Member Info for PDMSPiper

Could be worse. Could be in UJO with two assets in distress with a bankrupt partner and currently no finance. Plus, ChrisOil and co buying back in at the bottom to sell into any positive news and rinse it for a fourth time. No thanks. Happy to hold here at RBD.

YA Global financing is an avenue open to the company and a definite possibility to be considered here. Anybody wanting to shut down that debate and brush that possibility under the carpet of personal attacks and insults are the ones guilty of attempting to mislead in my opinion. These options need to be considered. Until we hear confirmation, nothing is off the table, including YA Global financing.

Bisc and Wressle are distressed assets with a broke partner in financial default. If you were getting a placing you’d have heard by now. Placees don’t want exposure to your other assets. No placing takes this long. Can’t borrow against assets with no booked reserves. YA Global the only other option I’m afraid. This is my opinion and the conclusion I have reached over the term of this unprecedented week of silence after a placing announcement.

It’s £105K. Of no consequence.

possibly coming here. They love distressed oilers. Good luck with that. If there were a placing you’d have heard now. It doesn’t take this long. My guess is YA global financing such as UKOG have. Only my opinion but that’s what I think is being sorted here. Hence the daily drop. Market doesn’t like it. DYOR. GLA.

It’s quite obvious that placees don’t want to be exposed to the risk of Biscathorpe and Wressle. I wouldn’t either. Humber have already defaulted on a £780K payment at Bisc so both those assets are in jeopardy with an uncertain future. That risk is what’s causing the delay in getting the placing away. Looks like YA death spiral financing coming here to me. Staying out!

I’ve done the maths on your Biscathorpe and Wressle assets where you have a partner who appears to be bankrupt so those assets are going nowhere. You’re now going to the market to cover your costs at West Newton. You’re asking placees to buy into not only WN but your other two car crash assets which could yet be forfeit back to the OGA if you can’t pony up for the costs. Placees want a big discount to cover risk, plus they won’t want any exposure to those assets so they’ll want out soon. Discount placing plus flip overhang plus dilution plus 2 stalled underfunded assets. Not a good risk for me. I wouldn’t touch UJO with a shi77y stick currently boy.
RBD fully funded boy. All other assets fully funded and Rathlin fully funded for WN. Just waiting for your **** Show here to get its act together. RBD have had our drop and our pain, bouncing along the bottom and waiting to get going on a forthcoming upward trajectory again. UJO are still on the way down. God knows what level your placing will be at to cover the risk here. I wouldn’t touch it and neither will the market judging by how long it’s taking.

BWM, stop spouting this misleading carp.....

“UJO is now at a price where it’s well below the value on offer at Reabold. Exposure to WN is cheaper here than there.”

You haven’t had your coming dilution at a discount yet. Very soon you will have 30% more shares in issue, your dilution is yet to come, RBD have had theirs. After your placing your £1Mill investment in UJO will buy 30% less of West Newton than it does now, so you’re right, the disconnect won’t last long but it will be UJO shareholder dilution that remedies it, not any rise in your share price.
Stick to reality please. RBD are fully cashed up. UJO are not.

*Humbers share of the West Newton license sorry, not Rathlin. Humber are 16.66% farmees into Pedl183, like UJO.

RBD raised £24Million in the Institutional book build, 100% institutions. They had a cash position of at least £3-4Million before that fundraise. They have put £16Million into Rathlin, completed and confirmed by RNS. The other £8Mill was earmarked for Parta and Cali but not gone ahead yet as far as we know so they should have about £11-12Mill still available. Nobody pays a distressed seller market value for anything though so if RBD agree to take on humbers share of Rathlin it will be for the operational costs plus some sweetener payment to Humber. It will be a bargain basement buy whoever buys it.

These are standard OGA contracts under which all UK OGA licenses are operated. Each partner has an obligation to fulfill their operational costs for each stage of the activities on the license. If they can not do so then their share of the license gets offered to the other partners. If none of the other partners can fund it then the whole license goes back to OGA control to be redistributed at the round of license awards. It’s out of the hands of the partners. The OGA run the show and decides who’s in default and what the implications are.

You might be onto something there Krull. The only issue is: If Humber are that strapped for cash that they can’t pony up their share of the operating costs under the contract then they will forfeit and the share will be offered to the other partners. There will be no need to give them anything for it, just pay the costs. The issue is: We don’t know how long they are given to pay and when from. That could be the key. What is the deadline by which Humber and UJO have to pay their share of the next stage of costs. That could be what we are waiting for. I’m sitting on my hands here anyway. Wouldn’t buy any UJO shares currently until they’re sorted, but likewise I wouldn’t sell here either because we are sorted. RBD is a hold for me. Placees obviously not flipping at a loss here so it’s not overhang that’s the problem currently.

Luckyman, The difference is: Rathlin have £16Million and RBD have about £10Mill, 6 or 7 from book build and Poss 3 or 4 mill that was the existing cash position. More than enough to progress West Newton without either UJO or Humber. It’s quite clear they they have both bitten off more than they can chew and are distressed. West Newton will proceed but it looks like Biscathorpe and Wressle won’t. The difference being RBD/Rathlin Financial underwriting of WN.

Luckyman, Having just successfully raised £24Million in an Institutional book build, RBD are hardly in the same position as UJO. West Newton is cashed up from Rathlin’s point of view. Unfortunately the Humber situation is far more painful for UJO as they are partners in their other assets, Biscathorpe and Wressle. These assets are in danger of forfeit due possibly to Humber insolvency. UJO are also distressed by association. The placing price will be very low to compensate investors for that risk. Much more pain at UJO I’m afraid. If the placing gets filled it will be sub .14, possibly .12 imo. Good luck with your investment over there Luckyman. DB is in a terrible quagmire here.

There is obviously more going on in the background than just a placing, which typically takes a couple of days. My guess is legal and contractual wranglings between the partners and Humber, trying to get their busted skint asses to pay up, or get out. Hopefully Humber will be out of West Newton but it could take a while to sort, especially while Humber are in Biscathorpe and Wressle also. This SP superficially looks a bargain but the placees, like other investors waiting to buy will be weighing up the risk of their exposure to other assets, Biscathorpe and Wressle that could now be stalled due to lack of finance and Wressle at the mercy of a planning decision. West Newton looks a good risk but the other UJO assets look like a very bad risk/reward profile to me currently. Undoubtedly this will make raising money in this market very difficult for DB.

It wouldn’t surprise me if RBD do take on the 16.66% held by Humber but we won’t have to pay for it. The price is just the ongoing cost obligations. Humber lose it as they are distressed. Unfortunately for UJO that means their other licenses at Biscathorpe and Wressle are in danger. If they can’t pony up for the ongoing operational costs going forward or find new partners then the licenses are in danger and will be forfeit back to OGA control for redistribution in the next round of licensing awards. Simple as that. If ya snooze, ya lose.

Reabold might not have to pay anything contractually for Humbers slice if they can’t meet their ongoing obligations under the contract. No matter how good the assets are, nobody pays a distressed seller market value for anything. Humber could forfeit entirely leaving the remaining partners to share the operational costs and spoils thereafter. RBD and UJO could get almost 6% more of West Newton for nothing more than the operating costs. Bargain. As for the Langs, no more playing at being JR Ewing for them.

To sort out. Looks to me like Humber are bust. Legal and contractual bunfighting very possibly in progress. Hopefully West Newton will get going as RBD cashed it up. It will all come out in the wash but the way to get them to fess up is to speculate about it. So get speculating! Lol.

No doubt there are contractual clauses that mean they lose their share of the license if they fail to meet the ongoing operational costs stipulated in the contracts. Humber will probably just lose their share and RBD/UJO/Rathlin will split their share of costs going forward.
This is more of a problem for UJO as Humber are their partner in both Biscathorpe and Wressle. All other UJO projects outside of WN now without funding.
Luckily RBD have just pumped £16Million into WN so it will undoubtedly move forward. UJO just need to secure funding for their share of the operational costs then my guess is they are working to sort out the contractual legal to give Humber the boot before WN can proceed, but shouldn’t be too long.

Reabold are not going to Farm into a drill that is already theirs. That’s as stupid as Rathlin farming in to their own drill. In any case, farming into drills is not the RBD business model. RBD buy into the operators, Corallian, Gaelic, Danube, Rathlin, all wholly or part owned by Reabold. They buy operators. They don’t Farm into drills. If Humber can’t stump up the cash then their 16.66% Farm in to WN will have to be put on the market. That will take as long as it takes.