Member Info for Invest4theLT

Really?:

07-Feb-23 15:52:24 7.30 500,000 Sell* 36.50k O
07-Feb-23 15:51:55 7.38 146,170 Buy* 10.79k O
07-Feb-23 15:51:45 7.38 20,000 Buy* 1,476 O
07-Feb-23 15:51:23 7.50 133 Buy* 9.98 O
07-Feb-23 15:51:16 7.38 10,484 Buy* 773.72 O
07-Feb-23 15:50:34 7.25 500,000 Sell* 36.25k O
07-Feb-23 15:50:30 7.3875 26,702 Buy* 1,973 O
07-Feb-23 15:50:23 7.42 9,488 Buy* 704.01 O
07-Feb-23 15:50:11 7.50 666 Buy* 49.95 O
07-Feb-23 15:50:00 7.425 10,000 Buy* 742.50 O
07-Feb-23 15:49:57 7.25 500,000 Sell* 36.25k O

That does look a bit ambitious given the the date now but perhaps they came back asking about Cole Creek and wanting a bigger slice of the COPL pie?

(Cont…..)

‘’Financing Initiatives
The Company is working closely with its professional advisers to negotiate and secure a new senior debt facility, which the Company is targeting to draw down prior to 31 March 2023.’’ - consistent message with the 03/01/23 update.

‘’The Company is also actively negotiating and intends to issue additional 2025 Bonds and warrants pursuant to a second tranche of the Winter Bond Financing (announced 3 January 2023), which is expected to close in February 2023 to support its near-term capital requirements for the Company and its affiliate, COPL America.’’. - Sounds like they’re confident of getting funds this month.

‘’In addition to securing financing from debt and equity capital markets, the Company confirms that it is actively negotiating terms for a joint venture for the long-term development of its Wyoming assets. The Company plans to announce the detailed terms as soon as they are agreed.’’ - JV still on and presumably progressing well.

My conclusion is that the 01/02/23 rns was needed due to the Rule breach but everything else remains as it was.

I guess we’ll see.

21/12/22 rns:

‘’COPL Announces Costless Hedge Restructuring and Corporate Update
London, United Kingdom; Calgary, Canada: December 21, 2022 - Canadian Overseas Petroleum Limited and its affiliates ("COPL" or the "Company") (XOP: CSE) & (COPL: LSE), an international oil and gas exploration, production and development company, with production and development operations focused in Converse and Natrona Counties, Wyoming, USA, is pleased to announce a costless restructuring of its West Texas Intermediate ("WTI") and Butane ("Normal NC4") hedges effective 1 January 2023, as the Company prepares for senior debt refinancing in the first quarter of 2023.’’

03:01/23 rns:

‘’The Company has signed a "Tap" Purchase Agreement for the issue of further 2025 convertible bonds pursuant to the Bond Instrument dated July 26, 2022 with an aggregate principal amount of US$4 million (the "Convertible Tap"). The Convertible is fully anchored by the lead investor for the July 2022 Convertible offering (the "Lead Investor").

Following the Company's hedge restructuring, the offering proceeds will be used for recompletions at Cole Creek Frontier Sands, capex and miscible injections at the Barron Flats Shannon flood and for up front deposits and fees for debt refinancing term sheets for COPL America.’’

23/01/23 rns:

‘’Arthur Millholland, President and CEO Commented: "The results from the Frontier 1 11-27 recompletion is a game changer for our Company’’

01/02/23 rns:

Why issue the required prospectus? Required by the FCA:

’’Breach of Listing Rule 14.3.4 and Listing Principle 1?. The Company is in breach of Listing Rule 14.3.4 and Listing Principle 1 as it failed to make an application for admission to listing of the 30,250,000 Common Shares issued on 3 December 2021 pursuant to the December 2021 Placing within one year of such allotment.’’

‘’2022 Trading Update’’ - nothing LTH didn’t already know.

‘’Working Capital Position’’ - a few surprises here perhaps but we’ve known the weather has been bad over there in recent weeks and c.2 days lost production isn’t as bad as it could have been.

‘’.As a result of these interruptions in production and sales the Company's affiliate COPL America may not meet its financial covenants pursuant to its Senior Credit Facility in February 2023 and March 2023 unless new financing is secured.’’ - not the first time this has happened but the lenders track record has to remain supportive of the company.

‘’The Company does not currently have sufficient working capital for its present requirements and the Company believes that additional financing will be required by March 2023.’’. Again not a big surprise to LTH. Perhaps currently heading for break even given the Hedge Restructuring but additional funds always going to be needed to develop the fields?

‘’These producing oil assets (Barron Flats and Cole Creek) are at the beginning of their 40+ year life with increasing production to a future production plateau. Together, the August 2022 (post Cuda Acquisition) production rate of 1,277 bbls/d (Company gross) is expected to rise to 2,500 bbls/d (Company gross) in 2023 and about more than 7,200 bbls/d (Company gross) in 2026 (2P reserve case, Ryder Scott Report). ’’

‘’The Company commissioned Ryder Scott to produce a report on the BFSU, the Cole Creek Unit and BFDU Dakota properties. The Ryder Scott Report is effective 31 July 2022 and dated 2 September 2022. The Company affirms that no material changes have occurred since the date of the Ryder Scott Report, the omission of which would make the Ryder Scott Report misleading.’’

‘’Emphasis of matter
The auditor’s reports on the Group’s consolidated financial statements for each of the years ended 31 December 2021 and 31 December 2019 contain an emphasis of matter, each of which in summary states (without qualifying the auditor’s opinion) that the Company does not have adequate financing to develop its operations and the Company is pursuing exploration projects and contracts that will require substantial additional financing before they are able to generate positive cash flows. As at 31 December 2021, the Company was in default on the Senior Credit Facility, for which the Company received Waivers subject to certain conditions. The auditor reported for each of the years in question that those factors, along with other factors described in the consolidated financial statements, indicated the existence of a material uncertainty that cast significant doubt about the Company’s ability to continue as a going concern, further details of which are set out in Note 2 to the Company’s 2021 and 2019 audited consolidated financial statements.’’

‘’Breach of Listing Rule 14.3.4 and Listing Principle 1
The Company is in breach of Listing Rule 14.3.4 and Listing Principle 1 as it failed to make an application for admission to listing of the 30,250,000 Common Shares issued on 3 December 2021 pursuant to the December 2021 Placing within one year of such allotment.
The breach of Listing Rule 14.3.4 and Listing Principle 1 occurred due, in part, to the Company dedicating its resources to the Cuda Acquisition and its equity financings in 2022, including the April 2022 Placing, the July 2022 Placing and the Winter Bond Financing. As a result, the Company did not have sufficient resources to devote to the admission of the Common Shares issued pursuant to the December 2021 Placing within the required timeframe.
The Company intends to rectify the breach, and an application will be made for the New Shares, which includes the 30,250,000 Common Shares issued pursuant to the December 2021 Placing, to be admitted to the Standard Listing segment of the Official List and to trading on the main market of the London Stock Exchange. It is expected that the New Shares Admission will become effective and that unconditional dealings in the Common Shares will commence at 8:00am on 3 February 2023.
Going forward, the Company will endeavor to comply with all applicable Listing Rules, in particular Listing Rule 14.3.4 and Listing Principle 1. ‘’

It will be interesting to see if the tap feature is used again what conversion price is used. A price down here would be understandable but one at a premium might instil confidence in the company and help the BH get their (many more) existing 13p conversions away when the time comes (and warrants).

Scroll down to the Zimbabwe section in this:

https://www.lse.co.uk/rns/BOD/annual-results-for-the-year-ended-30-june-2022-svw2cmzf03wvocs.html

Possibly not as he knows more about what’s going on than us.

Presumably this was put in the financing initiatives section of the rns intentionally:

‘ In addition to securing financing from debt and equity capital markets, the Company confirms that it is actively negotiating terms for a joint venture for the long-term development of its Wyoming assets. The Company plans to announce the detailed terms as soon as they are agreed.’

If they go for another $4m on the tap facility I think there’s a chance the BH could have access to over 50% of the shares if they converted (assuming a lower conversion price now). Would that be good for either party?

Shocking update today. I’m not sure a few days lost production justifies changing the message from game-changer to we can’t service the debts etc.
It does make me now wonder if they only secured $4m gross from the BH a month ago as that’s all they’d let them have. Hope they continue to support and offer more help.

Finance update tomorrow? Should say something either way?

Has to be the NDA. The two horizon drills are confidential so I can’t see them putting the report in the public domain if they’re keeping the two drills under wraps.

# Trades 718
Vol. Sold 293,551,536
Sold Value £898,868.06
Vol. Bought 245,808,172
Bought Value £720,499.26

Lots of churn.

I don’t 100% follow what’s being suggested either but happy to hear more/receive clarity.

That said, the JV partner has been referred in recent RNS as a large oil company. Does Evolution sound large enough?

L2 holding steady these last 2 days. Setting us up for a good week next week hopefully.

Our friends JBER were on the Bid all day today absorbing the sells so possibly not anytime soon.