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Irene you seem like an intelligent person. What is your opinion on the Put being taken or not?

The put not being placed would either mean that we will have a duster on our hands or they have managed to get some delayed payment or another finance deal in place.
My strategy will be if the put is not taken I will hold as that is the risk I was in for in the first place and if the put is taken I will probably buy some more.
So I am in for results either way.

Bespoke the most likely alternative funding in my view would be that Stena would give us a delayed payment scheme if oil is present.
Almost every scenario that I have gone through still means that if no oil is showing in the first target then this finance deal should not be taken and would in fact bankrupt the company.

They may have a daily limit but it would likely be 20-50 million so 300 million wouldn’t take that long. It may also need to be within a percentage of the market price but that will move.
I agree it could take them a couple of weeks but they still have plenty of time

Exactly verbierdave, 300 million at 0.25p would move quite quickly.
Sharescare the alternative funding was my first idea if we had oil however if this was an option why change the terms and even have this crazy other deal on the table.

They probably just sold a few to cover admin costs. Why would they sell any more until we know what is happening on Wednesday?
Currently they have a guaranteed 15% no matter what price they sell at within 60 days.
After Wednesday they will still have plenty of time or with the new deal they have and additional 60 days and a free run at the results with plenty of time to dump the shares after the result announcement.
So the question is why would they sell any?

Zag we know that if we take the money and it is a duster that is extremely bad.

Sharescare, yes I would have in the past taken the 2p shares. Now probably not as we are already around that price.

Sharescare my view has changed since the new funding details. I have to assume the board don’t want to bankrupt the company and are making decisions in our best interest. I am also assuming no other funding options are available due to current operational or lehmgal issues.

So if we take the funding on Wednesday it means we have oil

If we don’t take the funding we will pull the plug early on the drill and fall back on the CERP assets and live to fight another day.

I will go BPC

I have my feelers out Patoir

Oultonmike, patoir and Mike I am guessing you haven’t read the update to the funding if taken and the implications of it.

Linton not that impressive when supposedly it has cost us £3,000,000 extra to achieve it.

The extension to the date for the new funding I can only assume is so BPC will know more about the drill and potentially the results from the first target.

All they committed to was that they had sufficient funds for working capital (BOD’s wages) for the next 12 months

This was from the RNS in November

“ In circumstances where neither the Conditional Convertible Notes nor the Zero-coupon Facility are available (for example, where the conditions precedent set out in the Conditional Convertible Note Subscription Agreement are not satisfied (or waived by the Subscriber)), the Company would need to rely on seeking alternative funding, and there can be no assurance that the Company would be successful in securing any such alternative funding.

Excluding any costs relating to the Perseverance #1 well, the Company currently has sufficient cash available to meet general working capital needs for at least the next 12 months.”

I have also been trying to rationalize why they would give such a crazy deal in the first place. One option is a corruption in the BOD’s but for now let’s rule this out.
What I think may be happening is that the other funding options had some conditions in place as mentioned by the BOD before. One of those said conditions could be legal action in relation to the licenses or BPC.
This could mean that they literally have no choice in order to keep drilling. So by Wednesday if no substantial oil is showing at the first target they may have to cut their losses and pull the plug as the alternative is the company folding.
Definitely something strange going on and we will likely find out what by the end of next week.

Somm you are not taking into account the breaking down and caping after the drill is finished which is included in the 45-60 days so we could be 10-15% ahead of those numbers.

Previous I have stated that if we don’t take the funding we potentially have oil. This may still be the case if they can find other funding options.
Now after this new deal being tabled if we take the funding I assume we have oil or the board have just put us into bankruptcy and ruined their careers.

Chesh, yes this is a common type of funding. The bit that I am surprised is not illegal is the death spiral side.
They are guaranteed the 15% in cash and a free run at results. So on a duster they sell the 700 million shares at any price and we have to pay the difference in cash.
At that point that cash payment could be up to £14 million. We will not have that in cash and what we would have in cash would have come from the funding that we are paying the guaranteed on.
Death spiral often refers to issuing new shares to pay for deficiencies on previous share funding. This will basically turn out to be the same thing.

The moot point being that if the put is taken then I am sure the call will also happen.