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Sneaky Art, I didn't catch that in the RNS - I guess there was a lot of information to take in. Looks like YR wanted another sweetener to the deal.
For the first time in eons, the ask is at $0.01 in Canada! :D
Brady, best of luck my fellow countryman. I'm sitting at a $1.4 CAD average - I'm thinking we'll both walk away with a nice profit if it all goes to plan.
To see the share price start to move on the LSE side! I'll be very happy once it reaches 0.294p ($0.005 CAD) and beyond. Maybe then we can see some movement in Canada.
GLA!
Bear in mind that there was significantly less outstanding shares back in those days gents.
I definitely agree with CawCaw's concerns regarding the alternative loan repayment through shares after six months. But inow that the dispute is resolved, surely ShoreCan and Essar can really get moving on this now and we'll see drilling in the next 2 - 6 months. If not, then I do agree the dilution will likely further destroy shareholder value. Something Art has been very good at over the years. I'm giving him the benefit of the doubt on this one, might regret it later though. Hopefully not.
This is excellent news, for once I'm actually a pretty happy camper right. Totally minimizing dilution and basically encouraging the project to move forward by means of having the monthly draw-down repayable in 6 months time. My guess is they anticipate the initial drill to happen within 6 months or why have this repayment commitment? Either way, very happy read this RNS.
GLA
Oilberta
If there was a commitment built into the negotiations that Essar has to drill the Appraisal well within a certain timeframe. Otherwise, after getting the PSC extention couldn't Essar just wait around and bleed COPL out? Another reason why the market cap is so low right now, COPL doesn't have any cash lol. I'm frustrated with the lack of information from the previous RNS. Will the appraisal well drilling take place later this year? Mid next year? Are we going to get mangled with more dilution?
I am still of the opinion that the market cap is stuck where it is because the future is very unclear. No information has been provided about the timeline for the first appraisal well. I'm hoping that once the deal gets signed with Essar they will have a much more comprehensive update on their plan going forward.
Hopefully soon Cowtown... I'd like to know what the timeframe looks like. Is Essar keen to get this moving?
The ask is back to like 14 million shares on the CSE at $0.005. Looks like us Canadians will have to wait a little while for some movement. I hope we get news soon detailing the next steps (i.e. drilling the first well).
I hope that deal is re-negotiated. Otherwise short term, the SP is going to keep getting sold into with millions of shares. Personally I think the reason the share price is where it is, is the lack of clarity on what comes next.
Hopefully we get a little bit of clarity in the coming weeks or months:
1. So now that ShoreCan don't have the majority stake in the block, does the project still get executed as presented to NNPC (i.e. full field development with an eventual target of 60,000 BPD?
2. After the initial drill, each party will pay their share of the development cost?
3. Cofarco brokered the back-end financing for ShoreCan, via Trafigura. Do the initial agreed upon terms of this deal still stand?
4. Who is the operator of the block now?
5. Does that terrible deal with Riverfort now get tossed out or re-negotiatied?
Brady I agree, the outstanding shares will make it tough to see a substantial return considering the reduction in stake. But should hopefully be good for a double or triple.
I would caution you guys to use the "best" estimate for the unrisked recoverable prospective oil which is 533 million barrels. That would mean ~80 million barrels net to COPL (assuming they purchase the additional 10% stake). Oil plays are tricky to value right now as the industry has really gotten hammered over the last 5 and a half years. I think one of the most important aspects of this play is Shoreline's presence which is an indigenous company. This should enable the development of OPL 226 to fall under pioneer status which allows a tax holiday on corporate income tax for the initial three years which can be extended for another two. This would make the economics a lot more attractive - this scenario is included in the OPL 226 summary slideshow from 2017. I would imagine day rates have come down since then as well.
Thanks for the clarification RDunc! So despite giving up 35% we have a free ride on the 5% and an option to buy another 20% (additional 10% net to COPL). I'd say this is fantastic news. The company has a future it seems! Congrats to all the longtermers!
cheers man.
My biggest question still remains though, who will fund the drill? Essar?
Hi guys, first of all I owe MrNation an apology for yesterday evenings post. Kind of ironic that I mentioned the Essar dispute and voila it's solved today.
Anyway, a bit of volume today in Canada and the ask at 0.005 cents is now only 2.58 million which is as low as I've seen in a while. So, in terms of funding the project is this now going to be left to Essar? This is where I'm bit puzzled.
So it went from 40% to 5%? And this is a good thing?
I'll be happy if they can manage to secure funding for OPL226 and announce a PSC extension. Time is running out guys.