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Agreed. 100% there has been. Re-negotiations here and not only that I think they have gone bigger, I think before covid was a £100m deal to add 5-7k barrels with reserves .... I think we are looking at a similar deal to this one WS just posted of 23k barrels and I think they got them down from £483m to £250m.
What a deal that would be for LBE. I don’t think it’s book build going on ..... that will only occur after the deal has been announced otherwise its insider trading and without rns it’s also material news. Here’s to £1.25 today.
Another North Sea deal confirmed this morning, with Norwegian private equity.
https://www.energyvoice.com/oilandgas/north-sea/256417/neo-total-north-sea-oil-acquisition-completed/
Like so many of the deals announced recently, this deal has been revised, due to the changing market conditions. The deal was originally agreed in July last year, and then one party backed away in May this year after the oil price fall.
Perhaps therefore not surprising that things are taking longer for Longboat, however this should be time well spent, and hopefully will result in a much better deal than they would have anticipated being able to strike at the beginning of the year.
Agree it will be great to hear something from them soon though.
Let's assume that they are doing a book build at the moment.
I suppose most of how long it would take to do it would depend on 1. the valuation 2. how much they're raising.
If they're raising a lot of cash then it could explain why it's taking a while, because it's not necessarily going to be the case that the institutions that supported the IPO would want to take an equivalent level of exposure to their IPO stakes.
Also, it may well be that some of the institutions have mandates that have changed/are changing with regards to the ongoing covid-19 situation.
Ha, will check my phone at 7am. Just like every day last week ;-)
It wouldn't surprise me if this took a few more months to sort with all that's going on in the world at present.
But Monday would be good :-) Gla
Well if they have started the bookbuild then the deal must have been agreed, the assets known and possibly a prospectus put together.
Just feel like we might have seen more volume over the past week or two if it was very close, but let’s hope that is the case and news arrives soon.
Fingers crossed for Monday, chaps! I can't imagine it takes thst long to do a book build for an RTO of a producing asset.
Very interesting, Daveri007! Thank you, that's just the kind of info that's encouraging to know.
Thanks daveri, appreciate it. All the best.
@Paul - it's imminent ... Ive been advised that the Norwegian Govt have offered many tax incentives to N/S oilers which has held back LBE deals but my understanding is that they have been doing their book build so anytime. ALB
Yes it’s interesting that there has only been one TR1 from an original institution that has sold down its holding. All of the others have sat tight, or so it seems. That suggests they are expecting to make money from here and still trust the management to deliver. I would guess a deal is only a matter of time, the question is how much time!
if their seed investors lost interest - obviously they would have sold given its approaching 9 months now
ALB
The same happened withPharos Energy.....hopefully this time the Bod's have learnt their lessons. ALB
I bought Rockrose a bit late. £4 & £5 but not enough of them! Rode it until the endgame which was a bit disappointing despite a great return.
Hoping LBE can repeat their success (and more!). I think they have the right management and it’s a fantastic time right now to be negotiating deals - just as long as their financial backers are still prepared to invest in this market.
I bought rockrose approx @ £1.70p and sold at £9 - sold too early (only because I needed to reinvest elsewhere) but no regrets (ok slightly some ) and was very happy at the time - won't make the same mistake with LBE! End game this time for me - win or lose! ALB
Everything is heavily red today so no surprise that some people sell this as well and it drops a similar amount.
I'm sensing quite a bit of impatience here, however you could look at it another way insofar as the longer the uncertainty and volatility continues the better for Longboat, seeing as they currently just circling. They've got no hatches to batten down.
Remember that it took Rockrose about nine months to seal the first deal, and during that time, they issued an update explaining the delay was due, in part, to "unrealistic expectations" of the prices that assets were worth in that current environment. I wonder how many people got impatient and sold out of RRE during that slow time? And you know where the rockrose 50p share price ended up four years later.
Patience is surely a virtue for this one guys, and an opportunity for further top ups as when funds become available.
Just take a look at BP and Shell today both down 3.5% and 5.5% respectively.... thats billions lost from their mcap and in just one day! ....The markets are currently very harsh and very volatile -maybe LBE will/are trying to leverage their current position!?! ALB
Suspect the clues will be in the volume if/when a deal is close.
Daveri. Spot on mate. I got fed up with a RRE and sold a bunch I bought at £7 for £11+ but luckily I kept the £17 ones well I had to and they announced the cash offer.
So yes I think when one starts to get fed up .... that’s when a deal is closest.
Agreed....but you know as soon as you sell out the deal(s) are announced (sods law).....very frustrating but I'm holding strong. ALB
That a deal has not happened yet.
To think they had targets ready in January / Feb time should have been nailed by now at a cheaper price.
Holding here but can see £1 breached again if no news comes within next 7 trading sessions. Dow dropped 700 today but has recovered. But it’s a sample of things to come.