Member Info for Plutus_

Harry please can you help me to understand?

I totally get that your not happy with the dilution and certain strategic decisions that your disagree with.

I totally get that your view is that the return on investment will now be lower than what it could have been.

I also can see that ultimately in the fullness of time all the answers will become clear as to if we drill or not, if there’s oil or not and what the price is. By January we are highly likely to know all this.

Now. The bit I struggle with.

You can not like the situation but hold out hope for the best possible price and make as much money as possible.

Or you can decide that you have lost faith and sell your shares to reinvest elsewhere.

Again; by January you will then know if your decision was correct.

What I don’t understand is why you, or anyone else can repeatedly be negative about every aspect of BPC but stay invested?! It makes no sense?

In simple terms. Surely either sell up and **** off. Or stay put and dream. But neither scenario does that a mean you can moan on everyday

This is a savvy move; to my mind this removes the need for the zero coupon function with unknown dilution levels/share price in favour of a known quantity with regards to £9.5m raised capital. This therefore de-risks the funding scenario.

BPC have always been fully funded but this makes the terms of acquiring that capital more favourable. The SP is likely to dip in the first instance but this will likely be bought into quickly due to the obvious potential from the drill in less than 3 months.

The next step is also clear; a further £10m cln is due mid October at a price of 2.5p with another 500m dilution. This update clearly outlines a number of alternatives to this cln on more favourable terms again.

My view is that the SP will now sit below 2.5p until such time that the £10m funding structure is either confirmed as the cln at 2.5p OR an alternative for favourable method is agreed. Either way this is only 2 weeks away; once this is out of the way it’s a clear path to the drill and it is at that point this will steadily raise to whatever the pre spud price will end up (insert your own estimate here).

I will probably switch off as a result now until the confirmation of this cln or otherwise as this board will be playground until then for many posters

Can anyone educate me as to why 15p seems to be a sticking point?

We have made a run on it twice in the last two days and topped out about 15.4p before falling back to 14.5p ish. Seems that we can’t break through it (obviously positive news will smash it) but until then are we in a holding pattern?

Is it because people are selling at 15p for some profits. If that’s the case it’s fine as new money in at that level will want 30p+ before taking profits

Plutus

‘Mice rise’ Nice pun, this Lily RNS is certainly at the squeaky bum time

So yesterday I asked about capital gains tax, we had a great day..... not that I’m superstitious but CGT for me with my none isa holding pot becomes payable at 17p....

For the tax gods..... I’m happy to pay, make it so! :)

GLA

No Ramesh as the shares need to be sold and rebought, it’s called bed and share.

If it was done immediately all it costs is the spread; but if it takes 5 days for instance you risk buying back in much higher (or lower if there’s a drop!)

Ramesh, contact HL and ask about a ‘bed and share’.... this basically does exactly what you are describing. Sells your trading account and buys back in an isa wrapper.

Obviously you lose out from the spread but depending on the length of time it takes between the buy and sell you may miss out on any increase (or decrease!).

I’m not sure what that length of time is so if they confirm it with you please share

My understanding is that CGT is due at the point the asset is realised. Money in the share account or reinvested makes no difference as the original asset as had a gain.

I’m happy to wrong if someone else is an expert as it would allow people to sell £1m profit in theory and take £12,300 a year every year forever with no tax due and no risk of shares going up or down as it’s sat as cash in your trading account (which is why I suspect you can’t do it!).

As for JHFH as to who notifies HMRC you are into the tax evasion vs tax avoidance debate but on the wrong side of legality I believe. I have had tax advisors in the past tell me not to disclose it until HMRC ask (and just keep the tax liability amount under you pillow) As in theory they may never ask.

But I’m not clear on the legality of that, especially if you fill in an annual tax return stating no tax payable. It may be different if you don’t complete a tax return I don’t know but eventually I would expect HMRC to come calling.... I’m just not sure if they would impose a fine or you would have broken the law.

Meanwhile we have opened up a fraction off 12p....

The tax man commeth!

All good stuff guys; and yes getting HEMO to capital gains is the first goal but I’m sure it’s coming.... only need 17p for me and I intend to hold out for much more than that!

As another point like any portfolio I do I have some shares I’m underwater in. If my understanding is correct I can sell those shares (at a loss) to offset the capital gains tax within this year (and then buy back immediately).

So if I’m down £1k on a share I can sell it, but it back, then in effect have £13,300 available for HEMO gains in that tax year

Thanks chad

And presumably it’s also £12,300 ‘profit’....

So by that for instance it cost me £5k to buy the shares so I would have to sell £17,300 in a single tax year before I used up my CGT for year? Obviously then any future sales would be immediately liable for CGT; but if I rolled that into another tax year that effector gives me another £12,300 allowance

Thanks Rutends that’s a great idea, I didn’t know you could do that and allows me to add my wife to my trading account and thus double the CGT allowance as a pair without having to sell any shares and buy back in.

Thanks all, as ever this BB is very helpful. Let’s hope the SP ours us all in a position to have to pay some capital gains tax :)

Any other bright ideas welcome!

Thanks Tally, No kids! Probably why I can afford to invest in shares :)

Good idea though; I would have to sell the shares before CGT came into play (probably soon given the 17p ceiling) and then wait 4-5 days for the money to clear to then buy back in.

It would ‘cost’ the spread (cheaper than CGT) but risks being ‘out’ of the share for a week when news could drop and the SP could go bonkers.

The only way would be to use my parents On the logic above but that can get messy

Thanks Chad. Same principle applies opening an account for the wife to access her CGT but still relies on me selling before CGT comes into effect and risks being out of the share when I really want to be in!

It might just be that I have to suck it up and pay £7600 to achieve £50k profit, it’s a great place to be.

I was just wondering if others were doing the same thing, especially if they had an extra zero on their profit!

Hi All, I’m looking to pick the brains of Anyone that’s more clued up than I on capital gains tax.

I’m invested here to the extent that my tax free allocation for my ISA (and my wife’s ISA :) ) is maxed out (with this share and others).

Given my thoughts on the potential for HEMO I have a separate trading account outside of a tax free ISA. It only has about £5k in it but I average just over 5p in it.

So at the moment I’m running about a £6k profit with the share price where it is.

I conclude that at a share price of 17p I would then click to £12k profit and then be liable for capital gains tax at the point of realising the gain.

I’m not getting into where this share will end up, but to pick a number out of the sky At 55p I’ve got a £50k gain, of which I think £38k is taxable which would cost me c.£7600 in CGT. (A nice problem to have I grant you!).

I realise many of you will have much more shares so wondered if others had strategies for reducing their tax liability or if you viewed it as a cost of trading?

The only way I can see is to sell in 2 batches over the tax year but this only reduces my liability to around £5200 and risks selling at a sub optimal time!

Any comments welcome
Plutus

That’s not what the article says.... it’s says ‘likely’ to fall into administration so they know nothing more than we do.

Whilst I’m trying to remain positive my concern as that Potter says they are ‘operationally’ ready to drill, that doesn’t mean financially ready which is the bigger issue.

I’m hopeful and expecting of a number of RNS updates through July ahead of the merger.

Plutus

Hi all

I’m an existing BPC shareholder and am excited by the developments that I believe can bring both companies more stability, less risk and a greater chance of shareholder value.

I have also purchased cerp shares this week as should the merger go through with the 80% conversion even now the 1.8p cerp price brings w cheaper way to add BPC shares by around 35%.

I will continue to add whilst this imbalance exists because I think the future of the new company is prosperous.

Good luck to all and I hope we can come together positively

Plutus

Thanks Page Of Cups; this is the best post I’ve seen since the merger has been released for some sensible thoughts.

I’ve frankly become very bored of the posters on here that have become very aggressive and constantly sending negative posts. I get it, you’re p155ed off that the offer has changed but if you’re out (or in the process of being out) just sell up and move on.

I don’t understand the logic though, if you want to sell then taking down the stock loses you money.

If you have already sold why are you even bothered (unless you want the stock to fall to buy back in lower, but why buy back in if you don’t believe in the company anymore). Or is it all just so you can say it told you so’. Either way, sadly this board is disintegrating to the same level as the other one.

Plutus

It’s amazing that Leo Koot has come all this way from Dragons Den and his Reggae Reggae sauce to being the CEO of an oil company.

I hope he can cook the books to ensure this merger is easy to swallow for everyone. I’m not quite sure even he can get us to 10p this week but I’m hopeful of a blue week at the very least.

What BPC need in all negotiations, be it for farm in or dealings with the Bahamas government leverage can not be a bad thing.

Having Columbus on board means BPC do not have all their eggs in the Bahamas basket. I have no doubt it is still the companies primary immediate goal after 10 years trying to Still complete their drill.

What this proposed merger allows is BPC to retain the upper hand in negotiations as they do have another alternative even if they don’t ideally wish to use it. We still need the Bahamas government to tick off the last items on the list and knowing we can walk away down the coast taking with it a huge opportunity for sovereign wealth will get us a better deal.

The same applies to a farm in partner. I’m sure there will be more positive RNS between now and the end of July.

Plutus