RE: Some facts the way I see it17 Mar 2019 18:50
Last year BPC did have enough cash to conclude a farmout providing the BG announced an extension for the licences before the end of 2018 so they could complete the commercial terms of the farmout. The major who was in exclusivity, was waiting for the extension last year but as it was not forthcoming could not justify extending the exclusivity without the licence extension in place and was not prepared to carry on paying $250k per month, therefore at the end of August the major did not extend the exclusivity but instead told BPC to came back to them when they had got the extension. Simon Potter could not say why the major had ended the exclusivity other than it was nothing to do with the geology or the rocks, which the major likes very much. The fact the licence was extended from the beginning of 2019 to end of 2020 gives an idea at the time of when this was being decided, ie: last year, to be concluded and announced before year end, and was based on a 2 year window at the request of BPC and the major. Unfortunately the BG took longer to approve the extension and this became clear at the end of February when the approval came and they already are 2 months into the 2 year time window requested by BPC and the major. Obviously the BG knows who the major is due to BPC's request to extend the licence and the BG knowing who the major is that was requesting, in order to get a farmout agreed. Unfortunately the AG let slip that he knows who the major is and that BPC have an agreement not realising that BPC may not have yet agreed commercial terms or may have been in the process of needing to raise funds with the placing, in order to have enough funds to get the deal over the line. The placing was promulgated after the licence extension which was a pre-requisite for the placing, when the share price was 1.7p. The share price rose steeply after the AG made his comments and let the cat out of the bag. All he knew was that they had extended the licence because BPC had a major who needed the 2 year window for the drill to happen, and that granting the extension would seal the deal, hence the AG was confident that a well would be drilled. The reference in the latest BPC presentation for a farmout in 6-12 months is in fact referring to the immediate upside potential 6-12 months after a farmout is announced and then a further upside potential of 12-18 months for the drilling and any oil discovery. This is effectively the duration of the extension. This is what is attractive to the new institutional investors and is BPC's unique selling point that they have a drill ready project with a multi billion barrel well and a major ready to go. HENCE THEY WERE ABLE TO RAISE THE CASH.
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