Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Considering the name Tyler durden is from the movie fight club. Do you have a source for this info lol.
Very encouraging.
Looking forward to next week!!
Oil Soars Above $69 After Goldman Hikes Price Target To $80
BY TYLER DURDEN
FRIDAY, MAR 05, 2021 - 10:25
Even as the rest of the market continues to submerge with the now traditional rug-pull at the open which sent Nasdaq tumbling after a modestly green open as Kathy Wood is apparently hell bent on liquidating all of her most liquid "growth" names to triple and quadruple down in her biggest losers, oil is surging on the back of yesterday's latest OPEC+ surprise which has set the stage for a $100 barrel of oil as well as a Goldman oil price target upgrade.
Welcome to the LSE Board for COPL!
THE ATOMIC DEAL
Over 5% being held by HSBC
COMPLETION DATE 15/3 AS STATED IN THIS INVESTOR PRESENTATION:
http://www.canoverseas.com/wp-content/uploads/2021/02/COPL-Atomic-Corporate-Acquisition-Presentation-02-21.pdf
Two operated oil fields: the Barron Flats Shannon Unit (57.7% WI) and Cole Creek Unit (66.7% WI) located in the Powder River Basin in the State of Wyoming, USA:
· Current production rate of 1,400 bbls/d (gross) rising to 5,000 bbls/d (gross) in 2022 and c.7,000 bbls/d (gross) in 2026 (2P reserve case, Ryder Scott Report).
ROAD MAP TO OWNERSHIP OF ATOMIC
• Deposit (non-refundable): $1 million - COMPLETE
• Initial Debt-Financed Payment: $8 million for 15% of Atomic's Working Interest in all of its leasehold on or before December 31, 2020. - COMPLETE
· (Note: If the acquisition does not complete, the Company will retain this interest)
• Assumed Debt: $26 million at closing – FINANCE APPROVED PENDING COMPLETION OF AUDIT
• Total Additional Debt and Cash: $15 million at closing – FINANCE APPROVED PENDING COMPLETION OF AUDIT
• COPL Common Shares to Atomic Shareholder(s): $4 million priced at closing – TO BE ISSUED AT CLOSE OF DEAL.
VALUE TO COPL
Total Cost $54m
Estimated SP on completion of purchase of Atomic : 1-2p
DEVELOPMENT OF THE ASSET
- Roll out tripling of the gas injection programme at Barron flats
- Drilling cole creek plans
- Production ramp up - monthly updates expected all positive incline so no surprises but each one adds to the market cap and net worth
WHAT ABOUT THE OTHER OWNERS OF THE OIL FIELDS?
There are good reasons to believe that a 100% purchase the asset is possible.
- NOP (in financial distress) buyout would take us to 85%
- Chinese own 15% (being forced to sell by US Govt)
There is a $20m accordion facility built into the finance agreement which may be earmarked for this very purpose.
DOES COPL HAVE ANY OTHER POSSIBLE REVENUE STREAMS?
The Atomic deal came as a huge and very welcome surprise to the shareholders. The main reason that we had been holding was for the expectation that COPL’s interest in OLP226, a large offshore asset in Nigeria, being developed.
1 - PSR is assumed - no evidence to state it will not be agreed. It has been delayed several times however most shareholders would agree that it is likely to still occur.
2 - Oil is found already, next to a producing prolific field - drill planned is appraisal not exploration
3 - Essar want a rapid ROI to date on $70m exploration spend - can spend a lot, drilling costs very low and would want to capitalise on that asap - COPL are carried
4 - Nigeria have much to gain from their oil assets getting to production.
With 60k bopd assumed production
COPL share at 15% (5% with option to increase)
Oil at $40/b
tax 70%
lifting costs $20/b
This equals $19.4m net profit p.a
mc $331m
Note: Oil is currently approx. $64 per barrel.
But my goodness the good Lord has created a perfect storm for this takeover to go to the moon.
Thanks CawCaw for comment. It was other people's research of course. With regards to SP we have such a great year ahead. I imagine that many of us will still be here in a years time on a free ride enjoying having been here since the 0.2s and earlier and watching the company thrive. We will all have our targets to slice, near term or later in the year. It's wise to take some profits when available, even a little.
Bigbear2
I think its gonna rocket upto 2.5p on day traders etc but quickly settle down to 1.5p but its all depending on % of ownership...
Itll be an easy day traders dream for a few weeks... From experience... The winners will be the longer term holders only if AM doesnt dilute more, but he might do a share buy back...
Next week if we get alot of tr1's we all might be shocked...
Daceon had a very clean summary with justification based on published data.
Personally I think it is conservative and the real achievable MCAP after acquisition will be higher.
Hope I’m right. I am long.
On approval and drawdown what are peoples near term expectations?
Surely a mkt cap near 100 mill?