Member Info for LayLadyLay

Parpaing "The merger looks like a stopgap to me and is of no interest to a shareholder gambling on a successful drill in the Bahamas. "

The question I would ask is whether BPC intends to develop CERP assets or are they up for grabs to the highest bidder ie is this merger a prelude to an asset stripping exercise in which CERP not only disappears as an independent entity but its assets are sold off to help keep the BPC ship afloat? Predator (PRD) may be the first beneficiary of a fire sale if its low ball offer for FRAM is accepted.

cheesie "perhaps we should up the $4.2m asking price........ :) "

PRD have CERP/BPC over a barrel IMHO so good luck with that :)

"exclusivity over Trinidad’s surplus liquid CO2 supply –premium value puts Predator in the driving seat"

"Inniss-Trinity Incremental Production Services Contract was extended by FRAM (the IPSC operator) on the basis of Predator’s CO2 EOR third party services and investment –replaced a 7 well infill-drilling obligation for FRAM which translates into a material gain for FRAM by removing a balance sheet liability & is reflected in the Offer Price –no Predator CO2 EOR means the FRAM IPSC work obligation cannot be fulfilled"

Edited for clarity:

Rationale for Offer and the Offer Price

•Offer premeditated by uncertainty created by the proposed Columbus & Bahamas merger and change of control consents required for FRAM

•Opportunity arose for third-party funding from an indigenous Trinidadian company to underwrite the cash consideration offered

•Local party has access to new opportunities suitable for CO2 EOR & is mainly focussed on increasing conventional oil production using their rigs & well services –complements the Predator business model

Predator CO2 EOR Business Model

•We seek only to be a specialist CO2 EOR services company in a profit-sharing arrangement

•Our business model not based on being a licence holder & assuming regulatory burdens & existing licence obligations

•Focussed on profitability from enhanced oil production with low administrative overheads & low capital outlaysFair Offer Price closer to true Market Value without CO2 EOR

•Investment to date in pilot CO2 EOR project in Inniss-Trinity taken into account in arriving at the Offer Price

•Organic CO2 EOR business with ownership of specialist equipment, engineering design, subsurface understanding, environmental template for operations & exclusivity over Trinidad’s surplus liquid CO2 supply –premium value puts Predator in the driving seat

•Inniss-Trinity Incremental Production Services Contract was extended by FRAM (the IPSC operator) on the basis of Predator’s CO2 EOR third party services and investment –replaced a 7 well infill-drilling obligation for FRAM which translates into a material gain for FRAM by removing a balance sheet liability & is reflected in the Offer Price –no Predator CO2 EOR means the FRAM IPSC work obligation cannot be fulfilled

Rationale for Offer and the Offer Price

•Offer premeditated by uncertainty created by the proposed Columbus & Bahamas merger and change of control consents required for FRAM

•Opportunity arose for third-party funding from an indigenous Trinidadian company to underwrite the cash consideration offered

•Local party has access to new opportunities suitable for CO2 EOR & is mainly focussed on increasing conventional oil production using their rigs & well services –complements the Predator business model

Predator CO2 EOR Business Model

•We seek only to be a specialist CO2 EOR services company in a profit-sharing arrangement

•Our business model not based on being a licence holder & assuming regulatory burdens & existing licence obligations

•Focussed on profitability from enhanced oil production with low administrative overheads & low capital outlaysFair Offer Price closer to true Market Value without CO2 EOR

•Investment to date in pilot CO2 EOR project in Inniss-Trinity taken into account in arriving at the Offer Price

•Organic CO2 EOR business with ownership of specialist equipment, engineering design, subsurface understanding, environmental template for operations & exclusivity over Trinidad’s surplus liquid CO2 supply –premium value puts Predator in the driving seat

•Inniss-Trinity Incremental Production Services Contract was extended by FRAM (the IPSC operator) on the basis of Predator’s CO2 EOR third party services and investment –replaced a 7 well infill-drilling obligation for FRAM which translates into a material gain for FRAM by removing a balance sheet liability & is reflected in the Offer Price –no Predator CO2 EOR means the FRAM IPSC work obligation cannot be fulfilled

Rationale for Offer and the Offer Price•Offer premeditated by uncertainty created by the proposed Columbus & Bahamas merger and change of control consents required for FRAM

•Opportunity arose for third-party funding from an indigenous Trinidadian company to underwrite the cash consideration offered

•Local party has access to new opportunities suitable for CO2 EOR & is mainly focussed on increasing conventional oil production using their rigs & well services –complements the Predator business modelPredator CO2 EOR Business Model•We seek only to be a specialist CO2 EOR services company in a profit-sharing arrangement

•Our business model not based on being a licence holder & assuming regulatory burdens & existing licence obligations

•Focussed on profitability from enhanced oil production with low administrative overheads & low capital outlaysFair Offer Price closer to true Market Value without CO2 EOR•Investment to date in pilot CO2 EOR project in Inniss-Trinity taken into account in arriving at the Offer Price

•Organic CO2 EOR business with ownership of specialist equipment, engineering design, subsurface understanding, environmental template for operations & exclusivity over Trinidad’s surplus liquid CO2 supply –premium value puts Predator in the driving seat

•Inniss-Trinity Incremental Production Services Contract was extended by FRAM (the IPSC operator) on the basis of Predator’s CO2 EOR third party services and investment –replaced a 7 well infill-drilling obligation for FRAM which translates into a material gain for FRAM by removing a balance sheet liability & is reflected in the Offer Price –no Predator CO2 EOR means the FRAM IPSC work obligation cannot be fulfilled

The Mail article refers to "An unimpressive board, headed by a sub-octane chairman Gerard Kleisterlee" but fails to mention the appointment of Jean-Francois Van Boxmeer (ex Heineken CEO) as Non-Executive Director, following today's Annual General Meeting, who will succeed Gerard Kleisterlee as Chairman of the Board on 3 November 2020.

"even Bully voted no, but with zero shares"

That makes zero sense but you have problems with the number zero as Irene discovered.

"get ya $4.2m together and brass us up...........!"

The fictional (IMHO) $4.2m was, and always has been in my opinion, a carrot to rope a dope and there's been plenty of those investing in LGO/CERP over the years.

I am enjoying watching this situation play out to its natural conclusion. I don't blame Predator for making the most of the opportunity to tempt CERP with a low ball offer. Should the merger fail then maybe Predator will revisit the offer and CERP will probably be desperate for some cash to keep the flickering lights on and may snatch their metaphorical hand off.

What a bag of worms IMHO. High risk and little guarantee of any reward IMHO whatever the outcome. Either way its likely to be goodnight Columbus.

If only Leo Koot would show the same confidence in the future of CERP as the CEO of Vodafone., who has just invested £573,630.08 of his own money in his company. That's putting money where your mouth is and backing your company with hard cash, not conversion of options at nil cost. I wonder (I haven't checked) if any BPC directors have splashed the cash in a similar manner?

Ha ha - watch and learn! You don't know CERP until you have been spiked.

I expect share consolidation after completion then it will follow the usual pattern IMHO.

ps Rampers must be sweating when they repost that bashers post again. How many times we have seen it and laughed.

On 7th Dec 2016, LGO Energy (Columbus previous name) announced a Convertible Security Funding Agreement with Lind to enable them to pay off the remaining debt to BNP Paribas.

Terms of the Settlement with BNPP

Under the settlement agreement with BNPP, the Company will pay BNPP US$1.75 million in a full settlement of all amounts due to BNPP in order to take the Company out of the covenant default position and release all security. In addition, LGO has agreed to pay BNPP a contingent payment of US$250,000 not later than the third anniversary of this agreement. The sum due under pre-paid swap agreement entered into in early 2015 is recorded in the Group's books as a liability of approximately US$2.5 million.

I wonder if the contingent payment was ever made to BNPP ?

https://oilvoice.com/Press/472/LGO-Energy-BNP-Paribas-Bank-Loan-Repayment-and-Signing-New-Funding-Agreement-Drilling-Operations-to-Recommence-at-the-Goudron-Field

Qnard - "I take an slight interest in NLP (neurolinguistic programming). Each time LK is asked a question and answers, he always looks up and to the right, (visual Remembered), not the opposite, he uses visual words, the fact that he's constantly doing the same thing indicates to me that he is telling the truth."

Tony was the opposite, he looked up to the left. So was he telling the truth?

Djones21476 - "Can you believe Vod India have stated to Supreme Court that Vod is in an extremely precarious financial position."

They were referring to VIL not VOD. Ultimately I expect a schedule of staged payments will be agreed but the issue may drag on for a while yet.

Starchild - there's no doubt that CERP and BPC bring different things to the table and together could prove to be a potent combination, albeit not without a high degree of risk. I can see why CERP holders were initially reluctant but I suspect that the alternative to a yes vote will bring unintended consequences. It's a necessary merger for CERP to survive and hopefully prosper and an opportunistic acquisition (because that is what it is) for BPC. Vote NO at your peril.

I think that what Starchild is saying, is that Leo is betting the farm (CERP) on a wildcat drill.

No I'm not referring to willec and baraboy's multiple sp predictions. In my opinion the 500m MC Leo mentioned when he first joined LGO/Columbus and now mentioned again in his merger interview is nothing more than a number plucked from the air. It's a carrot for investors to get excited about. Sure it may be a target but then so was 20p+ a target for VSA and look how that turned out.

It's ok to have a future target MC in mind but I would take such a statement with a pinch of salt as it's clearly sales talk intended to sell the dream.

rhodi "In LK I totally trust as he has not been true to his word ever. "

Freudian slip there methinks. Qnard will confirm.

Irene , I wonder where 'arry has disappeared to?

From pr100 on advfn

"Unfortunately, Koot can't be believed/trusted until he tells us the real reason he is recommending the merger. This BS may be good enough for dodgy Andrew Monk and a few day traders who couldn't care less but it's not the reason CERP went for this merger. Unless CERP intend to publish some financials before August (felicitously they aren't now due until September), it may take a No vote at the GM to force a confession of out of him. Otherwise the truth will be buried, for their eyes only."

Depth 4800m to 5600m
Drill time: 45-60 days, plus mob / demob