London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
This is a huge nod in favour of oil production now the wealth fund has been enacted. imo, dyor.
The idea of setting up a Sovereign Wealth Fund was so The Bahamas could benefit from oil revenues. The timing of this announcement, by the prime minister, while BPC is drilling an oil well is interesting. I can only assume they expect the need for a Sovereign Wealth Fund as they believe they will be generating enough money for the benefit of the Bahamian people.
Starchild I for one read and trust what you are saying , ignore the ignorance of some ! So where does this leave us now ? I take it this has an underlying good tone ?
another interesting development on the MM front, to add to my observation of the new MM MREX yesterday...
SCAP (Shore Capital) BPC's joint in-house broker and BPC MM, has increased its EPS from 200,000 to 250,000. I cannot recall last time this applied to BPC.
BTW this is not amateur sleuthing on my part...it's because I can read my 2nd level console.
GLA
Starchild
Many thanks Star for making this BB interesting. Because the SP that I've waited 10 years for has been a damp squib from spud. Plus I think you are right. A Sovereign wealth fund has to come from somewhere and it isn't 'borrowed'.
For those that don't know, a sovereign wealth fund comes from exporting commodities or excess foreign currency reserves.
As the Bahamas does not have excess foreign currency reserves, then it must be a commodity wealth fund. Does 2 billion dollars come from tourists and fishing?
No. it must be oil the prime minister is talking about.
Briggsy do shut up
First catalyst is to find the oil in significant volume. Irrespective of how long anything takes, with a multibillion barrel discovery, it's likely to sell to a major oil company.
JohnBriggs: 'losing grip on reality' ?
Read my post again. I posted facts and gave thought-out opinion for others to make their own minds up. I did not ramp by stating,... 'oh golly must buy today, the SP will soar'
Who are you, as if your rude opinion is actually sought? Have we been introduced?
Have a nice day
Starchild
Can you be more specific @JohnBriggs with your post ? - I see @Starchild putting forward a point of view with the reasoning for it, then I read you dismissing it without any reasoning ?
You’re losing grip on reality, Starchild or at best your amateur sleuthing has got the better of you. Sometimes a spade is just a spade.
A companies share-price is based on:
1. profits or potential profits
2. dividends or potential dividends
3. assets: potential and eventually proven
Starchild
Kevin55 sums it up.
They're not finished drilling.
Lombard are derisking to get an immediate profit on SOME of their shares.
This is an oil producing company who already have an income stream selling oil.
Yes, they need success in the Bahamas with this project, but it's still early days with this drill.
Share price should start to rise closer to the 45 day mark. Hopefully Lombard will have some risk appetite and won't sell millions more.
Even if commercial oil is found, as with most projects of that potential size it would take years of project planing and funding (around $2bn) before first oil - 5 years would be a realistic expectation - at which point it would take years of production to accrue this quantity in tax revenues.
Also -Lest we not forget this is still the exploration phase - there is an election in less than 18months where oil will almost certainly be a confrontation point - production rights have not been assured.
This $2bn sovereign wealth funds is totally unconnected-
Minnis is trying to reposition himself as a deliverer of largesse as he knows or fears that there will be oil there and his recent stance is a losing one. Ever the politician!
BPC have a 45 to 65 day drill program they will not release any results until the drill has been completed.
Their plan is to drill approximately 5000 metres this is only day 26 of the drill what would be the point of releasing results if they are only half way through the drill program. Even if they have found anything they would have to complete the drill before full results can be released to determine the amount of oil found at their drilling target of 5000 metres that if they have found anything.
I did say before 20 days was way to early which it was. We just have to wait and see after the full drill completion and testing has been done after 45 days.
The problem is, we all want to believe ( myself included) any little single that they know something we don't. I will wait for the RNS telling me there is a discovery as to taxing.
star i couldnt get that video to play but found it on youtube.
https://youtu.be/KrsHcR0CdOA
This is very a very interesting development, this along with the government dropping the $200,000 bond for the plaintiffs yesterday. Do they know there has been a oil find already and they are preparing the public for the wealth creation this could create. Whilst dropping the bond it keeps them well in light of the tree huggers whilst knowing in the background that an oil find has already happened thus saying we will protect our natural resources for wealth creation of the people, and also getting the public ready to accept any future developments with oil production, win win for the next election coming up. Just my thoughts of the possibilities.
The government have their own people on the icemax, there has been oil found and they know about it already IMO
He has an election to win, he is campaigning nothing more
Bahamas PM yesterday announced creation of $2b Sovereign wealth fund
3 mins video https://ewnews.com/pm-minnis-sovereign-wealth-fund-among-new-initiatives-for-economic-rebound
Observations:
1. The timing is interesting.
2. In same speech he mentions creation of independent body to manage it, by leveraging Bahamas’ natural resources and what fund will be used for.
3. Where will the gov get $2b from if there is no oil? The last time it borrowed from the markets, in October 2020 the interest rate was a punitive 9% (source https://ewnews.com/dpm-defends-us600-million-bond-issue )
4. Either the Gov knows something we don’t re Percy-1, or preparing the population to accept oil production in its waters on the assumption oil is there. With an election looming next year (perhaps earlier), it will help the Gov state, ‘we don’t want oil, but have no choice because we need this money to pay into the sovereign wealth fund.’ ….and probably also state….. ‘we will get a better royalty deal from BPC and ensure the environment is protected so don’t worry and vote for us’
GLA
Starchild
https://www.lse.co.uk/profiles/starchild/
Strong and clear wording from former Central Bank governor Mr. Smith for "... accusing the activists of trying to undermine BPC's share price with a media campaign and a legal action that should have been brought much earlier prior to the company investing some $120m in its Bahamas well." http://www.tribune242.com/news/2021/jan/14/bpc-director-oil-resistance-futile/
sysi
Iamrich, we do not need to reapply for an EIA, every drill requires its own EIA.
So if we need to drill again and the JR requires any changes, we simply apply for the EIA at that time meeting the new requirements of the EIA, just as we did with the current one.
The only person who walks away from this with a positive balance is Fred Smith QC