Member Info for CrudeTrader

I am new to the stock what is the next pieces of newsflow we are waiting for?

I am new to the stock what is the next pieces of newsflow we are waiting for?

I agree mick.

The other thing is the overhang coming from the Oslo delisting. Most holders there can move the shares to CREST, but if you are a retail holder in Norway you may just sell out and not bother to get shares listed in an other country. I think the stock will remain around the current level until the delisting in Oslo is completed in October. However in Q4 there are all chances of significant pick-up in the share price as all the starts seem aligned for Wentworth for once.

Cash build will be better in H2 compared to H1 due to a few things 1) No one-time SG&A cost related to the London move, 2) The last payment for June fell into July, 3) Operating leverage is kicking in as the opex is almost fixed while avg gas sale for H1 should be better if they meet their outlook statement from the H1 report, 4) Less interest cost, helping on the margin.

They wont pay down debt to rapidly as they already have the debt repaymet schedule in place. But the cash position should build quickly.

The stock was at 1p before the exclusivity agreement was announced. I guess it will go down close to that level.

From advfn:

"Implication of the RNS “Changes to Chief Executive Offices (“CEO”) contractual terms

Background
- BPC was listed on AIM Sep-2008
- BPC has been trying to farm-out their blocks in the Bahamas for the past 10 years
- The closes BPC has been to actual farm-out was the JV agreement they signed with Statoil, which was later dropped by Statoil in 2014.

The current CEO, Simon Potter, was appointed 13-Sep 2011, after BPC found Alan Burns had to step down due to illness.

- BPC CEO Simon Potter proposed himself in April 2016, that 90% of his compensation should be deferred in 50% cash and 50% in stock. The CEO would only get the deferred part if a successful farm-out was accomplished. The CEO clearly made a significant sacrifice.
-> BPC signed a Confidentiality and Exclusivity Agreement 3 May 2018, where BPC and the other party would:
BPC 3 May 2018 RNS: “conclude a detailed technical evaluation of the Company's licences in The Bahamas, and at the same time seek to develop a commercial framework for a potential transaction”
 BPC has been clear in the past that in a farm-out deal they are looking to get: 1) Carry for at least one exploration well, 2) Recovery of proportionate back costs.
 Even in the 2017 annual report, published 18 June 2018, the company was clearly seeking to recover back costs:
BPC 2017 annual report, published 18 Jun 2018, page 3:
“A successful farm-out or funding agreement would in turn see the exploration programme funded (at least through to the first well) and potentially the addition of further cash resources through the recovery of proportionate back costs”
-> The 6 Aug 2018 RNS with the changes to the contractual terms, creates a significant question mark to how the farm-out process is evolving. The CEO agrees to lose his deferred cash of $1.2m so the company can "removing future cash obligations".
This doesn’t add up, if BPC would recover back cost, lest say the farm-in partner gets 50% of the blocks, BPC would recover in the region of $50m. The CEO deferred cash of $1.2m is peanuts compared to a cash recovery of $50m.

-> The other big question mark is, why would a CEO who has been with the company for 7 years and who might be the one finally after 10 years signing a farm-out deal, be rewarded with:
-> 62.5% salary reduction
-> Losing $1.2m in deferred cash
That doesn’t make any sense, Simon Potter should be getting a special bonus if he delivers a farm-out.
Even Ascent Resources, CEO Colin Hutchinson, was getting a better treatment this week with only a 50% salary reduction after being close to bankrupt the company and fail to sale the business.

Bottom line: something might be very wrong here, BPC will lose its licenses if they don’t drill within a year and that would be the situation without a farm-out. The stock could be back to the 1p level if the current negotiations fail.

How large stake of the blocks do you expect that BPC will be able to keep in a farm-out deal?
Do you think they will recover some back costs?

VRS invested as a group invested £280k in PPE during last year down from £977k the year before. A little bit odd that investments are going down when they are looking to grow.

It says in the post its a forecast, so how can it be fake numbers? A forecast is always estimates/guestimates.

What are you expecting from Thursdays results?

What is the storage capacity of the grey tankers at Horse Hill?

What is the oil storage capacity at Horse Hill?

The well has been shut for 2 years so the clean-up can take sometime. Recoverying the kill fluid is not always plain sailing.

So why is the stock selling off?

Is it only me or was the between the lines message in todays RNS not as positive as last update on Haverion?

H2 2019 for first oil is finally in the investor presentation. Better to come clean. Now focus on securing funds.

Nice to see that WRL keeps cutting cost and focus on one exchange instead of two.
I think WRL is in a very good spot for the second half of the year.

How many days do we have to wait until we will get the first flow rate?

eggonaroll, I agree when it drops close to 39 level there is buying support. It odd.

I think they will wait until Monday to be able to give a more comprehensive update.