The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Whoops! I should have typed: the farmor might retain (say) only 25% or less.
Hello caeser. It's a reasonable question but IMO it's very difficult (maybe nearly impossible) to answer without knowing a lot more about the terms. For instance the farmor might retain (say) only or2 less5%, and has it genuinely increased the liklihood of drilling in the very near future and, perhaps most important, what's the most likely reserve size that will be found by the agreed / paid for drilling programme. And the SP may not react logically to a deal until some time after it's been announced, but perhaps only when the details of the discovery has been announced in some detail.
Caesar, It really depends on different factors, sentiment (currently terrible), what the SP is trading at the time of farmout (prior positive news on ROI and NS projects would make a big difference), the terms of the deal (who had farmed in, % retained, drill timeframes, any previous costs to be back paid etc). With such a high COS, any farmout with relatively short time frame drill will have a very positive impact.
For me, anywhere between 3-6p on announcement depending on the above.
Caesar, you may find this useful.
https://youtu.be/m7S0-AgItdM?si=5a2WnSfl0CP2bUAJ
Where the price goes with a farm in is anyone's guess. Most of us think we're incredibly undervalued now but unfortunately sentiment is currently very poor for us and the sector.
WA(company founder) did however increase his holding last week quite significantly and Directors have recently bought. We do however seem to have a persistent seller.
Given current valuation is in its ar.se I would think 4x minimum
Can anyone here advise what is an average across the board percentage increase in a share price, upon a farm out?
They are greedy and thoughtless.
Well if they were really that Pleased to tell us I doubt they would have put it out on a Friday! Presuming the 3 year element is meant to be some kind of lock in, so they would lose options if they leave positions. Timing seems crass, but maybe it’s to do with clearing out old options etc before end of year (Jan 31).
"Europa Oil & Gas ............................is PLEASED to announce an updated enterprise management incentive (EMI) scheme for directors and employees and the concurrent cancellation of certain historical options."
Who writes the RNS's ???? Surely the BOD should be sensitive enough to shareholders interests / views to recognize that ordinary shareholders are unlikely to be "PLEASED" that Management have awarded themselves FREE options whilst the SP sits in the gutter.
Yet again the BOD shows the disdainful attitude they have towards Ordinary PI's
Ooops .. 1.5p in June '23. £1.50 .. that would show confidence ! ;-)
Hmm not the rns I was expecting imho
WA - his previous purchase was in June '23 - @ approx. £1.50 .. took his stake from 3.73 - 5.29% .. now up to 6%, a fair chunk. Still confident, a good sign, imo.
Seemed to be buying in 400k chunks yesterday.
Ask tick up. Is WA in for more?
Yes I agree - in this cruel, greedy world we live in I want our directors to be moral and fair in the way they go about their business - whenever they vest to have them at 1.07 is shameful. If I could afford to I would sell my 10million shares tomorrow but locked in at a huge loss.
It is not the award of share options but the price, it is shockingly low. But as you say let's wait and see if they buy shares in the open market. After all they are being paid quite well.
Another company I invest in has Directors options and they continue to buy on open market - so let’s see what happens here. At least share options when redeemed, put the money into the company rather than the MM pockets.
People are fretting because it shows that the BoD are still deaf and still greedy! That said the point about WA increasing his shareholding is well made.
Because I just said it disincentivises them from buying shares in the open market. For goodness sake the share price is 1p, we need the BOD to show support by buying shares, all of them.
Jeeez. Why are people here fretting about something 3 years down the line. WA buying and taking his holding above 6% is very much of a significance. EG comes in then it's the exit door for me also.
One of the biggest problems with rewarding themselves so many shares at such a low price is it disincentivises them from buying shares in the open market. Why would you buy shares when you know you can buy them for 1.07p??
The BODs are constantly saying 3rd party review for awarding themselves too high of salaries and too low of options. They don't need a 3rd party to tell them what is right for the shareholders, a good BODs would understand that. I am afraid this BOD are just showing themselves as greedy.
The other thing is that I hope they learned their lesson with SO and SW and that all those options given to them both as non executives (which is poor CG) albeit, SO was a self appointed exec when they were awarded, was that if a director leaves all share options should be cancelled with immediate effect. I wonder if they have put that in their share option scheme?
PEDL 180 and 182 easily underpin the market capitalisation currently. The market really should see EOG as a free hit on the big time from here over the course of the year.
You are right - it is very difficult for Directors to sell options in practice as it crashes SP, so if they buy these options they won’t get reward until they leave. Can’t get that excited about it as none of it applies for 3 years - and if any of the significant projects come off don’t plan to be here then! And if they don’t come off these options are worthless. Personally think WA buying is more significant at present.
I dont think the BOD have learned anything from the shareholder revolt against greed. 6% of company at 1.07p is really shockingly low and not going to win any votes when you consider we need to reduce the number of shares not increase the number of shares. At least the Chairman, a non exec, has not been awarded any, as it should be. If, the BOD purchase their options, they will find it difficult to sell as it wont look good for them to sell when they are running the company.