RE: Oil man Jim is fraud2 Jul 2023 23:51
It is little wonder people regard Oilman Jim as a fraud, when he writes such attack pieces, without any substance to back it up. Publicly agrees with the notorious shorters Hedgewatch (Brevarthan research)
Noteworthy to see he has backed off his libelous twitter scam accusations, (“You can read what I've got in the blog on Sunday. I saw confirmation of a scam”.). Not a single shred of evidence pointing to a PANR scam has been produced. Surprised anyone?
He then goes to make another baseless claim “It’s more or less a given now that the assets are worthless.” His evidence being “There’s no farm-out and another $300 million is needed.”
Jim ignores the companies clearly articulated strategy, to increase the sales price of the 2 billion discovered recoverable oil barrels, to $5 to $10 per barrel, by becoming a price setter rather than lowball offer taker.
Should they take a current deal, that offer would be in the range of the current market cap (US$165m) for half the assets. So contrary to Jim's lightweight opinion there is a known achievable value, it just happens to be ridiculously lowball.
Then the frightener “$300 million is needed”
Here he ignores that $300m, will have a cash flow positive field, producing 20000 bpd with 10 wells, its own connection to TAPS and processing oil in its own facility.
Further to that it can build slowly towards the $300m investment, with reserve backed lending financing development after the first well or two comes into production, costed at $60 to 70m over the next two years
Transcript of the relevant section of the strategy webinar, starting at 10:22
“It would be quite possible today, to farmout fifty percent of the portfolio, at about a value around or just above today's market capitalization(US$165m). For a carry that would get us part of the way to cash flow break even, and we could raise further funds at a premium to today's price for the remainder, which reserve-backed debt might augment and achieve a total
funding requirement of 350 million US dollars.
In that situation today's shareholders, would earn significantly less than half the current 2 billion barrels of expected recoverable oil, and we would have given it away too cheaply.
We don't need to raise all the money on day one.”
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