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Sounds like we are both thinking along similar lines Brasso3 unless somehow PL is going to pull a rabbit out of a hat but not sure how he's going to do it and what he has up his sleeve. I agree re the consolidation but as to how and when will have to wait and see. My main concern is how and how quickly he can grow the company?
Atb,
Northern
NM
I cannot see how they can do it without dilution but the price is obviously key. Any more dilution at these levels will be devastating for existing holders. If they can get the share price up to 5p then I would support further dilution but some organic growth is needed. This can be easily achieved if they get 1000 BOEPD of gas on line next month and then kick off the 2 well drilling campaign. To dilute before those events would be very disappointing.
I also expect a share consolidation at some point as having 2 billion shares in issue firmly keeps you in the 'penny junk stock' bracket on AIM. The irony will be that PL has already done one 6 for 1 share consolidation about 6 or 7 years back. Has any CEO ever done two share consolidations before on AIM?
Must admit Brasso3 I have asked myself the same question re where the funds would come from re the further acquisitions, especially as I am expecting some largish acquisitions. If they get some assets or companies at a good price that might help but I still have that question - where is that money to come from. Trafigura are a shareholder I don't see where those large acquisition funds are going to come from. Can anyone else answer that one without it involving further dilution. At some stage too is it likely there will be a share consolidation?
Atb,
Northern
Brass
Why all the moaning ?
You have been given a opportunity to sell this and regain liss and then some with market drop and recovery.
You could be holding this at 1.8p if you played the market accordingly
NM
The concern for me is that Trafigura seem to be forcing PPC to reduce its debt which peaked at around $30m and now is down to $15m. That would seem to suggest that any acquisition will be with more dilution. PL has not exactly proven himself on the acquisition front. If you look at the price paid for Puesto Flores ($22m) and Puesto Guardian ($10m) and consider that we spent $5m on the EV pipeline then that is more than the market cap. of PPC today. Its hard to work out what we paid for Angostura but that seemed to be a good acquisition at 4p+ but as CGC have now been able to subscribe for shares below 2p it does not look so smart. We spent $100m on the Paraguay assets too!
At least any new acquisitions will have to be signed off by Trafigura so that gives me some hope.
They shifted 2.2 billion barrels of oil in 2019 .
So surely this all about up scaling, PPC have infrastructure in place so they must be looking at PPC to upscale ???
This company is massive it's like having EXXON nosing in and you wouldn't say no to thst
wonder if PL and President and Trafigura will start looking at distressed assets or assets up for sale in Argentina, or even companies to start to buy out and really start to push for a strategic large number of barrels - would be nice if PL could share the vision with us but based on previous interviews I have seen him do it might be a case of what he usually says in these circumstances - I couldn't comment on that. Will have to wait and see but it would be good to see some activity in the next couple of months.
Atb,
Northern