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Look at the two RNS that IGAS have released this last week. Their assets share many similarities with EDR's. Perhaps we are about to get the same treatment.
Look at the two RNS that IGAS have released this last week. Their assets share many similarities with EDR's. Perhaps we are about to get the same treatment.
looks like they're switching - UJO is down 12% and the mob seems to be voting with their feet.
At least MA doesn't leak placings like DB
Hopefully we won’t get pulled down today by association with ujo. Maybe they will switch into here with more focused wressle exposure at a low MCAP?
Like panther I doubt UJO will take out EDR -
One thing is that EDR have a couple of very large holders who have been in for years - why would they sell now just as things are looking good?
And any deal would involve UJO paper - a company that , to put it mildly, has very chequered record with serial leaks to the market and is not going anywhere.
they also don't operate anything so, as Panther points out, taking on 40+ licences would require a major step-up for them
The recent patterns of trades are certainly unusual for EDR. Whether it’s a renewal of interest following wrestle or frustration with the share price there’s large trades on both buy and sell sides. A takeover or merger with UJO makes sense. I often think all these onshore UK oilers should merge and do away with the millions that go on salaries paid for the same decisions over the same licences. Even if wrestle only flows at 500 bpd a £10m takeover of EDR would be good value. Add to that the share in analogous fields which surely must now have a higher value and COS following wressle. These UK companies have struck upon a magic formula where they hold a wildcard overseas asset where the potential is huge if only a larger company would farm in but nothing seems to happen, along with onshore UK licences that produce a small amount of oil to justify salaries and further placings and a MCAP between £10m to £20m. The total value of placings usually exceed all income from the wells but never mind that. However with all that raising behind us wressle flow rates and the current POO makes EDR look undervalued and a prime takeover target.
If the UK wasn’t so hard to drill in EDR and UJO would be worth multiples of current values. As it if it takes 6 years to get a well drilled, all the while we buy tankers of oil from the over side of the would polluting the worlds oceans.
I’m fairly optimistic about EDR now, we should be easily able to repay UJO in Jan 2023 when the loan comes due, in the meantime plenty of news flow to come outside of the wressle update expected next week.
I can see EDR worth over £20m by mid 2022 if it hadn’t already been taken over by then.
I don't really see UJO buying Egdon, Why would they want to operate Egdon's numerous licences, or acquire Egdon's now highly unattractive shale gas licencs? IMO, UJO already holds more equity than Egdon in most of the best licences, eg Wressle, Biscathorpe and Keddington.
i am happy if UJO buying EDR. UJO will have to pay premium and am happy if UJO buying EDR 3p or over.
EDR too cheap and so UJO is getting massive bargain buying at cheap price 3p. even at 3p, it will be a bag or two from here.
Thoughts?