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Hi Anth72, I think it was you who said the insti's wouldn't like a lowball buyout as they hold 30p+. What strikes me most is that we are so very close to their own self defined deadline of e.o.Jan. Yet, no fundraise in the pipes that they would have to notify of, well in advance. It still could be something else but there is a clear[ish] deadline here. IF they are at an advanced stage of farm-out it might explain the complete silence and lack of any need to fundraise. I've gambled on it, it's a strange circumstance. We should all know the answer soon though. ATB. DYOR, all IMHO.
Also.... curious that buys/sells are disappearing off the LSE site. My buy vanished yesterday at the end of the day though it was there just after the trade. It was shown on the London Stock exchange site though, could just be a London SouthEast thing.. but, same thing happening today.... ? Added 36K shares yesterday. Best regards to all the long termers here.
Agreed Gus. Time.... soon I feel. I'm leaning towards farm-in with the timing close to the wire. The comment about the institutions being in at a much higher price means a bid, even at a generous premium to present SP, might not roll through easily seems true. I'm also inclined towards farm-in given the radio-silence and proximity to that time. Farm-in would mean back costs reimbursed which would give a healthy MCap... here's hoping....
My point is that any fund raise would need the paperwork disseminated well before now, yet we still have radio silence. I've had a concerted hunt for anything such as warrants/placing and there is nothing out there I can find. I think the company would be obliged to inform if they have plans not involving confidential negotiation so everything seems poised to me, either way we will have to know soon... here's hoping for a happy ending - best to all.
From the last report...
4. GOING CONCERN
The Company regularly assesses its liquidity and available funds to ensure that it has sufficient funds available to cover
costs for at least the following 12 months. This remained the case at 30 June 2021, however, as noted above, the
Company intends to secure additional funds by the end of January 2022 in order to continue operations as normal.
And still no word... happy new year all - Geo.
All, I was about to post last week when I saw the massive trading day so held off. I was about to post that I wasa encouraged that there were no documents for a fundraise yet lodged, did this mean they were close to a deal that avoided that. That's still the case. It could be something else of course, maybe warrants/private placement but I'd expect some kind of whisper. As they put Jan as a deadline I'm encouraged that we may be close to some news and yes, the only logic is a sale. ATB - GeoChem.
Hi Phil, I'm viewing it as a balance sheet /reserves exercise for a mid-tier oil co. It's an undeveloped [albeit substantial] reservoir in a remote environment devoid of infrastructure/support networks distant to market. Their mistake was that they did not test [DST] the well so all data is MDT and seismic interpretation based. It's simple logic that it's far cheaper to make a play for the entire company than to farm-in. I've stated before, given BOR's situation, about 6p a share comes in at circa £30 mil and may be enough to allow the institutions to cut their losses. The only hope would be a competing bidder which could push it circa 10p, then dollar convert. Nobody involved is relishing a fund-raise at this sp, I've run the numbers and it doesn't look pretty. Best Regards - GC.
Gents & others, I have been here since the discovery and lost a lot back then, but I've traded about even - I've never been out of BOR. I presently hold a insignificant 150K shares so I'm no big cheese. I'm also a 41 year O&G professional so I may know my onions - get it! There could not be a better market position to do a deal for BOR but there's a significant headwind. getting a rig to the SFB will result in a well cost of ~$70 mil , say $120 mil for a two well/sidetrack programme - aint going to happen for a farm-in. BOR is worth $30-70 mil in asset value, so you buy the company. I checked recently, but all the majors have interests in Argentina so, with sanctions, it won't be a major. I'm in to the end too, it's either 6p-12p a share or zip, high risk all-or-nothing punt. Thankfully, I also have BP shares. Best of Luck to all, let's all be kind - GeoChem.
I have a few BOR too, though, the HBR RNS dont help, may top-up more though... BP doing fine for me, £3.05 av. with Divi any day.... nice. Still more to come on Brent price and gas, winter coming.
Simon raised this in the video which can be found on here. First I'd heard of it but if they can do a good deal on an asset it could work, check out Serica's history on that. I think appraisal/early development was the theme... not sure what that could be. In the near term we need another stonking Wressle well IMHO.
Minds being focused on the reality of the energy indistry as of right now rather than the abstract future...
https://www.msn.com/en-gb/news/uknews/government-says-energy-security-is-absolute-priority-amid-rising-gas-prices/ar-AAOzTEn?ocid=msedgdhp&pc=U531
Tolmount for anyone....
https://www.msn.com/en-gb/news/uknews/government-says-energy-security-is-absolute-priority-amid-rising-gas-prices/ar-AAOzTEn?ocid=msedgdhp&pc=U531
2 TCF + undrilled upside help?
GWP, please don't feel lonely, I've been in here [small] for a few months. Strong signs of an uptick in oilfield E&A activity which should reflect in the SP soon. Speculative opportunity stock.
I've become tired of trying to explain the situation to people outside the industry. Take a look at this:
https://www.popularmechanics.com/cars/hybrid-electric/a5750/bioengineers-turn-trees-into-tires/
It's just one facet of this stop-all -production-now mantra that I constantly hear. In essence it takes 20% of a barrel of oil to make one tyre. I wonder how their electric cars will run on wooden wheels. The membrane which the lithium battery depends on comes from oil [polymer]. The seat fabric is polymeric, the dashboard, the switches, the gear knob etc etc. I take a few meds these days with my age, they are made [ultimately] from oil. Try making a goretex jacket, or 90% of clothing [nylon/rayon/kevlar/polycotton etc] without oil - impossible. I could continue this list ad-infinitum but the simple reality is that without the critical compounds made from oil we are back in the middle ages. As a chemist I have to agree with Mendelev, "it's too valuable to burn". Don't get me started on gas.....
Gus, you're absolutely right on the background. Folk outside the industry don't realise that there has been zip-nada exploration or appraisal since [broadly] 2016. BOR have a drill-ready proven reservoir and a healthy prospect inventory offering substantial potential upside. It should attract a partner or more likely take-over in the current PoO environment soon enough. The only negative is Vaca Muerte which is attracting a lot of major's, even noted Statoil taking some offshore Argentinian acreage. We've got hope that a mid-cap or NOC with no Argentina presence will see the potential here in the near future. Otherwise, I hope you're right on plan B.
I made a move up to a six figure holding here and I strongly suspect that there is a lot of this going on. My buy today shows up a sell, and a automatic trade 10:41:38, 1.09p. It was a buy topping up my increased holding over recent weeks. I'm sorry to say that I see little hope of a farm-in as circa $80 mil for a share of the assets is tough to sell, when... The good news is that a bid at 6p costs circa 30 mil and gets someone 100% and a full well's data. It's still, as always in recent years a utterly binary position to hold the shares however the upside potential is undeniable. Just to say, I've been in here since the discovery but got smarter in my trading [I hope!!], best regards to all the long term holders/posters.