The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Lol, the shareholder destruction here has been massive, raising money at 0.25 was criminal, this share will never reach 2p.
It’s a dead duck after they release the next news, they have no money and Lorna has needs to resign. Massive dilution coming - knowing Lorna its probably at 0.025
Lets face it, the RBL they have approved will not lead to any sizeable acquisition, what is $500m odd going to buy you? There wont be any acquisition overseas - i will be astonished if thats the case, i dont think they have the appetite to do that, it will be the same old and thats either improve their operational effeciency and longevity of their existing fields or drill some more wells in the North Sea.
You need billions to make a material and sizeable acquisition, we arent there yet
The last interims update way back in September stated ;
“ Net cash and cash equivalents stood at €247 million at the end of the period, with net debt of €42 million following the assumption of Mime Petroleum's outstanding bonds”
So i would think that net debt has been significantly reduced since then. Also production has likely increased in the last quarter.
I get the feeling that Mitch Flegg et al are not bothered about next general election results, either way they are on a gravy train. Either they get paid by HMG if the latter renationalise the sector or they will just keep taking the cash.
They specialise in the North Sea, so we can rule out any acquisitions over seas.
Why aren’t they buying up shares if they believe we are undervalued
Short to medium term the negatives outweigh the positives. The UK government has killed the sentiment for oil and gas shares and the acquisitions haven’t performed as expected. This is where we now see what AA brings to the table in these difficult times. He has a healthy holding so he had skin in the game unlike the likes of Mitch Clegg over at SQZ.
HBR have a more diversified asset base i.e. away from the North Sea, they also pay a dividend but that also have share buy backs. They also probably have near term increase in production compared to SQZ and thery havent been negatively impacted by a sh@tty acquisition
There will be no dilution in the development of these fields, firstly Serica is cash rich, secondly they have tax losses and most importantly the government will pick up the cost to the tune of 91%