We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Lol. Very astute.
The general background noise (whine o’clocks) was irritating.
Plausible bud & hopefully given the sincere investors some food for thought.
Accordion facility is not a VISA card, and is likely not accessible at this time: Lenders have to approve each use, and the purpose of the facility is expansion. Not "higher than normal accounting costs." Lenders would probably laugh them out of the room.
Revenue may or may not be covering OPEX: They are simultaneously restructuring, rebranding, paying executive severance, paying professional fees related to the transaction. All of that is cash on the barrelhead.
Hence my guess that the March placing was for working capital ("general corporate purposes" per official comms) plus covering the various million-dollar costs related to relisting.
(I think we mostly agree, but you just want to pick a fight.)
CC logging off now.
Aint it, what we are all here for.
Not the garden party or to make out we are all invested in some other piece of trash
Sorry if some think I’ve been a bit rude! But these muppets.? Trashed the bb
Welcome back cawcaw
$20M accordion loan if required,
$9M surplus from £14M placing if required,
6 months revenue from avg. 812 bopd at c.$45 after netback,
$12 bbl revenues on remaining 588 bopd attributed to CNOOC & Cuda.
Nice wee cash cushion indeed..
??
For clarity: This MF is probably going to relist at a round number multiple of the suspension price, probably in 2021.
Meanwhile, operating netbacks are probably through the roof and probably climbing. Everything here is probably very good.
Just saying CAPEX doesn't conveniently sync with earnings. Which is the point of working capital, usually sourced from an operating line.
Since they have no way to get a debt facility at the moment (in the middle of restating, in the middle of auditing, stock suspended = untouchable by debt markets temporarily) they probably chose to create their own little cash cushion via the March placing.
Which, if true, would have been the critical foresight that might be the only reason they have been able to stay solvent during the suspension.
That is my guess.
At the aforementioned rates c.$60 bbl
& in addition to the $1.35M/month then also can throw in Cuda’s 378bopd
With its $20 bbl profit after their netbacks in addition to the $12 bbl charged for ops & transportation, giving AM $32 bbl, from Cuda’s IOU.
Not quite $2M a month, but pretty close.
Enough to cover any frost-bite damages from January’s severe storms ?
Yes, and i'll bet the oil is worthless and we will have to pay someone to take it away.
PS hiring the needed contract accountants plus audit firms is probably a multi-million-dollar expense in and of itself?
Those guys invoice monthly and they get paid first. Believe me.
Operating capital requirement come in big lumps sometimes. Especially when you are operating oil wells and pipelines.
Waiting on revenue to fund ops can be a circular problem, since ops are where revenue comes from.
No idea what capital requirements a pipeline company has, but I bet they have a lot of zeroes on them?
It’s plausible CC., but I still don’t buy it..
AM would of been quite close to 1000bopd at April’s avg. $60 bbl,
and from $45 bbl after netbacks,
would of then been close to clearing $1.35M a month,
Throw in a $20M accordion facility if needed..
Certainly plausible though as he did mention ‘a host of accountants’..
I once watched a single company (unrelated industry, but probably similar revenues and headcount) try to go public. They gave up after a year.
Reason was that restating from GAAP-->IFRS alone was unbelievably expensive and time consuming, and they had underestimated the implications.
Subsequent audit of the restated financials was also measured in quarters (not months), and came with fraction-of-a-million-dollar fees.
They never even got to the prospectus phase. For awhile, 1-in-4 desk workers in the building was either an accountant or an auditor. It was surreal.
That is probably a decent description of Art's world right now, and is happening to him at the same time as his little shell company is consuming and learning to run three unfamiliar *operating* companies -- in a foreign jurisdiction.
I'm not surprised that the comms are light and the timelines are slipping. Everyone is busy.
Enthusiastic posters who are using "restating" and "audit" interchangeably, or think it's a matter of a couple of bespectacled number crunchers and their calculators reviewing some income statements for a few weeks, may be letting their excitement for the relist cloud their analysis.
Yes, this will almost certainly go through. And likely be a barn burner.
But for the benefit of those making financial plans around the timing of this windfall, be pragmatic and do read the what comms we get carefully.
Realistically, narrow it down to 2H 2021 for the uplisting -- if all goes well.
But don't be shocked if it's Q4 rather than Q3. This is a big task, and an unexpected task to boot. (The day it was declared an RTO in London is the day that this process *started* -- CEO said many times that he was advised that none of this would be necessary. So it's not like he would have had the needed accountants and auditors standing by and ready to go.)
My intuition states that it was the real reason for the frantic last-second dilution before suspension. I guess they realized the accounting and audit cost, as well as the need to operate for potentially half a year during a period of suspension, and acted quickly to lay in some operating capital.
Anyway best bet is to heed the words of the great American warrior poet Axl Rose: All you need is just a little patience.
Unworthy of being a COPL investor?
I’ve seen a lot of people on here that need a good relisting SP to break even!
As for the morons that trashed this bb and made it into a ramping frenzy for other stocks! Take a look at yourselves?
They trashed this bb! It certainly wasn’t me! I’m taking the uncle mick! And rightly so also!
Disgraceful the way this very good bb got trashed by all sorts!
Hey ho! Bring Jay back please!
Tantrum Tuesday
Anyone recieved a postcard yet ??
Simple answer mannnan, NO.
What are the chances of it not re-listing for years?
BetFred might give you one million to one.
P.S. I am assuming you mean SUSPENDED.
Andy the point is it’s pretty much a given that we are looking at around 4 weeks after prospectus is submitted till we relist so the clock is ticking to get us back by mid July let alone June.
Shaa
If we suspected. For another few years will you be happy
My Pitchfork and flaming torches hang in the hall ready for action at all times.
Any reason why he can't update us on miscible flooding while he is waiting.
I really don't get what everyone's problem is here...
"Subject to regulatory approval, the Company now expects the re-admission of its common shares to occur towards the end of May or in June 2021. It is now intended that the cancellation and re-admission will occur simultaneously at such time."
We are still in June are we not? So chill out, wait until July at least to get your pitch forks out.
It is incomprehensible what is going on here. These FCA rules should have been known to the company for years - unbelievable.
Is there any reason why we can't be told how miscible flooding has or is working?.
It's been 10 weeks since it started and we should be producing a lot of oil now.
Since relisting is out of his hands right now he should have plenty of time to talk to us.
I do see some concern and irritation at lack of an OFFICIAL explanation of how things are progressing. But that hardly adds up to abuse.
Abuse today, love tommorow ?
Abuse isn't really acceptable, some people need to learn how to control their emotions
Funky
WTI $71.82.
Whilst suspended I prepare to look at positives, we are $11.50 richer per barrel.
Personally, if we are suspended until August and WTI is $80 plus - bring it on.
The Company confirms that its directors, officers and insiders cannot trade the Company's securities until the Interim Filings have been made. The Company is working diligently to complete the Interim Filings. The MCTO stipulated that the Interim Filings were to be filed by no later than June 30, 2021 and the Company will be in a position to file the Interim Filings on or before that date. Until filing of the Interim Filings, the Company intends to satisfy the provisions of the alternative information guidelines as required by NP 12-203.