilised during 2023. "As was alluded to during our 2021 review, the board will continue to consider its options and engage with various prospective providers of capital, on terms that it deems to be beneficial for existing shareholders," it says. Bowleven says it is most likely that additional equity or debt financing will need to be raised next year. Also reports a widened pretax loss of USD2.5 million in the year to June 30, from USD1.98 million a year before. No revenue is recorded in either year.
fair enough Algu.. $50m would be a decent to good result, at this stage, in my mind.. $40 m ish would be my guess.. and the board accepting/recommending other shareholders ditto such a lowly offer .. as they're hedge fund guys owning(in decent part at least) and running an Oil Explorer.. and may well be open to walking away from what has, in the round, been a nightmare for them for any half decent amount now..
Don’t forget that this is owned by a hedge fund, so they will be making money of this trading up and down.
With gas prices at an all time high it’s complete ineptitude that this is still not making any money!
Good points NM. This feels like it was already priced for failure, but as you say there are still some factors weighing on the SP.
I had also wondered whether Perenco would take BLVN out given their poor financial position. I wonder what it would take to do this. Aside from the $25m FID sum due to BLVN (that would presumably be factored into a takeover amount) an overall sum of say $50m would be peanuts for Perenco whereas for BLVN would still dwarfs the market cap of £7m today and would take the SP into double figures.
That's why a few months ago i was interested what Perenco are paying New Age for their share of the project, as this would give some indication of what BLVN's share is worth.
I'm with Algu here.. I thought a likely need for additional funding raised 'in due course' by whatever means possible was priced in at the very lowly 3p ish .. but it's an illiquid stock and any volume of selling can sink it further again readily.. and the spread is a mare here too ... but to me this mornings fall feels overdone.. and so I topped up a little just over 2p ..
Still, good point on mention of 'hybrid debt instruments' as one of the options might spook some Nomlungu
Generally, a brutal squared journey in this share granted, and, sadly, most long termers here are near dead now whatever, I expect...... but I still believe that, with more time again, this company might readily do ok or maybe even well in the end .. and so I remain long and strong on whats left of my bet here .. I'm 60% ish down here as I type.. ouch.... but a mid sized more than big bet for me, at least..
PS: there's got to be a chance that Perenco look to buy Bowleven out of their Etinde involvement completely soon enough , especially given Bowleven's weak financial position in 2023.. even if its for a average to poor price, that might readily be closer to 10p a share than 2p, I'd guess..
You may be right nomlungu, but tbh the risk of a financing before the FID funds arrive has always been on the cards. Anway let's hope Perenco get their act together.
ALGU,
This probably spooked the market: 'hybrid debt instruments' aka CLNs aka death spiral financing.
When a company needs to investigate such financing it it not normally a good sign and many superstitious investors will bail.
A year left of cash before BLVN runs out. It seems the catalyst will be Perenco deal finalising, and when that happens it will be much easier for BLVN to raise funds IMHO.
Currently -40% at time of writing, seems rather hefty drop considering nothing has changed except delays and still with a year till cash runs out. This was always a binery bet. Aside from the delays announced todays there's nothing particularly negative in the results. Bring on New Age making way for Perenco
A lot of funds managers and corporation hold this
Crown Ocean Capital P1, Ltd have 30% .
Maybe that why not much dealing .
Any real rise here today ?
My broker has +7% this site +1.2% the spread is 25%
These price monitoring RNS are always a mystery to me, as I do not see a change in the quoted bid offer spread or the actual prices reported on trades. Maybe they relate to it being in periodic auction call right now? Does anyone have any insight?
https://ecomatin.net/hydrocarbures-le-cameroun-veut-traiter-son-gaz-naturel-en-guinee-equatoriale2/
Having an established Cameroon oil & gas producer as a operator/partner with FSPO vessels in the area must have many advantages.
If I remember correctly one of the options was to use the LING Plant on Bioko Island but I don't think the Cameroon Government were to enthusiastic about it. I think at one stage Cameroon government held talks with the New Guinea government but I don't know what the outcome was.
If their was a disagreement then the fact that Perenco has its own infrastructure all within Cameroon must be a huge bonus with alterative and more cost effected options to consider.
We don't know what Perenco paid for the New Age stake but Oil & Gas prices being what the are I can't see them sitting on it for to long.
7
moving up. it’s got 8p in its sights, and higher on Perenco news.. just sayin
Perenco has exported its first barrel of oil from its recently acquired Chadian assets via the Chad-Cameroon pipeline.
https://www.energyvoice.com/oilandgas/africa/ep-africa/430699/chad-perenco-first-glencore/
Perenco has been operating in Central Africa since 1992, a region where our know-how in operating oil and gas fields and developing infrastructure is highly applicable.
https://www.rigzone.com/news/perenco_buys_glencore_oil_interests_in_chad-04-jul-2022-169375-article/
Been trying to buy all day with no luck with 212 mind
The only caveat I would like to add to the above post is that with volumes being so low it leaves the SP open to manipulation for a P & D, so hopefully any increase in Volumes and SP will be accompanied with news.
Present trading seems to indicate PI's doing the trading.
The next vote of confidence will be when the big boys join the party, which should be made apparent with a rise in volumes and SP.
bowleven likes its sleep.. and so is more of an afternoon stock..
...a few warmer upper buys coming in around now... and here's to a decent amount of buying this arbo..... 4.5p by close for eg would be nice..
Bit quiet today after yesterday can see no buys nor sells no comments is it still open for business lol
Agreed. As i like to mention on here from time to time, BLVN's share continues to be valued at virtually nothing, basically due to the delays and uncertainty around the project. But a few years ago, the other half of BLVN's share they didn't hold on to was farmed out for $200m, which using even the most rudimentary arbitrage is about 15x our market cap today. Perenco's move has now added some certainty back into the project, roll on a closing of that value gap...
it was a complete and utter farce this was 3p again very recently.. and it being 4p today is still a total farce.. this should easily be closer to 10p than 5p now imho.. Perenco are not getting involved here for fun.. they're deadly serious about progressing Etinde in quick order, imho.. so roll on FID and massive Bowleven re rate please..
Perenco would never have bought in if this was a dead duck. Hence, there must be some value to BLVN too. The key is getting that FID payment over the line. From there, the future looks quite rosy
moving on nothing, nooooo stock lol.. 8p here we come , higher on Perenco news. 4000 employees. 490,000 boep. 14 offshore subsidiaries.. yup it’s decent