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Will - the results were, broadly speaking, in line with expectations ( except those of Trolls ! ) .
There is, however, concern about the other RNS indicating more than 770 million shares being added next week. Some have probably been pre- sold creating downward selling pressure on SP but this size overhang is not a positive for the SP, short term , IMO.
I don’t have personal knowledge of Oz investors funds but I doubt raising a few million will be a problem in the circumstances but I’m not taking anything for granted - may you live in interesting times is old Chinese saying - we will see next week!
I believe CEO will have to work hard over the weekend to try and put funds into the company so that normal business activities can continue, given the likelihood of intense selling pressure on SP Monday morning.
The most likely scenario is a Placing , IMO, the interim accounts looked OK and $2 million is due for Cory Moruga sale - I reckon Oz shareholders will come across with some cash but it may not be pretty.
If I was them I’d certainly be looking for BOD to cut pay and take favourable share options as recompense so that shareholders and BOD are more closely aligned.
There are 2 new RNS which can be accessed by Google at Investegate RNS CEG.
One is the interim results which are consistent with expectations, the other relates to issue of new shares. The contractor shares were known about from previous RNS and I suspected this was contributing to selling pressure however the lender has also converted the loan into shares which they will probably be wanting to sell asap.
Next week will be very important in the history of this company..
Re post timed at 11:05 -
BigLie2 - re your post 18120 I thought you might be interested in the company statement from the 2022 results RNS, published 29/06/2023 - not very long ago!
'Once core assets had been prioritised, we were better able to schedule equipment movements and workovers in support of those assets alone, and we were able to reshape our staff base, operations, and other costs to better "t" the needs of those specic assets. We also switched many of the smaller producing wells over to continuous swabbing - an operational approach that meant we would no longer be chasing increased production from those smaller wells, but at the same time also meant we could run those wells at a fraction of the cost of continually working the wells over. In terms of outcomes, this new focus saw production through 2022 holding constant, total operating expenses and G&A reduced, and positive net operating cashow across 2022 (which represents a substantial improvement on 2021, where the Trinidad business had incurred a net operating cash decit).’
Druid - trolls were saying nothing to sell when company was in trouble after P1 failure - subsequently they’ve found plenty to sell and there’s more in the portfolio. Cory Moruga should complete soon , potentially US$ 3 million over 6 months - that’s a lot for ' nothing ’!
These trolls also like to get their FACTS wrong in their desperation.
CEG bid for OFF - 1 pre COVID and it took years for the government to grant licence. In the meantime we had the super excitement about the Namibian Basin which stimulated bidding interest from Majors on the blocks then available, excluding OFF-1 ( which happens to be adjacent to plot Shell successfully bid on! ) .
I don’t know if Uruguay drilling
Should’veSold - both asset sales were substantial loss makers and Cory Moruga was a non producer of oil !
These assets may come good in the future under the new management groups, I hope they do, CEG knew their limitations but have retained favourable buy in options should a bonanza occur!
Mick - as someone who takes a keen interest in PRD I’m surprised you consider the lender daft - the Cory Moruga deal looks like it will complete eventually and that will yield $ 2 million minimum over 6 months. The borrowing starts off relatIvely small and future loans are subject to 0.05p SP so if company goes downhill they can limit exposure - Oz shareholders unlikely to let company go under for sake of a small loan IMO.
GG - I did posit an explanation for BP walking away some years ago - they did not know, at that time, how successful the drilling in Namibia would be. This is now known and the link to the Conjugate Orange Basin appears to be widely accepted by Majors - hence the interest from Shell et al. This development is significant because the prize on success is huge so it affects the risk/ reward assessment. I then went on to say that BP have now changed their stance on new exploration projects under new CEO Looney so even the new information probably wouldn’t justify a reassessment of the project.
RE: Block 3 License13 Jun 2023 10:49
GG - thanks for attempting to generate a reasonable discussion on here! Although you haven’t said it I’ve seen the usual suspect trolls posting up the line if BP rejected it it must be carp!
This is not unexpected and is an easy knee jerk reaction but it should be considered with facts!
When BP withdrew the Conjugate Orange Basin link had not been made with such strong evidence- hence current clamour for licences. Secondly if you Google BP and CEO Looney you’ll understand that with new very tight criteria it’s unlikely they’d consider even the sexy new Uruguay variant!
RE: Block 3 License13 Jun 2023 10:49
GG - thanks for attempting to generate a reasonable discussion on here! Although you haven’t said it I’ve seen the usual suspect trolls posting up the line if BP rejected it it must be carp!
This is not unexpected and is an easy knee jerk reaction but it should be considered with facts!
When BP withdrew the Conjugate Orange Basin link had not been made with such strong evidence- hence current clamour for licences. Secondly if you Google BP and CEO Looney you’ll understand that with new very tight criteria it’s unlikely they’d consider even the sexy new Uruguay variant!
Briggsy - I’m glad you are interested in FACTS - the Majors took 5 out of the 7 blocks available - they have pledged to spend circa $200 million on development - that’s not sounding like they lack confidence in the Conjugate Orange Basin linkage scenario but before you get carried away with my facts I feel I should issue a wealth warning for the clearly naive on here - this is oil exploration- it’s high risk and not guaranteed!