The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I am hoping that if we get delayed to april 1, it is to finalize buyout of insolvent creditor. Then I expect some restructuring because it would make sense for Chinese to sell their working interest to us for shares. So they no longer have a working interest but benefit on the upside potential of the field through ownership stake in us
I hear you guys but the creditors for the insolvent company would want a buyout deal of cash to pay the debts. They are creditors and not owners. They would be pressing for sale of the working interest to raise cash to pay the bills. Owner isnt driving the bus of an insolvent company
It doesn’t make sense we would spend money to increase production without agreements tying up buyout of insolvent company working interest . Chinese would pay to increase share value though as they will care less what the government wants and they will sell when it makes the best sense to sell. The only thing that makes sense here is the recent raise was to buy out insolvent partner interest and we will be working with the Chinese company for awhile
We better get a March 15 announcement we own atomic and the insolvent partner working interest. The Chinese partners have no interest in a fast deal. The longer it goes the more their shares are worth . Opl is a quagmire.. The award to Essar from years ago came with ugly rumours of payments so it is an embarrassment. I don’t say that is true but the ugly rumours make it an embarrassment . Not sure how Essar fixes it. So i agree that I would rather have another atomic and not 10 more opl 226’s.
So if atomic closes don’t forget about all the warrants and options that will be exercised at .2, .29 so we won’t know what is going on until March 15. I sure hope we bought out the insolvent shareholder w.i. There will never be a special dividend. I think we heard there is an African play that can use the same gas technology to unlock a proven field as the atomic team is doing already so we are on a buying spree to use a proven process.
Should be an interesting ride to March 15! And as for share buy back - I would prefer to see any cash that is generated being used to pay down debt and acquire a larger working interest by buying out the other two participants. GLTA
I am not sure anybody is remembering that Art obtained approval a number of years ago at an AGM for the approval to do a share rollback of up to 10 to 1. If you look at the options/warrants/compensation issued to Art and other management - and the prices - such a rollback won't hurt them as much as the rest of us - they can substantially average down, especially Art.
I am not trying to jinx us, but Art used to say he didn't want to rollback, but now his potential to recover from a rollback is priced much differently than it used to be when his options were at prices much higher than the market price of the shares. Now Art holds hundreds of millions of options/warrants at prices lower than our current share price. So a 10 for 1 rollback looks much different now than it did before.
I do not think this stock will properly rerate until March 31. I think the release is an attempt to get the price up toward the 4 million USD share equivalent dilution that is coming. I think market won’t recognize value here until we have a complete deal. I hope the reference in the release to both fields means we are good to go on ramping up production on both. I am discouraged it doesn’t suggest we are making any progress on buyout of the other two parties that have working interests. GLTA and I hope we are at a way higher price in 6 weeks.
CC what I recall from the interviews is Art framed it the lender wanted to be done by Feb 14 - and it appears a lot of people on this board became fixated on the date like it was set in stone. His clarification information confirmed that this deal had an end date in March - so I am not holding my breath we will hear news until March 31. And then I am hoping we announce we own 85 to 100 % working interests in the two fields. Plenty of time to get in or out because then the focus is on increasing production 3 fold over the course of the remainder of the year. GLTA.
So why is anybody shocked the news is agreement of Essar and ShoreCan extending? I posted last week that was what we should expect. Someone earlier here said Nigeria will take awhile to sort out OPL extension. I agree - we already had an an extension because of Ebola. It took months. I am not expecting an extension approval on OPL 226 until Q4 - and that is only if Nigeria gets enough vaccinations to the population that people feel comfortable flying in to sign deals. So it will happen when it happens.
Atomic - Art said in his one presentation - this is a done deal but you can't call it that until the paperwork is signed and so he was sticking his neck out and saying - don't misunderstand my press release - this financing is done. If it is done - we have enough to buy up and out Atomic's main shareholder so we will be in majority position - between Feb 15 and 28th hopefully - but he left wiggle room for time for lawyers and accountants to do their thing. So worst case- we take to March 15. Within that time, he has borrowed enough to buy out both the insolvent shareholder and Chinese interest. So I think we are coming out of March owning 58/67 per cent working interests of the two fields, and up to 100% in each. Then April to June will be a release about increasing output. We are not going to hear about OPL for awhile. I am fine with that.
Anybody waiting for a rerate end of this month will be disappointed. I think we will have a definitive release of what exactly Art has acquired related to Atomic and if we bought out any part of the 2 other partners prior to end of February. At best, end of this month we will get a release saying Essar and ShoreCan have extended their agreement to date X, pending Nigeria licensing extension approval. Date will mean nothing because it just shows the Essar-ShoreCan deal is waiting on approval from Nigeria. Who knows when that will happen? I expect the news through to about July/August will be about improving oil flow in what we acquire and market cap adjusting to our increased daily output. I am not holding my breath about a license extension on Nigeria until late 2021. Thank goodness we have another focus. And the longer it takes Nigeria to approve, the more time we have to internally raise the $6 million USD we need to pay to buy up our interest after Essar does the first test well and if that shows this is a commercially viable play. At that point, I hope Art sells our 15% and uses the cash to pay off debt and acquire another distressed asset that is actually producing, like this Atomic play. GLTA
Watched the interview, he seemed to say intention was what I laid out in my post yesterday. So a definite for atomic and working on the buy out of the other two. That interview sounded more likely we get the Chinese interest before the 27 per cent insolvent creditor. But he said we are going after all of it. He didn’t promise a closing date other than mid February for the financing. And says several months going forward with news of how they will increase revenues. Should be a great story by June. We can put Nigeria on mute and wake up when it does. GLTA
With the financing , Art said in the interview it should close Feb 15. So the $4 million worth of shares will be going out end of this month as that seemed to be a hard date. SO where does that leave us? In his interview, Art was very clear that his usage of non-binding about the financing shouldn't be construed like people were thinking - clearly shows he is reading these boards. I think his interview makes it very clear that by February - probably prior to end of month - we will announce we own all of Atomic's interest. If that loan is a done deal, it is a done deal we come out of February owning the Atomic interest which is a majority of the assets.
Art also announced that this lender is prepared to fund extra monies that could be made available at the discretion of the lender - and I think that was to suggest that Art's intention is to use the added debt financing available to negotiate to buy out the insolvent shareholder interest. Because that would simply be clearing up debt that it owes. If the lender likes the deal for Atomic's interests, why wouldn't it like buying out the insolvent partner on even better terms? And if Art can do that in February as well, we could come out of February with the new debt and about 85% ownership of the assets - which can have increased production without more drilling. So at worst, we just have to finish off buying out the Chinese interest - when BIden is advancing an america first agenda and the chinese were told to sell and get out so they don't exactly have great bargaining power. So it will be great to get into a positive revenue generating situation, to give us negotiating credibility. I just hope we don't try to buy another distressed asset before we clean this one up. IF Art does this properly, we could own 85% to 100% of this play by end of February. Then the announcements of how he is increasing output come out through the year, and that increases our market cap. Once we have strengthened, we can get better financing terms and look at other distressed assets. GLTA.
I think Art has indirectly given us a heads up on what to expect with Essar and OPL in the interviews he has done recently. I think he has alluded to the hurdles in Nigeria right now and I hear that to be suggesting that we should expect a brief news release putting our deal over again. Whatever new date is given, it means nothing - we don't control how fast Nigeria will move. It will just show that we are still on side with Essar and once Nigeria issues approval, the deal will be done.
Then I believe we were told somewhere, and so I can't say this was Art, but the first well can be drilled within 6 months of Nigeria issuing the final approval needed to finish our deal with Essar and let Essar schedule a drill. So that could still happen in 2021. But it is all on hold until the approval is granted. Once that is given, our deal with Essar is complete and we could then project for a drill 180 days from there. Hopefully Essar is ready to go.
There is a market in Canada to trade at one quarter of a penny increments but it is hit and miss as not frequently used. My broker tells me he thinks it internal house trades so two clients at same firm agreeing to off market price trade. Hope that is clear. I hope we get to trading at 5 cents or better where we are supposed to be to trade on our senior board.
Here in Alberta we are pretty upset with the Keystone Pipeline cancellation. That will cost the Canadian economy a lot and will really hurt Alberta. But I guess we will press to get our oil out to the West coast and sell it to Asian companies. But as Caw Caw says - this new play (Atomic) n the US - the new administration in the US will help us short term. I say short term because Biden wants to get America off of fossil fuels. Not sure how far he gets because in 4 more years, or 8, a new President can unwind it all. So hopefully we are all sold out of this stock in the next year or two!
I tried to buy lse shares but I was told it would have to go through at least two currency exchanges as I think they wanted to go us to uk and however it was set up the money cost sucked up the value of the attempt . Mind you I wasn’t looking when the price was .0004 pence. It was close enough to .29 the currency exchange ate the value. Bankers always take your money
So I am a bit confused here but we have the guaranteed 15% ownership no matter what in Atomic. And if we can refinance the debt, and give $4 million equivalent in shares to complete the deal, we own 58%? So that could put us at 12 billion shares fully diluted to complete with Atomic, easily. But that is if we can completely restructure the debt finance. So what will the cost of that be?
So setting aside a concern that Art will go buy something else that we cannot yet afford - we could own 58% of this asset - grow it to 5500 daily - we get about 3K of that. What are the metrics on our net for this type of play in Wyoming? Will Art be able to raise enough from our share of Atomic - after production costs, and royalties, and overhead - so if Essar actually ever drills and proves out, we can afford the $6 million USD buy out to acquire the additional 10% of OPL 226? I am trying to understand if this deal will allow us to positive cash flow enough to afford to pay Essar if and when Nigeria proves out.
This whole 53 multiple argument would suggest a 5 p price. But that is presuming we have 15 per cent of opl 226 which is called a lottery ticket by Art. To get there we have to pay 6 million of historical costs . And it has to prove out . And we are warned he is looking to buy in west Africa. All of this starts with an equity raise for deposits. So again, we could be 20 billion shares here in a blink. So the market cap will go up, nobody is arguing it won’t, as Atomic is at incline stage, but the share price will be anchored back by all the new shares and warrants
Arvanlaar that is exactly the same concern I expressed yesterday and today . The dilution and way he is doing it is diverting all the value and upside to himself and his buddies