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As stated quite clearly yesterday and like many others, I certainly am not pleased with the curveball thrown at us by the BPC team and the (further) associated dilution.
Pleased enough with the Uruguay asset, with its minimum obligations - certainly not with the CERP merger and the additional c Billion share issuance......and minimum production apart from what 'may or may not be' in the future.
I don't believe there will be any Farm in to Perseverance 1, as the wording in the Final Results indicates the 'shift away' from such, accepting it's still 'on the table's, but looking at alternatives - also, the justifications used regarding effectivly similar outcomes of potential revenue from not pursuing such - we all know that's detrimental to those looking at pragmatic derisking though, so for us there's a very profound difference!
Regarding Stena, they have until before 1st Dec 2020, to decide on whether to take up any if the options presented to them - possibly with even further dilution - along with the possible further dilution of the increased £8M facility extended by the Family group.
"prior to 1 December 2020, the Optionholder has the right (but not the obligation, and there can be no assurance that the Optionholder will exercise the right, all or in part) to (i) subscribe for up to $10 million of new equity in BPC on the same terms and conditions as would apply in any BPC capital raising, or (ii) farm-in to the BPC southern licences on the basis of $10 million for a 10% non-operated working interest."
It seems obvious that with all the facilities to secure cash through further dilitive measures, any material Farm in initiatives wont be presented before the Perseverance 1 drills - note I state 'material'with regards to impact v levels of dilution sustained.
We're also unlikely to get material News if any, until after the August timeframe for the current merger deal to be passed, imo.
Are we going to get further 'initiatives' by the Management team, regarding other assets secured and to the detriment of those who've supported the company for years and to essentially, secure ongoing Salaries for those running BPC.
I've sold a portion of my BPC holding from my PF, but still retain a significant amount as well as a large amount in an ISA.
There's obviously still a significant upside here but it's certainly not the investment many of us envisaged and held so long for - if we wanted 'tin pot' producers, we would have bought those separately.
Like Jimtheknow, I'm still holding in the hope that there'll be a NO vote to the deal, with the resulting massive price push off that and subsequent reduced dilution.
Those are my thoughts without any undue emotional rhetoric but essentially reflect those of many of the (now) more bearish contributors here.
(and yes, I will be looking to increase my holding with the cash, in my other oiler - I wont mention the name).
Atb & have a lovely day all
I still hold a very sizeable portion here Celtic but equally divested of a significant amount today.
I will vote NO to the merger and expect such a rejection of the deal overall, would project the SP in the opposite direction.
I don't like today's news and neither do many others. However, if I was a member of the BoD and looking after solely my interests as a Director, I would also look to mitigate the binary component of the deal, thereby guaranteeing a salary.
Hallowed, good to see you back here too.
Atb & have a good evening all
Obviously investors on both sides dont like it - barring any News, certainly wont be pretty here tomorrow!
Atb & have a good evening all
Okay, but they were mainly in reply to others - let's focus on this....mess / or otherwise
Atb
MATD have a bona fide commercial Oil strike, I should say.....
Dyor
MATD have a bona fide asset Celtic, further World class prospects and company Transformational due in a matter of weeks....!!
Many wont have seen the News yet!
Better off investing in MATD mrMarketmaker - has the potential upside BP 'had' and with an existent, high quality asset!!
https://youtu.be/M--ZStYBlT0
I'd vote against this, if the opportunity arises through my corporate transaction inbox.
1 Billion extra shares for the longevity of the BoD jobs - NO!
"Most of (CERP's ) production cash will be taken up in transaction costs".....!! (3min 40sec)
They were aiming for a Bentley ......and ended up with a banger!!
"Modest production - but lots of nodes of access"
https://youtu.be/g2I-qlOM2ls
Not impressed and implies minimum revenue with more costs to explore further 'modest' upsides on revenue - a 'junk' buy, imho.
" , I cant see why anybody would be thinking the BOd were doing a great job winning uraguay and signing Stena then they have all suddenly lost the plot to create a merger -"
The new issuance of circa 900 Million shares may have something to do with it, whereas the Uruguay asset had relatively few obligations before the Perseverance drill.
CERP holders aren't happy with it either!
That's why I'm transferring more (not all) into my MATD holding. Things have changed somewhat.
Atb
The markets dont see it that way Tilburn. It wasnt necessary from either company and reflected in shareholder sentiment.
Atb
I redistributed a large part of my BPC holding into MATD.
What CERP shareholders have effectively done is buy into a larger binary play - great if it works out with its 25% COS.
Atb
80 Million new shares to settle the CLNnrelating to the Lind funding agreement - circa 800 Millon to secure CERP shares.
Isn't it 800 Million new shares IK?