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Uggy you are not being thick. Sadly the black smoke flare is BS but it doesn't stop dragging it up again and again.

Hi IAmNotAnAnalyst
The operator has no way of knowing in advance whether a EWT at WNA2 will be successful or not in advance. What I was suggesting is that as RBD's share of WN increases so does our dependence on a positive EWT result. If the operator had a choice of EWT site options then the chance of a positive outcome increases.
I completely agree that RBD's communication on vital matters has been dreadful. It may be their hands are tied in some instances but we, as owners of the company, deserve better communications than finding our information from various and sometimes dubious sources.

As we all know the expected next move on WN - assuming all the partners have the cash to move forward and permits- much speculation Humber now dont have their share- is the restart of the extended well test at WN A2.

I am not sure this is how it will play out. Just as likely now would be going straight to the first well at WN B. More expensive than the EWT at WN A2 but , in the success case , it would provide more information for the competent persons report (cpr) and three possible sites for the EWT, that is the existing WN A2 or WN B in the Kirkham Abbey or WN B in the Cadeby.

If this seems far fetched then consider where the sp will be if we own 39% (or more Humber/share swap?) of an EWT at WN A2 that isnt successful?

Aj I would love to be proved wrong but there was no black smoke on the videos of the August well test of A2 - just a heat haze.
Gla

If Humber cant come up with their share of the WN appraisal program it helps explain how the WN EWT has gone from a "pause" to a delay. If ultimately, Humber's share of WN is distributed among the partners who do come up with the appraisal money we could end up with an even bigger slice of WN. Is that why the BOD are filling their boots?

Nice

I quite agree adoubleuk. We were told there would be a pause in the EWT to reconfigure for oil rather than gas- fair enough. But what we have is a delay and a delay without clarification. Are we waiting for permits or equipment or what? We should not be getting our information second hand from local community meeting notes!
A q4 resumption of the EWT now looks unlikely so tell us what is going on please.

https://www.brrmedia.co.uk/broadcasts/5dc593cc34a3cf1389e83c89/reabold-resources-west-newton-update

5 November 2019

Bahamas Petroleum Company plc

("Bahamas Petroleum" or the "Company")

Result of Placing, Open Offer and Funding Strategy Update




Highlights:

· Open Offer closed with c.50% take-up from existing shareholders raising gross proceeds of US$4.3 million through the issue of 166.4m ordinary shares at a price of 2p each.

· Successful Placing to raise additional gross proceeds of US$7.1 million through the further issue of 275,641,455 ordinary shares at a price of 2p each.

· Aggregate gross proceeds of US$11.4 million from Open Offer and Placing representing an oversubscription of 60% against announced targeted fundraise amount.

· As a result of the Open Offer, the Placing and the previously announced Conditional Convertible Note, the Company expects to see gross cash inflows of approximately US$24.6 prior to March 2020.

· Sequenced cash inflows through 2019 and 1H 2020 expected to be sufficient to meet the anticipated costs of an initial exploration well in The Bahamas during 2020, consistent with licence obligations, with timing of cash inflows matched to funding requirements.

· Farm-in discussions remain active, and the Company continues to consider other financing alternatives, to strategically expand its available funding resources.



Overview:

Bahamas Petroleum Company plc, the oil and gas exploration company with a significant prospective resource in licences in The Commonwealth of The Bahamas ("The Bahamas"), is pleased to announce that it has raised US$7.1 million before expenses through a firm placing of 275,641,455 new ordinary shares of 0.002p each ("Ordinary Shares") (the "Placing Shares") at a price of 2p each (the "Placing). The Placing was undertaken via an accelerated book-build process, as announced on 4 November 2020, with the Company seeing strong demand and thus increasing the size of the Placing from the initial targeted amount.

Together, the Placing and the previously announced successful Open Offer, raised US$11.4 million before expenses representing an oversubscription of 60% against the announced targeted placing.

The Placing comprises part of a coordinated funding strategy by the Company toward the drilling of an initial exploration well in The Bahamas during 2020. Other elements of this funding strategy as announced to-date are:

1. An Open Offer to qualifying shareholders, as announced by the Company on 18 October 2019 and closed for acceptances, in accordance with its terms, at 11.00 a.m. on 1 November 2019 (the "Open Offer"). The Company received valid acceptances and excess applications from qualifying shareholders for a total of 166,402,235 new Ordinary Shares under the Open Offer. All excess applications from qualifying shareholders will be met in full, and in aggregate the Open Offer represented a c.50% take-up by existing shareholders, raising gross proceeds of approximately US$4.3 million.



2. A Conditional

Fyoz The vast majority of the capital raise has gone into Rathlin and works surrounding West Newton. Parta is a long way from producing any return. Calfornia's returns are currently modest- so yes for all practical purposes, in the short to medium term, its all about West Newton.

SGBaby

I completely agree. Thanks for cutting through the drivel to the real issues. My own opinion is that S&S think they are going down option 2, but without the results of the flow test(s) they cannot know for sure. The "investment" in Reabold's diversified portfolio has become a traditional Oil and Gas explorer binary bet. Let's hope they are right, we wont have long to wait once the EWT restarts.

Uggy100 I agree wit you that the potential for early water break through is real, as demonstrated by other fields producing gas from the Kirkham Abbey. Hopefully this possibility has been comprehensively studied in the lab work but I suspect we will only really know after extended production.
GLA

First time in two days I have seen a burst of blue. Forgotten what blue trades looked like.

Ahh the famous black flair video BC. From the videos I have seen it does look like black smoke from the gas flow test but if you look closely its just a heat haze from the burning gas. You can tell when the flare has a light background ie sky rather than dark trees. Unless of course you have seen a different video- would love to see it.

Mikker
We are at a very early stage of appraising West Newton. The full picture will only really be known when all three wells are drilled and flow tested- so about a years time. Even then sustained production will tell still more. The proposed CPR once complete will effectively provide an interim guess at the resources of the field providing a range of possible volumes eg. 50-75mboe.

First things first though , we need the EWT results to see if the well actually flows oil to surface! S&S have bet the farm that it does.
GLA

Which flavour options are there ? No pineapple for me.

many Thanks

Changing the subject slightly. from todays rns announcement.
"Four wells have been drilled across the licences to date, all of which have resulted in discoveries and have been placed onto production. Current gross production on the assets is 300 US barrels of oil equivalent per day (boepd) (150 boepd net to Reabold California). The assets are characterised by low capital expenditures, and operating costs of US$13/US barrels of oil (bbl), resulting in gross profits per barrel of US$40/bbl at current price levels, sufficient to self-fund future planned development drilling and operator G&A."

How can full current production of four wells including VG3 and VG4 (choked 480 bpd) produce only 300bpd gross. Something wrong here!

today which is odd.
They normally do the rounds with any RNS let alone a big one like todays. Hang over from last night is my guess. No mention in Malcys blog today either?!

Next up S and S interviews with the press . Lets see who's first to spot one.

GLA

If the deal goes through tomorrow I would say we have gained something and lost something.
One of the attractions of Reabold for me was the portfolio diversification. If a drill was a failure , remember Wick?, then it didnt have a great impact on the share price as that prospect was only a relatively small part of the asset base. However, by pushing the bulk of the capital raise to Weston Newton we are effectively going "all in" on one prospect. I know we have Parta and California but whatever way you look at it Weston Newton has to succeed. We have effectively lost the diversification and gained a great return if Weston Newton comes in. We have turned into every other small oil stock - a binary - s*** or bust on one prospect.
Let's hope they know what they are doing.
GLA