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14.32 - thinking exactly the same thing!!! See where it settles but their reaction is a fair shout…it’s effectively a $20m realised balance sheet injection and when you look at that compared to the market cap it’s valuable…
13.17 - I hope and think there are receptors that could drive the price higher on good analysis but historically the market isn’t the best at reflecting that….but there again I think the market doesn’t reflect much accurately, too much contamination at the AIM level.
11:54 A producer almost certainly North Slope has purchased our tax credits to offset their tax liability almost could be seen as quid pro quo or perhaps a favour for a favour, how much we read into it I am unsure, at the least it's a POSITIVE. :-)
A large US company has paid the 18 million. ConocoPhillips is a US company I believe with a discovery that is next to us, oh we have another little oil field as well that is there. If this isn’t ConocoPhillips buying at least peregrine and umiat I don’t know what to say. Rodrod, could I say you agree? We spoke about ConocoPhillips before bud!
11:06 yes the important bit "the Company is now set to be debt free with reduced annual overheads of over US$1 million in associated finance costs" As you say sale would always have been to an oil producer able to offset against tax and at this point we should not over read the situation, I know that DW had got close before but probably with ANS at $70+ and tax liabilities increasing the producers feel more benefit. Just pleased it's off our shoulders.
10.50 - also a Freudian slip.. should have been bit of news....but maybe bot is about right ;-) Yes, an eclectic bunch no doubt.... This is a small piece of good news which has most benefit for on going cash burn as you say. also provides a nice financial transaction link to another bigger US producer. Still looking forward to the remainder of the analysis. Many say Alaska exploration is a few months of activity between periods of dormancy....thats certainly not my experience from the last 6 years...lots happen in the non-drill periods.
09.49 - It's amazing how a bot of news drives so many alternative views. I agree with what you have said. $400,000 reduction in total face value is an extremely good deal at its effectively less than 6 months interest (ie in 6 months time we will have already covered the very small discount in on going interest costs which won't be applicable) and thats ignoring the SOAs intended discount. As for the purchaser....I think people are missing out (not you I suspect) the fact that these are tax credits. Therefore when the RNS mentions that the purchaser has ongoing revenue generating operations in the US, that means they can use the tax credit to offset their tax liabilities created through their US revenue generating activities. This is the same as any offset such as carbon credits. If you don't need them they have value to others that do need them. The purchaser is not looking of an SOA payout (thats only if you are not making revenue therefore no liability to use the tax credit against), the purchaser is making US revenue that has a net liability and therefore they can apply the credit immediately.
I also agree this is a cash burn advantage over and above any 'clean 'balance sheet to attract purchasers play. Its obvious that $16m is unlikely to be of ay consequence to a purchaser if we are having any true valuation for the company (which I don't believe is the right time for that acton). $16m divided by the number of shares....its like a couple of hundreds of a AUD $ cent...or a couple of 10,000ths of an AUD $...its would make a jot of difference to a buy out valuation.
Dazzle, did he top up or did he get his performance rights as part of his leaving. I would assume he would still be classed as inside so doubt he will have bought in the open market. Of course maybe he did a deal with his buddy Erik Opstad, I can’t see ELKO’s 2.9% on the list, maybe an oversight but I thought him buying was meant to be really bullish. Strange both ELKO and APDC are not holding for results. Saying that even a polished turd could get this moving on the OTC.
08:18 correct, the original loan was secured against the tax credits and that continued when renegotiated with Brevet as detailed in the last Annual report. SOA would have continued to repay in a piecemeal fashion and even if the bond scheme had worked we would have taken a haircut (7-11% from memory) so this can only be good news as far as I can see, interest payments have been a significant part of our cash burn. https://clients3.weblink.com.au/pdf/88E/01965134.pdf
Hi Dazzle 1k, with reference to Mr Dave Wall & thinking outside the box: Could he have been a constituent player with APDC, using his own funds & perhaps Eric may have also been involved. The FO deal was set up really quickly & very late in the year. Based on this piece from the recent ANN; APDC issued the following statement regarding the transaction: “We are very proud of the important role that we played in the drilling of Merlin-1 and the initial exploration program at Project Peregrine. HOWEVER, WE ALSO RECOGNIZE THAT WE ARE UNLIKELY TO BE ABLE TO SATISFY ANTICIPATED FUNDING REQUIREMENTS FOR OPERATIONS IN FUTURE SEASONS. APDC, whoever they may be, provided $20m to enable potential drilling at both Merlin & Harrier. They have now stepped back but ensured that they will be amply rewarded whichever side the coin falls. DW is a strategist & he may have just got this absolutely spot on. All IMHO, please understand. The ducks are lining up & quacking
@ford707 & @chriseev1 My gut instinct tells me I MOH, that a buyout is in the mix as in most cases a buyer will always look to see how much debt a company has as well as what assets they haveAnd being that the potential in reserves. On top of that I was interested to see Mr Dave wall upping his total of shares from 120,000,000 to 240,000,000 making him number eight on the top 20 list (see capital structure Section in the 88 energy website). Something is brewing and I wouldn’t totally rule out a strategic share split in some way, just to ease the heavy burden of shares against the assets, i know no one likes to mention the spectre of this ghost as it can reduce the family silver buy 15% or possibly a little more as dave mentioned so eloquently like having a hair cut shaved right off ( don’t shoot the messenger.lol) but this is in the very low probability and may never happen at all as 88energy will not be producing just selling the assets when proven up, which is seems likely to be happening in the near future/next winter drilling season via a F/O.. also interesting to see BNP Paribas in the top 20 list, seems they have been buying at low bulk accumulating shares, not sure if they are holding for nominees?