The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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For further clarity for those apparently confused, if you look at the description of your own shares, or on the boil share price section of this site, you will see the description as "Baron Oil Plc Ord 0.025P". This is the nominal value of the shares that we all have, already, or if we buy more today. They get the same shares at the same value as the rest of us.
As share holders we all own a greater proportion of the asset as the benefit, along with the RNS-described improvement in likely ease of progressing the asset further.
rammer you appear to belittle me/those who do not have more than a couple of hundred to invest here and there. Please don't. They could be actually more deeply invested than you as a proportion of their/our/my 'wealth'
The share price is not discounted. They are getting a number of shares in exchange for a proportion of the asset.
Exactly, land doesn't come free and unless you have a spare cash in your back wallet, then shares as we stand is our best option. Dig in for 12 months fellow PI's and this for sure will all be worth it in the end. GLA
Big Picture does not exist in this game, people will look at the discounted share price and this will fall short term as people will sell on back on this announcement, it also signals not much happening in near term and zero patience, with this market full of get rich quick people who invest a couple hundred quid here and there believing they are 'investors'- top up time when it goes low though, just keep a watch!
Big Picture!
'In order to successfully monetise this potentially significant asset, a key objective for the Chuditch PSC in 2022 will be to attract drill funding for which there are multiple options and alternatives. By retaining, aligning and incentivising the existing SGPL team the Directors believe that the prospects of achieving this goal are enhanced'
TheA20, quite right to point out, in normal situations this would have been a disaster as SP would have drifted down 200%.
However, we are giving them shares so cheaply as a sweetener to acquire land, different to placement where they come on the market and investors purchase.
Overall, this is good as we have more land.
No it is dilution, they’re issuing 1bn new shares to then exchange for the increased % ownership
Yes, looks good to my reading. If you have something exciting, then you want 100% of it.
Not a placing as such, more shares yes, but value as per market value.
Lock-in to selling any (without BOIL permission) for a year.
Looks like a win-win deal for both Baron & SundaGas Pte. Ltd and could be an interesting few months ahead....
It’s also an exchange rather than a placing (they aren’t raising money to pay for it)… I think!?!
Maybe i have read this wrong but the dilution is at a share price of 0.025. the current bid is at 0.075. how can dilution at a near 200% discount be considered great?
i am Here to learn so please educate me if i have misunderstood.
It’s seems like this is a giant unfolding. A little dilution for a prized asset. The following comment underpins the reason for the increased interest and the dilution:
“In order to successfully monetise this potentially significant asset, a key objective for the Chuditch PSC in 2022 will be to attract drill funding for which there are multiple options and alternatives. By retaining, aligning and incentivising the existing SGPL team the Directors believe that the prospects of achieving this goal are enhanced. The Board believes that Baron's increased net share of estimated Mean non-SPE PRMS compliant prospective resources to 2,645 BCF (440 MMBOE) in relation to the PSC is more than sufficient to attract attention from the major regional gas players and other potential partners.“