Member Info for Slift

so late this week, or early next!
The more money they have.. the better after all.

Refinance doesn't come cheap!

Most likely they'll announce sanction of well + funding following this lifting.

MarcelKrell,

Like you, I do not know what the RBL will come in at.
But I always prepare for the worst when investing rather than hope for the best.

I'll stop posting here.

"just like when they shorted it from £2 to 8p, was that fair price for this company?"

At the time in March 2020, Tullow had a very high risk of bankruptcy. Combined with a significant oil price crash, it was *almost* certain that Tullow would have failed RBL tests.
The significant cuts to costs and the hedged position Tullow had for 2020 were the only things that prevented this company from defaulting.

This time, similar scenario (albeit less risk - due to liquidity from sale of Uganda).
Tullow will need to refinance the $650m bond. But this may not be enough - they will likely have to cut more costs (they've already cut CAPEX) and/or raise cash in some way.

So was £120m Market Cap a fair price in 2020 March when the company was certain to defaulting on covenants? Possibly, possibly not. But I don't believe shorters are to blame for this.

well.. don't expect to be able to buy and sell instantly otherwise.

So the brokers are the issue, not the shorters?

Renting your house out when it's on mortgage.

(*__*).

I said this many moons ago and got hate for it :'(

How do you do it BigBear2?!

PlantedBHA,

Well.. the major shareholders will be subscribing for billions of shares (in return for funding the forward work programme).
Unless ofcourse they do a rights issue instead for all PI's.

Big dilution for PI's.

Only winners are BOD (salary), Bondholders (they gain equity), MAJOR shareholders (who would essentially own the company with the bondholders)

PI = Poop here

"it is toxic but we sitting on millions guys because of comoros oil is there alot"
............ yeah..... except... we aren't "sitting on millions" anymore...

Scrodingerscat,
Well put. That's exactly what people seem to forget.
The January trading update has all the information required to point to a more shortfall than expected.

Now it's just a matter of how the board plans to mitigate through the review of the strategy and (or) other alternatives.

In my view, at a WORST case scenario, Tullow's liquidity could fall to $700m.
But who knows, could be worse than this, could be better.

"I put Slift on green a while ago"
Wow you colourist! Maybe I wanted to be red?!

Either way, i'm happy you don't have to read my posts!

Davstock,

I've always held the view of requiring cash raise since 2020.
It's nothing new and I'll say it again that I wouldn't put it past Tullow to do a rights issue or D4E.

Cash raise could be via asset sales too.

"Slift, for Christ sake stop speculating with investors money.
You are acting very obviously and selfishly."

Could say the same to you. Weren't you saying this would be 40p at the trading update?

Me however, I'm only providing my honest opinion. I'm not telling anyone to buy, sell or giving price guidance.

If RBL is delayed again to March, it's even more bad news.

I think delaying the RBL to February whilst trying to sort out shortfall is the best scenario atm for shareholders. This may however potentially result in a cash raise.

Things have changed from CMD.
Hence why they're going back to drawing board to review strategy.

They will likely be required to do more than just refinancing the $650m bond.

With the info provided by TLW, they will POTENTIALLY have to raise some cash.

Great advice, thanks Jubileey.

Why not daytrade?
What's your hobby?