Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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"They have already hedged 10k bopd at 35 dollars and can use the option in the event price of oil collapses...."
Part of the reason I was happy with the hedge (other than the obvious insurance against a low POO) was that it tell's me that the BOD is'nt looking for an early below belt offer. (if they were even looking for an offer). Hedging I believe is a 'future' strategy, why think of the future if you're looking for an early out? AIMHO
fandg2 14/44, '' Hedging I believe is a future strategy, why think of the future if you're for an early out?'' Good positive factual thinking. When a share price goes up quite a bit, it does not sound a horn and it goes up suddenly in a burst. It just happens on some positive news as an excuse.
If the new board sell company for any less than 30p a share they will be shafting long term holders
I theorem whilst I agree with what you are saying... The reality is that it is a buyers market at the moment.. Covid saw to that... So I doubt that the pi will come out on top other than the ones that are buying low at these prices.. Love to be wrong though.
haggis_trap17/23 In past these shares have gone to 55/60p, so on positive up date and crude going up, the shares would be over the price you quoted, without any take over. Ignore the gloom Merchants with their attacks on the positive thinkers to take out their loneliness or may be having had a down petty bet on the SP.
If we see water cut stop increasing and steady production, there will be a case for re rating, at this moment in time with water cut increasing on the prime well a 3% per month while operating in the prime part of the reservoir the model is unproved. There will be no full field development, with this outcome there will be zero value. Pelham is bailing out as this is considered a probable outcome. Most of what we see discussed here is nothing to do with this oil project and what is happening West of Shetland.
Slift,
"35p takeover is very very optimistic.
Any takeover offers is likely to be a 50% premium to current share price. Assuming 7p, that'll be 10.5p, or £186m."
The main reason i suggested say 35p for a takeover is that anything less would be rejected by the BoD and major holders and thus it would have to be a hostile bid that is attractive enough to a majority, and once a low bid is in the public domain one would hope for a bidding war that would escalate the final offer to something reasonably solid. Yes the first bid may well be just 50% over current sp, but that would not be accepted by hardly anyone except a few pi's!, and would have to be raised to get any real traction!
MCB55,
Yes, that's exactly what I had said in my later post.
People are expecting very high takeover offers when share price is at 6p.
The share price is at 6p because market believes that is what the company is valued at. And any takeover offers AT THE CURRENT SHARE PRICE, will be between 20-50% at max of a premium.
I think there are a lot of long term shareholders here trapped at much higher prices. Whilst I don't mean to offend them, this is the reality. Obviously share price may re-rate again to 10 or 15p as some suggest, and yet again any takeover offers at that point will still be a 20-50% premium to that share price.
Whether BOD or shareholder majority accepts or rejects the offer is is up to the BOD and major shareholders, and right now following what's occured, you can't be certain about what they're after.
"anything less would be rejected by the BoD and major holders"
This is a strong statement implying they WILL reject, when they may not.
ALL IMO.