Member Info for LGO-fan

I know. It’s a such a shame. I wish these toddlers would leave this bb alone.

towards my new fellow BPC shareholders....you must be feeling that the "intellectual" level of some of the ex-CERP holders is already starting to annoy you. I can only apologise ... they tend to clog up a BB with mindless, infantile, endless tit for that nonsense... I am afraid the toddlers have arrived! Again, sincere apologies !!

he has nothing to do with us anymore.

you are very welcome. We can all learn from each other and I wil certainly from you about BPC.

Cheers

Hi Startchild,

I find the question around mcap almost too impossible to answer. Too many variables, and certainly on AIM, I have yet to see one model, way of assessing this, that is somewhat reliable/credible. It's AIM after all.

To your question about past SP: this was in the days of LGO (prior to it become CERP): the CEO at the time had done SP consolidation, I suspect in an attempt to stop the massive day trading that was holding the SP back. Consolidation was 20:1. So your 116p was 5.8 before that.

The CEO of LGO was too bullish in his investment strategy: he spent too much money on wells that had a high decline rate in Goudron (this why EOR is so crucial). Today if you drilled a new welll in Goudron you would need to include/plan the capex from EOR from the outset to be able to have a financially viable longer term producing well.

LGO put too much money on deep drills that didn't deliver, which lead to equity raise after equity raise, suppressed the SP, lead to day trading, then he put all his remaining chips on a last well and had a drill bit stuck. (Almost) game over for LGO; and certainly game over for the CEO at the time. Then LK came on board and started CERP

21. They are negotiating (but I suspect concluded by now) a new incremental production service contract for the Goudron licence. Previous terms where not favourable to invest (taxes too high). Goudron is pretty much the vast majority of current production. Better terms will give us (a) more profitable bond and (b) make investments in our base production financially far more attractive.
22. Test results MC for Saffron 1. S1 was the long awaited first drill in the SWP. At a lot smaller scale, it was as groundbreaking for the company as potentially P1. It’s 800 pound gorilla. The first drill was an exploration drill. They found commercially attractive oil play and were doing further tests to turn this exploration well into a producing well. Don’t expect masses of oil: it’s the Middle Cruse, the big money is in the deeper area (lower cruse). However, financial terms are very attractive in the SWP, so a producer of 100-200 bopd will help to fund other projects like Saffron 2.
23. CERP has always been opportunity rich but cash constraints. So in order to get the second well drilled in SWP, they did a deal with the same company that drilled S1. S2 will be drilled by them, paid by them - so no dilution. (Exact terms are in the RNS). They will target LC with Saffron 2. That’s where the money is. CERP has always said that commencement of S2 was subject to POO being above $35 for as sustainable time. That condition has been met, so you would expect this to start ASAP.
24. This is linked to point 20 and 21: if co2 project is successful and we get better terms for Goudron, we could lasunch a eor project using the proven co2-methodology. lots of potential to tripple base prfoduction

totally agree, there will be an awful lot going on behind the scene with our combined new assets. Expect quite a lot of news on the ex-CERP side too. The BOD presented a pipeline of opportunities and I expect they will want to deliver against them.

one of the reasons for the merger was to have some base income. If they sell everything for cash, BPC is back to square one.
I think that limits the appeal about BPC IMHO.

You would at least want to see SWP produce commercial bopd's. Financials there are excellent. Would also want them to keep WNZ. But yes, sell TI for as close to $4mn as possible, as soon as possible.

you are right, you are right...smallER... ;-)

Hi guys, we are all in the same, but bigger, boat now. I hope this company will deliver. I was skeptical at first about this merger, but the deal has done so we can only look forward and hope this company delivers big time.

The reaction so far is a bit lukewarm, if you ask me, but the closer to the drill of P, the more this will heat up here. No doubt. CERP has some small but interesting assets that could deliver too, so we may have a series of positive RNS-s in the not too distant future. (and yes I think we should negotiate with PRD to sell TI)

To be fair, BPC/CERP need the cash. The field is a distraction I think. Not saying the price is right, hard for us to judge, but I am pretty certain they will try to negotiate further but ultimately get the money.

We really don’t want petrotech imho.

We want something a bit more solid. Ideally a company that (re)started with a new growth story ahead of itself. A clean fresh start. Petrotech has only 1 skill and that is issuing equity. They are aces at that, but arguably that is not the skill we are looking for.

Jedi-san

yep. And their CEO is much sharper than our “big grin”. Quite impressed by how shrewd a businessman he is. We have a toddler compared to him

reaction from the market looking at CERP's share price. The way this is going LK will effectively have halved the SP and doubled the number of shares in issue. Pretty impressive! (I need to double check my understanding of "accretive" and "shareholder value"....

if we merge: I am really not sure how this one will pan out tbh.

Ahhhh..... yes, swimming in work at the moment...

cheeky...cheeky

We don’t know the amount offered, but it is in the region of $4mn, there a significant reasons less to go ahead with the merger. Let’s be honest, CERP is cash constrained. But, with $4mn extra that could be all the difference in the world.

I think this could swing the vote IMHO

Fully agree. Like I said many times before, the bigs have ran out of patience and forced a big move like this. LK wanted to go alone, I have zero doubt, and ultimately may have been given the choice to either make a big merger, like with BPC, or move on. He chose the former, though I believe he wanted to continue with CERP as is. Just my POV.

Also agree he is easily replaceable; how ever likeable the man is, however much he implemented...it did not drive the SP. Many mistakes were made, including some vanity mistakes

https://oilnow.gy/featured/suriname-deepwater-becoming-more-attractive-as-guyana-remains-stuck-in-political-conflict/

LK with his connections and BPC with offshore drilling expertise. Might be something for the future?