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Welcome James,
Interesting thing here is if the team had chosen to do a fund raise with shareholders we would probably be sitting with the SP 100% down (to about 1.5p). Happy to hear from Andy and James that was not the case.
Paying an upfront fee to kick start a very worthwhile drilling campaign was way more favourable. This upfront cost saw us drop from 2.8p to 2.2p on the day. It seems there is no pleasing some irrespective of which way this deal done. On the flip side, I must congratulate everyone who did profit from 2.1p all the way to 2.7p.
These deals are highly complex and then later comes the complexity of the oil and gas game.
An aggregated value for CORO stands at 'circa 9.5p' for just the South-east asian aquisitions so far.
Please DYOR. All comments posted are via extensive conversation with Andy and James and my only view is 'Strong Buy'.
Deepi GLA
Morning all,
Just to follow up on some details from Monday night.
It was my first chance to actually meet James Menzies, was a pleasure to meet him finally.
I gathered the funding was on the expensive side, however for the size of the Indonesian Acquisition: Duyung PSC, the team were faced with a delay of almost 2/3 months for this to come through. The delaimler was a poosible reverse takeover for the Acquisition or ask for shareholders to fund. The team came out fighting and resorted to a share/cash/Eurobond solution. In Andy's view this was the approach to this deal.
Speaking to Ben Turner (one of the bosses at TPI) and his comment was the deal annouced was excellent given the size of the company and expects big things from James Menzies.
I did question Andy on the financial side of the deal and to my surprise he did email me as promised to say the following:
"Hi Deepi,
Good to see you last night and thanks for your time, questions and feedback.
As we discussed, the Eurobond will have a simple blended annual costs of capital of ~13% if held and redeemed through to maturity.
This is calculated by adding the issue price discount (15%) plus the fee (7%) plus the all coupons paid (5% x 3years = 15%) - all then divided by 3 years.
We are funding a high quality development stage asset whilst also exposing shareholders to some near term drilling activity with prospects that have a high geological chance of success and the ability to double the size of the existing resource.
These types of transactions are generally not debt fundable leaving the only alternative to be new equity which would have been very dilutive to our shareholders given price performance versus the April admission price and in the context of us raising an equivalent amount of money to how the market values the Company. I think its testament to the quality of the asset and the support of our institutional investors for them to extend funding to us on the basis we have announced allowing the Company grow and execute on its strategy.
Any further questions, please do not hesitate to contact me.
Best
Andy"
The team doing a live web Q&A today. 41 minutes countdown.
Please visit : https://yourcoroenergy.com/
Deepi
hi N4a,
I will certainly be fishing for more answers tonight. Rather interested to see how the issuing of the eurobond will benefit CORO and its shareholders. Drilling campaign is scheduled for this year (with potential for multi TCF), so I find it hard to understand why peeps see no upside sooner rather than a year down the road. All to play for at this stage. IMO.
off into town to the NED for me now. Will post back if anything interesting catching's my attention.
Deepi GLA
Found it.
https://total-market-solutions.com/2019/02/11/coro-energy-duyung-psc/
https://www.coroenergyplc.com/media/2149/coroenergy-ip-duyungpsc-2019q1.pdf
I will be there tonight. Hope to see a few familiar faces.
Just a comment from me. CORO is one for the long term. Today's news just reconfirms more upside than downside from here onwards. You will not go wrong with today's entry level.
Deepi. GLA
Hi Chaps/Chappes,
I just spoke to Sarah, highlighting the GSA arrival and its foreseen delay according to the Q1 presentation. She states the following
"Nothing in the public domain as yet Deepi. Appreciate it’s frustrating but we are pushing for the highest price!"
Personally don't see GSA as a catalyst, lets get the testing started and see what treats we get from TE10 : --))
Deepi
Just a comment on the GSA, seems JP is not completely aligned with JJ. Speaking to JJ at the Deep Dive, he mentioned the GSA will come in next year and heres JP trying for Dec!!
From FSC:
Q:GSA is now pencilled in for December, has there been positive indications from the parties involved
that they expect to have it wrapped up in December, or are we just kicking the GSA down the road
again?
James Parsons (Chief Executive)
A:I think all parties are aligned that December makes sense,
JJ
GSA is required in Q1 2019 to reach an FID in mid 2019. Today, the GSA is not delaying the FID
Will be interesting to see if they use the GSA to hedge their bets with the results of TE10.
All speculation on my part. Hoping to see some good news in the coming months.
Deepi
https://twitter.com/soundenergyplc/status/1052484292759220224?s=21
https://youtu.be/kGvLknuOD0s
Let the games commence.
Deepi
Morning all,
We have the TPI Video and latest presentation.
http://www.turnerpope.com/events-and-news/tpi-investor-evening/
https://www.coroenergyplc.com/media/2135/coro-energy-4-october-2018.pdf
Deepi
https://youtu.be/QY5HNSom1wg #deepi@thedeepdive Many thanks to Panther and Josh for getting this edited and posted. Deepi
I know CORO is a completely different beast to SOU, but its interesting how both companies are soon to release the all awaited GSA.
News will come when it does, but this i dont plan to trade CORO for some while yet. Have to say I have missed many trading opportunities, but not really bothered as JM is just gearing up and proven to everyone he can strike many deals which will be value accretive.
ps. investors are welcome to join my Facebook Group. Just search for 'Coro Energy Plc Investor's Group'.
Good luck all
Deepi