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My concern is that, notwithstanding they can push the commitment date back by agreement with seadrill, there is now only 3 weeks to that agreed date. No suggestion has emerged from the AGM that concluding a deal with a major is imminent - if parties are still in data room rather than in very advanced contract negotiations (not so easy to do until you whittle down to preferred partner or partners). So the market believes at this stage it is highly likely they will need to raise funds themselves to show they are able to meet their commitments to partners. So a bit of a race to the bottom has begun with people worrying that as the price falls further the dilution will be greater than greater to raise what is a fairly well defined sum (ok depends if want to raise for more than one dart at the board). So possible they will announce fund raise imminently for the first well to stop that spiral as otherwise, with the large discount to current price for such a large (in relative terms) we could end up trebling the number of shares in issue. I hold a bit over 4m shares here and would not countenance maintaining my share of the company by buying another 8m shares unless the terms were highly attractive!!
If you read the RNS you will know that there are differing stages in the process, funding, drilling and outcomes, each of which trigger various options at increasing price levels.
i too was confused as to why the board are paid out on commencement of drilling and not on discovery , did this get covered at the AGM ...
Been going over all the reports from BPC and comments etc going back some time, also including the RNS where the Major bailed last year.
We are now in a position where providing we get the placing away at a decent price , then with the CLN etc we can drill on our own, clearly we would like a farm in as it makes cash and shareholder value certainly short term better.
The only thing which keeps going over in my mind and is now focused on is if BPC is as good as the board say it is then why has a major not signed up, these companies know the oil industry inside out, Shell, BP, Chevron, Exxon know it all and yet no farm in from any of them, I find that strange and a little worrying.
At the AGM was that question asked as to why no major has yet to farm in, I will stay but I would be much happier with a farm in than go it alone, if we miss drill one it could well be over.
Just my view.