Member Info for itsawrap

It's often the case that the first take-over offer has to be increased, if the market had deemed 4.5p too cheap, market forces could has pushed the sp above the offer price in which case UJO could have sold shares above the 4.5p offer price - so why an irrevocable commitment? If the deal falls through PP doesnt buy our shares at 4.5p so what's in for UJO?

In fact if UJO has said no to an irrevocable commitment to sell, perhaps PP would have to go into the market to buy more shares to push the deal through, therefore increasing the value of UJOs 17m shares.

(I appreciate this scenario is highly unlikely as Heyco/PP owns 44%)

https://heycoenergy.com/wp-content/uploads/2023/05/12.-Union-Jack-Irrevocable-Undertaking.pdf

That's an interesting question. All our JVs except WN are with EDR so that's a highly significant overlap. UJO has about £10m cash and revenue of about $750k pm but only one producing asset. Kedd was zero for Jan & Feb, Fisk hasn't produced in over a year, so we are arguably a one-trick-pony. WN may require capex of £2m for our 1/6 in H2.

EOG could be vulnerable to a bid due to its low mcap but I very much doubt that's on the cards (I am a big fan of EOG, I have been selling UJO and buying EOG).

Heyco may try a low ball offer for UJO but too many shares are in private hands for a £30m/£35m takeover to be successful. More likely, we may see an offer for UJOs ownership of Kedd and/of Bisc. As we get closer to drilling at WN and hopefully Kedd, I think we will see a significant re-rate for UJOs sp, maybe 100% upside from where we are which will protect us even more. This is all speculation on my part, I have misread UJO far more often than I have got it right and I never saw the EDR bid coming!

I think Heyco has bagged a bargain, my pov is controversial but I see PP as buying 56% of EDR for £13.9m with gives them control of the £5m cash, so a net outlay of £9m for control of the whole company.

Finally, I dont understand why DB agreed to an irrevocable sale of our 17m EDR shares, why didnt he leave his options open???

From mid August to mid October the EDR sp was well above 4.5p peaking at over 9p due to fracking speculation, yet DB didnt sell any of our shares. 7 months later he agrees to sell them at 4.5p...very profitable yes but he had 2 months to lock in some profit at a much higher level...many of us did, it was the sensible thing to do.

If you like Royalties have a look at TRR, it's a great company in the making with over 20 Royalties

Good to see some buying today - if fomo kicks in next week we could be back to 1.30/1.50

2021 revenue £2.28m, 2022 revenue $3'992'409

depending on the FX rates 2022 revenue could be 45%-50% up on 2021

In my experience AIM spreads tend to tighten when the share is more active

"Shouldn't be too long before the market wakes up."

hopefully not too soon, I want to keep topping up at this price!

The trades at 4.3p are sells

20 months after production started, $15m net revenue, dividends, buy-backs, the sale of the Royalty, a take-over of EDR...and yet the sp is lower than when we had no oil from Wressle....we all know who's winning this tug-of-war, it's the market

Thanks for the link. EDR & EOG have a similar level of production and similar cash position, meanwhile UJO gets all the attention on lse and advn. EOG is clearly significantly undervalued, especially compared to EDR & UJO hence my recent topping up - not sure when the sp will catch but it will catch up. Meanwhile I am very happy the sp is where it is as I will keep topping up at this level.

Thanks gerhart, if they are buying in the market, do they have to make regular announcements as to their holding? 1% increments perhaps?

With their 44% and irrevocable commitments from EDR directors of 2.69% and UJO & Harbour of 11.53%, that takes them to 58% plus whatever they can by in the market, is it not a done deal or is the threshold higher?

I find it very odd that we learnt from EDR yesterday that UJO has made an irrevocable commitment to sell our EDR shares yet DB hasnt had the courtesy to issue an RNS confirming that he is selling an investment for £765k - hardly immaterial

Buying egdon? That suggests DB is capable of advancing our assets more quickly and/or more efficiently than MA otherwise what's the point. I think it's highly unlikely that DB has that desire or skillset.

Definitely not!!! the takeover could/should result in Kedd, Penystone, Broughton North, Fiskerton and possibly Biscathorpe & NK all being brought into play significantly quicker than EDR could - the next 2 to 3 years could be awesome for UJO

I think it's unlikely they would make a play for UJO, however I think it is possible they would make a play for individual assets such as Bisk or Kedd

- As at 31.07.22 Petrichor owned 43.76% of the shares, assuming that hasnt changed, they are paying £13.9m for 56.24% of a company that had £5.5m cash as at 31.01.23.

- Egdon has a portfolio of 35 licenses , there is a lot more to EDR than just Wressle

- Egdon's revenue will repay PPs £13.9m in about 2 years, that's without considering that they are buying £5.5m cash.

- This is a much better deal for PP than EDR shareholders imo

As at 31.07.22 Petrichor owned 43.76% of the shares, assuming that hasnt changed, they are paying £13.9m for 56.21% of a company that had £5.5m cash as at 31.01.23 - what a fantastic deal for PP.

4.5p significantly undervalues Egdon imo

Where's our daily pep talk from mr sensible?