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Thanks Badger. Jamaica is a bit of a worry as I think it was quite an attraction for investors looking at the company portfolio. Tlw have hit a snafu in Guyane so who knows what their plans will be with it.
With regard to Colter I just don't think the partners will have the inclination to go for it again against a head wind of nimbys and green issues. Not surprised Corfe walked.
May be Egypt will change everything and there will be a big change in direction and much of the UK stuff will be junked.
Jamaica has quietly disappeared from TLW's investor presentation and updates so i'm assuming that's purely because its not imminent rather than it being dismissed. Earlier in the year they walked away from another prospect pre drill (Mauritania I think) but they did mention it and why in a quarterly update.
As for Colter, the boundary shift RNS was a pain. I'd assumed they'd integrate the new data from the drill & sidetrack in 98/11a with the data in the 2 adjacent blocks and then market PEDL330/345 and the 3x offshore blocks as a bundle + you'd have 100% of Colter South and the 'Purbeck Prospect' ringfenced. Whether they park it until the new replacement blocks appear in a licencing round, god knows. A further complication is that Corfe Energy who were the 2nd biggest stakeholder after Corallian sold back their interest and walked away, so Corallian now has a very high working interest and cost carry. Finding a replacement farminee will be tough as things stand.
BL promised a full update on the new larger UOG and where he sees the company being in 12 months time on the last investor call.. I guess he'd include that in the readmission docs + a new company presentation pdf
Thanks Badger excellent post from you as usual. Yes Jamaica does raise some concerns. As for Colter and as I posted a while back I don't think any of the partners will be in any hurry to return there and I think it will be consigned to the history books. I hope we get a full update on relisting.
I'm thinking the northern end of your range levistubbs. BL on the investor call said that he'd hate to have to go back to the market by under-raising this time round to cover off Egypt committed spend on development/exploration drills + the 2020 work programme in the rest of the portfolio. He was also not sure about whether he'd want to issue the full $5m of shares to RKH so he could keep their overall % stake in UOG to a desired level.
Looking at the current cash position, they had just <$2m at 30/6/19 and they burn c.£750k pa in G&A, so for 18 months - 1.5 x £750k x 1.29 ($/£ rate) = c.$1.5m by 31/12/20. So that's pretty much all the current bank balance.
Likely Inflows / Outflows to 31/12/20 from the current portfolio? a few thoughts..
1. Jamaica - well its all gone v quiet from TLW and it seems to have disappeared from the Champions League places, through the Europa into mid-table mediocrity so i'm assuming no drill in 2020. Looking at the last balance sheet, there is total spend on 3D etc of $2.5m. From memory the commitment to TLW was £2m so that should be largely it in terms of cash outflows in 2020
2. Selva - The last PO Valley presentation refers to first gas in Q4'20 with 3D seismic to follow in 2021. I'm not clear how the development costs are to be funded whether by debt or equity - i'm hoping the former given they should have access to RBL. Total gross development costs are Euros 3m for the automated gas plant + a 1km pipeline is required to connect to the Italian grid (from an old PO Valley presentation). Cashflow c.$2mpa to UOG once up and running.
3. Crown Sale to Hibiscus - milestone of c. $1m due on completion of the SPA + a further $3m expected by 31/12/20 on FDP approval. In his raise plans, BL would exclude the latter from his calcs as the payment wont be till late in 2020
4. Dorset onshore / offshore - Waddock X got a brief mention in Egdon's accounts this week but doesn't appear close - JL mentioned a well cost to UOG of c. $400k on an old investor call, so not massive if it does get the 2020 go-ahead. As for Colter.... well that's a total head scratcher and I see very little cash spend in 2020
5. 31st licencing round North Sea blocks - seismic reprocessing etc. Some outlay but again not large.
FWIW I think it will be somewhere between $5-$7m as they will not want to leave themselves short for drilling further wells in Egypt and whatever else is planned, although we have heard nothing on other projects since suspension. Much will depend on RKH taking up the full $5m in shares. UOG had just over £3m left in cash after Colter and received some money for the North Sea sale. BP are stumping up $8m and there will be money receivable from Jan 1st Egypt oil sales so $5m does sound enough. So $10m (5 raised plus 5 to RKH) is £7.75m is 195m extra shares at 4p inc' costs. So circa 560m shares in issue at 4p which would be £22.4m mkt cap. But may be the company might do a small consolidation at the same time, all sorts of possibilities.
I think rkh have agreed to take up to $5m in shares which leaves $2.7m to fund.
Sone of this might be in cash but don't know how much uog can pay this way or if they want to
deplete their cash, so it might be more than $5m to be raised in an equity placing.
Let's hope it's at a decent price.
They are raising $5M the rest is coming out of cash reserves.
Equity placing due end oct early Nov so news on that is due now, no reason not to release as they have been releasing rns's while suspended and obviously will give a good indication of the sp we can expect on re admission.
Don't know exactly how much they will need to raise as they have to fund about $8m but wont have to raise full amount as they have other options available, but not sure if the best way is to keep cash or dilute shares, both have advantages and disadvantages.
Yes gkb47 I am sure that is right. But I am also eager to know about the drill or drop on Jamaica, whether they have decided to go ahead with Benin and if so what work has been done there, and all the other bits that were lauded in the conference call of last December and March.
You're welcome Catchingpigeons. I think like you I am may be expecting Q1 20 but I do think the company owes us an update sooner rather than later.
Thanks Levi for ur insight ,much appreciated fella
Catchingpigeons the company alluded to the deal concluding in Q4 in which we have about 24 trading days left. Time is getting tight and we also need news on the other projects as well as CPR ahead of raising.
Any price or market cap on relisting would be pure supposition and much depends on what the company can raise at.
I would hope the price would be quite a bit higher but who knows in this market.
Afternoon all , I was just wondering if anyone had any inkling as to when news may arrive here and when the likely return to listing will be .. As the last trading day was almost 4 months ago to the day and it’s been that long, I seem to recall reading somewhere that news would possibly be around this period now ,with re listing possibly early jan ... does that sound about right ?
If so can I ask at what price level is expected on UOG’s relisting (either Mkt cap or Sp) assuming that everything falls into place as expected .. TYIA