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Subscription & Open Offer prices were "deeply discounted". Out of the blue, Mr Krafft buys 5.30% of the company, I agree with your comments.
I've topped up this morning, the next RNS will be interesting.
Holding millions and making it very difficult to buy and quantity unless through a negotiated trade. Makes you wonder what they know as there must have been a very good story told to them.
Tried to obtain a price to purchase GBP 1,000, could only obtain a quote if order dropped to GBP 500 @ 9p.
Market Makers have very few shares.
Mr. Krafft went from owning zero shares pre capital raise to owning 5.30% of the company, he must be confident about Cabot Energy's future prospects.
Following the Subscription & Open Offer, there is now a new major shareholder - Mr Eric Krafft - D Maritime LTD.
I wonder what has made him take a 5.3% holding in Cabot Energy? Mr. Krafft was not listed on the Cabot Energy website prior to the capital raise as being one of the largest shareholders.
Mr Krafft now owns 1,695,314 Cabot Energy shares, I would be very interested to know what his thoughts are on the future prospects of Cabot Energy and what his investment stategy is?
My break even was 6.6p on 5500 shares with Cabot. I now have 55 shares with a break even price of £6 60. What a joke. Could sell my 55 shares today but I will get less than the fee I have to pay to do that.
"The immediate next steps will be to pursue joint ventures, debt and equity financing at the asset level before we approach the market to secure additional funding for the development of a drilling programme in Canada and support the growth of the business." Scott Aitken - CEO Cabot Energy taken from RNS 12 February 2019.
I'm intrigued about Scott Aitken, in addition to being CEO of Cabot Energy, he is also CEO of Seapulse. A press release regarding Seapulse was issued a few months ago, Seapulse is looking to invest in drilling opportunities (note the above quote re "joint ventures"). High Power Petroleum have invested US$2million in the new CAB subscription, organisations like HPP don't tend in my experience to throw money away. I have taken a punt on this company, I'm looking forward to see what comes next.
GLA
From today’s rns Following Admission, there will be a total of 31,935,750 New Ordinary Shares in issue. The Company does not hold any shares in treasury. Consequently, 31,935,750 is the figure which may be used by shareholders as the denominator for the calculation by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules. So it’s 3.1m market cap and cash raised recently too.. only funded till end of April it seems. Watch and wait for me.. could be punt.
Thats quite an impressive shafting. Is the company really worth £60,000,000 now or is most of it to pay off debt? If they have raised that, it is the the highest capital value NOP has ever had even at £2 per share because there were only 20 million shares then.
knicol, you were correct in your 10p open prediction. For my part I was overly optimistic in hoping for something higher. Now it is sub 10p, shows a lack of confidence.
share consolidation completed x100 share price (shares divided by 100) open offer @ 10p completed. Next shafting coming up May 2019. The share price was around 400p equivalent this time last year - so you can see the destruction. They still to shaft investors further May 2019!
What happened here?
shafting number 2 coming in May 2019
Thanks, IOG.
I'll be watching from the sidelines.
Maybe you're right!
"Looking ahead, the Directors believe that the underlying assets of the business remain strong. As previously stated, we were encouraged by the annual increase of 26% in gross Net Proven plus Probable reserves to 3.6 mmboe as well as the 339% increase in gross reserves and resources of the Canadian asset to 42.2 mmboe. Also, encouragingly, the spread between the West Texas Intermediate benchmark crude price ("WTI") and the Edmonton Light Oil benchmark price ("Edmonton") from December 2018 onwards has been restored to normal historical levels. The immediate next steps will be to pursue joint ventures, debt and equity financing at the asset level before we approach the market to secure additional funding for the development of a drilling programme in Canada and support the growth of the business." Scott Aitken - CEO Cabot Energy - taken from 12 February 2019 RNS
Thanks Caposoka, very interesting calcs.
Having invested US$2 million (c. GBP 1.52 million), High Power Petroleum are not in my view going to let Cabot Energy sink beneath the waves. The RNS which announced the need for capital raising said that the second stage would involve capital raising & / or debt finance, have the BoD secured a debt finance deal?
The Canadian assets were independently valued in September 2018, the consultant came up with a figure of US $48.3 million or c. GBP 36.70 million, that's 114.92 pence per share !!
Monday should be an interesting day.
GLA
Think you were closer first time round (15-20p). Different ways to assess it but get to similar range:
1) Ratio of existing / placing new:shares is 1:4 In mid Feb, existing shares had SP of 0.5p (50p consolidated), placing shares 10p (consolidated), gives weighted average of (50p + 4x10p)/5 = 18p
2) MC of existing 662m shares was @ 0.5p (12 Feb) 3.3M. Add value of cash raised (2.5M). New MC of 5.8M. Divide by number of shares (consolidated) of 31.9M gives a new SP of 18.7p.
A rough guide only. SP is transitory anyway. Risk of immediate insolvency puushed back but we also now know further placing to come.....
I have tried to work out what the share might be from Monday 4 March 2019:-
6.6199 million consolidated existing shares plus 25.315 million new subscription / open offer shares = 31.935 shares will be on the register from 4 March 2019.
Prior to the capital raising announcement, Cabot Energy had a market cap of GBP 9.929million
On the assumption that the market cap has remained the same (capital raising was done at a "heavily discounted price" according to the Cab RNS) - GBP 9.929 million divide by 31.935 million new Cabot shares = 31.09p per share
Will the share price be 31.0p on Monday 4 March 2019?
Given that the subscription & Open Offer was priced at 10p per share, I would hope the share price from Monday will be between 15p - 20p.
I'm intrigued about Seapulse, the entity which is headed up by Cabot's CEO, Scott Aitken. Will Seapulse get involved in financing further drills on the Canadian licence? I would have thought that the BoD need a catalyst to get the SP moving north before they come back to tap investors for more new capital.
GLA
Agree. If they can raise enough cash to clear these issues and produce positive cash on an on-going basis then they should recover from here. Maybe a walk instead of a run.
Not sure why the opening price Mon would be 10p. Surely mid price somewhere a little nearer 15p to be between 10p placing price and whatever is was before. Not informed enough to say for sure. Let's see.
Thanks for your comments Longwait, the question is why has High Power Petroleum invested US $2 million in a business which is close to failing? Would Scott Aitken persuade his employers to throw good money after bad?
I don't own many shares, I have bought in to the Open Offer to average down. There is a clear disparity between the independent valuation of Cabot's primary asset and the market cap of the company....the next few months should be interesting.
GLA
GLA
As a result of the fundraising and substantial subscription in the Open Offer, the Company now has sufficient funding through to late April 2019.
Share price consolidation Mon 4 March: 10p open expected
If you're right, Investoroilgas, then the shares could be worth 9 p each, but almost ever since I started following this company, everything has suggested that most posters have until recently been oblivious of the fact that it has been slowly going down the plug-hole.
to confirm shafting number 1 with number 2 still be planned
On 6 November 2018 Cabot published a Reserves Report on its Canadian assets which was determined by an Independent Reserves Consultant as at 30 September 2018. The Report stated net 2P reserves of US$48.3 million to Cabot Energy (the report is available on the Cabot Energy website).
Cabot Energy's market capitalisation as at today stands at GBP 0.830 million.
There is clearly a disconnect between what an Independent Reserves Consultant thinks the Canadian assets are worth and what the Stock Market thinks Cabot Energy is worth.
shafting still to come first