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UKOG is the case in point. ALBA. DOR even delisted.

Are you reducing your exposure Bonum?

Both stocks have their own merits individually, but the synergies here just don't make sense.

I think you're crackers to say that. You now only control a small % of the enlarged asset and all for bringing on board a binary bet that's paying for your company by issuing BPC shares a double what they were the other day.

Think the CERP shareholders will feel even more shafted. Getting paper in an single well binary exploration bet and only keeping a small % of the new company especially when you consider that BPC was in the low 1ps only the other week.

I can't see CERP shareholders wanting to stick around as they now have a massive binary event attatched to the company that is capitalized at 3 times their current market cap. If we don't strike at PERV#1 they will lose 75% of their hitherto more steady eddie investment. Don't think that's what they signed up for.

Beginning to wonder if the next bit of news will be a very large placing to fully fund the new enlarged group.

I can't either. It's really muddied the water here and never liked Cerpes much. Remember when it was a Lenigas dog.

It costs us shareholders with more dilution and lower upside for Perv#1 though. It will also cost us in funds they need to cover their negative net current asset position and further operations. This might be good from a corporate survival perspective, but from an investor standpoint I'm not convinced.

CERP gone red.

Except BPC was a nice clean easy to value exploration play which generates a lot of interest for that very reason. Now it has a lot of additional baggage which makes the investment case more opaque and requires additional funding on top of that required for Perv#1. Honesty the price could go either way from here, but I would have preferred to have the choice to invest in these two businesses separately on their own merits.

As far as I can see CERP have negative net current assets of around £4.7M so no funding there for Bahamas drill. Seems funds will now needed for Perv#1 and CERP operations.

Why on earth did they not release this before the open to give investors time to digest such a monumental corporate change?

As a BPC shareholder I'm not sure this is good for either company. Both have their own merits and different types of investment appeal. This adds a lot of exploration risk for CERP shareholders and gives BPC shareholders a lot of unnecessary baggage to weigh on exploration upside.

Really don't know what to make of this. Muddied the waters big time.

If I wanted to invest in CERP I would have bought CERP shares. This is frustrating.

Gone from a pure exploration play to something more complicated. Will limit exploration upside I guess.

Very good point.

Bonum, take a look at PRD too. Similar value drill proposition to here IMO.

Well said. It's unbelieveable to think that PRD is sat at roughly 6p per BOE for the 53.3 MMBOE 34% COS Morroco drill net of net current assets and ignoring all other projects. PRD's Morroco drill is definitely one of the best drilling opportunities on AIM in 2020 offering huge upside from currently levels. Frankly I'm amazed we're sat at such a tiny market 50% backed by the balance sheet at this late stage. Definitely an amazing opportunity. STRONG BUY