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The week started well with a recommended cash offer for RockRose Energy (RRE) of 1,850p per share, which takes virtually all investors out at a substantial profit. I first bought a couple of tranches of RRE around 130p and received a 150p per share “return of capital” a few months later. RockRose is a rare company that actually generates cash.
Perhaps to follow in its footsteps is Longboat Energy (LBE), which announced founders incentive plan awards under which "participants are eligible to receive 15% of the growth in returns of the company from the date of admission should a hurdle of doubling of the total shareholder return be met.” LBE was highlighted in the private blog three months ago in the 50s and it’s already double that.
Oil man Jim’s take on lbe
Let’s also not forgot Munch that there are only 10 m shares out there of which almost 6m are held by major institutions ,825000 by the board leaving only 3.15 m with private investors
That is a minute amount and when this moves there will be no way to stop it !
I would guess that a significant amount of that 3 m in free float are already held pretty tightly by us guys on here
Have a great weekend all
Just to give us food for thought over the weekend.
Energean has managed to buy Edison’s assets for $276m that produce 50,000 bopd ..... my mind boggles at the thought of such a deal if HH pulls it off. Enjoy the weekend chaps. See you Monday.
Well the longer delay would logically suggest a bigger deal. Bigger deal = more complexity etc. But let's see.
I don't think these guys are lacking ambition or connections though.
Maybe they are anticipating another market shock and are holding out for a superior acquisition? Gla
Duster .... I agree with thefuturetruth. I don’t think 2 months is suffice. The market probability of correcting in the next 2-4 months is very high. I think next 2 weeks will give way.
Also volume is a key indicator, looking back when we were in RRE and they went to £23 around Feb now makes sense as they were approached in Feb apparently..... these are taking off slowly.
I expect £1.20 bid to go early next week with a full announcement before the end of this month.
If HH waits 2 months and suddenly overnight something happens that causes a shock then expect all deals to be off the table as credit market freezes and everyone takes precautions.
Tick tock.
Duster I was holding for a lower price but I had to bite the bullet and bought quite heavy last week. The highest volume in history of the stock has just been seen, something is going on that’s fairly clear and based on on the accumulations taking place highlighted by wisha and there for everyone to see it’s not two months away either mate. Watch this space over the next 14 days. If AA can sell Rockrose Energy from the sofa then it’s fair to say HH can get the deals done with the Covid scenario and the restrictions it’s brought etc.
HH Did mention Norway and tax advantages in the vid. so fits in time will tell expecting a deal in next 2 months as co vid will have dragged out the negotiations somewhat
WhirlawStones - Fantastic post. Great digging. Recommended.
just for clarity - the Norwegian subsidiary is actually called LONGBOAT ENERGY NORGE AS
Cheers for posting that Wisha, I have been wondering about Edison's Norwegian and UK assets.
It is interesting to read the last two paragraphs of the article and then consider Longboat's set up.
“In our opinion, it is easier to find separate buyers for the Norwegian and UK businesses – the typical acquirers in Norway (with tax synergies and deeper pockets) are not currently focused on the UK.
“Conversely, the typically less well off UK-focused buyers are not looking at Norway. Energean has provided no guidance on how Neptune’s acquisition price was allocated between the UK and Norwegian assets.”
Longboat Energi AS is the Norwegian subsidiary of Longboat Energy PLC. This means that any Norwegian acquisitions will be through Longboat Energi AS, which will mean that they get to enjoy the tax synergies of operating in the Norwegian sector. Any UK acquisitions will be surely done through Longboat Energy PLC.
I'm thinking that Longboat are going to be more Norway focussed than UK focussed, but time will tell.
I believe Helge Hammer sits in the Longboat Energy office in Stavanger, the centre of the Norwegian oil industry (am thinking a Norwegian version of Aberdeen, although I guess like everyone else he's working from home at the moment, something which will also have slowed down any deal making no doubt). The rest of the board as far as I know are UK based. But I think of Longboat as more Norwegian than British really - their real office is in Stavanger, and that's where they recruited their BD Manager in January - Per Torfinn Knudsen (found on linkedin).
So we already have a foot in both sectors, but with a bigger foot in Norway. And that should be no bad thing I don't think. Anyway, with the company structure they have set up, they should be able to benefit from opportunities in both the UKCS and NCS.
If anyone can come forward on here with a little more knowledge about the tax and other advantages of operating in Norway I am sure we would all like to hear about it. Cheers.
I think they will be awash with opportunities at the moment so it’s a case of picking the most attractive on the best terms. Ideally I’d like to see them really go for it this year and do in one year what they’d planned to take 2-3. This is a buyer’s market and as long as their backers are prepared to invest now, then they could really accelerate their plans.
Interesting read wisha thanks for posting
Have a look at the updated presentation on the company website
It says Longboat are looking at buying assets off the shore of Norway and UK
Then look at this
https://www.energyvoice.com/oilandgas/north-sea/240951/neptune-will-pay-4m-to-scrap-deal-for-stake-in-major-north-sea-discoverynep/
Neptune agreed a £225M deal in 2019 and now pulled out of the Norweigan and UK assets of Edison E&P, initial price agreed was £225M
Imagine if we get these assets on the cheap for around £120M?
I feel there is a very good chance these are on the shortlist of our board
Boom time sooner than we all think.
Good weekend all holders