Member Info for 3littlepigs

16 wells across our total acreage gives a huge cross section of data to Mr Ryder and Mr Scott (other Competent Persons are available) and will enable the P2 reserves to be estimated and booked in very short order. I would be very happy to see 250m++ reserves booked by the end of the year.

“ The Company intends to commence initial delineation of the discovery later this year with horizontal wells from 16 drilling locations, for which permitting is underway.”

Jiddy, Rigby Scott is partners with Pony Ryder. Do your research!

London, United Kingdom; Calgary, Canada: March 31, 2022 - Canadian Overseas Petroleum Limited ("COPL" or the "Company") (XOP: CSE) & (COPL: LSE), an international oil and gas exploration, production and development company with operations focused in Wyoming, USA, confirms that its Annual Financial Results for the year ended 31 December 2021 will be released after sometime, somewhere. They’ll be impossible to find as we are publishing them via the Company's page on www.sedar.com. which has the search functionality of a 1990s website.

Jiddy, in a normal m&a deal the signing of binding contracts would be announced. If the deal was subject to regulatory approval or other contractual conditions (court approval in this case) that would be stated.

Roobler, Atomic was bought with debt and additional equity. The production from the assets is largely hedged. Thus, the value of the company (it’s market cap) before and after the acquisition didn’t change. Without the humongous find, we’d need to see production increase, with a resultant increase in profit for the market cap to go up. We appear to be delivering on that so should see a higher market cap. Then throw in some proved reserves from the massive find and we rerate.

My sweep stake of $35m is high. The reason I would personally be happy to pay more (pro-rata) for the CUDA WI, than we paid for the Atomic WI is:
- the additional net back per barrel (unhedged) will drop straight through to the bottom line, with no extra admin or back office costs. Everything it brings in is therefore a positive contribution to the p&l, it should carry a higher gross margin than our own current output and it massively improves our net margin.
- there is no increase in the miscible flood costs (you can't flood 58% of a well! you either flood all of it or none of it) and my assumption was that we (operator) had hedged 100% of the cost and agreed to buy everything they produce. On this point I'm happy to concede that it may be up to each WI party to take their own hedge so the Cuda WI share of the MF might not be hedged.
- the only incremental cost, depending on the mix of financing used to make the purchase, is interest on any incremental debt and that should easily be covered by the additional gross contribution earnt. (The dilutive equity issue for the acquisition is now a sunk cost in my mind - we can't undo it).
I'm tempted to up my sweep stake value without feeling that this would still be a steal!

He’s going to borrow more and pay $35m

HFB - i'd love to read a Haiku if you can draft one!

nmike, useful post - thank you.

I appreciate this is a receivership so there may be different protocols to follow, but in a normal situation an acquiring entity that has signed a binding agreement and paid a deposit would announce that. They would obviously also announce that it is subject to court approval, just as a normal acquisition might be subject to regulatory approval.

I’m not surprised we haven’t received a RNA today. M&A timelines always slip. The question is how many days will it be delayed by and will we find out. If Art had a positive news announcement of “we’ve signed CUDA” then we’d know where we stand. If however, we aren’t the preferred bidder then I think it’s reasonable of Art to say nothing in case the preferred bidder pulls out and we get the chance to take it up.

If we don’t get an RNA on Wednesday morning, don’t be surprised.

It’s rare that a corporate M&A transaction holds its original timeline. But that doesn’t mean I won’t be logging on at 7:01 am looking for the red dot!

RE10 - everyone who is a shareholder has taken a punt on where the share price will be in 6 months!!!!

Hedges are a double edged sword. They give you certainty and, in this case, give us assurance that we can meet our costs even if prices drop. However they prevent you participating in upside for the hedged volume.

As a corporate treasurer it is hard to set a hedging policy and I always put my policies to the board. I’ve learnt the hard way that there is always a board director (or armchair bulletin board director) who will tell you, with 20-20 hindsight, that a price was obviously going up and you shouldn’t have hedged.

Everyone needs to remember, as HFB keeps repeating, that after the last spike to $160 oil the price collapsed. How would you feel if oil dropped back to $40 in 3 months time because of a peaceful resolution to Ukraine (or the Assasination of putin bringing about an overthrow of his government)? Oil is a volatile commodity; I would think our board a circus (more of one ;) if we didn’t hedge oil to an appropriate extent.

TradingLad it’s on page 163 of the prospectus. See the company’s website.

That is quite some weight loss.

Falling off chair again!

How lucky he is to keep finding things that only happen once in your career!

Does no one ever do their own research! If you want details of the oil and gas hedges, take a look at page 163 of the prospectus which is available on the home page of the company's website (even the old website that is back up!)

If you want details of the oil and gas hedges, take a look at page 163 of the prospectus which is available on the home page of the company's website (even the old website that is back up!)

Charlie, didn’t you take out a hedge against fuel prices?!

A deal isn’t done until it is signed and approved. Until then we’ll hear nothing. That’s how all deals work.

That’s a more accurate title!

A lot has been said about CUDA. I’d love to see the WI acquired at a low ball price but I don’t think it will be. Instead I think a new partner (Continental, Exxon etc) will buy it more several hundred million. Why? Correct me if I’m wrong, but I believe it gives them exposure to our Fed Deep find. Maybe not at every layer, and maybe not until 400% of the capex has been recouped by COPL, but still a large exposure to the find. I think that would be an amazing outcome for us as it would be like an immediate farm out. Plus it would give a benchmark value for a 27% WI against which our 58%+ WI can be valued.