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Why are you still banging on about a placing?
Even if we did have a placing what difference would it make? Who cares! What's your point?
'but' ... picking on individual words is ridiculous, anal I'd say.
Translation-
"DON’T WORRY we are not Placing but there is always institutions willing to give them money"
literally this means we are not placing (i.e we are not placing as I speak), but I'm confident that even though we are not currently placing that there are folks who would give us money if we did one.
if he'd said:
"DON’T WORRY we will not be Placing" without the but don't worry there's money out there, qualifier, then I'd agree with your interpretation.
Hey Rns Translator.. Please translate this from the Share Talk interview today with Zak and DB.. From the horses mouth..
- DON’T WORRY we are not Placing but there is always institutions willing to give them money
Also on your statement "It's pretty obvious, trying to talk it up for a higher exit point"
Are you telling me as an investor you don't want to see a higher SP Lol.
I'm not a ramping fan myself but I wouldn't say no to a higher SP.. but it doesn't matter gotta wait on B1 result.
Gl mix
It's pretty obvious, trying to talk it up for a higher exit point.
Of course they'll sell it off, it'd be madness not to do so.
I'm simply trying to estimate the amount of further dilution before that point.
Selling assets takes time, and of course a 16.6% non operated interest is very unlikely to be of interest to the larger players, the only ones with cash, which means they have to agree a joint sale process with Rathlin/RBD, assuming they actually want to sell at that point, and not undertake further drilling/testing to increase the value. Add into that the taxation of the proceeds from any sale before it even gets anywhere near to the shareholders and its going to take time and money...
I do hold shares, but don't feel the need to claim everything is just fine and dandy, there is a high risk of further dilution and like any investor I'd like to understand when thats likely to be. Pretending its not going to happen is is either foolish or disingenuous.
I should add that if WN is a massive success and sold off as planned then additional fund raising may no longer be necessary.
RNSt
What on earth are you going on about?
The answer is obviously yes. Ujo will at some point in the future need to raise more cash, so what!
DB raises funds as and when required and for the advancement of the company. He manages the finances very well and maintains a healthy balance at all times.
I can't understand why you keep going on about funding. Wressle will make ujo a profitable aim oil production company.
RNST
On several occasions DB has stated that, in the event of WN being successful there is no way the JV partners would even attempt to take the project into production it would be sold. That being the case in say 6 months any funding requirements would be unnecessary. Hopefully UJO will be awash with cash. FWIW I'm still bullish about Cadeby, I've convinced myself it's full of light, mobile oil !
The questions was one of a potential fundraising based on the payments due at Wressle not on Wressle itself.
Of course maybe I've pointed out an uncomfortable truth that there needs to be a placing at some point before year end..and I suspect that doesn't suit you're own promotional narrative.
Your initial question was regarding Wressle which I have given you an answer for.
As that does not suit your narrative you seem to be stirring the pot.
out of-hopefully-Wn................................bibi
So you're of the view that UJO can happily continue without raising more capital on $1mm per year?
That just about covers overheads, how about the further spending needed on growing the business at WN? Biscathorpe drilling?, Keddington drilling? and all the other projects they point to as sources of growth...how do they fund those?
There won't be a placing period.. UJO will use a commercial construct to cover the £2.05.
If we flip West Newton.. They might pay it out of that.. Done and dusted.. Right.
Gla Mix
How about this for some 'back of the fag packet' thoughts.
Our Dave enters into an 'offtake financing agreement' on half of their share of oil produced at Wressle.
So 100 bopd @ $45/ barrel less costs so say $30/barrel profit.
That gives just over $1m for the year so about 2 years and the loan is cleared. Obviously doesn't take into account fluctuations in the oil price or the conversion into £'s
Still gives UJO $1m/yr profit for itself.
No need for a placing.
Rns translator.. I try to answer most questions.. But ignored yours as you continually claimed placing . I'd know if there was one. We won't place..to cover the 2.05m
Jack Levi.. Has indeed researched and answered your question.. Good stuff Jack. Wressle has more to give and if it pays for itself in the first year.. Happy days.
Gla Mix
Well done mate. That's certainly enamoured you to everyone here!
Clearly you done understand how this stuff works...
There is of course £2.08mm due.
One from the Humber transaction, one from UJO's original transaction with Celtique (Now Calmar)
Even if they can borrow the money based on the cashflow, it has to be paid back.
Can't see how they can avoid a fund-raise before Xmas (after WNB is my guess).
As I said
In respect of the £1,040,000 deferred consideration element of this transaction, the Union Jack Board has initiated discussions with third-party financing providers to evaluate a range of debt financing funding instruments for payment of this aspect of the Acquisition due on commercial oil production being established. Wressle is an attractive, low-cost, low-risk conventional onshore hydrocarbon project under development with 2P Reserves and considerable 2C Contingent Resources present within the *****tone Flags formation. The Board has been advised that a project of this nature with reserves and cash flow lends itself to off-take financing from production and anticipates that it will have the opportunity to choose from such an instrument and a range of other favourable debt structured finance options without recourse to equity-based financing.