The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
IO my advice on all of this would be to simply deal with the facts and not indulge in personal attacks. Why you obsessing on what others do, buy or sell whatever. I don’t recall deramp if any Majors? I hold in both Total and Shell. GBP needs to lobby for an extension as it’s too late for a farmout.
Will this be allowed to continue trading on AIM?
If so it may be worth a punt?
Yes I agree
But they won’t need an extension if they let the existing wells decline to zero.. As far as I understand much of the potential 2P volume is offshore or on the margin so I expect it is near certain they will need a new drilling campaign. The developed ..80 bcf to the 2P number isnt going to come from work overs or new perfs. All of AIM oil is like this, the BODs are in a coma, I have no idea what any of them do on a daily basis.
Charlie they have the licence until September. That’s all.
Then what? They lost the last licence when the term ended and they couldn’t pay the work P. Why is it any different this year? This will go back to Namcor in 6 months.
Egypt looks like a dog, too small and in end of life decline
Should maybe cut their losses and start again
Mick you seem knowledgeable about the oil field so you will well know that 2P volumes ain’t going to be achieved by a couple of work overs and compression. They will need additional development wells and crossed fingers. We do agree on the BOD abject laziness and lack of ambition which seems endemic across AIM. If they drill a couple of wells and prove up more gas this may be good I admit or maybe expand somewhere else. However presently they are edging toward a production cliff edge be it at 30 or 40 bcf/yr makes little difference. If this hits decline before they have a plan it’ll be v ugly.
As we have repeatedly seen this company is not cash positive - from year to year it looses money. Repeating the false mantra that it’s making money isn’t changing anyones mind hence the SP.
Therefore it can’t self fund future wells and the existing production is declining. This is not new news.
It’s either promote and farm out or death. They need to get on with it whilst there’s still an option.
I know 80 divided by nearly 40 ( the annual production) equals 2. What does it equal in your world?
Why would you not want them to invest in future production?
Do you need the dividend? Not sure what the BOD are doing here but they need a plan before decline sets in or this will tank.
Trp is presently trading at an all time low..
Given they have acreage signed up for years right next to GBP
and GBPs block runs out in 6 months it makes no sense.
Even a cynic might be tempted? I wonder why the excitement down south has had no effect on them
Solid or boring depending on point of view..
Key here is still the Shrinking Proven Developed ( PD ) which is 2 years production, 1P and 2P numbers are pie in the sky until they raise cash to drill up and develop them.
What’s the plan? Are they going to sit around and wait for the existing wells to water out? Shrinking via production year after year is not a forward plan imo.
Look at the finances over the last couple of years?
It’s not cash flow positive. Overheads, CAPEX etc are greater than revenue from production..on average. This means it’s not profitable and dabbling around full of hope from one well to the next is ruinous. Needs a big boy with cash that can do 6 wells or more and see if it gets lucky. Alternative is another raise at 0.75 p or less and nobody wants that
Arahim - so what you are saying is if you act like a thief then the contractual obligations on shooting a 3D are going to be waived? I’m not sure about that.. all you know is, at this point in time the licence is to be terminated in Q3. Maybe they can extend ? Who knows. However, no legal team at Shell or similar is going to sign up for 6 months so they are at the point where they need a new contract term.