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https://www.parkmeadgroup.com/uploaded/research/FinnCap_Research_06072022.pdf
Skerryvore already have partners and the drill is not exploration it's an appraisal well
GPA was always going to be developed with farm ins and collaboration and its drill ready !
PMG has zero chance of securing Debt finance for a drill.
Even Perth is a high risk development and debt finance is very unlikely unless the project is derisked by farming out a large percentage.
It works the same way as Cross secured finance for Dana
Boris has even spoken out encouraging banks to lend to oil and gas companies !
It appears Parkmead have the best of both worlds.....
News can't be far away on Shells Edinburgh exploration well let's hope it's a giant which would give Skerryvore a increased chance for a tie in
Using loans to generate cash?
How does that work then SotB?
I have no issue with placing to fund development, but would much prefer a farm out to share the risk.
If we get a placing it's not to the keep the lights turned on, it's to get the jackpot..
Bing it on Tom...
The company is making money
That all that matters, the ducks are been lined up for GPA or Skerryvore
Cross specified he would be maximising share holder value by using loans to generate cash.
Certainly never used the word placing at the 2021 AGM
I for one would be very happy with a placing if it is a catalyst to major development.
Look at #TTF 177Euro Parkmead producing and 100% unhedged with two Dutch drills planned early Q4 2022. £30 mil cash in bank £8 mil land and operating windfarm 8th biggest pre-FID Nsea project Mcap £45mil. Plus Skerryvore (157 million barrels) and Daavar West of Shetland! https://tradingeconomics.com/commodity/eu-n
I might have been a bit over zealous with my estimations for 2 land wells but as others have said, it’s not new news and I would be happy to bail once B/E after all this years!!
I’m suggesting a placing to strengthen his hand in the development of the main assets. He needs to get something big moving. At the moment a drill at skerryvore could wipe out the cash pile.
If he truly has a master plan then I suspect cash will be needed.
Oil major
Can you tell me where you are getting your figures from. £15-18 million for a land rig is very incorrect in fact laughable.
15% of costs for drill yes
Today's RNS is positive, but apart from confirming the 2- gas well campaign in early Q4 didn't add anything that regular posters didn't know. Robs12 has been very kind (thank you Robs12) with his posting of the production data, so we knew where PMG was. The cash balance should now be above £30M, and with a bit of luck another £10M will be added to it in H2.
Now as far as the upcoming 'LDS' two-well campaign in the Netherlands, since PMG's WI is small, finccap estimates total net cost at €1.5M. So, no need to raise cash.
Nevertheless, T Cross really needs to get his act together and either farm out the GPA licence or get going with Skerryvore (WI of 30%) asap, . The lack of a deal over a period of 10 years is unexplainable.
Oikmajor,
Could see more pain tomorrow then if you think we don't have the cash to support getting the next gas well up and running,
After today it's possible we could see more volatility..
Hope it holds out a bit longer so I can gather more funds to put on lower ha ha
If only PMG owed 100 percent of the gas produced....
I would agree, a gas well costing £15 - £18m x 2 = need cash from somewhere, hmmm…
Spin n piffle me thinks to get rinsed again!!
Put it this way, in another six months, at this rate, the amount of cash will be almost equal the current market cap, so all oil and gas assets, plus reneweable will be valued at nil. Clearly, for anyone who likes free money, now would be good time to buy. Obviously do at your own risk, the oil and gas assests could get hit by a meteor and be worth nothing, or an earthquake destroys the windfarms, but I must be a fool or a genius to be fully loaded in this, otherwise I would be buying more.
Parkmead said it was "well-capitalised", with cash balances totalling $32.2m (£24.1m) at period-end, equivalent to 22.1p per share.
Add 50% for today's expected 15mill
I work that roughly to be in area of arround 33p share price on cash alone,
And were at 43p...
How much is Skerryvore worth again,
Surly more than 10p ha ha
Why place lots cash, have say, slightly disappointed with today's reaction too news all no as u say was expected news.
Yeah,I expected it to hold above 50p today....
Still, great RNS,we know where we're at, hopefully another couple of bits of news and we will be finally on our way....
Goes up 25 percent than ends up 2 percent up on close. Bit sad really. At least the high volumes would have flushed out some sellers. The day will come hopefully...
Looking back just over 2 months the price hit 62p. No reason why the price can't get back up there in a few weeks. Its true that this share goes up and down, in fact within a long term symmetrical triangle i.e higher lows and lower highs, but eventually a breakout will occur. I had thought about trading this, and its possible depending on your cash needs, but as that triangle nears its apex, the risk of missing out increases significantly. In this period of high energy prices, that GPA farmout is beckoning... and when it happens, todays low price will be history.
Good luck to all fellow V.LTHs! Hopefully TC makes use of this cash before it becomes deflated.