We would love to hear your thoughts about our site and services, please take our survey here.
'The Company does not currently have sufficient working capital for its present requirements and the Company believes that additional financing will be required by March 2023. With no assurance that further financing (by way of equity and/or debt) will be obtained, there is material uncertainty that casts significant doubt the Company's ability to continue as a going concern.'
This is not new in Art's prospectuses.
'Currently, the Company does not have material cash inflows and/or adequate financing to develop profitable operations. The Company is pursuing exploration projects and contracts that will require substantial additional financing before they are able to generate positive operating cash flows. Accordingly, the Company’s continued successful operations are dependent on its ability to obtain additional financing. There is no assurance that the Company will be able to obtain adequate financing in the future or that such financing will be obtained on terms advantageous to the Company. With no assurance that financing will be obtained in 2017, there is material uncertainty that may cast substantial doubt on the Business’ ability to continue as a going concern.'
There have been exactly the same risk warnings in his other prospectuses none have resulted in the company failing. Its a risk that has to be given in a prospectus.
Although the warning itself is nothing new the loss of the CFO at the same time is. A health reason that only significantly manifested itself at this absolutely critical juncture is pretty suspect in my book. Personally I think its reasonable to suspect everything has become pretty tight time wise in securing finance against incoming debt and the CFO may have walked under the pressure or alternatively there is nothing more he can do. Together with the CEO he bears responsibility for each of the negotiated debt steps that got us into this tight position so maybe his strategic financing skills needed to be dispensed with or indeed his negotiating skills for the JV/finance were not producing what the CEO wanted. Art's ego would have trampled all over his work if that was the case. The fact that he gave no leaving statement points towards possible tension between the two.
I'm unsure as to whether the warning above was included in the RNA's of the time as it was today.
No money to continue beyond March but a exceptionally large asset and ongoing JV being negotiated on it. The $8.1 million of debt service and a $2.9 million repayment of its senior credit facility when held against a 1billion barrell + asset would seem insignificant, perhaps that is why the company expects to secure a financing term sheet based on its 2022 year-end reserve report before the end of March. They may not meet their financial covenants pursuant to their Senior Credit Facility, they've been there before as well though haven't they.
A true announcement of where we are today. Possibly bust but I don't believe the company will be.
Art, as the CEO of a junior oil company, really has only two objectives either to get bought out or to raise capital and develop.These objectives are dependant upon making a good discovery and new fields to develop.He has both.I would hope and expect he is not raking over today's SP but rather concentrating on his objectives .
There's light oil.
Only 56% of the sands perforated for this drill they've still got another fifty foot to go .
This is unstimulated flow.
Fluid entry from the reservoir has remained constant through pumping at rates between 125-135 Bbls/d.
Gasified light oil volumes increased over the last week with increasing oil cuts up to 86% at week's end.
The proportions of heavy black degraded oil, emulsion and drilling mud are decreasing as the well continues to clean up through pumping operations.
The area within the "Oil Down To" elevation is approximately 8,000 acres with reservoir sand thickness ranging from 50-115',
The second well in the program is 4-27-35n-77w. Reservoir quality from wire-line logs from 4-27 well appears to be better than todays reported drill.
We are looking at booking reserves.
Arthur Millholland on record as stating this is a game changing result for this company.
I think a lot of people will need a a few minutes to take in what this announcement really means for COPL.
We could have a years worth of discussion on Art as a CEO and probably still need another year. He had a room in the Penthouse Suite in 2008 and soon after ended up in the equivalent of a basement flat with no running water. Investors might have washed their hands of him at that time but the industry didn't. His later tie up with Exxon indicated he had/has a strong professional network in O&G.
The saga of Nigeria wasn't/isn't good. The reality of the situation is that a nation ranked 154th in the 180 countries listed in Transparency International's Corruption Index is probably not going to be an easy place to do legitimate business. And so it has proved much to our dismay.
What I am now able to see is that Art conciously or sub-conciously communicates in a manner that reflects the quality of the project he is involved with. The difference pre-Wyoming to now is really significant, for example I nearly choked on my porridge when he provided 'Objectives for 2022'. It was like turning a page from Homer Simpson to the lliad by a different Homer. Granted his expectations haven't all been met within 2022 but he did put himself up with his name against those objectives and they are still on the go and evolving fast, plus there's an extra with a route to a JV in the near term.
He's confident and he's communicating. He's got a huge field that isn't in Nigeria. He's not burning money solely on keeping him and his team employed. It's no longer carnage. Loooking forward to 2023 here.
Just posted as headline on FT and elsewhere.
'Exxon and Chevron share $100bn in profit after surge in oil prices'
https://worldnewsera.com/news/finance/stock-market/exxon-and-chevron-share-100bn-in-profit-after-surge-in-oil-prices/
They might or might not have a couple of quid spare for a wee spot in Wyoming. But it will be the same for other large oil companies I guess.
'No disrespect but all speculation yet this leads to people getting their hopes up.'
A sensible and balanced post Fish. We don't know the large oil company involved in tthe prospective JV nor the details of any JV so pinning a specific company down or the terms involved could lead to a disappointment, one that will absolutely be exploited by the unscrupulous on announcement even though the details may be good just not Exxon Mobil for example.
No deep and meaningful reasoning from me here though, my hopes are up and I'm taking the time and pleasure today to enjoy what COPL has alrerady become, regardless of the JV. A company with real, touchable assets of some considerable magnitude.
'...hardly anyone on social media is talking about the company.'
If that's true then how is COPL being ramped, if indeed it is? This company has been pretty much saturated with positive posts on this LSE site for at least the last 12 months with movement down rather than up. Indeed the SP was at its 52 week low on the 14th December amere two weeks ago. So if its not being talked about on social media and its receiving no more positive posts on LSE what has changed? Who or what could be responsible for the ramping. The only thing I can see is the ramping is being done by the company.
Maybe with the official regulatory announcement of the debt refinancing position being concluded on favourable terms in the near term, the unwinding of the hedges in the very near term (two days), the expectation of a JV proposal from a large oil company in the very near term they have a smitten of a ramping case.
There's really positive news being laid out in front of people, laid out on the table by the company in a formal and official way, not by social media users nor BB posters and couple that with the independently assessed size of the asset and its no wonder that its starting to move.
Never left Bob been an epic journey. Backed off the board when the antagonising contributions vastly overtook the fact/reasoned contributions as they do when weakness is seen and COPL has certainly had its weak points. Always been good to see you still posting.
Still got a wee eye on Art and probably always will have but strangely enough I've done better on my investments with CEO's I don't particularly hold in great esteem as far as their character goes than the one's who come across as every investors friend.
There's been plenty of discussion on here on what a JV could look like and for me any partner would be looking to acquire an initial percentage interest in COPL's Wyoming tenement which will likely mean project level investment to develop the assets. This would be a set number of drills fully funded. Given the potential scale of returns going forward there may be an opportunity for Art to secure a cash payment from the partner in return for the initial percentage interest. Personally while I would like this to happen I think it will be a simply X number of fully funded drills for a stated percentage of the asset.
Given that the potential partner will have undertaken extensive due diligence and be party to heap more info than we have been given, the terms of any JV will be the biggest signal there is to us as to how strong a hand Art holds and just how much of a asset we really do have here. The fact that there is at least one potential partner moving towards an agreement in the next few weeks or so following such due diligence indicates that there is considerable merit in what we have been told about the assetand its potential (and we've been told its huge).
Hi Brad, hope you're keeping well. SP on a downward slope for now while the progress of the company is certainly going the other way. Worth grinding out the bumps the company has but the significant progress running along in the background is predominant in my mind. Still see this as having a good pay day and I am looking to an SP figure considerably higher than it was when the pension fund first invested.
A significant SP drop, initially at least, on an announcement of delayed results that gave no reason for the delay. Immediate alarm bells ringing. I know this company isn't run by amatuers but I did ask myself that question. They must have had or been given some idea before publishing that such a statement would not go down well even if they only took a few minutes to think it through. Shakes head and puts a few more quid in on the drop.
It's clear to see that there is a complete turnaround in the direction and fortunes of this company. There is a significant resource and its ours.
The problem of the past was the company not the investors. That has now turned on its head. I have seen it many times for stocks that go nowhere for years that investor sentiment lags as the confidence takes time to be rebuilt but then it just clicks.
At least I am no longer left wondering what is going to happen to take this company forward.
Good to see many still posting that know the company inside out.
Here's an example of what we are seeking from an RBL and and today's rates.
https://www.lse.co.uk/rns/EGY/reserve-based-lending-facility-1rc1nac1clrs1wr.html
I don't believe there is any doubt about where tis is going in terms of demand for the products tGR produces and will produce. The markets being seemingly uninterested in a company that just does what it does isn't an issue for me. I bought into MRL six years ago and it has ten bagged over that time. Not once did it 'catch fire' it just did what it did. This for me has the same potential with a major difference that it is in a sector that I has significant potential, with other minerals, to catch fire.
Macro view this will beat settled investments, including those with a good dividends, in the next 4 years and by quite a margin. In truth my horizon is not as long as 4 years with the upside news that is expected here over half that time frame.
A good prospect that allows me to gamble on riskier stocks elsewhere.
I have to say Bridgedogg that's actually a pretty accurate post. No doubt you will get slaughtered for it but it is accurate.
The one thing it underlines is that COPL have been unable to move out of a cycle.
Put the recent finance out of your mind completely and then look at what is left. It's looking more likely than not that it's all coming together.
I think that cycle is about to break.