Member Info for 3littlepigs

It really feels like sentiment is changing here. Instead of seeing prices fall we are starting to see prices rise and it’s catching people’s attention. I only wish I could put all my money back in at 4p instead of 20p, but I don’t worry about things I can’t control; instead I focus on the underlying assets and when they will deliver my intended exit.

This is only the beginning of the change in sentiment. When the herd arrives this will really starting moving up.

Good lick with that!

My favourite comment of the past 24 hours: Rumour has it that Greta is now building a stake.

Brilliant. I nearly fell off my chair laughing!

Have a great day everyone (unless you are a troll).

Tiburn - great post. Unfortunately the hedges kick back in on 1 July. That’s bad in terms of oil sales, but good as we will be injecting lots of gas. One of the next priorities, as part of a refinancing and/or JV needs to be an assessment of whether to restructure the hedges.

Transhaven - after months of reading your drivel, you're in the green bin. You know the results are released on the WOGCC site, not SEDAR and you know the May results that were formally put on the WOGCC site yesterday were previously released on 5th June by the company in RNS, so this is not new news; yet you take the opportunity to put such a negative slant on it. I look forward to never reading your posts ever again.

Americanpie - straight in my green box!

GordonBennet, "4-5p would do me and prepared to wait it out as it will come."

40p - 50p would do me please, and I'm prepared to wait it out as it will come.

PIlot - i don't know how you calculate 2b shares if all BH's convert. Can you share your workings. Please remember that the bond principal converts at 6.75p not the vwap. Look forward to seeing your calcs. Cheers.

Doug - you touch on something I'd been considering. Ordinarily you'd think a bond holder is only in this to lend money, minimise their risk and collect interest (which in this case is huge!). But if the bond holder is really an investor, then at some stage they might want to convert and hold. At what better price to convert the interest (which is vwap linked) than at this price? On the bonds themselves, which are pegged at 6.75p, it makes no sense to convert and hold now; you'd wait until the share price was above 6.75p, unless you thought that your conversion would drive the price lower causing your interest conversion to be better!

Overall, my base assumption now is that there will be 1Bn shares in issue at some stage, and when I think about how I might ever get my 30p average back I have to ask whether I think the company will ever be worth £300m. My answer is yes, I believe it will. And faster than some might believe. If production goes up to 4k or 5k in the next 6 - 12 months and we are making £4m a month net profit then based on a forward P/E of 6 we will be worth £300m (£4m x 12 = £48m adjusted operating profit @ 6x earnings = £300m. But even then the net asset value of our reserves is higher than that value, and with more to be added (with production increasing over several years to tens of thousands of barrels with or without a JV party's support) then we will become a multi-billion £ company.

First steps first - get the GGS in and working - increase pressures in the MF - observe production increases. We need to wait maybe 3 months for this and stop dwelling on what happened in the last hour, the last day or even the last week. Most on here want a profit - now! Patience (in abundance) is what we have to have to be invested in this company.

Stas, what would normally happen is that the bondholder would give written notice under the terms of the bond that they wish to convert X bonds into Y shares under the terms of the bond. I believe, under the terms of the bonds, the company has a period (I believe it is 30 days) in which to counter the conversion with a offer of cash settlement, but if this isn’t made then the conversion is “complete“.

The company will notify the market of the bond conversion and its intention to list those shares, normally within 12 months of the date of the announcement.

The irony of all this, is that everyone who has held through the last 6 months and who sell out at 20p (if and when it comes) will have endured all the pain but will miss out on the gain. When this gets back to 20p, it will just be getting started; 30p will come then 40, in 2 years or less £1, but sadly many like me will just be glad to have their money back at 20p and will not stick around to reap the rewards.

If we suspend do we take away a bargaining chip for the JV. The JVP would suddenly know how important they are and would use it as leverage.

Eazy, can you explain this comment please. Are you saying he omitted to comment/update us on this well as a power play? How? Aimed at who?

Cheers

3lp

“If folks think the reason for Art skipping the Cole creek recompletion on 4-27 for 11-23 [well] wasn’t a power move in the JV talks then more research is required by some…

A good update this morning. I hope we get one of these every month.

For the first time in quite a while we see production increase and it’s clear from the works being done (waxing, GGS, conversions, etc) that we’ll see the numbers increase month on month. Is it implausible to do 2,500bopd by the end of September?

Ed,

I like the suggestion of share buy backs, but as with all investment decisions, the company should be asking itself what the most accretive use of its funds are. Until the field is fully developed with all the horizontal and vertical wells that the company wants to drill drilled, there shouldn't be any spare money for buy backs. In this line of business the return from a new well (particularly early in field development) should be much greater than the return from a share buy back. The message that a buy back sends to investors is either: i) my share price is so low I must buy back the shares; or ii) I have no good ideas of what to do with with the money I'm generating. By the time we are producing 5k bopd the share price should be much higher than it is today and point i) shouldn't apply. Point ii) should be years away.

I've just had my monthly top up - brought my average down from 30.1p to 30.0p - wonderful!

where's the emoji for "cries into his beer!"

Hi

I joined the syndicate, I’ve seen the very professionally worded email to Art and the board and am happy to put my proper name and full 800k shareholding behind the letter.

I was initially skeptical of this being a phishing scam but am now convinced it is not. The lawyer behind the letter has done an excellent job of writing it and I will be endorsing it.

Could this be the start of a change in sentiment?

I agree with Art, and then I disagree with him. I do believe that a company with 2Bn shares is less attractive to institutional shareholders than one with a smaller share count, even though market cap is just number of shares x share price (illogical I know).

But my main reason for disagreeing is this: we have 400m shares in issue and that isn’t a number that needs consolidating. If the bond holders dilute us to 1bn shares, as some have suggested, then a consolidation might make sense, BUT it is his job to stop that dilution. Get a chunk of cash from the JV or the RBL and pay the bond holders in cash please. Consolidating away bad financial management is not what I want to see.

So that’s 3 holders we know of that have 5% each:
Spreadex
The law firm
Matt!