Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Remeber folks DEBT IS CHEAPER THAN EQUITY
what you thinking?
Beer
Very happy to be wrong , as your interpretation looks excellent and as a LTH anything that improves the picture is most Welcome .
Goldenbadger, Jan 2019 date enables Pmo to book the cash flow on their books utilising their tax losses, but will booked as part payment to Bp for the assets. Other than the 210m usd, rest of payments will flow from cash flow again utilising Pmo tax losses. To me looks like a blinding deal, other than having to pay of ARCM, but at least this deal gets them off TD’s back. Win Win. Having ARCM & Covid has helped TD strike a great deal at the very bottom of the current cycle.
36p now, what 38p close? 40 opening Monday?
Ha! Yes. ramp of the day. But might be true. Thank you :P
https://www.telegraph.co.uk/business/2020/06/05/price-slashed-premier-oils-bp-deal/
Omly mention of $300 M. Is as below...
Under the proposed revised arrangements, the original consideration of $625 million at the effective date of 1 January 2019 would be set off by approximately $300 million of estimated interim period cash flows to be retained by BP and a further $115 million would only become payable based on higher future oil and gas prices. Tip of the Day Use Filters above Not to see rubbish Posts. Upward and Onward.
Bottom section today RNS
Paragraph 2
' and is expected to be funded by equity '
Show me where it says PMO will raise the rest of the funds through a Equity issue
Therefore also as stated by PMO they are looking to raise $300m from an Equity issue . Unless i am completely misunderstanding the RNS .
Beer
As per the announcement 5th Jan 2020 Production stated at 18k .
Price to be paid $210 m on signing deal plus $115m later based on oil price . Total $325m .....Less $27m income from ARCM .
BP to get the deal through, will be keeping $300m generated by assets , which i would presume to be the income from production 2019 and maybe part of 2020 .
As i understand the proposal .
@beerbull
The $300m cash flow surely belongs to pmo as the acquisition date is 1 January. So by not coming over to pmo it is effectively part of the consideration paid?
As an example if PMO paid $625m they will have received cash of $300m. However they are now paying $325m (including the deferred consideration) but don't receive cash of $300m as BP are keeping it?
SK I meant.
This AM guy is keep picking on me. Internet gives him so much power to be not nice to others.
Sauerkraut... more like Sauergrapes!! Anyone that’s doesn’t know how to change a record! You've sold out... MOVE ON!!
SK baby I know that. Will sell when I think it is a good moment.
This SK guy is keep picking on me. Internet gives him so much power to be not nice to others.
AlfaMale I am £20k in profit in couple weeks.
How well did you do with PMO shares?
AlfaMale £20k in profit in couple weeks.
How well you did with PMO shares?
"I am living a dream now."
Keep your Pampers on Kenni boy, and try not to soil yourself too much on today's news.
Beer bull that cash flow surely belongs to pmo. So by not coming over to pmo it is effectively part of the consideration paid?
Not sure I understand you investor. Bp will be paid an additional 300m usd out of cash flow backdated to jan 2019.
beerbull the way I have read it is that BP are retaining 300m cash too. This is now whilst the benefit of the abandonment costs will be in the future?
Goldenbadger, TD has paid 210m usd for 18000 bopd backdated to jan 2019. Out of cash flow balance of upto 415m Brent price dependent will also be paid to BP. Also decommissioning costs have been significantly reduced. On the face of it looks too good to be true & if that is the case the sp will look like a steal particularly if Brent continues to strengthen, which imo is v likely. The only negative as I see it is how will the purchase price of 210m be funded ?
PMO Positives if deal is approved :
Total cost 18k production : $300m +- ( 210+115 -27 )
Reserves 82mmboe .
UK tax regime supportive low cost net per barrel .
Negatives
Possible dilution of 100% to fund $300m with Equity and as already stated the Pi's will take the pain again .
ARCM Rewarded for their illegal activities .
Other ii will require further concessions due to ARCM deal .
Questions
1. If deal is agreed date BP production reverts to PMO ?
2. Are there any Hedges on 2020 BP production ?
3. Where does this leave the Tolmount deal ?
Have to say I'm rather pleased with today's RNS. What it's done is to firmly draw a line under what was a very uncertain future for PMO at seemingly little dilution. Clearly the markets like it, as if they didn't, even with POO now at $41 you could be sure they would have dropped PMO like a brick in a pond. If the BP purchase goes ahead at the current agreed price (not certain, as the RNS points out) there is no reason to think that the sp wouldn't get back to the £1 - £2 levels (and the 8.9% dilution would effectively mean £0.91 - £1.82) especially with the guaranteed immediate cash generation from those assets. Now PMO are working from a more stable platform, and as POO will probably continue its rise back to $50+, I can see the sp going back over £1 without doubt. And I haven't even got my rose-tinted spectacles on! Feeling happier today.