Timeframes & Perspectives12 Jun 2020 08:35
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
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