Chapter 3a: Hereward becomes Oilquest and sells Mining assets to Cambridge Mineral Resources. (Are you keeping up with this?)
“The Directors of Hereward Ventures plc ('Hereward' or the 'Company') are pleased to announce a proposed reorganisation which involves:
• The sale of Hereward's mineral interests in Bulgaria and Serbia toCambridge Mineral Resources plc ('Cambridge') (the 'Sale') for an aggregate
consideration of US$1,500,000 (approximately £777,200) to be satisfied by the issue to Hereward of 7,971,303 shares.
The consolidation of the existing share capital of the Company onthe basis of one new ordinary share for every five existing ordinary shares.
• A change in the Company's name to Oil Quest Resources plc.
• A fully subscribed placing, through Westhouse Securities LLP, of 14,828,l07 new ordinary shares (on a consolidated basis) at a price of 23.125p per share to raise approximately £3,429,000.
“ completion of the Sale is expected to result in a loss on disposal of assets of approximately £1.8 million which will be reflected in the Group accounts for the year ending 31 March 2005.” David Bramhill. Director of Hereward Ventures.
“ David Bramhill, Managing Director of Cambridge, said:
'We are delighted that shareholders have approved the acquisition of the Bulgarian and Serbian mineral interests. The potential of the licences has been demonstrated through the recent joint venture with Ivanhoe Mines Limited, a major mining group. “
Chapter 3: Hereward Ventures (Goldfinger)
“ One of the recent debutants is Hereward Ventures, a sister company to Cambridge Mineral Resources, and a company which has attracted a lot of investor interest over the past couple of months…. The same source claims that Hereward has hit upon some interesting results with a trenching programme on the two Bulgarian prospects, both coming up with reasonable levels of gold and one revealing gold and silver.
The board consists of non-executive chairman John Park, managing director David Bramhill, operations manager Colin Andrew and non-executives Ms Nevianka Mateeva and Joe O'Farrell.“
David Bramhill, Managing Director of Hereward, said today, 'Hereward believes that this expansion of activity into Serbia will, in the medium term, add significant value to the Company's mineral asset base within the Balkan region.This is a geographical area where Hereward management holds significant expertise. Evaluation of opportunities throughout the Balkans is ongoing.”
Mr D R Bramhill resigned on 21 April 2005 to pursue his interests in the Oil and Gas sector.
Chapter 2 : Cambridge Mineral Resources. (Diamond Geezer)
“ Cambridge Mineral Resources, the AIM-listed exploration company, is extending its search for gemstones from Donegal to the Scottish Highlands after a geological study indicated five prime sites. Mr David Bramhill, managing director, brushed aside scepticism: "When we first moved into Ireland, people thought we were suffering from spring fever." Over the past two years, the company has spent some £300,000 sterling exploring in Ireland and found mineral indicators suggesting diamonds could be found there.”
It will search a site in Scotland next week.
OK here’s Chapter 1. 1996 Pan Andean Resources.
All published on the Interweb.. Hey Heid!
“ A Stock Exchange investigation was believed to have been launched into trading in the AIM-listed shares of Pan Andean Resources yesterday after they crashed by 74.5p to 40.5p following revelations that a key oil exploration well had come up dry.
The plummeting share price, which wiped at least pounds 30m off the value of the company, came amid allegations that an unnamed broker had been given advance warning of yesterday's announcement after contacting the operator of the well…. David Bramhill, a director of the company, who said he had personally lost around pounds 1m from the share price slump, claimed yesterday he knew who sold the shares. "I know who the person is. I know who the company is. We just rang the company and they told us."
Left Pan Andean Jul 2000 to “pursue his Mineral interests”
Total raised £28mm
Mkt Cap £25mm
Shareprice at float 50p (equiv)
Shareprice today 26p
Bramhill said in a puff piece video recently he’d built 5 £100mm mkt cap companies before: perhaps we should publish his actual form too…
Previous Royalty purchase:
“Union Jack Oil plc (AIM: UJO), a UK focused, onshore hydrocarbon production, development and exploration company is pleased to announce the purchase from Cambridge Petroleum Royalties Limited (“CPRL”) of a 2.5% cash generating royalty interest “
Co Sec Raymond Godson
Accountants :Godson & Co
Non Exec Director: Raymond Godson.
So in summary:
WN testing (largest discovery since 1973 -possibly.)
No results from self cleaning A2 , B1z “no measurable flow”
Wressle flowing well on clean up (second largest onshore producer) “Transformative” but no update on actual rates.
Biscathorpe, largest unappraised discovery..,
So Let’s raise £5mm at a price at 20% or more below than the last leaked raise (32p) to buy some Royalties @$70 oil before we know what the final results of these transformative events are…. why not wait for the results, if their half as good as they claim then the shareprice should rise… perhaps even they’ve stopped believing their own hype… nothing if not predictable…
"Maybe if there is a fund raise it might be to complete the purchase of 25% royalties that they mentioned. This would in fact a very good deal."
How do you know it would be a good deal?
What are they buying? what is the revenue stream, what is the upside vs downside on an oil based revenue stream if you're buying it based on $70 oil, what risks are associated with the assets, what is the decline rate in the production (and hence royalty), is the Royalty post opex and costs ? or is to simply "off the top", and therefore what is the point at which they become uneconomic and the revenue stream stops? so may questions, so few answers...
Who knows if the rumour is real or BS.
Here's the form book on UJO placings, taken from their website, so you make your own mind up.
Date Raise £ Price (consolidated)
30/07/2013 800,000 50
26/02/2014 650,000 45
13/06/2014 1,400,000 50
08/09/2014 2,000,000 60
27/10/2015 800,000 34
22/09/2016 700,000 34
27/02/2017 1,400,000 27
05/03/2018 1,250,000 17
03/10/2018 2,250,000 17
20/03/2019 1,750,000 15
28/06/2019 2,250,000 34
27/11/2019 5,000,000 30
17/09/2020 7,000,000 32
Average Time between Raises 217 days (7/8) months
Shortest 87 days, Longest 414 days.
Time since last raise 365 days.
“We need energy security for the UK . West Newton, Wressle and Biscathorpe will give us all of this.”
500 bbls/day for 1000 days is hardly energy security is it.
West Newton actually needs to flow at a rate that can be
1) actually measured
2) at a rate that can be commercially exploited.
Biscathorpe: same as above.
You’re use of the word “will” should be changed to could, and the word energy security may need to be qualified to energy security for maybe 4 hours…the total Wressle lifetime reserves compared to daily UK production.
I'm afraid Mirasol is correct.
Wytch Farm estimated recoverable resources 480mm bbls. 11k bbls/day
Wressle (Ashover) Mid case recoverable 540,000 bbls 500+ bbls/day
So they're correct its the second largest producer after Wytch Farm...
This says more about the state of onshore oil and gas than anything else.
Whilst higher flow rates will bring greater cashflow upfront, which is good as opex will be reduced, the estimated recoverable reserves (from the CPR) from the Ashover ranges from 260k bbls P1, 520k bbls P2 to 1.12 mm bbls P3.
So there's a 10% chance that its less 260k bbls, 50% chance its less than 520k bbls and 90% chance its less than 1.12mm bbls.
The production decline rate will be needed to estimate these numbers with greater accuracy, hence the new CPR.
Just fine, out golfing.
Missing my posts?
Concerned that I haven’t updated the cash flow calculation from Monday… although not sure what’s actually changed since then? So just to remind you -
“ At 200 bbls/day and $70 with $9 opex the gross revenue is £3.2mm not £4mm.
If you then deduct the Calmar £2.08mm payment that leaves £1.12mm first year net revenue.
If you add back in the £1.1mm owed by EDR payable next July
Thats £2.2mm free cash for 21/22.
As they have no other meaningful income and the cost to run UJO is £1.3 - £1.5mm per year.
This means they have free cash of about £5-700k plus whatever is left from the last raise for 21/22 to do other stuff... such as drill and test B2, drill Biscathorpe, Keddington, buy more Royaties (that’s gone quiet) etc etc...hardly mid cap, hardly flush with cash.”
I’m happy to stand by what Willams said:
We remain fully funded for the coming month (or months if the s was edited out.) I did not say they would raise money in the next 3 weeks as you incorrectly claim, they will still be goofing around on A2 and are hardly likely to raise in the middle of that are they..that’s just common sense ffs..
If you’re question is will they have a fundraise or Acuitas drawdown, straight after A2 results then it will depend on if they still plan to drill B2 straight after A2 test…I don’t think they will do that.
But I’m of the view that B2 is not included in their current funding, that’s why he was careful to say what he said “coming month”…that was explicit.
If you’re going to ask a question it might help if it was actually related to what was suggested not what you “thought” was being suggested…
And. One from the Archives (Feb) where Mr I actually tells me I’m right:
“ RNST is correct though, the plan is/was to reperforate, liquid frack, side track, then presumably other measures such as nodding donkey could be used (obviously stopping at whatever point in the plan they reach the limit). At the moment they have done the reperf and we don’t know the rates, although interview with Favid suggested they were going to liquid frack (without us knowing what it flowed at after reperf). I doubt they will stop until it’s flowing at or close to 500, it’s just a question of what needs to happen to get there. ”
You really can’t make this stuff up…
The poster that just keeps on giving…,
“ Sooner or later the two greasies at the helm of this sinking ship need to pull their finger out and say something. I thought 0.52p was a decent price, right at the bottom, I’m already 20% down.”
And another corker…. From Mr I.
“ To be honest I and the rest of the market want to be seeing a commercial flow of something good at b1z, even if only gas, but hopefully some form of oil too. I can wait patiently for that.
But forget using an excuse of further drilling at site A and a B2 or whatever… we were promised something big here and I expect them to deliver on that, no more excuses and no more nonsense. I hope they will, but I won’t be pretending it’s not a failure if they don’t… it will be a huge failure.”.
It’s official even Mr I says WN B test is now a huge failure…