Member Info for haggis_trap

Agree.. it has been a long wait. I am getting impatient. However I remain assured the institutions like black rock remain invested (and will know what is happening)

@munchbox : we did warn you there was risk here! And that patience would be required...
Though I am also getting frustrated by the looong wait now too ;-)
Sadly I think the nature of negotiations means they cant disclose any information until a deal is signed.
So : we all remain in the dark...

As I see : its best to bottom drawer these shares until something happens. Just ignore the short-term share price. If you think a deal will eventually be done then it is irrelevance. However that is much easier to do if LBE is small part of portfolio (say 10%) rather a than large chunk. There are so few shares in circulation that a small trade of 5K will shift the share price up by 2-3p!

Also : I imagine that covid has created a lot of uncertainty - how do you agree fair evaluation between buyer and seller? Now that things are slowly improving I would hope that M&A market will pick up. Higher oil price should bring more stability - in theory making it easier to do a deal both sides are happy with?

If LBE can do the right deal then the opportunity for small oil company in North Sea could be quite large over next few years.

Valuation on either company meaningless as both are cash shells. My feeling is kistos might find it easier to raise finance for an declining gas field which will be turned into carbon storage. However if / when LBE do a deal then it might be worth more to investors as oil price rebounds with global economy.

Which will be first from current position?
Your guess as good as mine...

One of these days Craig David will call it right and we will all be delighted ...

Everyone needs to chill - if Kistos hadnt gone up 30% would you have itchy feet?
Grass always greener on other side.

Would liked to have seen a deal by now, however the reason to invest remains the same here as September.
FWIW : There is a huge spread between the bid / ask of 10%. To buy into LBE will still cost 89p.
However short term share price almost an irrelevance until we have some fundamentals.

> Investors will likely feel greater returns are due over at KIST which i ultimately agree with.|

Maybe : Kistos market cap is already 40 million.
If they got to same size as RRE (~250 million) then it would be x6.
However they already have raised enough cash to do conclude some smaller deals.

LBE market cap is just 10 million but they are aiming to become a mid-cap producer (15-20bopd / 250 million).
Ultimately their success dependent on being able to conclude a deal that they can easily finance via RTO.
The finance hasn't been raised yet - so while the risk for investors is higher so might be the reward ?

Time will tell...

Reading between the lines Kistos will be aiming at gas fields which can be decommissioned and re-purposed for carbon capture. That might likely be a winning strategy in the current green climate. It is however a different investment propostion to LBE who hope to purchase producing oil field and might benefit from oil price re-bounding in medium term.

The 200 mil in cash at RRE was offset by 300 mil in decommissioning costs (all be it in the future). Arguably it wasn't free capital

"Private-equity funds that weren’t already thinking of reverse takeovers will certainly be considering them now, said Salman Haq, co-founder and managing director at Access Corporate Finance in London."
https://www.energyvoice.com/oilandgas/north-sea/279064/chrysaor-premier-oil-deal-harbinger-articleisfree/

> ......actually dont bother answering ive seen all i need to see.

As I said - happy clappy mantra with head in sand...

> The opinion of a few city pals is that this HUR BoD are just sitting on their fat arses

Exactly, the new board have yet to add any share holder value.
On their watch share price has plummeted 10p -> 3p.
No apology for my skepticism.

Let me give you balanced argument : the risk / reward ratio only returns in your favour once new management team announce how they will fund remedial works. Right now I fear that new management team will prioritise the bonds over share holders

@Gino2903 : personally I dont trust the new management team : and have explained in detail why. If you want to act happy clappy about future prospects then I can't help you. Gloating that others may have lost money here just makes you look like an utter ****.

Hopefully you make enough money here to buy a kebab for next weekend - you deserve it

@Gino2903 : I know more about this company than you imagine. Still hold shares. Just explaining why the share price is 3p - don't be offended

> Dont cry about it

Who said I was crying - just presenting the facts why this is 3p in calm and rational manner.

> It makes no odds to me why its here

Then you haven't done your research...

@Gino2903
The old-school would be able to explain to you why this is stuck at 3p.
For sure - there is massive potential at Hurricane.
14K bops, Lincoln tie back plus cash in bank is likely worth something to someone.
However longer term viability dependent on :

a) resevoir behaving without increasing water cut.
b) finance for remedial works being raised.

The new management team yet to prove their value - on their watch share price has dropped 10p to sub-3p without hint of a future plan to fix the problems. This might well get back to 10-12p. Or it might fizzle out and die...

Good luck to all who remain invested...

RRE had spectacular success : However their big step up came with the ambitious acquisition of Marathon oils North Sea assets. With this came some eye-watering de-commisioning liability which many thought they couldn't afford to pay (hence the infamous "cowboy" allegations).

There might be a reason that RRE sold out long-before those decommissioning costs became a real concern. With benefit of hindsight that was perhaps their plan all along. I am happy to remain invested here for now but will watch Kistos with interest.

Some more bed time reading here. The north sea is a buyers market right now ?
https://www.heraldscotland.com/business_hq/18740857.north-sea-oil-gas-firm-eyes-bargains-amid-market-dislocation/

LBE will eventually come good....
This article from a few weeks ago a positive reminder of why we are all invested.
I would rather the board took their time and generated value than rushed into a bum-deal.

https://www.energyvoice.com/oilandgas/north-sea/266713/longboat-north-sea-deal-activity/

It took RRE 12 months to do their first deal... If LBE are 25% as successful as they were over 5 years I will be happy.

Short term share price here an irrelevance. There is literally a handful of trades each day on small volume.