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He is probably doing that right now, gathering what he can up to 0.5
It's not simple to get 99 million shares quickly and at current prices.
'Why sell now ahead of TO13 flow test?'
do you not get it? sell now and buy back at half price. simple!
I think that most people can work out that with TO-14 being a no-flow disaster, and with TO-13 being in the same field and probably also very unlikely to flow, then the share price certainly isn't going to be rising in the near future. Besides, I expect that TO-13 will take the customary 2 months to flow test so the share price will drift on no news as it usually does.
Why sell now ahead of TO13 flow test?
The previous Put Option was worded that EXT had the option to purchase the shares from R Jennings. It also contained a caveat as copied below which appears to state that EXT would only have to make the purchase if the share price reached a certain level for so many days and at a specified volume.
"Under the terms of this agreement, EXT has the right from 1 March 2024 until 1 June 2024, to purchase up to 99,000,000 ordinary shares of the Company from RJ, representing 5.58% of the ordinary shares currently in issue, at a price of £0.012 per share. This price represents a 37% premium to the most recent closing price of the Company's shares.
The Option contains an auto-exercise function, such that it will be deemed to have been exercised if the shares trade over £0.015 as measured on a VWAP basis for five consecutive trading days and in an aggregate minimum volume of 20,000,000 shares."
Today's RNS appears to state that R Jennings has the option to sell the 99 million shares to EXT with no terms attached. Obviously, if this is the case, then Jennings would sell them immediately. But are there any terms attached which have not been outlined in today's RNS? Is this more deceit and trickery by the desperate management?
Why would he take it now?
Better to wait for the results of the flow test results.
If they are good, price goes up and he retains his shares.
If bad, he cashes out at 0.75p.
I see that the only other share that Edgein has posted about is COPL. Oh dear, that is a very bad sign.
I expect that he will be telling us that they are off to Brazil next to acquire some more (possibly worthless) assets.
Exactly, if he had sense he would take it now and re buy in the market. Someone coming in for 99m would send the sp back up to the placing price at least.
You don’t understand what a put option is?
He can cash out £750k at anytime up to September 1st regardless of where the share price goes.
He’s quids in!
There’s a pattern ART.
Deliver bad news, but offer some carrot with director pumping money in at a significant premium to the current share price. They’ve been doing it for a while now.
Rather than letting the share price grow organically, it seems this is the only way to make PI feel like they’re getting a deal if they buy now.
Seems to be alot of smoke and mirrors.
The actual value accreditive news (I.e. delivering alot of oil to surface) ah that doesn’t look like it’s happening. But they still have the nickel assets to sell, which nobody wanted before they took them, and they’ve not really done anything with in the meantime
Buys galore piling in with this latest 'con' RNS.
Unfortunately, the Put Option is as good as worthless while the share price is 3 times lower than the option price. And maybe Jennings might be wise to sell these shares anyway to get some profit from them as by the time TO-13 fails to flow the share price might be down to 0.10p!!!
AJMHO
16 April 2024
Corcel PLC
Put Agreement
16 April 2024
Corcel Plc (London AIM: CRCL), the Angolan-focused exploration and production company, announces that it has been notified that Extractions Premium & Mining Ltd. ("EXT"), which currently holds a 21.26% interest in Corcel, has entered into a Put Option Agreement (the "Option") with Richard Jennings ("RJ") and has cancelled the Call Option Agreement previously announced on 29 February 2024.
Under the terms of this agreement, RJ has the right from 16 April 2024 until 1 September 2024, to sell up to 99,000,000 ordinary shares of the Company to EXT, representing 4.87% of the ordinary shares currently in issue, at a price of £0.0075 per share. This price represents approximately a 142% premium to the most recent closing price of the Company's shares.
That's it, move the posts. What a complete bunch of idiots. Why dangle this carrot in front of R Jennings? Are EXT so worried about Jennings selling these shares? and if so then why? If EXT just wanted more shares they can buy them at about 0.30p - and that is about 60% less than this silly Put Option price.
Is this just another desperate attempt to bolster the ailing share price? If so then I don't think that it is going to work. And yes, the market did see through this rather ludicrous premium-priced placing and instead of getting the share price up to 0.5p it has fallen to half that.
Blimey, some bloody unicorn!!
No point Dan. It’s a freeroll anyway for me. May as well see where it ends.
Dam, l had a plan in place hoping for a share price boost but don't seem like it's going to happen anytime soon.
It makes perfect sense Bladey and I'm not surprised they decided to move on, there's a shortage of nitrogen and it gives them to review whilst the clock has essentially stopped. The trouble, as with all RNS's, there are keywords that small fry investors look for,. "water", "moved on" or "abandoned". I work for a large Blue Chip in Project Procurement and you are continuously balancing risk (I.e cost) against benefit. There is not a chnace that Sononagol would return to TO-14 unless there is was evidential benefit vs risk. The uneducated on here (ART) will have you believe it's game over.
The fact that they suggest in the RNS that they will return to TO14 at a later date suggests to me that they believe that this WILL flow oil, but the process will take longer. So it's better to go back to TO13 and get flow rates from intersections in that well column. This being successful will firm up the Market Cap and and future after which they will have the necessary liquids and tools to complete TO14, and so forth.
It may also be possible that Sonangol have learnt from a vital mistake they've learnt from working on TO14 and will avoid similar problem on TO13 and are confident it will flow oil. The error they may have made on or during works on TO14 may have induced the unnecessary water formation and will ensure that mistake will not be repaeted on TO13, and further well tests going forward now that they have a better understanding of the geology situation!
Thought I had better make a cup of coffee to get through the 37 messages on the board today as it could be a long one.
But when I clicked the link , most of the messages were just green boxes so plenty of java left :^) - to those that weren't green boxes ..... thank you for your thoughts and insights as always..... much appreciated.
Hope springs eternal ... GLA
Dan you're welcome. Yeah the typical thing would have be go down the discounted placing route and from today's comments they still believe that TO-13 will aid them to getting commercial production in the near term and develop Tobias over the longer term. Not much priced in now even though Tobias remains a work in progress and the Ni assets are still pending sale etc.
Regards,
Ed.
Yes had high hopes for this one particulary in January past but time to face the facts this is on the ropes and probasbly will go down.
You're basically saying it will survive or wont survive, edging your bets there Peter. I don't think Nostradamus has anything to worry about.
If you think it's sinking, jump off.
Today we have a 15 per cent drop. Either the company will be in administration or it will delist . The ship is sinking. Sorry.
Hi Ed,
Thanks for your reply, that certainly adds more food for thought. Essentially they've gone from being unable to reactivate the fractured carbonate to flowing water but as you suggest this could have been expected, initially. The fact that extraction and a Director have invested at a premium suggests this is far from over, they could have got placing away at 0.35 and it would still be seen to be considerably better than the big discounts we're seeing in the Junior markets. I did suspect that they might go back to To-14 to give them time to assess, they wouldn't go back if they unless the additional the potential justified the additional costs. lets not forget that all parties have to agree.
I had such high hopes for this company but unfortunately it has all come to nothing. The share price is back to where it was when this asset was first acquired.
Hi Dan,
That's a good question as neither drill result mentioned any water. So far they haven't made it clear that its drill fluid or formation water. I'd guess its formation water. Nitrogen clean up won't cause water by itself, it'll just turn back to gas as it returns back up the well. During well clean up wells often produce water/drill fluid before producing oil. In this case they may have hit some of the water previously associated with TO-4. The TO-14 results did suggest that the well had re-pressurized and recharged since the TO-4 days. Clearly the results remains inconclusive as they plan to return to TO-14 after TO-13. They do mention nominal oil and oil shows again, yeah likely the water is coming out in force on test, but no mention of quantities of bwpd etc. True working off partial information again, no mention of how much had been perforated, did they test the entire oil column etc? Were the most potentially productive zones tested? When they return are they testing the same zones or others? A lot still remains unanswered.
TO-13 next and then a return is on the cards so again more waiting to see. We might get a conclusion to the sale of the Ni assets over the summer too and that would help pay for some of these ongoing costs. Interesting that CRCL now still maintains the debt clear balance sheet.
Nige,
Yeah the weather has been horrible this last 6 weeks, wettest spring that I can remember. Hopefully we'll get some warmer weather again soon. They sure are making it clear that they're not done with either well yet and still talk about first production from Tobias. So the company remains more positive than many on here. They're not running a charity so the fact that Extraction and Geraldine are happy to pay a premium for a large tranche of shares is certainly a positive. Clearly they see good value going ahead on these blocks and the lithium assets.
Regards,
Ed.