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Minor correction to my last post.....
Source RNS 21/8/2019 https://polaris.brighterir.com/public/bahamas_petroleum_company/news/rns/story/xj0o51w
‘…………….Board Rights: Effective from Completion (i.e. only once all conditions precedent are satisfied and funds are advanced to BPC) and until such time as the Notes are redeemed, BCI will have the right to appoint two (2) directors to the Board of BPC (but, for so long as both Simon Potter and Eytan Uliel are members of the Board, the right of appointment shall be reduced to only one (1))…..’
GL
Starchild
https://www.lse.co.uk/profiles/starchild/
IMO, Stephen Bizzell and Robert Riley joining the BPC BoD is very positive. I recently posted why I believe Robert will be a great asset. Observations why Stephen will, are below.
Experience https://www.bizzellcapital.com/investment-bank-team.html
Note his track record and successes. Specifically,….. ‘ Stephen was previously an Executive Director of Arrow Energy, from 1999 until its takeover in 2010 by a JV between Shell and PetroChina for $3.5 billion. He was instrumental in Arrow’s corporate and commercial successes and its growth from a junior explorer to a large integrated energy company….. ‘
Xref with Simon and Eytan’s bios on https://www.bpcplc.com/about/who-we-are/board/ and https://www.bpcplc.com/about/senior-management/ Note Simon was Arrow’s CEO, Eytan its CCO and Stephen an Exec Director.
When the original Bizzell deal was structured in 2019, the investor had the option to appoint its own BoD person(s) in the event Simon and/or Eytan resigned. Bizzell historically made a very good ROI with previous deals in orgs Simon and Eytan worked for including Arrow. And trusted them.
Opinion
After the EGM and placing next week, Bizzell will release 2m subject to at least £5m being raised. This means they will be owed +/- £2.5m in total. IMO, Stephen joining the BoD is to help steer BPC to success, rather than to ensure his company gets paid! A director’s loyalty is to the company and its shareholders. IMO this is positive. As a BoD member, Stephen will know in real-time what’s going on warts and all. Any future Bizzell advance to help BPC reach 2500 boe/day in December, will be a positive sign and endorsement.
If it wasn’t for the Bahamas legacy costs of +/- $14m some disputed, there would NOT have been an OO/placing at 0.35p. Bizzell set the funding bar @0.8p and likely would have advanced cash when needed at that rate.
IMO, PIs (some sitting on mega losses) will unlikely subscribe to >25% of the Open Offer. However, I believe the Placement will be successful. Professional investors and IIs are not stupid. BPC is seriously under-priced. It’s Trinidad net tax credits alone are worth more than the current MCap! However, BPC is in a catch-22 owing legacy debt.
The OO/placement will get us back on track, reset, relaunch, rebrand and move forward. I’m hoping the SP meanders its way over the coming months initially to the +/- 0.8p funding bar, then to the Auctus reNav of 1.2p. And that’s without a full SWP dev or a Bahamas farm-in 4th qtr.
IMHO. DYOR. GLA.
Starchild
https://www.lse.co.uk/profiles/starchild/
Bohemia: You have been open and admit to shorting BPC. Thanks. But respectfully, please do your maths again as you clearly didn’t read my post properly. Similarly to when you recently argued BPC is not making $3m in free cash from today’s operations, pre-capex/OTCs. You stated it was zero, despite RNSs and presentations stating $3m, and my maths going a long way to prove it. GL.
“Looking at this another way, had the Put not been exercised, and $1.7m/£1.2m added to the Open Offer or Placing NOW at 0.35p, it would have cost 343m shares @0.35p. “
I’m a bit late to the party on this one but...
I don’t agree your calculation of the $1.7m because there’s no indication the fundraising fees at being rebated by LO as opposed to by a third party (Gneiss?).
Regardless of that, what if we use your $1.7m and “it would have cost 343m shares”.
Unfortunately the out option cost 187.5m shares at exercise and now - but your numbers - $3.3m today which means 673m @ 0.35p: therefore 861m in total. $1.7m for 861m makes it an average funding price of 0.14p per share.
Worse funding deal in the history of AIM? Yes they were desperate but even a 1p placing would have been far better. They just seem desperate to avoid admitting the mess they were in, and that included insisting the other findings lines were still available when now they admit they’d gone cold.
And again, this is relevant today because we are given the same promise S2 will be fully funded because the CCNs are going to come to the rescue.
Who’s the Numpty that predicts 0.4p looming and shouts 6% up when the fact is 2% down.
Children that use their dads computer, pretending to be all grown up.
Not to worry S666 I have a teenager at home she is the same, but most probably a little more mature.
Hang on in there, things will get better.
Word of advice, no more predictions please.
I get your point of view JohnBriggs, yesterdays rns was to bolster support for the oo.
Way i look at it is i am more likely to see a return by investing in the oo. Granted if saffron 2 results bad then it was wrong choice. We either invest further or see our paper losses materialise.
We will know soon enough.
The fun will begin of Monday as we get closer to Saffron 2 drill only 1 week away. Black gold and blue prices order to the day from here on in.
No No JohnB...
No red flags here. We are looking forward to the following:
1.) Marvelous May
2.) Jubilant June
3.) Jolly July
4.) Auspicious august
5.) Super September
and
6.) OhMyGosh October Darling!
Does everyone remember how good this was the last time? Bamps perhaps?
It'll be just like last time!!
Blue gold Paradise
Just thinking did one of you guys just sell some of you oo shares for a 6k profit, sneaky, but we'll done if you did.
Showing as a sell just below mid price so no doubt some will argue its a buy.
But at £76k If it is a sell then shareholders will be wondering why someone is selling so many at this time when the bod are asking them to dip into their pockets to basically bail the company out.
Time will tell, soon.
Not long now until we see what actually happens here. My prediction is that yesterday's RNS was a desperate attempt to sucker in support for the OO which has been extended due to lack of interest/ trust in the BOD.
If this OO fails to get the cash it needs (highly likely) and nothing else transpires then don't expect all those BOD "promises" to turn out their pockets to ever happen. Isimply cannot unerstadn why anyone would partake in the OO whenyou can buy at the same price (or even less at the beginning of the week). So many red flags.... now where have I seen that before, I wonder.
Does Mcadder still think this is worth a punt?
Toodlepip x
Will you walk into my parlour?' said the Spider to the Fly,
'Tis the prettiest little parlour that ever you did spy;
The way into my parlour is up a winding stair,
And I've a many curious things to show when you are there.'
Star, even though you don't see yourself as the spin Doctor, do you think its possible that someone other than you could take that view?
Would I be right in thinking that now that the SP is higher than the OO price,that most buying today of those That are eligible will be through the OO, so not show up on the normal trading and volume on LSE
Last trading day before the EGM, then it's all systems go for the drilling of Saffron#2 appraisal well on the 23rd,
I think 200-300bopd is a reserved estimate imo, I expect it could be higher.
We're using the same well pad as Columbus used but slightly downdip to encounter a thicker and larger reservoir, if successful it paves the way for a full field development starting with 5-9 wells by year end and up to 30 well's in total.
It's all about to begin.
I’m not BPC’s spin doctor as alleged.
I have only been a spin doctor once for the leader of North Korea. According to state run polls, his internal popularity soared from 99.8% to 99.99% following various articles and TV appearances where he was shown playing with kittens on state media. The key message, ‘our beloved leader is hard, but a softy at heart for his wonderful people.’ We were going to use puppies, but I recommended against this, in case any were eaten before the campaign ended.
Starchild
When you come across these boards you get a bit confuse ....... but you’ll get used to it .... we are a family .....LOL
I done my research I’m off...... i’ve got other stuff to do I’m not like others spending all the time Here LOL
Starchild, that's what I was thinking, just shows how confident Dr Riley is in the future of the new company to be interested in joining the company.
Also he'll attract large investors/stakeholders to be part of the financial support of the company.
Great job Eytan.
Enjoy the rise of upcoming drillings
6% up today Or could be greater than yesterday
Deltalo: totally agree with you. CV very impressive. There is no way, IMO, a high caliber exec such as Dr Riley would join the BoD of a failing company and potentially embarrass himself. Quite the opposite. Within months, perhaps even weeks he may be able to sate he was a key player in BPC's corporate reset, resulting in a mega turnaround to BPC's Mcap and share-price.
As a side point, Dr Riley has a law degree, financial institutional connections (RBL?) and worked for super-majors. The latter could help in farm-out talks.
Starchild
Is very impressive don't you think Starchild,
His experience and connections will be invaluable to the company,
Just goes to show the potential scale and the potential value of this new company going forward is very exciting.
It's all coming together nicely I must say...
https://massygroup.com/leadership-profile/robert-riley/
[Don’t forget to vote. Time has probably run out to send a secure message to your provider and get it acknowledged, so I suggest you PHONE them today. It will only take +/- 5 mins]
BPC entered a £7.5m share issuance with Lombard in Dec /Jan. The guaranteed av price 2.3p. When the reconciliation was finalized in Feb, £375k was owed, however this was…. ‘entirely offset by an agreed rebate of advisory and fundraising fees paid by the Company, such that the net cash cost to the Company in respect of the full and final reconciliation for this tranche of funding has been nil’….. (Source 16/2 RNS https://polaris.brighterir.com/public/bahamas_petroleum_company/news/rns/story/xq63oqr )
BPC then exercised a Put option in Jan for another £3.75m/c$5m for 188m shares. Following the 2nd reconciliation in April, LOL are now owed $4m, minus….. ‘a cash rebate of advisory and fundraising fees paid by the Company previously, amounting to approximately £500k (source 23/4 RNS https://polaris.brighterir.com/public/bahamas_petroleum_company/news/rns/story/xzm547w ).
However, ….‘ the reconciliation amount able to be satisfied in cash or SHARES (or any COMBINATION thereof) at both parties' discretion, after which any obligations under the Put Option will be fully satisfied…..’ Result: LOL are owed $4m – £500k/$700k fees = c$3.3m net. It is due in June and can be part paid in shares by mutual consent.
Opinion
Put simply, BPC received $5m and now must repay c$3.3m in June. Result: BPC has $1.7m more than it started with. Put another way, had BPC not exercised the Put, it would have $1.7m less in the bank today.
Looking at this another way, had the Put not been exercised, and $1.7m/£1.2m added to the Open Offer or Placing NOW at 0.35p, it would have cost 343m shares @0.35p.
Conclusions:
1. Eytan (CEO designate) stated very frankly the deal was bad, with the caveat BPC had little choice at the time based on the perfect storm caused by Covid and the enviros’ attempted injunction.
2. Whether or not the OO and II placing is undersubscribed, the outstanding debt of $3.3m can be retired by BPC issuing shares to LOL, subject to mutual consent. This means BPC will have saved $3.3m in cash out of the c$14m owed for legacy debts.
3. The same applies to Stena for +/- $10m when all disputes are resolved.
Key argument: If the OO has >25% acceptance it will exceed my expectations. But, if the OO AND Placing are undersubscribed, less shares will be issued. This gives room to use additional shares to pay towards LOL and Stena debts. Even if fully subscribed some new shares could still be issued. In either scenario, cash will be conserved, which will trigger the corporate reset and fund the next phase of organic growth. With a stronger balance sheet, little debt, doors could open for reserve-based lending, with less reliance on more expensive dilutive ones.
IMHO. DYOR. GLA.
Starchild
https://www.lse.co.uk/profiles/starchild/
Koot was a con man.
Pure and simple.
The normal price for cerp was 4-5p