Member Info for LayLadyLay

Weather has had an impact on Range Resources according to their RNS today.

"Production during the quarter was mainly impacted by a 3-day strike action by employees, as well as electrical outages caused by adverse weather conditions in Trinidad."

It looks like nobody is home Horsey.

I'm sure that CERP will be quick to confirm whether or not activities have been disupted so as to keep investors informed.

https://newsday.co.tt/2017/10/19/flooding-turns-south-trinidad-into-one-big-lagoon/

http://www.metoffice.gov.tt/early_warning

https://www.youtube.com/watch?v=xIObRAYo64M

BRIDGETOWN, Barbados, Monday October 22, 2018 – Two earthquakes struck off Trinidad and Tobago within 24 hours over the weekend, as the twin-island republic was dealing with massive flooding that caused destruction in some sections of the country and led Prime Minister Dr Keith Rowley to declare a national disaster.

On 18 - 19 October, Trinidad and Tobago experienced torrential rainfall, according to Government officials, Trinidad alone received a full month’s worth of rain during the two days. It was estimated 80% of the country was affected by flooding, communities, main roads and public services were affected. 20 October the Government of Trinidad and Tobago activated its National Emergency Operations Centre and began assessments. As of now the Government has not requested international support.

https://reliefweb.int/report/trinidad-and-tobago/trinidad-and-tobago-floods-and-landslides-due-intense-rains-23-10-2018

The Brent benchmark is not relevant to CERP which sells oil at a discount to WTI.

This will help to explain why there is a price differential between the two benchmarks.

https://oilprice.com/Energy/Crude-Oil/Citi-Brent-WTI-Spread-Could-Widen-To-5-Yr-High.html

WTI trades below $67 a barrel, after 4 percent slump Tuesday

Oil held losses near the lowest level in more than two months as Saudi Arabia pledged to offset any supply shortfalls and as global investors shunned risk assets.

West Texas Intermediate for December delivery fell as much as 33 cents to $66.10 a barrel on the New York Mercantile Exchange, and traded at $66.56 at 3:18 p.m. in Tokyo. The contract slumped $2.93 to $66.43 on Tuesday. Total volume traded was about 4 percent above the 100-day average.

The Organization of Petroleum Exporting Countries and its allies are in a “produce as much as you can mode,” said Saudi Energy Minister Khalid Al-Falih. An industry report that points to rising U.S. crude inventories added to concerns over excessive supply.

Meanwhile, U.S. crude stockpiles increased 9.88 million barrels last week, the American Petroleum Institute was said to report. If data from the Energy Information Administration confirms that Wednesday, it would be the largest gain since February 2017. Oil inventories are forecast to have risen 3.7 million barrels in a Bloomberg survey of analysts.

https://www.bloomberg.com/news/articles/2018-10-24/oil-dips-to-two-month-low-on-saudi-output-pledge-risk-off-mood?utm_source=twitter&utm_content=business&utm_medium=social&cmpid=socialflow-twitter-business&utm_campaign=socialflow-organic

Which is most likely? This is a cash intensive industry.

petersalkeld - emily is just making the point that it's not a level playing field for retail investors.

Teacup64 -

Conditional Placing of Placing Shares at 3.5 pence per Placing Share to raise approximately £2.5 million (before expenses).

VSA is acting as Financial Adviser and Broker to the Company in connection with the Placing.

RCH has classified Steeldrum as an available-for-sale investment of the group since December 2016.

The consideration for the divestment of Steeldrum is the issuance of a total of 92.7 million new shares in Columbus Energy Resources Plc (“Columbus”) (“Base Columbus Shares”).

Columbus is the parent company of Columbus SL and is listed on the AIM market of the London Stock Exchange and RCH’s proportion of the total Base Columbus Shares consideration represents 23.9 million Base Columbus Shares for the sale of its 25.72 per cent stake in Steeldrum, representing 3.67 per cent and 3.22 per cent of the existing and enlarged issued and paid-up share capital of Columbus respectively.

Rex said the value of the consideration to be received by RCH, is about US$1.47 million and this is based on Columbus’ closing share price of GBX 4.65 and an exchange rate of GBP 1 is to US$ 1.324 as at July 12.

https://www.investor-one.com/editorial/3507-Rex-divests-stake-in-Steeldrum-Oil-Company

I understand what you are saying and increased bopd increases revenue but the acquisitions will have also increased costs. The more staff you have and the more work you do and the more fields you have to maintain all increases costs. It's a moot point as to whether the increase in production will cover the increase in costs. That's how I see it anyway. Growth can come at a cost. Sometimes companies try to grow too quickly and it's a race against time to generate the cash needed to fund the business.

neon - LK hasn't ruled out drawing down on the Lind facility. It's still available until the end of the year.

LGO always suffered with cash flow problems and I'm not convinced that a change of company name has fixed that yet. Let's see how this lates transfusion is spent and whether or not it makes a difference or simply delays the next cash raise. The amount raised is not a lot of money in this industry.

LGO today announces that the Company has raised GBP7 million before expenses, by way of a Company arranged placing of 200 million new ordinary shares ("the Placing Shares") at a placing price of 3.5p per share. This placing will enable the Company to accelerate the closing of the US$5 million Trinity-Inniss Oil Field transaction announced yesterday without drawing down on the Company's short-term debt facilities and will provide LGO with capital for its expansion plans in Trinidad.

This new funding will also provide the necessary working capital to deploy the work-over rigs to Trinity-Inniss without impacting the ongoing 30 well development programme at the Company's nearby producing Goudron Oil Field.

LGO continues to have access to undrawn short-term debt facilities, should that be required, and is also in negotiation for longer-term senior debt.

Neil Ritson, LGO's Chief Executive, commented:

"Access to this capital will enable LGO to accelerate the closing the new producing Trinity-Inniss Oil Field transaction announced yesterday. Drilling work at Goudron is continuing to plan and we anticipate being able to move a work-over rig to the Trinity-Inniss Field immediately after closing the acquisition."

https://uk.advfn.com/stock-market/london/lgo-energy-LGO/share-news/Leni-Gas-Oil-PLC-LGO-raises-7-million/62931712

Consistent with the Company's announcement on 10 September 2018, the Company has issued 109,166,209 ordinary shares to the sellers of Steeldrum ("Sellers") to complete the acquisition (the "Steeldrum Completion Shares"). The shares issued comprise the consideration shares totalling 92,743,775 and 16,422,434 deferred consideration shares following the re-issue of the Cory Moruga E&P licence. The Steeldrum Completion Shares (equivalent to 16.8% of the current issued share capital) will rank pari passu in all respects with the Company's existing ordinary shares. Application has been made for the Steeldrum Completion Shares to be admitted to trading on AIM, ("Admission"), and it is expected that Admission will become effective and that dealings will commence on or around 11 October 2018.

It would have been easier for you to simply subtract the tax and escrow amounts from US$400,000 which leaves US$80,000. My quoting of what was written in the relevant RNS was verbatim. Whilst you can argue against not including those two items as running costs CERP referred to monthly burn rate not specifically running costs and the burn rate must surely include all cash payments.

The RNS clearly states, "although the Spanish legal/tax/regulatory system generates additional costs from time to time which need to be met." and it would be wrong in my view to exclude these additional costs from the monthly burn rate as they have to be paid and this reduces the cash on hand balance. The amount in escrow isn't (yet) spent but neither is it available to CERP. I find little merit in excluding either the tax payment or the escrow amount from cash burn as both have presumably been paid in cash.

It's like saying we are CF+ as long as we ignore a lot of the costs. I suspect many here don't understand the difference between operational cash flow and free cash flow and somehow equate cash generated from operations as being profit at the bottom line.

An unrelated issue but I have noted several instances of CERP blaming the Spanish authorities for delays etc. Whilst this may be true it isn't going to endear the company to the authorities and it would seem more prudent to maintain silence until

fuzzpellet - 27th Sept RNS was the date of releasing the half year results which stated ...

"Costs of meeting ongoing obligations in Spain, including staff redundancy and associated tax costs, of £637,000 (1H 2017: £320,000). Burn rate in Spain now down to around €15,000 per month"

and

Costs have now been reduced to approximately €15,000 per month, instead of the previous burn-rate of around €60,000 per month, although the Spanish legal/tax/regulatory system generates additional costs from time to time which need to be met.

Then the 10th Oct RNS which gave Q3 results stated ...

In Q3 2018, there was no material activity in Spain. The Company continues to maintain the Ayoluengo Field on a "care and maintenance" basis whilst awaiting the commencement of a new tender by the Spanish authorities.

The Company incurred costs of approximately US$0.40 million in maintaining its obligations in Spain during Q3 2018, with this including US$0.17 million of taxation payments to the Spanish authorities relating to the staff redundancy process undertaken in Q2 2018 and a further US$0.15 million placed in escrow relating to a historical legal issue which the Company is challenging.

US$0.40 million is US$400,000 or US$133,340 per month.

It probably doesn't help investors to follow what's going on when references alternate between three different currencies. However you look at it stated costs are substantially higher than €15,000 per month.

I'm still waiting for one of you positive types to explain how only two weeks elapsed between CERP announcing that costs in Spain have been reduced to approximately €15,000 (US$13,043) per month, instead of the previous burn-rate of around €60,000 (US$52,172) per month before announcing that costs in maintaining it's obligations in Spain in Q3 amounted to approximately US$400,000. That's significantly more than the burn rate before supposedly reducing costs.