Some people have been saying that APEC have been delaying the completion of the transfer because they are waiting for the regulator's decision, and one poster speculated that the regulator has been delaying its decision because it is waiting for the transfer to be completed. I think the former is the more likely of the two, but if both are true then the delays will never end. It is also possible that the bank will simply reject the payment, in which case the regulator's decision may become irrelevant. I think our best chance is a decision by the regulator this week. Otherwise, more and more investors will give up.
'The assets aren't what everyone has been led to believe.' What prompts you to say that - the delay in announcing a farm out or the low share price? How can you know what's being discussed behind closed doors?
Quite apart from the cash burn being excessive, the RNS implies that $1.5 million can be expected to last four weeks! That is, pro rata, cash burn of $19.5 million per year. I think the warning about having to raise capital is a veiled threat to APEC to raise the $10 million from elsewhere. How much longer can this go on?
RE: OT: If bored, while all wait for News ,watch this04 Aug 2019 18:43
There could ultimately be a shock development - such as a Middle East war affecting oil supplies and causing a spike. There could also be a dollar crisis, which happens from time to time. The pound usually gravitates to $1.45 - $1.50 (as it did just before the referendum in 2016 and again last year) but sometimes reaches $1.70 (as it did in both 2009 and 2014.) The longer it remains low, the stronger the UK's export market and the closer a recovery in the exchange rate. As for HUR, this low share price cannot last forever, but I don't know what it would take for it to break out.
RE: OT: If bored, while all wait for News ,watch this04 Aug 2019 14:56
On discuss the market, the latest post asks where the share price can be expected to be when Lincoln is producing.
Well, we know the answer to that: in the range of 40-65p because of concerns that the next drill could fail / the oil will dry up at Lincoln within six months / something will go wrong at Lancaster / oil will be replaced by batteries within six months / Kerogen will dump shares on the market / CA will have to reduce its holding because it's too high / the price is not permitted under LSE rules to cap 67.5p ...
One difference between the marketing of Tendrara and the farming-out of SM is that SOU have made clear that the alternative to a sale is, in the first instance, to obtain financing to develop TE-5.
As some posters have commented, SOU would also have to obtain finance to continue exploring Tendrara.
Potential buyers could wait and see, in the hope that SOU stumble, and then try to buy more cheaply, but they might then miss the opportunity to buy at all.
They must be aware of that risk, and if there are more than ten interested parties (if they aren't interested, then why are they talking to SOU?) there is surely a chance that at least one will make a reasonable offer.
But seriously, have more than ten companies been talking to SOU about dodgy seismic, a vast area containing no gas, a worthless asset, the total waste of time that so many posters assured us sums up Tendrara?
Time to invest in an extra-large, fully-fitted, luxury freezer, complete with bar and, most importantly, a timer to facilitate gentle, gradual thawing, hopefully co-inciding with a gentle, gradual rise in the share price.
And if, after two years of thus chilling out, the price is still in the 40s, I suggest getting back inside.
He would, of course, be ridiculed because of his predictions of pounds per share, but most investors would be relieved to get their investment back. Furthermore, there might be some contingency payments or value from SM later. In my case, 50p would give me more than a 50 percent return. If I averaged down again, I would get 90 percent! I don't think all is lost, even if the sale doesn't materialise.