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I've been thinking about who gets what if Humber goes into default at WN too. At Biscathorpe the process has already started. Looking at the notes to Egdon's recent accounts, it seems that Humber are still in default. The other three partners have presumably been paying Humber's 20% share of the bills between them since the default first happened. If that is the case, the non-default partners will each see their Biscathorpe interests increase by an amount equal to 25% of what they currently hold This is based on Humber's 20% in Biscathorpe divided by the other partners' collective 80%. Presumably this will only happen if Humber's default isn't remedied. I don't see how it can easily be remedied unless Humber sell something valuable, maybe their West Newton interest?. If a default happens at WN too, Humber's 16.665% would probably be split pro rata by Rathlin and Union Jack, so their interests would become about 80% and 20% respectively. Humber could lose everything and Rathlin and Union Jack would only pay the defaulted amount and all costs going forward.
*Humbers share of the West Newton license sorry, not Rathlin. Humber are 16.66% farmees into Pedl183, like UJO.
RBD raised £24Million in the Institutional book build, 100% institutions. They had a cash position of at least £3-4Million before that fundraise. They have put £16Million into Rathlin, completed and confirmed by RNS. The other £8Mill was earmarked for Parta and Cali but not gone ahead yet as far as we know so they should have about £11-12Mill still available. Nobody pays a distressed seller market value for anything though so if RBD agree to take on humbers share of Rathlin it will be for the operational costs plus some sweetener payment to Humber. It will be a bargain basement buy whoever buys it.
I think that our BOD are fully aware of the funding situation of all partners. The fact that they have chosen just this week to purchase shares in the company demonstrates they are more than happy with what ever plan is being put together.
I suspect the timing of the purchases suggests there may well be a quiet period for the next few weeks but after that am confident all will be rather positive.
There's obviously more than this than meets the eye, though obviously the players involved with WN will keep it under wraps until some sort of resolution has been reached.
Not saying I agree with other posters' comments regarding what I consider to be a rather sticky financial situation between the partners, but not disagreeing, neither.
So simply holding, to see what transpires.
The only thing which bothers me a bit is that while every day passes, money which was supposedly earmarked to progress operations isn't doing so, lawyers' fees are no doubt mounting, and I'm sure that none of the key people are hitching a ride to go to work.
S&S ought to come clean on what's actually going on pretty soon, otherwise their credibility may be damaged.
Yep, sounds about right Piper, Although recently Alba Mineral Resources (ALBA) refused to make a payment to the Horse Hill consortium, (for unknown reasons) and it only lost a fraction of % in It's Horse Hill Stake!
Horse Hill, Alba has decided not to contribute to the most recent cash call issued by the Operator, HHDL, for £261,000, as Alba has decided to deploy its cash reserves to the mining projects which Alba operates and controls.
Any dilutive effect on Alba's 18.1% shareholding in HHDL will be negligible.
Horse Hill
https://www.lse.co.uk/rns/ALBA/alba-min-res-plc-project-and-investment-update-cg2idd9d483micr.html
What could be afoot thou, is if Humber do default and loose It's stake, Rathlin should/could be line for the lion's share of Humbers stake. So it would make sense for Rathlin to wait and see what happens before going ahead with the equity swop. That way they might have more to trade!
These are standard OGA contracts under which all UK OGA licenses are operated. Each partner has an obligation to fulfill their operational costs for each stage of the activities on the license. If they can not do so then their share of the license gets offered to the other partners. If none of the other partners can fund it then the whole license goes back to OGA control to be redistributed at the round of license awards. It’s out of the hands of the partners. The OGA run the show and decides who’s in default and what the implications are.
Hmm, not sure it would come to that though, (would be handy for the other partners if it did) more likely Humber would sell their % to the highest bidder before letting it go into default!
Also depends on the contact, it could be that they only lose a % equivalent to the short full each time they have to be subsidised.
Could it be RBD don't want to overstretch themselves by taking Rathin and all Humbers share!
You might be onto something there Krull. The only issue is: If Humber are that strapped for cash that they can’t pony up their share of the operating costs under the contract then they will forfeit and the share will be offered to the other partners. There will be no need to give them anything for it, just pay the costs. The issue is: We don’t know how long they are given to pay and when from. That could be the key. What is the deadline by which Humber and UJO have to pay their share of the next stage of costs. That could be what we are waiting for. I’m sitting on my hands here anyway. Wouldn’t buy any UJO shares currently until they’re sorted, but likewise I wouldn’t sell here either because we are sorted. RBD is a hold for me. Placees obviously not flipping at a loss here so it’s not overhang that’s the problem currently.
I'm wondering if there's a connection with RBD not taking, or Rathlin pulling back the equity swop and Humbers financial predicament!
Could it of been we were in negotiations with Humber by way of an all share take over!
The same half a dozen individuals have been doing it for as long as I can remember, all the evidence is there , authorities ain’t interested period.
They have their catamites attacking RBD thread over on ADVFN , probably trying to sow panic, because of the Humber situation.
PDMSPiper
If Biscathorpe and Wressle are sound business propeostions, then I wouldn't putit past S&S to be in negotiations to take Humbers out completely. RBD would get an increased percentage of WN, plus exposure to Wressle and Biscathorpe as a byproduct! Not in UJO so don't know the potential in those projects, but the bits I have heard seem positive. It could well turn into a positive benefit to RBD.
In relation to UJO, IMHO it is clear that there has been major market manipulation by certain 'Investors', using the usual little cohort associated with the scumbag at *************, with information leaked and shares sold down to suppress the UJO SP when it was clear that they may need a placing to raise funds for WN, all in the interests of picking up more shares in the placing at a cheaper price. Shameless, and the authorities will do nothing about it!!!!
dkok
Luckyman, The difference is: Rathlin have £16Million and RBD have about £10Mill, 6 or 7 from book build and Poss 3 or 4 mill that was the existing cash position. More than enough to progress West Newton without either UJO or Humber. It’s quite clear they they have both bitten off more than they can chew and are distressed. West Newton will proceed but it looks like Biscathorpe and Wressle won’t. The difference being RBD/Rathlin Financial underwriting of WN.
PDMSPiper
Certainly looking bad over on UJO which like you say probably has something to do with Humber.
My concern is if its Humber then that could hold up any further development of West Newton till Humbers share of costs are paid for or transferred to us.
I just hope it doesn't drag on much longer.
Luckyman, Having just successfully raised £24Million in an Institutional book build, RBD are hardly in the same position as UJO. West Newton is cashed up from Rathlin’s point of view. Unfortunately the Humber situation is far more painful for UJO as they are partners in their other assets, Biscathorpe and Wressle. These assets are in danger of forfeit due possibly to Humber insolvency. UJO are also distressed by association. The placing price will be very low to compensate investors for that risk. Much more pain at UJO I’m afraid. If the placing gets filled it will be sub .14, possibly .12 imo. Good luck with your investment over there Luckyman. DB is in a terrible quagmire here.
Temporary holdup hopefully. Personally, I was relieved to see the recent director purchases. Almost like a subliminal message to share holders.
Has Humber problems caused the drop in SP since our fund raise?
Could certainly do with an operations update to stabilise our SP.
I don't want this to follow UJO SP as bad enough losing over there as well.