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"One thing is absolutely certain here, me and bebeto are going to make loads of money with the cheap shares we have bought."
Oops.
Some have been warning about this risk. It just materialised. I'm sorry for those who bought shares believing that this situation could be saved somehow. Lessons must be learnt by other who pumped and promoted this, particularly among those who heard them stating a sudden recovery.
You'll not be missed, IOG.
>, there's only 9hrs 30mins left to trade this share folks.
Turned out to be an overestimate!
.
Absolutely bricking it bebo..
Thankyou so much for the ongoing support 👍
Hope the short works out for you... GL
Bebeto, have you not bought enough cheap shares yet?
Gas prices are slowly rising. One thing is absolutely certain here, me and bebeto are going to make loads of money with the cheap shares we have bought.
Good luck all, especially bebeto.
Who's going to be holding this share into suspension?
Could be volatile tomorrow without a RNS
Up 5% again. 104.7 at the moment.
Could do with an update
He writes for shareprofits 😂alongside tom winnyfilth.. Nuff said😉
Bit disappointing after being up 12% earlier.
Be nice to bounce back by end of day again
Gary Neville wrote it. Or could have been Gary Numan...
Who wrote that - shamI89 ? lol
Here's an extract of what I was sent:
The reality is that whatever gas prices do, it isn’t going to be anywhere near enough for the company to be in a position to repay the bonds in 12 months time, plus of course there is the London Oil and Gas (LOG) loan of £9.8 million.
So far, the bondholders have been waiving the covenant breaches, with a further extension until September 29 recently agreed, but I suspect the only reason for that is that a possible solution is being negotiated in the background.
Not only is this an issue for IOG, which would find itself in administration if the bondholders started to enforce the covenants, but it is also a big headache for the bondholders who potentially stand to take a big hair cut on the €100 million of debt that is outstanding.
Shares in the company are now trading at just 0.95p on the ask and it has a market cap of less than £5 million, so there is no way that any significant amount of money is going to be raised via an equity issue.
The only way forward seems to be a renegotiation of the debt, or the bondholders do some sort of deal directly with the JV partner CalEnergy and basically take over the assets of IOG, but given that IOG was the operator, that seems far from ideal and these lenders never set out to directly own a stake in gas fields, they were just looking for a return on their money via the 9.5% coupon that is paid quarterly. Especially as further funding is going to be required for anything of an operational nature to try and improve production.
So, whilst that is a possible outcome, I see it as far more likely that a debt-for-equity deal will be done whereby the bondholders convert at least some of the debt into equity in the company. If that does happen then I would expect that it will be done at a level that results in a wipeout for current equity holders – the bondholders aren’t going to take a big haircut and let shareholders keep part of the company.
I think Richard Keys is too busy shaving his hairy palms and fiddling with his daughters pal tbf. 😂
Probably Gary Newbon, he heard it from Richard Keys
***This will enable us to continue our dedicated efforts to address the challenges facing the business and deliver an outcome in the best interests of all stakeholders***
Https://www.lse.co.uk/rns/ORCA/proposed-farm-in-to-the-pilot-project-ipwmzrky2rcts5k.html
Some light reading while we wait
That's better
But only just the start.
News soon hopefully
Someone called Gary N put it out there apparently they also reckon debt for equity more likely.
I'd agree with the second part.
CDF1, “many a true word is spoken in jest” I have no idea about Perenco but have thought as a private company they might list their UK operations to take advantage of the next big thing in the SNS, that being carbon storage, UK gov offering big incentives
I'd heard 'Perenco' were buying 'IOG' for double digits by Xmas Eve ;-)
Hadn't heard it until you make it up
Put the bong down.
Anyone hear the rumours BP are buying for 20p per share ?
Well a business needs to meet it's cost of capital, if the debt load is this oversized, its hard to right size the capital structure by addressing earnings alone and not right sizing the capital structure.
Beyond that, its not like the earnings are purely a function of the gas price, there is a lot of volatility in earnings here from a purely operational perspective (i.e. can you actually extract set gas at economic rates). So yes there are lots of other factors at play here than the gas price.
Its hard to see equity value here when the bonds are so far out of the money and the 29th Sept payment looms over the company which if unpaid, would put the ball in bondholder's court to realise value. We'll see what happens come Friday. I wrote about the company from a 'credit perspective' back when the shares were at 4pence: https://www.europeanhighyield.online/?status/102-102-1688742406/