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Yes we would all love some TO action but with OGIF having exchanged their licence share at 81p for Sou stock it is unlikely there are many suitors out there willing to meet OGIF experience expectations! Plus we no GSA and/or FID BOOT deal. I have a few questions for JJ

Hi Andytr sorry to be pedantic Butas I mentioned below the fact we don’t have a GSA means our gas resources are not technically reserves and therefore cannot be fully valued. This is very important and JP & JJ know this ...if we had to raise debt forthrdevelopment lenders would insist on seeing the GSA without this we have cash & intangibles on our balance sheet. Time for JJ to earn his corn.

Not clear

I am clear what service Rothchilds are providing. They are not introducing new IIs and we don’t need corporate finance yet so are they in the background to protect against an solicited takeover?

we need a proper timeline for the GSA and a view on the underlying value of TE-5 Horst. My understanding is that the resources are contingent but can be booked as reserves once we have FID which will require the GSA. This effectively means that we have a commercial case which can be included in our balance sheet and will underpin the companies value. IIs are reluctant to invest in companies who have not established that the resources are commercial so whilst we have 650bcf we have not crossed the line when it comes to proper market evaluation.

well JJ has spent a long time trying to interest IIs without much success but I wonder how many of the shares traded today will end up in IIs portfolios. 23m shares traded so far and I expect 30m before close today. 15-20p looks like a good entry point with 2 more drills to come.

wrt to the drill result SDX used their initial failure in Morocco to recalibrate their seismic and subsequently returned a c85% success rate. When I discussed exploration and appraisal with JP 18mths ago he reckoned a major O&G company would plan a 10-12 drill programme for a full evaluation of the license area so we are trying to do a lot with a fairly minimal programme which explains the reason for 3 unrelated types of structure being drilled. I would like the GSA to be finalised and the results of the FEED to be known.

based on $14m of cash and successful recovery of back costs $24m - I need to check but much of this was spent at a lower cost base so anybody farming into day is getting the benefit of these lower costs. The caller said we are trading about cash value so these back costs are valued in the current share price at NIL.. :-( based on this any type of decent farm-in with back cost recovery and a carry on the drill could pull us back to 8-10p ....not much consolation for someone like me who is a long term holder but it would get the show back on the road.. one other point which was a good discussion was the strength of support of long shareholders, with an effectively retail shareholder base base it is going to be very difficult to build support without a great story and good PR. I was going to ask LB about plans to deal with this issue but he seemed to have had enough of his shareholders and called a halt to the CC anyway GLA LTH

If the price stabilises tomorrow about 2p then it maybe we still have some interest in our licenses. The lack of detail I the RNS was very disappointing.

Mr P the farmin to the license is not a farmin to BPC so I wouldn’t expect a major to have any day in BPC or board seats. Most likely the major will become operator of the license and will manage things u der an operating agreement.

Kapkina if there is a farmin deal this won’t involve the major buying equity in the company just a share of the license. I expect back costs to be covered and hopefully a free carry for the first exploration well. I think the house keeping around the CEO package makes sense because the only upside to Potter (and all shareholders) is a successful farmout. The mounting back salary obligations is a drag on the balance sheet. GLA

Findme I can understand what you are saying. The exclusivity cash is useful but not a game changer. The local politics has stopped progress in the past and in my mind is still the main risk to getting a deal done.

Why is the major not buying BPC @ 10p is a good question? In my way of viewing it the major can have 80% of the licence and operator for the price of a drill $50-60m rather than pay $150m+ for BPC with the the requirement to go through a takeover process. If there is a find then the major may buy BPC but this will be based on a drill with a view on 2P reserves. I hope we can stick at 5p until the news hits.

Unfortunately in some locations the politics and methods of business mean investors never see the true value of their investments. It is much easier for the Zubs corporation to satisfy local requirements than a listed company. AEX could spend the next couple of years wrestling to get business done through the acknowledged channels but Zubs will be able to use their contacts to move things on very quickly. The market is giving its reaction ...the issue I have is whether we will get any value out of this with an average of 5p?

Barnaby this is a potential scenario and an explanation for the delay in the EA approval. Historically BG have been slow moving on all aspects of oil exploration so it isn’t a surprise that we are left waiting on a decision on the EA.

This could drop to 2p and below but this would be on a poor outcome to the current farmout negotiations at which point investing at all may be a discussion. The success case to these negotiations is likely to see this move up significantly the only likely drag may be any funding requirement for drilling and/or corporate requirements. Things seem to have settled at 3p awaiting new information. I suspect patience will be required

I hope they find huge amounts of oil and stick the proceeds in a wealth fund for future generations. If not they will have to put up with sun, sand and debt. A bit like the UK without the sun and sand..!! Comforting to see the share price steady at 3p no major retrace.

Well Amtech that’s where Chariot was on its first drill huge market cap based on massive potential ad we know it didn’t come off and that is the potential outcome with elephant hunting exploration companies. The 2011 CPR here makes a good read and the seismic since then has helped but this is still c30% Geological chance of success which is a good bet with the scale of opportunity but it is s gamble. I think a farmout will move this along and pre TD we could see a market cap of $500m.

AIM is not all about valuation on technical data but includes considerable speculation on potential values often many years away with considerable capital requirements. 30p would provide a market cap of £450m..,,off the top of my head this is Similar to peak market caps of companies such as Sound, Xcite and Chariot all explorers, in fact Sound were probably twice that ... so speculation can outweigh valuation!!!

Code zero ... if that means nothing happening but weather is sunny then it is very accurate. I guess code 00 means absolutely nothing happening now or in the foreseeable future.

Not sure if there will ever be a referendum but with the timescale involved to get to production there will be an election or two! In previous discussions local churches figured strongly and appeared to weild influence. I suspect that many of the population will struggle to see what the benefit of oil will be to them but hopefully the proposed wealth fund will become a reality.