The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Assuming the 'merger' goes through, and in the absence of attracting a JVP prior to drill, I suspect Potter will put the SWP acreage up for sale and so fully fund P1
If he fails to get his $25m for this field I'd be amazed, worth a lot more (plus of course poss $4m from PRD)
Cheap cash, no further dilution. Thereafter Trinidad assets gradually dismantled, poss retaining Suriname.
CERP assets are the cash cow for P1 to take place and inprove his balance sheet. imo
Thanks idiot.
Not expecting any fresh revelations tomorrow from Koot, simply a verbal rendition of his printed comment on the 'merger'.
Any legal eagles aboard to comment further on this inclusion, too convoluted for me!
Implementation by way of Takeover Offer
BPC reserves the right to elect to implement the Merger by way of a Takeover Offer, subject to the Panel's consent and to the terms of the Co-operation Agreement. In such event, such Takeover Offer will be implemented on the same terms, so far as applicable, as those which would apply to the Scheme subject to appropriate amendments, including (without limitation) an acceptance condition set at 90 per cent. or such other percentage (being more than 50 per cent.) as BPC may in accordance with the provisions of the Co-operation Agreement decide (subject to the Panel's consent): (i) in nominal value of the shares to which such Takeover Offer relates; and (ii) of the voting rights attaching to those shares.
And hey presto back controlling Trinidad assets within a year!
Could be.
Potter due to retire end of March next year, at least that's when his extended contract finishes.
Is Koot lining himself up for his position knowing his liking for offshore action?
Hi Bamps, Just to add there must be many oil co CEOs following this proposed 'merger' and aware of the dissatisfaction amongst shareholders and the industry viewpoint of what a poor deal it represents to CERP shareholders. As has been pointed out several times s/holders were made aware by GS of the phone calls from interested parties prior to the SWP drill so you would have thought interest surely would have only increased after S1 success.
Maybe wishful thinking but the thought is certainly no dead duck yet.
What are the chances of AN Other oil co stepping in with a better offer (wouldn't take much)?
Thanks Bully
Hedge, I most certainly do, I read the RNS with horror but now have calmed down a little and trying very hard to be pragmatic.
Not easy but necessary. I don't think that LK's interview will reveal anything new and if he takes the 'exciting future' tack I'll feel like shooting the guy.
Merger failure means electing a now BOD, operating delays, uncertainties, probable suspension.
Then imagine your worst nightmare, a Lenigas syndicate steps forward. Never rule out how bad it could get.
Yes, have little doubt the 'merger' will go through regardless of the level of disgust held by the majority of CERP LTHs.
Am equally sure opinion and feelings will soften once it's gone through, then a case of riding the tiger uptil P1 spud and then oldies like me who cannot afford a 7 in 10 case of failure will hopefully sell into a rising price and bid farewell. (maybe a partial farewell by keeping a pittance riding for fun!)
Qu to the more knowledgeable BPC holders ... What are the ramifications/penalties if BPC fail to drill P1 before the end of Dec?
TIA
Whilst we're all guessing you could put forward a reasonable theory that Heritage turned down their request for new terms re. Goudron where the bulk of their income came from albeit at a very thin, and unsustainable, rate. Perhaps new improved terms were more crucial for survival than we realised.
You're right on that score Chesh, title/position didn't make much sense to me .... I'll book two appmnts!
Three years down the drain Koot, share price less now than when you launched the company. Proud of that?
I see Koot's appointment as drilling NED as a short term gesture, lucrative no question and I'll bet he's out by this Christmas.
I think the ball was just about to cross the goal line, putting Columbus in the lead, and now it's been booted back to the half way line.
Frankly disgusted with this turn of events, we've only just received 'company transformational' news and with so much to come on so many fronts I really thought the 5 year road map was on course to deliver. It's a shocking, poorly disguised sell out and I'm sorely ****ed off that we've been duped by what we recognised as a trustworthy board.
You certainly get the juices flowing Bamps, if you'll pardon the expression :-)
To be precise, 3.9% target holding in Oil and Gas sector, actual holding 2.1%.
Which begs the question why continue offloading in one of the UK's smaller companies hottest oil prospect (but just maybe I'm biased!)
Oddly enough if you look at Schroders UK Smaller Companies Fund, under which CERP is held, then look at the asset allocation percentage by sector you can see that the target holding for Oil and Gas is a shade under 5% but their actual holding virtually half this figure. Data as at 30.4.20
https://www.schroders.com/getfunddocument/?oid=1.9.1599552