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Re-reading the recent DCS agreement announcements: The Effective time is Jan 2017, and hopefully it's right to say profits accrue to HNL from then. But I reckon it's only from completion in November 2017. The 16/10/17 announcement is silent about what happens between January and completion in November. We're told the seller receives 1.8m euros on completion, being enterprise value (4.8m euros at 1/1/17) subject to "certain adjustments", and also subject to some separate "Completion Adjustments" and also intra group balances. It's unclear what all those adjustments are (they're separate from the contingent liabilities), but wouldn't it be more likely that TLW ran the assets up to completion, and took the profits up to completion, the adjustments including the profits? That would mean HNL step into TLW's shoes on completion, profits netted off to TLW with all balances on completion at zero, and earnings/profits start to accrue to HNL from then. HNL surely wouldn't get the profits from Jan to November, or other existing cash, without paying full value for them. I don't think HNL took any risk running the assets before completion, so can't immediately see how it's agreed they profit from them, without paying full value. So why do some posters here think earnings and profits are accruing to HNL from January 2017, without paying for them? That assumes an agreement that HNL operated the assets, or paid TLW to do so, with HNL taking the risk, neither of which appears to be the case. The norm for a conditional contract would surely be for TLW to carry on operating (probably with an obligation to do so) but taking the profits/losses up to handover on completion. That way if the CPs weren't satisfied the contract simply wouldn't complete and there'd be no handing back exercise. The significance of January is legal rather than financial. I think it's a standing start with zero balances for HNL in November 2017. IMO. The forthcoming AR may clarify. Very happy to be wrong, if someone can point me in the right direction.

Certainly since Nov '17, but reading HNL's announcements, I don't understand how between Apr '17 and Nov '17, or between Jan '17 and Apr '17 (the agreement date)

bid...not ask

Could have been worse. Important to progress Haggan asap imo. I like the word "urgency" now being used re the IPO. The 3.3c option expiry in Sept 2019 might indicate the 2018 conceptual timetable for IPO is being relaxed a bit, but it would take a significant SP rise in 18 months for the options to be of any value - a good sign. And you can still dummy sell in quantity above the ask so AIM SP not affected. Good short medium and long term profits still a real possibility here imo.

�1.50 or more perfectly possible imo, as we stand. From the suspension price of 12p, I'd expect a huge uplift to reflect the actual DCS deal and Engie agreement (over and above the speculation about both already priced in at 12p), the profits since completion, the BoD's enhanced credibility, potential, and the improving O&G sector etc. I like the peer comparison valuation approach (courtesy of ghostwriter) which could see the SP over �1.50. It seems to stack up well if you look at SQZ for example. The unknown (for me at least), looking from bottom up rather than top down, is how to get from the 1.8m Euro enterprise value paid for the DCS assets, to that kind of valuation and SP figure, even with a good post-completion performance in a strong market and with the other favourable factors we've discussed. I get that there is mutual value to TLW and HNL in the deal, the one man's meat is another man's poison argument, and there is huge value to TLW in divesting surplus assets and off-loading de-commissioning liabilities, but wonder what the HNL SP could realistically get to.

...and the SP on AIM seems unaffected too. Wonder what it is, a bit to keep the lights on, or something more substantial.

Hopefully we'll see the 2017 AR soon. It should be a good read and might have some comment and guidance for 2018 in it too. The 2015 AR is dated 31 March 2016, although the 2016 AR didn't come till 24 May 2017.

I imagine there's restrictions on selling the loan and not a ready market anyway. Unlike more normal bonds. Not that the Omanis would want to sell barring exceptional circumstances. Thanks for posting that IC article btw. It's been an interesting debate last few days!

The $65m is a zero interest essentially nonrepayable loan note. Not a bond.

I wonder if IC's (mistaken imo) reference to a 50p "cap" has itself contributed to the drop in the ask to...er...50p. Buying opportunity imo if so.

The Exploration Programme section of the Half Yearly report is about exploration in other areas. News anytime about that including a drilling programme. But no worries. The SP won't move over 50p till the Omanis have converted their loan apparently...

I suspect the man from Al Monte will be back soon...

Agree OthodeLagery. The convertible loan is a known known, $65m @ 50p.

I agree it wouldn't make much sense for the Omanis to convert and then sell in the 50s to reduce their holding to an amount where they could stay under 30% when exercising options to buy at (weighted) 85p. Nor would it make sense to sell at a loss below 50p. Not sure IC meant to talk about a 50p cap either before or after conversion. Just buy BKY now imo.

Yes I think IC�s �cap� of 50p until the loan converts, is them saying firstly the market should have the confidence to go over 50p once Oman is happy to take the risk of converting the loan to equity. Secondly that Oman may sell some shares on conversion (presumably in the worst case scenario up to their 28% of the company but at not less than 50pps) which would temporarily suppress the SP at that level. But as a strategic investor with the option to lend more at a conversion price of 85p (and have a board member and match other offtake terms etc), I don�t imagine they�ll rush for the exit on conversion, and conversion will almost by definition follow BKY�s further success not failure. I think there�s plenty of scope for SP rises on good news, before and after conversion.

Interesting thanks for posting that. Had a quick look, some speculation about a pump and dump, and some forward selling by participants in a forthcoming cash raise, perhaps to progress Tiris. All possibilities I guess

If we discover the next zona 7 for example I'd expect a substantial rise regardless of the convertible bond price. Wouldn't you?

Hi apple Hopefully no cash raise before the Haggan IPO payday, the conceptual timetable for which is by end 2018. And even if there is an equity raise to keep the lights on, it shouldn't be too severe. "As at 31 December 2017, the Group had working capital of $413,673 (June 2017: $2,026,388). The Company has also raised $190,917 since balance date with holders of options over ordinary shares exercising their rights. The directors have prepared a cash flow forecast, which indicates that the Company will have sufficient cash flows to meet all commitments and working capital requirements for the 12 month period from the date of signing this financial report." Plenty to look forward to, but not much in the half yearly report imo

Note the "s" on deals!

And add this to Ghostwriter's post, AC on 1 Nov 2017: "Our immediate focus is now on closing the [DCS] transaction [on 13 Nov 2017] which will be followed by operational integration in order to realise, maximise and augment the potential of these assets. We will then look forward to relisting HALO as a stronger, larger and sustainable company with a bright future." Will operational integration have been completed now, it's been over 4 months? I'm still perfectly relaxed about re-listing. AC won't be mucking about, and will know when and where it is best to re-list. Will it be imminent as some posters are suggesting, or is there another deal to be done first?