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25% discount on the placing for some pretty rubbish assets... Not expecting fireworks at 8am.
3p placing what a joke. Existing shareholders bent over again.
Disappointing placing price but also terrible market conditions
Good to see two directors taking place thou
still a LTH for me
Yes, shame they couldn’t get a better price but at least the placing has been used to acquire a producing asset which should add value over time. I’m hoping it will reduce the need for dilution for running costs in the future and so be a good long-term move. I.e it’s basically what placing a should be for: to drive a company forwards, not just keep the lights on as do many do
Yep I totally agree the placing price is very disappointing but raising money at the moment is really difficult altho I wasn’t expecting such a discount I have to admit .
Moving forward however, the deal undoubtedly strengthens the company no end and the next 12 months should be far more transformational share price wise hopefully, with what’s in store
The niggle I have is to think we’ve been 5 months suspended and as the Rns specified the anticipated new market cap is now 18 million with 620 million shares in issue so no prizes as to what figure it’s going to open around one suspects ... which if correct is so bloody frustrating despite it being a huge step forward ... bottom line is it’s another classic jam tomorrow situation it transpires . GLA
it's barely even profitable and we've paid 16m for it, raising cash at 3p... I don't see any upside to this deal whatsoever
I wonder were Brian & Co expecting some sort of arrangement with Tullow, now with that car crash they went bucket shop?
From the original RNS :
"Transformational acquisition will deliver over 1,100 boepd net low-cost production with 2.64mmboe net 2P Reserves to United plus large remaining infill and exploration upside"
Also - remember this is backdated to the start of 2019...
"The Effective Date of the Transaction is 1 January 2019. The Balance Sheet on the effective Date includes Cash of US$0.65m and Receivables of US$1.7m"
So we'll find out soon enough if it's profitable .
Whilst I was excited by the continuous talk of a transformational deal for what seemed like an age here before the news actually came, I must admit coming out of the other side as it stands I am underwhelmed given how much dilution it has taken. Also given the silence on all the other assets while we have been suspended I was disappointed about what said in the RNS today. I mean what does ' including the potential for future production from Italy' mean? When did potential come in to it? That means it is not certain now, so are they thinking of divesting it, is it not going to produce next year, or are the Italian regulations going to stymie things further? Also Jamaica only gets a fleeting mention and given how Tullow are struggling what happens with the drill or drop?
Back to the Egypt asset, I believe it is just a springboard that the company are using on to bigger things and hopefully the SP will recover after 150m shares have been churned through.
£18.5m Mcap generating operating revenue of $830k a month, cashed up with a fully funded 4 well development programme and 2 wells currently on test.
I heard a rumour that the Paul Calf family office were intending to take the whole placing at 5.5p but pulled out last minute. So 3p is not bad considering the current climate. It's not like the SP is to square one or anything.
Lol 1750mk1, time for a Calf video ;-)
revenue is meaningless - it's barely profitable.
6 months of management bandwidth and a placing at 3p to take on some pointless assets that are probably worth less than we're paying for them.
Those figures were based off RKH 780 bopd, inc the cost of drilling , its seen a significant uplift in production since then and they still have 2 well results to come in. Potentially transformational in there own right.
In fact it made a loss of 2.2m for 2018...
Yeah exactly, based on lower production figures and drilling cost. Which we have now benefited from with a 35% increase in production. With additional upside from the incoming 2 wells currently on test. Which were all paid for. This is only the start, the upside potential on this licence is huge. We could conceivably be producing 3k bopd over the coming year. UOG now full cycle and cash generating.
No it's not, there's almost no potential. It's a two-bob asset in a **** jurisdiction. It's loss making and produced 700-odd barrels a day for RKH last year.
God knows why we are paying over book value for it, especially when we could only raise cash at 3p.
Truly dreadful deal, as is shown by the current share price.
Producing 1130 bopd now with 2 further wells on flow test. Go figure..
You know there’s huge upside potential when you start to get folks wasting their time trying to de-ramp a company. If Egypt really is a two-Bob asset then why are you wasting your time posting about it on a forum. Either an open short position or looking for a cheaper entry- or both
Top class assets, top class bod. Shame about the placing price but a very good opportunity to buy in. I haven’t come across a company like this on AIM for years. Buy and hold!
I own UOG and have done for a while. I was a fan until they bought this crap asset - RKH were desperate to sell, it makes very little profit if any, and we paid over book for it while raising cash at a 25% discount to pay for it. Why should only positive views be posted on a bulletin board??
It's a crap asset that we overpaid for with a terrible cash raise. We're heading sub-3p so it looks like my view is more accurate than yours.......
wh0sthedaddy whilst I am annoyed as you at the placing price and the transformational talk has lost more than a little of it's shine, I have to ask why would BP stump up the money if it was a crap asset that wasn't profitable and would deem their involvement idiotic? Do you think there is soneone at BP with a screw loose?
wh0sthedaddy, They didn't need to buy Egypt. If its such a terrible deal why did they buy it?
wh0s the daddy .. definitely positive views are not only allowed, people just don't like hearing negatives when money is involved. I'm hopeful there will be a decent move soon
Feel free to provide an answer wh0sthedaddy.
What concerns me at the moment is the wording about Italy and why we are now saying potential production?