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Member Since: Wed, 1st Apr 2015

Number of Share Chat Posts (all time): 554
Number of Share Chat Posts (last 30 days): 18

Last Posted: Wed 13:29

Post Distribution over the last 30 days

Wed 13:29

Reading RCF's investment considerations, it makes sense for them to be selling up imo, particularly now the Omanis are here.

I get your point about Global X - it could exaggerate sp movements and overly expose the sp to the vagaries of the U market, but still think it's good news Global X are interested in BKY and buying. I'd be more worried if they weren't.
Wed 10:52

It may because RCF are selling up, banking profits. Fair play to them, BKY perhaps no longer fits their investment profile, now we're stable, mature, and fully funded with strategic investor in place, and heading towards being a boring massively lucrative producer. Both RNSs are good news imo, as we say goodbye with thanks to private equity, and watch Global X stake building.

Are we going to get an exploration results RNS soon do we think? Nice stocking filler please!
Wed 10:08

It's good to hear there's increasing focus on Haggan, it's a 5-7 year proposition so time is of the essence, but I'm not sure we can expect the sp to move much on today's news. If this goes ahead, we'll need details of the listings, management team, identity of and terms of deal with any strategic investors, sale price of any interest sold (which as you say will indicate valuation), and proposed asset development programme. Existing Aura investors may be in two minds about the merits of diluting Aura's control and interest in Haggan in this way at this early stage, and indeed going forward.
Mon 14:38

Tease away MTSparky!

Actually £5m seems realistic to me, given the TEPN figs we know about, production increases from sanctioned capex due to kick in next year, and Dutch gas futures trending up.

The SQZ comparison is also useful for a number of reasons imo, and one other point occurring is the management. Mitch Flegg comes back to Serica with the recent Circle albatross, which may hold the SP back (even though it's doing pretty well!) No such issue with Andrew Cochran. It's obvious, but worth saying a strong management team with a sound reputation will make a real difference to the sp in the big league where HNL are headed.
5 Dec '17

So I THINK this means HNL legally take over on 1/1/17, but in practice we step into the sellers' shoes at completion, the assets having been running as normal throughout the completion period. Profits accrue to the sellers up to completion, and to HNL after completion subject to a few contingencies. So no cash passes to HNL, but the assets, the deal and the funding arrangements are so amazing a few million euros cash would have been a sideshow anyway.
5 Dec '17

I think I'm with Olderandwiser on this one. If only because otherwise you'd have the implausible situation where Tullow had contracted to sell the DCS assets, but were still obliged to run them up to completion purely for HNL's benefit at no cost to HNL I don't recall the RNSs saying actually what happens in this contract period though.
Where's that lawyer?!
4 Dec '17

I've found that some punctuation like ( ) and " " turns into � signs when you cut and paste text into here.

Whether this share will ever do anything depends a lot on whether or not the nuclear sector revives imo.

It's either a slowburner or a turkey, but too early to say which imo.
4 Dec '17

Not sure, but we're paying enterprise value subject to adjustments and contingencies.

Does anyone know how TEPN profits after 1/1/17 are being treated within the deal? I didn't think these profits were accruing to HNL pre-completion, but would need to re-read the RNSs in detail. Is MTSparky right that they have been accruing to HNL? It's a significant sum.
4 Dec '17

It won't be that much will it? Gross profit (ebitda) from the TEPN assets in H1 2017 was 5.59m Euros, and we're not buying any significant pre-existing cash balance.

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