The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I agree with Cash, it will be packaged depending on the outcome, and as they have stated multiple parties are involved, some of which may not be interested in the 30th round and some are. So it would be foolish to sign anything until all the cards are on the table.
The chance of a successful bid in the 30th round isn't a function of time on this stock. We are in the same boat as every other UK operator awaiting the announcement. The bid remains the same today as it did when the round closed. So in my eyes the risk/reward hasnt changed, fundamentals are the same, and as such have averaged up a few times when funds have become available, believing what I buy now will see 100%+ ROI. Similarly, if you are to believe the BoD, which I do, funding packages have already been agreed, but they will not announce what package they will take until they know the outcome of the bid. As ever though, people will become twitchy and sell as time goes on, which is natural, but will only lead to a missed opportunity IMO. This isnt your usual AIM rubbish, its a solid investment case.
Yeah should be a press release in the morning. They all come out at once. When people start to get jittery and compare this to other failed AIM shares i think its a bit of an over reaction. We are in the same boat as Shell, BP, Total, all the super majors in the basin, amongst many others waiting on the outcomes of this round. Just got to sit tight. Its not like some shady deal with a govt official in the Congo haha. Emotions are running high and paranoia setting in for some it seems. Happy to hold. :)
Bed & ISA I'd suspect
No one knows what they applied for we only had theories based on passed activity and statements. but i believe they are also bidding for the block joining the main part of the liberator field. If you have access that you can drill LP2 with a better reservoir trajectory looking at the current trajectories, which would increase recovery and thus reserves we are able to access. They keep referencing Phase 1 which also implies they have potential plans for a phase 2, which a neighbouring license could involve.
Achievable on Liberator funding alone. With 30th round acreage it should be higher as its potentially tripling the reserve base. Just need to see what order the news comes in, and in what way. Very exciting times ahead.
No ramping needed, everything laid out perfectly on the podcast. News imminent with multiple funding options. RNS can land at any time.
What are the technicals saying? anyone? I've got some other positions doing well so its easy to get distracted however I'm very comfortable here. Judging whether I should top up or not. Depending on a technical insight I may. The hard facts are this is a materially solid investment for the big fish that will fund it. The low end economics work, and work well. Mid case in excellent and high case is incredible. Its a matter of when within the next month. Nothing better for low risk, immediate term multi-bagger IMO.
Licenses don't cost anything as far as I am aware, you are provided with a set of conditions on it being granted that you must fulfil or it will be taken back from you. eg. Within X years you have to drill X exploration wells. LP2 will cost slightly more than LP1 as it requires ~2km flow line to tie into the LP1 production spool, however this is still relatively low CAPEX and can be partially or fully funded by the cash flows from LP1. The remainder of funding available to I3 is going to be spent on an at least 1 appraisal well, from their presentation.
I think any time in April is realistic, don't think there is generally a set date for release and that seems to be the general consensus. I also think I3 have applied for multiple licenses, one of which is the unlicensed block that the liberator field crosses into. Getting this would enable them to increase recovery from LP2 through a better well trajectory and optimal entry point into the reservoir. This could potentially be part of a Liberator Phase 2...
Not sure why someone would sell just now to be honest. Are there any better opportunities out there in the market currently? I think you'd be hard pushed to find something this good, with such a huge upside. Project economics make it such that funding will not be an issue, be it through JV or lender. And with the BoD passed performance I really wouldnt put my money elsewhere. Crude also looking increasingly bullish which adds a significant upside an already robust project.
Haha Croz looks like we also agree :P. Unfortunately i was not one of the lucky people who managed to get some 61p buys early on today.
I agree General, there is no way there isnt a lender out there when the payback period for Liberator is sub 1 year with IRR>100%. If thats not a compelling low risk investment i dont know what is in the North Sea.
Also got to remember, typos can get into any presentation or something that can be misinterpreted from its intent. It did lead me to think late march but when i talked to some people they were of the impression April was more realistic which seems to fit.
It appears the 29th round applications closed a month earlier, so i would think anytime in April to be realistic.
IMO they have the funders and their terms on the table, now it comes down to if they get the award or not and what funding package and from whom it is received, so yes whenever the OGA release the results. I did think the 31st was mentioned somewhere but couldnt find it, but it appears it was from that presentation. Anytime early to mid Q2 i think generally is the flow of results going on passed years. With project economics so robust and no fundamentals changing, but the patience of PI's im happy to take more if this goes to a suitable level.
I expect they are waiting for 30th round results before giving the final funding statement. LP1&2 are the cash cows and make a low risk fundamentally great investment (IRR>100%) however will wait to package the whole deal to the market. Just my thoughts.
I doubt that. Any drop will be eaten into IMO, and I will use the opportunity.
Looks like they are just keeping lines of comms open with share holders as it�s now coming to the end of the timeline. Multiple industrial parties though makes it seem like there are options.
Forward selling been taking place most likely as you say Brooko.