I would not have gone after a off sea oil licence because I would have understood that a deep sea drill would be biting off more than I can chew. leave that stuff to the big guys.
the story of AOGL going into He1 (a far better place to be than AOGL). If a similar thing could happen for BPC, why not?!
Willec is simply Lenigas in disguise lol!
simple: too high an investment for too small a company
this is AIM: you know very well there will be no folding. Equity raises, yes, but folding no.
The biggest reset for the company is coming to terms with the bust dream that was P-1, which is replaced with Saffron-2. That is a hard sell to the rainbow chasing community, but it's the right step. SWP is a far more attractive proposition than the off shore rainbow project this company wasted 10 years and $150mn on. At least if you believe in proper economics and acceptable risk. What I don't like in the presentation is that too much hinges on succes of S-2: they replaced one massive binary play with a tiny one. Not a great sales job. S-2 is a means to a bigger end and financing and investment needs to be structured accordingly. Until they convince the market, this sp will slide further south post consolidation (been there, seen it, bought the T-shirt)
I do think that the SWP is a bit undercooked in the presentation; on the other hand the company needs to regain trust big time (better to over deliver for once).
their biggest asset is probably their debt....
Totally agree; hence many of the ex-CERP HOLDERS were against the merger. We were around 2.5-3p before the merger and are now rapidly moving to 10% of that sp and we end up now hoping the ex-CERP assets will save the day! At 10% of the SP we were before. The value destruction the purple door-to-door vacuum cleaner salesman caused is astonishing. (he will probably say it was all accretive, lol!!)
produce some facts please: when did they consolidate, consolidation factor, sp 6 months pre and post consolidation.... for starters
it doesn't specify. We only have one current one, so I assume 29 new ones
from the RNS W posted
The current estimated overall field development would comprise up to 30 wells in total, with a peak production projection of approximately 4,000 bopd
30 wells.... at what cost per well, is the question. 3 million?
4000 bopd....30 wells...what....a 130bopd per well....at 3million per well....please tell me that's not the plan! Where is that 90million going to come from....
Exactly! And it is worrying that the BOD wastes timen and energy on this nonsense rather than on fixing the business. Shareholders have suffered long enough here and deserve better than this
Yes, of course they are generating revenue. That is of course factually correct. I meant to say revenues significant enough to move the SP quickly back north. Another Saffron drill at 200bopd isn't going to cut it.
As for consolidation: I have seen this a couple of times before: never works. It's an illusion to think that the sp will be more or less open to volatility because of consolidation. Investors don't trade number of shares they trade value. If they want to sell £1000 it is irrelevant whether that is relieved to selling 1 or 10 shares .
i will not buy into the placing because of (a) no confidence in how they will generate revenues moving forward and (b) consolidation. b without a is a pointless exercise, we have seen that with LGO at the time. The SP will only drift further south. The 3.5p will quickly become 2, 1 etc....it's a illusion to think this consolidation alone will do anything. I'd rather they simply focus on fixing the business
you genius....that is literally THE reason why the sp has been in a holding pattern since the P-1 RNS.