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Thanks Rubey
Glad you liked my line !!
Just for clarity my definition of “Shock and Awe” is Day multi bagging (Avacta and Syngenair are recent examples) and not the 25% uplift we witnessed yesterday.
Maybe it’s called “Re rating” but obviously that process cannot even begin until we are back on the £24M II Floor.
Interesting times ahead, indeed
ATB
Jack
================================================
Good line Jack. Things are getting very interesting.
'Be prepared for “Shock and awe” over the coming weeks as we get a divergence of news flow from our considerable asset base.'
Indeed krull, but that is their strategy - to buy into the private company rather than the licence. Well, that is until they bought Humber's 16.67% of course. Which goes back to JackDiamond's point:
'I think taking Humber out, and still retaining their interest in the WN license, was an excellent move. Not only do we have a much larger slice of WN, but RBD can also demonstrate to the FCA that we definitely fall outside of PRIIP and have been Miss classified due to taking a direct license interest.'
Rubey, you may well be on to something, and I'm starting to warm to your way of thinking on this one. After all, RBD chose to take an equity stake in Rathlin rather than just buying a direct interest in WN off them!
Hi JackDiamonds. I said "in my view" and that's exactly what it is. I don't have any significant issues with our West Newton investment(s), which is why I'm an investor here. But, as well as not much liking RBD's shot at Deltic, I had a look at Corallian's assets in the past, long before RBD took a stake in the company. I have to say that I wouldn't have become involved in those
licences myself. However, the RBD board chose to do so, and with the disappointing results we now see. So my views are mostly technically driven. While RBD does seem to have some very well qualified NEDS, I'm wondering what they do and, perhaps more importantly, just what influence they have on S and S. The latter are our joint chief execs; I don't have to love them. But I am prepared to say why I don't approve of everything they do, from time to time
Krull, to be honest I have a basic idea but would have to look on the below to give a better answer, so I hope you don't mind if I post them instead. I will add, no doubt some EDR (or whichever company assuming there is one) directors would continue with the new company. This would only involve Rathlin and could be very lucrative for RBD shareholders. Reabold may continue to look for opportunities, or maybe would say 'job done'. The idea when the boys took over was to take advantage of opportunities at the time, and to dish the cash out after a few years. How much longer would they want to look for opportunities?
https://en.wikipedia.org/wiki/Reverse_takeover
https://www.investopedia.com/terms/r/reversetakeover.asp
The duo have their eyes on bigger assets than Egdons. Once WN is flipped they will be looking at offshore mid tier companies to invest in.
How would it be done?
RBD make an all share offer to Egdon, give the Rathlin boys the job of running it, then keep it as a subsidiary, or spin it out!
Krull, I think there are too many advantages to keeping Rathlin separate to Reabold to be honest.
My opinion exactly isdeer.
Thanks Rubey, yes fair point, In my opinion Rathlin will be integrated into RBD eventually when the remaining equity is transfigured into RBD shares, or when Rathlin want/need more money!
After that, would think the Rathlin boys would be free to do as they please, unless S & S have a project in mind for them, Which is basically what your thinking is, could be, you never know!
Egdon also have 38% of Biscathorpe to side track, also currently produce 178boepd plus we can add wressle @ 150bopd. They have a good few licenses as well bit little cash to hand I would imagine.
All for current 6m mcap is a steal.
Krull, in my opinion the intention all along was to make Rathlin into a public company. Reversing it into a company like Egdon would be a better option than doing an IPO.
I don't think Rathlin have any interests other than PEDL183 at the moment. Reabold own around 59% of Rathlin, so there is a lot of potential for RBD shareholders if Rathlin become a public company.
I hope its not going to be shock and as I say in glaswiegan "awe for f..****ks sake"
Good line Jack. Things are getting very interesting.
'Be prepared for “Shock and awe” over the coming weeks as we get a divergence of news flow from our considerable asset base.'
As we are the biggest share holder in Rathlin, I think RBD would have a big say if Rathlin wanted to reverse into anther small AIM oiler.
It would be interesting to know (apart from WN) what/if their is any other lucrative oil/gas drilling targets in the Rathlin portfolio! I would assume RBD would have a 59% interest in those as well
Completion of Rathlin Cash Investment
Reabold, the AIM investing company which focuses on investments in pre-cash flow upstream oil and gas projects, is pleased to announce that it has completed the Rathlin Cash Investment. Following the completion of the Rathlin Cash Investment, Reabold holds approximately 59 per cent. of Rathlin's issued share capital.
Stephen Williams, Co-CEO of Reabold, commented:
"We are pleased to have completed the Rathlin Investment, increasing Reabold's look through interest in West Newton to ca 39 per cent. Furthermore, Rathlin is now fully funded for an exciting 2 well programme at the West Newton B site planned to commence in Q1 of 2020. The first of these wells will further appraise the Kirkham Abbey formation, but also test the deeper Cadeby formation at a location prognosed to have good reservoir development. We look forward to the results of this near term drilling campaign."
https://www.lse.co.uk/rns/RBD/completion-of-rathlin-cash-investment-437h20up6cykfow.html
Grey Panther
Ouch !! I’ve seen a few of your posts where you appear to have complete disregard for our two CEOs. Example below.
I would offer up that you do not have a clue why RBD thought they could take Deltic out and what the strategic reasons were for such an approach. Clearly not amateurish as you suggest, as you have no guidance to measure this against.
At the bear minimum, the approach shows that they remain active in the Market and they are in amongst the II’s. Even if the cash was the target, and let’s face it the Deltic assets are unproven and some way off in 2022, it was a bold move.
Not Technically driven ? Have you taken a look at the BOD team lately? Mr Mozetic, an exploration geologist, brings over 41 years of international technical experience in the oil and gas industry to the Company, building Repsol Reserves ? Peter Nolan ? The Operators of the existing asset portfolio ?
Presumably all count for nothing ?
I sometimes feel that “Investors” don’t get the RBD model and are far too quick to judge using Matrix that are irrelevant.
I think taking Humber out, and still retaining their interest in the WN license, was an excellent move. Not only do we have a much larger slice of WN, but RBD can also demonstrate to the FCA that we definitely fall outside of PRIIP and have been Miss classified due to taking a direct license interest.
I agree with others that the PI news flow has diminished since the £24M raise but is this a bad thing. II’s tend to have a much longer term investment horizon than the average PI and its plain stupid to think they threw £24M at nothing.
Even Sachin’s family have a massed 3.5% plus in RBD. These types of flags are bold and proud when it comes to my analysis of an investment case.
Be prepared for “Shock and awe” over the coming weeks as we get a divergence of news flow from our considerable asset base.
Jack
RE: Were RBD11 Aug 2020 08:24
RBD were both opportunistic and amateurish in making their "low ball" bid, in my view, and I don't think they could possibly have been aware of the imminent Selene news when they issued their RNS yesterday. It certainly wouldn't have helped their rubbishy indicative bid. RBD's board doesn't seem to me to be exactly technically driven.I'm guessing that they saw the word Zechstein in one of our RNSs and on the website , and they said to themselves "maybe we can get another Zechstein project similar to West Newton on the cheap". Otherwise it doesn't make much sense to me. But at least they are gone .... for now anyway.
From the recent acquisition RNS
As a result of the Acquisition, Reabold now has an effective economic interest in the Licence of 56 per cent, comprising a 39.66 per cent. indirect interest, via the Company's 59.48 per cent. interest in Rathlin, and a 16.665 per cent. direct interest in the Licence.
Reabold holds approximately 59 per cent. of Rathlin's issued share capital.
Do we not own 56% of Rathlin, not just the 56% of WN that Rathlin own?
Thanks Uggy & GP. I must admit, for a number of reasons I would be quite keen, but appreciate your reservations. I think Rathlin will reverse into one of the small AIM listed oilers - I think I'd prefer it to be Egdon.
Hi Rubey. I can't think of an overwhelmingly good reason why Rathlin would want to reverse into / take over Egdon, even if the latter's market cap is currently only about £6 million. This tells you quite a lot IMHO. They could easily do it, but why not selectively farm-in to their best conventional O&G projects at a sensible price. If they could do it this way they wouldn't have to deal with Egdon's many no longer attractive - to me, anyway - shale gas licences.
Rubey I doubt it/hope not as thay would mean we're exposed to fracking projects which is unconventional oil & something RBD have said they eill not do.
I think so too krull, however for tha sake of balance nobody knows until an EWT is concluded, therein lies the risk.
Can only think: They would (better than anyone) know exactly what is there, that it flows freely, and they will do better by hanging onto it! Would of thought that was a bigger risk and more costly to go down that path!