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Ibiza28
As jimtheknow points out it would likely be a placing and as far as the price is concerned they will do what they have to if it is necessary to unlock everything else.
ross, everyone is in agreement an equity fund raise is possible, does this surprise you? It is highly unlikely though this will be made available direct to any PI's as they already have buyers lined up for this equity should they need it. The amounts attributable to each funding option are stated in a great number of BPC issued documents. Also, the majority of us BPC LTH's voted for a 1.8bn share issue authority, of which we are only about 30% into (if you discount the CERP dog), so new equity would be of no surprise to us.
If you care to read BPC's published information in detail they tell you what elements of their funding options will generate what volumes equity e.g. the worst case for the Bizzell CLN will see c. 580m new shares issued. The Facility is a bit different and not an exact science because it is linked to prevailing share prices at the time of conversion.
After the CERP merger I think most of us are expecting there to be something in the region of 4bn shares issued at the time of spud, if they beat this then great, if they exceed this by a long way then why on earth did we acquire CERP?
harel
The share price and market sentiment might dictate the price, but they would not prevent a raise.
the second wave is here and the third wave will be a winter wave which is much harder.
i leave in israel, we just started today a second lockdown.
ross, agree with you, just pointed out that the sp and market sentiment are not supporting an equity fund raise and I assure you going on this drill alone is the last thing they want if its even an option.
harel, the only way this will go sub 2p again (prior to drilling) is if another black swan event happens or there's a big COVID second wave, otherwise this will be managed so as to not breach 2p for 5 consecutive days, enabling maximum funding options are maintained.
harel
There is nothing to stop them doing an equity fund raise.
Zag, the 15th October, 15th November and 1st December dates are all in RNS's put out by the company i.e. BPC BoD.
Dreamland - time - folk have had their money tied up in here since 2010 or thereabouts. Some have traded and have more whilst others have left the fold. Your concerns about time have, I feel, been answered by jimtheknow, however, do not be concerned about any slippage unless news dictates otherwise.
This is still a high risk/high reward play. Ensure you are happy with the possibility to lose your investment as well as make a lot.
Stay safe all ;@)
Thanks you very much appreciate for your advice
just to make clear, im not against bpc, i do plan to buy in again if it will go sub 2p.
in any case i dont plan on being exposed to the drills outcome because its a binary event with low cos, a complete wildcat.
i do think that bpc can go to 5-6p on spud and thats my goal.
Harel
Anything positive about this stock from your prospective?
i meant it wasnt announced so for now its not happening, they might go for it but the sp and market sentiment are against it.
harel
Why do you say that an equity fund raise is off the table when it is something that the BoD specifically mention in the passage that jimtheknow quoted?
Jim
I would like that info coming from the BOD, as that is the only thing that is making the stock rise, and certainly not people with "I have a feeling" this is going up soon.
Dreamland99
As jimtheknow just quoted, the BoD are happy that
"When considered alongside a variety of other potential funding options available to the Group, including concluding a farm-out arrangement or equity funding raise, ... the Group will be able to raise the additional funding required to execute the exploration well in satisfaction of all licence requirements."
So the reasonable worst case scenario appears to equity taking one for the team. For the drill not to happen now I think we would be looking at a substantial plunge in the oil price and/or a very significant Covid spike.
Dreamland99.
A first indication on funding will be announced on or just before the 15th October.
Another decision is likely to come on or before 15th November.
The IceMax will set sail late November.
All funding avenues are likely to be known by 1st December.
Drilling is most likely going to start in January 2021 and it'll be no more than 45 days.
Is this a good enough timeline for you?
jimtheknow
What else are Stena going to say? This conversation is, after all, more about how the drill is going to be funded, not whether it is going to be funded. Whether it is going to be funded (i.e. whether it is going to happen at all) is a conversation about scenarios that are much more negative than equity simply taking one for the team.
Basically I am worried about the drill how long have to wait and does this drill happening or not . Money stuck for long time.
Dreamland99
What exactly are you worried about?
keith1
It ticked down this morning, both the headline spread and the actual spread.
Burnt island for you Ross....
ZagEgypt
I wish - it’s Fife!
Do enjoy your holiday, hope its somewhere nice and hot.
ZagEgypt
There is no chance of me dropping the funding issue until we hear more from the Company, but feel free to filter me (and in any event I am off for a week’s holiday this Saturday).
Ross
With all due to respect, I am at my limit with you and others on funding.
Please leave me out your crusade on this issue.