Member Info for Bishop190

Looney makes me ashamed to admit I worked in bp for nearly twenty years. He reminds me of Brian Smith (ex ICI) who came to Metal Box plc in the 80’s declaring that the age of the metal container was over and we were to become a plastics company. Within 3 or 4 years MB was dead. By the way the metal container is still going strong, as will oil for many years. Oh and Looney has presently lost me 12% on bp shares I bought after the oil price crash.

Currently I am reading Shellenberger’s book Apocalypse Not. I recommend it, interesting light is thrown in some “givens” such as paper bags over plastic, deforestation in the Amazon etc, etc.

I too do not think 29 is an issue, for the same reason as Jim. I would like to hear about the financing though.

Most of us filter him/her!

Looks like you were right IOG. It is not really surprising though is it? According to the figures in the PG report, the cash would seem to be running out, perhaps by December and no word from the BoD on how they will raise funds. Once that is addressed publicly there will be more confidence that there is a future for company. For my part I remain invested but everyone must do their own research.

I also noted the lack of reference to OilLR Brig.
It would of course benefit shareholders immensely to keep 100% of the reserves but I struggle to see who would lend $15m on this kind of risk without a slice of the action, unless of course it is at a high rate of interest which reflects that risk. I am sure that JA would like to find a way of not diluting if he can.

Good news indeed :-)

Sale not sake*!

It is to my mind a very interesting and encouraging read, however I cannot see any discussion of the cash requirement.
On pages 8 & 9 the broker gives cash flow and balance sheet forecasts for 12 month periods ending in June. These show a cash outflow of US$1.9m per annum. Cash is stated as 0.9m at June 2020 and then the two succeeding years show net debt of $1.0m and $2.9m respectively. If these numbers are correct then that is the scale of financing the company requires. Also, if the run rate is even over months then they need to raise money before the end of this year.
Obviously the board know all this so the question is how will the funds be raised. There are three options as I see it. A placing, farm in or sake of the business based on prospective resources.
The figures I have used are all in the public domain, calculations and opinions thereon are my own and do not constitute advice, you should of course do your own research.

That is how I interpret the full paragraph that Aussie has quoted, yes. If you go back the 14/8 RNS you will see that it talks in terms of potentially reducing OilLR’s input to $5m, making that plus the loan the full $15m required for the drill.

My phone updated and I see Aussie posted before me! Apologies for duplication.

Actually Jim the full quote is “... and, subject to the results of that NJOM-3 well, the facility might then be expanded to support the next three production wells ”
I interpret that as meaning if the first drill is successful then the loan might be extended to cover further drilling.

Yes I have implied that TRP may be able to borrow the $10m (NB I wrote £ instead of $ originally) in advance of drilling the well because that is what the company said in its RNS of 14 August:

“ In recent weeks the Company has been engaged in detailed discussions regarding a loan facility for the Njonji development at Thali. The proposed facility would provide up to US$10 million to the Operator for the NJOM-3 well currently in progress, and, subject to the results of that NJOM-3 well, the facility might then be expanded to support the next three production wells and platform planned for Njonji. The proposed facility would be secured by the proceeds from the PSC.“

Later in that RNS it refers to the possibility of reducing the investment by OilLR to $5m in accordance with the contract TRP has with them.

In other words the company is seeking to raise the $15m it needs to start drilling partly by loan and partly by farm in. If this is achieved then it follows that TRP’s share of the well is much less diluted than was envisaged previously. That is of advantage to all shareholders and in particular JA.

Anyway, I hope that very soon we will find out what it is to be!

As ever, opinions above are my own and not advice to others.

Not hard on you in person, hard on your attitude to certain other people Jim. They are entitled to their view even if some of us, including me sometimes, disagree.
I think you will see below at that I said at 18.27 “proven reserves”, this is the same term as you have used at 20.57. Earlier at 15.52 you referred to “production”. Which is why I made my post with the link. You know well what the difference is!
I was at the meeting in February so I know what JA said.
I disagree with you regarding TRP and GBP. The Cameroon project can certainly go ahead without reference to GBP, provided TRP raises the funds. I think it will do that and this is why I hold a substantial number of shares in the company.
In relation to Namibia, I agree that it would be to the advantage of both companies to work together, but this is a number two priority for TRP.
I have a reasonable holding in GBP as well, which is why I follow that board too. I see the issue for them being a fairly urgent need to resolve a funding crisis looming in the next six months or so (according to my interpretation of their published financials). They know and have stated that they need a financial partner of some sort in order to progress, obviously I hope that comes about as I have a stake in the outcome.
Best regards
Any opinions I have expressed above are my own and should not be relied upon by others without they do their own research.

I already have Brig, that’s why I have so many :-)

You need to demonstrate proven reserves actually.

https://www.lexology.com/library/detail.aspx?g=71dae78e-9ab6-4307-96b0-53ea76c176ed

“ we need to achieve cameroon to proceed elsewhere.” You are correct HR as according to JA at the LSE meeting last February, it will unlock reserves based borrowing. I have a long memory!

I am not sure what you are saying Highroller, but TRP does not have the funds to spud NJOM-3 on its own. It was at first looking to farm out 50% but, as announced in the recent RNS, JA is hopeful of borrowing £10m and therefore requiring only a further £5m from the farm out. Once the funding is in place I guess timing is down to any Cameroon Covid restrictions.
Hopefully the share price will move up on confirmation of funding!

0.00425 to buy 500k on AJ Bell

Stunning, best GBP keeps well away from that debacle I think.

That looks like some interesting reading for a rainy afternoon AO :-)