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Nice update, lots to mull over and loss for the year was well controlled.
Agree, I don’t really understand the sector as well as I would like but I understand balance sheets and numbers - these not only look ok but better than I anticipated.
Nothing to see here, certainly no immediate need to raise funds, so now for some free hits at adding value to the bottom line.
I thought we might have had a mention of Grizzly island, anyone know the latest on that?
So skimming through they currently have access to the best part of £10m to keep them running, would have liked more detail on Cali, appreciate most not that bothered but frustrates sometimes when things are seemingly sidelined without much info although obviously not been an ideal 6 months.
Time to focus on West Newton and Romania updates near term, fingers crossed, should be good!
Where do you get £10m?
I saw a ye cash £5.4m, less £1.4m paid for WN stake increase, plus £250k AT, say £4.25m, less opex to date
That's fine unless they need to inject any into Coralian to progress projects, or have other plans we are unaware of.
And note the words on thec "discretionary cas facility", which despite the line "This discretionary cash facility was seen, by the Board, as a prudent measure to provide increased liquidity without the need to dilute shareholders unduly by way of an equity fundraise" does exactly that if drawn down, by issuing new shares to Acuitas.
It is a "discretionary equity line cash facility " meaning a fast route to new issuance, if used.
This is excluding WN B1 well costs and A2 EWT and B1 flowtest yes???
B1 cost?
I believe Rathlin is fully funded for WN A and B, no problem there.
They're already paid Alexios.
'The WNB-1 well is a crucial well for the West Newton project, as it will evaluate both the Kirkham Abbey and Cadeby formations. We are delighted that the Rathlin team has managed to push ahead with the B site operations despite the extreme challenges posed by events since March this year as a result from the fall-out from the Covid-19 pandemic. We are fortunate to be in a position where the West Newton JV is fully funded for its planned activity.'
Thanks
Can you point me where does it say RBD already paid their stske costs for B1 well please.
This £5.4M cash balance is excluding these costs or not
That's the crucial part.
UJO haven't paid yet so I am assuming RBD haven't paid either
So this £5.4M cash will almost entirely go towards B1 well cost
I see as expected no details on the Californian fields other than a meaningless operational cost per barrel.. We all know why, but they should be publishing all the same. Bet any questions to the heavenly twins on Cali actual revenue meets a brick wall. Why don't some of you try to prove me wrong?
Alexios.
.... the PEDL 183 joint venture is funded for: the drilling activity at WNB-1; the testing programme at both WNA-2 and WNB-1; and for a further well, for which planning consents are already in place, at the West Newton B site (WNB-2).
persi, c £41m market cap - is this too high or too low ?
Cali is not relevant in the big scheme of things, no-one needs to prove you wrong
I don't think they need to raise capital this side of the probable good news - which if it's as anticipated will make the share price go up (lots)
If many of us are wrong then £41m might be too high if the drill doesn't turn out as expected, we can procrastinate as much as we want but it's a straight risk and reward play on WN as I see it..
NVG........Californian results is chicken feed if W.N comes good. This really is not so much about the financial results of California although they are nowhere to be seen, so one can only assume they are very poor. We know if good they would have been posted at the first available opportunity.
Its's a matter of a little word with a massive meaning....that word is TRUST!
I notice no one has picked up my suggestion about offering to ask the BOD about Cali and its performance. I wonder why; could it be they know I am correct.
I can't see WNC & WND will need to be financed unless WNB is successful. If WNB is successful I don't think we'll be too worried about financing WNC & WND as the share price will be significantly higher.
The only thing as far as I can see that may need more funding in the near term is a new project. I think that's pretty unlikely.
So I think the boys have already got a good plan in place for meeting funding requirements. £4m in the bank and £5m cash facility.
Thank you Rubey
Where does it actually say that current cash of £5.4M is not going towards B1 well costs and A2 EWT and B1 flowtest???
Does anyone know???
Alexios.
The well will cost £3.5m in total? RBD have clearly already paid their portion of Rathlin's share, as detailed. That only leaves RBD's direct interest - £600k? worst case. Hardly the majority of £5.4m?
Thanks Rubey
You sure B1 cost £3.5M??
Hi Rubey and Alexios. On past form I believe the WN wells have been more expensive than usual since some have been deviated wells, and I believe both have been cored. So my B-1 cost estimate is a bit higher than £3.5 million. In fact, I'd say it will be closer to £5.5 million for a dry hole, plus a further £2.0 million for a test programme, say £7.5 million for a successful well. If that's the case, RBD will have to stump up something close to £1.25 million for the 16.665% interest they recently bought from Humber. However, I'd hope that Rathlin are still sitting on a lot of the cash that RBD invested in them to acquire their approx. 59% holding. So I'm hoping that we won't have to concern ourselves with Rathlin's much bigger share of the WN costs.
Thanks GP. They do seem to throwing all the best equipment at the B1 drill, so maybe it will be more than I thought? Rathlin are holding RBD's share of Rathlin's B2 drill costs, which don't seem to be required any time soon, so I'm sure there is cash about if required.
It's a shame SiloLondon doesn't still post here. I saw a very interesting tweet by him this morning. Apparently, if I understood correctly every £1k invested in RBD gives 0.0023% of West Newton, 4.47 times the amount of West Newton by investing £1k in UJO (0.0005%).
Rubey
You refer to the £5m "cash facility" as if it were akin to a bank overdraft.
It is not. It is a fast track equity raising facility.
I know what it is Genghis, thanks anyway. They refer to it as a discretionary cash facility - sorry if that wording's not acceptable for you. Is that all you've got to worry about?
Hi there Rubey. Do you know if, and if so where, RBD have posted their responses to the shareholders' questions that were sent for the AGM. Just for the record, I asked them which WN well had a Cadeby core, but I'm not necessarily expecting an answer! All the best, GP.
They said today some time GP. I can't see them yet.