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Wouldn't call Michael Taylor an idiot. He's right to be sceptical. He's expressing the conservative view that has held BPC back especially the SP. This is a roll of the dice and it's one I wouldn't miss for the world. However, his writings betrays the fact that he himself believes BPC is changing otherwise why bother writing the article? The destructive CLN, as he calls it, is nothing of the sort. It's part and parcel of the tools BPC needs to drill. Drill, drill and drill. Drilling is the only way to find the black stuff and it's going to be fun all the way. Personally, in my opinion, I think the BPC BoD are very competant and you wouldn't want anyone else to pick a drill target or find anyone better - may be as good but certainly not better. Hence, I think they will strike oil on first drill.
:-)
The most telling thing in that piece of rubbish is that the author paid credence to TW@!
The major wanted the license back in mid-2018... paid 1million to run down the clock.
My initial thought was 'which id*ot wrote that' - rhetorical of course as the id*ts name was on the article itself.
Many of these people aren't actually that familiar with the stocks they cover and only give them a cursory glance to essentialy provide material to justify subscriptions / followings or whatever - that's why they're so easy to pick apart.
What that will effectively do is attract inward investment by those looking to trade the share, hence adding further impetus to an uptrending price.
What those unfamiliar with the investment fail to realize is that the price is being pulled up by multiple news expectations with significant price catalysts expected - that's why any dips are so heavily bought into.
Looking forward to tomorrow and the coming days......as well as a good nights sleep now ;)
Atb all
And we now know the MAJOR DIDNT WALK FFS!!!
4 months you plonker
The Shifting Shares View: Trading opportunities abound at Bahamas Petroleum (BPC)
24 FEB 2020 | Michael Taylor
In a recent update, Bahamas Petroleum (LSE:BPC) announced a convertible loan facility and funding update. The company is a great stock to trade both long and short, and I now think there is likely to be more opportunities to trade in the future.
The funding facility that Bahamas has unveiled means that it can now “go it alone” according to chief executive Simon Potter. However, “at the same time”, he adds, “we continue to consider several farm-in options”.
Now, we have to take these “farm in options” with more a few grains of salt, given that Bahamas has literally been talking about them for years with little to show for it.
The firm did manage to agree to an exclusivity period, where it earned $250,000 of cash per month for three months. However, in the end, the major international oil player walked away in spite of the cost it had sunk. If the major was not interested, then who else will be?
Do not get me wrong – I would love to see a farm-in here. Not just for the believers, but because the share price will go bananas and I know I will be able to take more money out of this stock. But right now, I cannot see it happening. I guess I am right until I am proven wrong.
The Perseverance-1 Well
This well has potential to be a company-maker. Bahamas is targeting an estimated 1,030 million barrels of prospective resources.
Many shareholders have been waiting for this well for a long time. It is a roll of the dice that could see multiples of the share price if it strikes and is found to be commercially viable.
If the well is a duster, and then plugged and abandoned, then this will not be great for Bahamas. I have no idea what its next plans are if this does not work out.
Terms of funding
The terms of the funding here are not great. When all is said is done, this is death spiral financing, known for its destruction to the share price. This was hidden in the RNS but the clue is there:
“Conversion Price: The lower of (i) a 25% premium to the price of the Company’s ordinary shares on the date of draw-down, or (ii) the lowest closing bid price of the Company’s shares on the five days prior to the date of conversion”
It is not drawn down yet, but alongside the costs of the well the company’s recent equity issue will not be enough to fund this.
Therefore, the company has these options:
Go ahead and drill using the destructive convertible loan notes when required
Conduct another equity raise to shore up the balance sheet
Now, management work for shareholders. But they also work for themselves, as a company with no cash cannot pay any wages. It will be interesting to see what happens but I am expecting volatility to increase as the story develops.