Firering Strategic Minerals: From explorer to producer. Watch the video here.
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I've positioned ahead of the first deal here.
April presenter talks about first deal in the £20-300m bracket funded by a mix of equity / debt.
So I forsee a likelihood of 2k-20kboepd - which the team can then spin out through infill drilling / life enhancement projects.
Very exciting potential here. Stellar performance at Faroe & unusual to get the opportunity to get in at sub IPO price over these last few months. I've taken the opporunity to reinvest sizeable gains from RRE & the model here is very similar. Low risk / high reward.
I feel Covid will have slowed things up a little - but deals starting to move now.
can't be far away now added today.
I added a few more this morning too. It raised my average by about 10p, but I think come the RTO any equity raise will be done multiples higher than here.
I would like to think that they would be able to buy more BOPD, although i wonder if to an extent there is a danger that one one hand you can get more BOPD, but that attitudes towards lending are maybe not so good.
I still have in my minds eyes 3000-5000 bopd and if they deliver more than that, then I will be delighted.
Mozza.
If it was pre-covid then I would agree but now things are majorly different.
Here’s why :
HH mentioned 3 deals to become a mid tier producer ... that’s 20k-30k bopd is classified as mid-tier.
So that’s an average of 3 deals @ 10,000 bopd.
Now look at recent deals ..... I won’t bore you guys but will only mention a few :
Premier oil buys BP assets $210m for 20k bopd
Energean Buys Eddison E&P assets $180m for 45k bopd
Rockrose taken over for £250m with 20k bopd and $300m
Cash.
So I think these assets which would have cost double prior to covid show what’s on offer.
If they go for 5k now for £30m then the complexity of the deal would be minimal and probably done by now.
THIS IS THE TIME to buy and buy big especially in the North Sea.
The delay in my opinion is because the deal is massive ...as a holder I would want that and most likely it’s the BOD best and quickest way to their target.
Notice how HH said about “ unfinished business “ so in theory with so many big juicy assets up for sale if they go for a 3,000 bopd asset then it will show managements vision.
The most amazing aspect of this company is the need to raise money with such a low market cap and hardly any shares in issue which makes a raise at substantial premium likely ..... why you may ask ?
Because they would ignore the current shares as there’s only a few million and concentrate on the asset itself ....if the asset is cash flow positive and valued at £150m then they could easily get NEW institutions to invest at even £5-6-7 a share knowing profits and cash flow are rolling in .... not the fact there’s 10m shares outstanding.
Sounds good to me Munch. They’ve missed their target of doing a deal in H1, but hopefully because it’s so big rather than because it has fallen through.
I completely agree with your logic, Munchbox, however for me personally, I feel that I do a much better service to myself to be cautious.
The fact is, I think that if they were going for only a few thousand bopd then that would probably have happened by now, so there's a large part of me that thinks that they may have started at that point, but have stepped up. Hence the delays.
It would be nice to have an update, although, I get that they can't really say anything, but even if they just said that they were aiming at 10kbopd rather than 3-5kbopd that would be enough for me.
I don't like the delay for a number of reasons.
(1) I'm impatient
(2) I don't know what's going on
(3) I want to see a bigger profit showing
I do like the delay because
(1) I think it signifies a more complex deal :. larger
Mixed bag really. Either way, I've topped up again yesterday and today.
I'm as committed as I dare to be without selling someone's grandma.
I think I can probably get behind all of that Chance.
I hope to get another top up in before the end of the month. My top up this morning bumped my average up by around 10p, which was a bit annoying, but that should be insignificant come any RTO.
Patience... No news is good news ;-)
LBE better get a move on because oil prices are recovering - hope they are not being too greedy....still sitting on my hands! ALB
Has your confidence in an imminent deal dropped daveri?
Volume certainly has.
Hi Daveri007,
No need to disclose it, but presumably the you have a contact in/near to the comapny.
Have you asked them for a view on the seemingly increasing time for a deal to hit? It would be interesting to hear their view.
All the best wishes.
Also, I think that Jub Capital/ their creditors still have to be selling down here. I can't see why anyone else would be in such size.
https://twitter.com/DDS_DocHoliday/status/1289482978746175488/photo/1
Yes could still be Jub. Anybody know if similar selling is going on with their other holdings?
As soon as Jub Capital have offloaded their 6.4% id expect a TR1 Notification then BOOM- The RNS will land.
This is likely a contributing factor to the delayed announcement of first acquisition.
Really this is where Stifel (their NOMAD) should step forwards and find a buyer for that stock, so it can be taken out in one hit.
I would be very surprised Oilman if that's the case, as it's pretty poor corporate governance if they're delaying it for that reason alone. I think it's much more likely that 1. either a deal fell through, or 2. they were able to do a significantly large deal than initially planned due to the oil price drop.
Hopefully it's option 2!
It would appear Longboat remains moored in the dock, surely the ropes will be slackened soon and the ship can sail to further and farther places.....
Miguel - Welcome to the board!
All passengers are onboard we're ready set sail in the 1st Class Lounge! Hopefully not too long until we arrive at the first destination!