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You don’t understand what a put option is?
He can cash out £750k at anytime up to September 1st regardless of where the share price goes.
He’s quids in!
There’s a pattern ART.
Deliver bad news, but offer some carrot with director pumping money in at a significant premium to the current share price. They’ve been doing it for a while now.
Rather than letting the share price grow organically, it seems this is the only way to make PI feel like they’re getting a deal if they buy now.
Seems to be alot of smoke and mirrors.
The actual value accreditive news (I.e. delivering alot of oil to surface) ah that doesn’t look like it’s happening. But they still have the nickel assets to sell, which nobody wanted before they took them, and they’ve not really done anything with in the meantime
Buys galore piling in with this latest 'con' RNS.
Unfortunately, the Put Option is as good as worthless while the share price is 3 times lower than the option price. And maybe Jennings might be wise to sell these shares anyway to get some profit from them as by the time TO-13 fails to flow the share price might be down to 0.10p!!!
AJMHO
16 April 2024
Corcel PLC
Put Agreement
16 April 2024
Corcel Plc (London AIM: CRCL), the Angolan-focused exploration and production company, announces that it has been notified that Extractions Premium & Mining Ltd. ("EXT"), which currently holds a 21.26% interest in Corcel, has entered into a Put Option Agreement (the "Option") with Richard Jennings ("RJ") and has cancelled the Call Option Agreement previously announced on 29 February 2024.
Under the terms of this agreement, RJ has the right from 16 April 2024 until 1 September 2024, to sell up to 99,000,000 ordinary shares of the Company to EXT, representing 4.87% of the ordinary shares currently in issue, at a price of £0.0075 per share. This price represents approximately a 142% premium to the most recent closing price of the Company's shares.
That's it, move the posts. What a complete bunch of idiots. Why dangle this carrot in front of R Jennings? Are EXT so worried about Jennings selling these shares? and if so then why? If EXT just wanted more shares they can buy them at about 0.30p - and that is about 60% less than this silly Put Option price.
Is this just another desperate attempt to bolster the ailing share price? If so then I don't think that it is going to work. And yes, the market did see through this rather ludicrous premium-priced placing and instead of getting the share price up to 0.5p it has fallen to half that.
Blimey, some bloody unicorn!!
No point Dan. It’s a freeroll anyway for me. May as well see where it ends.
Dam, l had a plan in place hoping for a share price boost but don't seem like it's going to happen anytime soon.
It makes perfect sense Bladey and I'm not surprised they decided to move on, there's a shortage of nitrogen and it gives them to review whilst the clock has essentially stopped. The trouble, as with all RNS's, there are keywords that small fry investors look for,. "water", "moved on" or "abandoned". I work for a large Blue Chip in Project Procurement and you are continuously balancing risk (I.e cost) against benefit. There is not a chnace that Sononagol would return to TO-14 unless there is was evidential benefit vs risk. The uneducated on here (ART) will have you believe it's game over.
The fact that they suggest in the RNS that they will return to TO14 at a later date suggests to me that they believe that this WILL flow oil, but the process will take longer. So it's better to go back to TO13 and get flow rates from intersections in that well column. This being successful will firm up the Market Cap and and future after which they will have the necessary liquids and tools to complete TO14, and so forth.
It may also be possible that Sonangol have learnt from a vital mistake they've learnt from working on TO14 and will avoid similar problem on TO13 and are confident it will flow oil. The error they may have made on or during works on TO14 may have induced the unnecessary water formation and will ensure that mistake will not be repaeted on TO13, and further well tests going forward now that they have a better understanding of the geology situation!
Thought I had better make a cup of coffee to get through the 37 messages on the board today as it could be a long one.
But when I clicked the link , most of the messages were just green boxes so plenty of java left :^) - to those that weren't green boxes ..... thank you for your thoughts and insights as always..... much appreciated.
Hope springs eternal ... GLA
Dan you're welcome. Yeah the typical thing would have be go down the discounted placing route and from today's comments they still believe that TO-13 will aid them to getting commercial production in the near term and develop Tobias over the longer term. Not much priced in now even though Tobias remains a work in progress and the Ni assets are still pending sale etc.
Regards,
Ed.
Yes had high hopes for this one particulary in January past but time to face the facts this is on the ropes and probasbly will go down.
You're basically saying it will survive or wont survive, edging your bets there Peter. I don't think Nostradamus has anything to worry about.
If you think it's sinking, jump off.
Today we have a 15 per cent drop. Either the company will be in administration or it will delist . The ship is sinking. Sorry.
Hi Ed,
Thanks for your reply, that certainly adds more food for thought. Essentially they've gone from being unable to reactivate the fractured carbonate to flowing water but as you suggest this could have been expected, initially. The fact that extraction and a Director have invested at a premium suggests this is far from over, they could have got placing away at 0.35 and it would still be seen to be considerably better than the big discounts we're seeing in the Junior markets. I did suspect that they might go back to To-14 to give them time to assess, they wouldn't go back if they unless the additional the potential justified the additional costs. lets not forget that all parties have to agree.
I had such high hopes for this company but unfortunately it has all come to nothing. The share price is back to where it was when this asset was first acquired.
Hi Dan,
That's a good question as neither drill result mentioned any water. So far they haven't made it clear that its drill fluid or formation water. I'd guess its formation water. Nitrogen clean up won't cause water by itself, it'll just turn back to gas as it returns back up the well. During well clean up wells often produce water/drill fluid before producing oil. In this case they may have hit some of the water previously associated with TO-4. The TO-14 results did suggest that the well had re-pressurized and recharged since the TO-4 days. Clearly the results remains inconclusive as they plan to return to TO-14 after TO-13. They do mention nominal oil and oil shows again, yeah likely the water is coming out in force on test, but no mention of quantities of bwpd etc. True working off partial information again, no mention of how much had been perforated, did they test the entire oil column etc? Were the most potentially productive zones tested? When they return are they testing the same zones or others? A lot still remains unanswered.
TO-13 next and then a return is on the cards so again more waiting to see. We might get a conclusion to the sale of the Ni assets over the summer too and that would help pay for some of these ongoing costs. Interesting that CRCL now still maintains the debt clear balance sheet.
Nige,
Yeah the weather has been horrible this last 6 weeks, wettest spring that I can remember. Hopefully we'll get some warmer weather again soon. They sure are making it clear that they're not done with either well yet and still talk about first production from Tobias. So the company remains more positive than many on here. They're not running a charity so the fact that Extraction and Geraldine are happy to pay a premium for a large tranche of shares is certainly a positive. Clearly they see good value going ahead on these blocks and the lithium assets.
Regards,
Ed.
Yes thanks Ed,
We went for a long walk, the paths and fields around here are like swamps at the moment, so much rain and hailstone lol.
At least the news release was worded much better this time and it’s comforting that Geraldine has bought additional shares and at a much higher price to what you can buy for today.
Thanks Nige
Good Morning Edgin,
Thanks for your valued opinion.
Yet again, it looks like we're left to decipher the RNS. Could you please explain why there is substantial water during the flow test but no water detected during the drill? Is this to do with the Nitrogen clean up? I'm assuming the low oil saturates are because its essentially being diluted. The fact they are returning suggest they believe the get something but again there is not mention of the zones tested. What happened to the top 8mtrs?
I could Cry (LOL!!)
Not much to say ,
GLA
These go back in the bottom drawer for me , could be long time before we go past 0.5p
if nothing good come from TO-13 then company will have to back to drawing board
The thing is that if Sonangol can get T0-14 to flow at around 50bopd then that would be around 10bopd net to Corcel. That would be a good result and very positive according to many of the posters on here.
Morning Nige,
I sure did, hope you did too. I agree, they'll see what happens after they test TO-13 and take it from there. They could potentially sidetrack TO-14 towards TO-13 or towards the eastern flank, it would be much cheaper than drilling TO-15. But like you say we'll have a definitive conclusion to TO-14 once the return to re-test likely over the summer.
They didn't have to place at a premium, they could have done so at 0.35 or even 0.4p. To raise at such a level suggests that they're still positive on the outcome of these wells. Even Sonangol hasn't given up on TO-14 yet, they must think that more nitrogen stimulation it may still flow at commercial rates. TO-13 was described as the cornerstone well of the EPS when it was first drilled, so lets wee what happens there in the near term.
Regards,
Ed.
In that case the others are probably glad they didn’t win the bidding.
The more I re-read the 2 RNS's and the more I think about it, the more ludicrous this 'premium-placing' looks. Does the management and EXT think shareholders are completely stupid?
What is going to be the difference at TO-13? If TO-14 is only flowing water with traces of oil then you can more or less guarantee that is the state of the whole field. After all, TO-14 was the 'stand out' well from the whole field flowing so we were led to believe as nearly 10 times more than the other 6 producing wells. This is just not going to happen.