Member Info for Starchild

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BPC was reset and renamed to CEG at 0800am this morning. My understanding from contacting LSE is the old BPC posts will remain, but I suggest everyone moves to the CEG BB now. 2nd level console has moved there too.

GLA

Starchild
https://www.lse.co.uk/profiles/starchild/

CEG financial snapshot 21/5/21

[Reposted as BPC was reset and renamed to CEG at 0800am this morning. My understanding from contacting LSE is the old BPC posts will remain, but I suggest everyone moves to this CEG BB. 2nd level console has moved there too. Ignore posts from 2007 below!!!!]

1. Cash in the bank
$20m including OO and Placing

2. Cash from production
c$250k/month excluding capex and OTCs. (@$60 PoO, minus $20/b extraction costs and minus G&A of $4m per year about to be reduced to c$3m)

3. Creditors short-term
$4m gross ($3.5m net) due to Lombard in June
$10-14m Bahamas legacy, mainly Stena. (CEG believes this can be reduced by 20%-30%, some potentially payable in shares)
$4m Saffron 2 and Suriname spuds

4. Available financing (we know of)
C$3m Bizzell imminent loan which was subject to the OO and Placing
£10m Bizzell @0.8p (old shares) remaining, subject to conditions.
RBL?
Infrastructure loans?
Pre-sell?

5. Debt
£500k (Legacy Bizzell. £2.5m in shares were issued yesterday, to clear most of the slate including interest accrued)

All figures approximate. Sources of above: https://d1ssu070pg2v9i.cloudfront.net/pex/bahamas/2021/04/23135622/Open-Offer-Circular-Web.pdf and https://d1ssu070pg2v9i.cloudfront.net/pex/bahamas/2021/04/28113530/Auctus-BPC-27.04.2021.pdf

Bottom line: The OO and Placing was mainly to pay legacy debts. Had $10-14m not been due to Stena, we would have been OK. A ‘spanner’ accidently dropped down the Percy-1 well, threw a spanner in the works and almost caused the ‘old’ BPC (now CEG) to derail. It cost us 2B shares in dilution which I am NOT happy about, but that’s life. It was either that or nothing, but we can move on, unlike the turmoil facing Hurricane Energy. There are many potential goodies in the pipeline, and I hope all LTHs sitting on substantial paper losses, can recover most if not all their losses by next year, following this company reset.

This weekend is going to be very exciting. Forget the Trinidad spud Sunday, which I hope will be douze points. I’m talking Eurovision.

DYOR. GLA.

Starchild
https://www.lse.co.uk/profiles/starchild/

PS: it is pointless when LTHs publicly attack other LTHs. It’s bad enough when shorters and embittered ex-holders do so, so why add fuel to this fire? It doesn’t help, especially when attacking fellow LTHs integrity or honesty. It’s actually very spiteful. I have a thick skin, but it very much hurts when on the receiving end, while sitting on a current six figure loss.

We now have a new BB. Let’s try and keep it respectful and polite. Disagreements are fine, rudeness and insults are not.

BPC financial snapshot 21/5/21

1. Cash in the bank
$20m including OO and Placing

2. Cash from production
c$250k/month excluding capex and OTCs. (@$60 PoO, minus $20/b extraction costs and minus G&A of $4m per year about to be reduced to c$3m)

3. Creditors short-term
$4m gross ($3.5m net) due to Lombard in June
$10-14m Bahamas legacy, mainly Stena. (BPC believes this can be reduced by 20%-30%, some potentially payable in shares)
$4m Saffron 2 and Suriname spuds

4. Available financing (we know of)
C$3m Bizzell imminent loan which was subject to the OO and Placing
£10m Bizzell @0.8p (old shares) remaining, subject to conditions.
RBL?
Infrastructure loans?
Pre-sell?

5. Debt
£500k (Legacy Bizzell. £2.5m in shares were issued yesterday, to clear most of the slate including interest accrued)

All figures approximate. Sources of above: https://d1ssu070pg2v9i.cloudfront.net/pex/bahamas/2021/04/23135622/Open-Offer-Circular-Web.pdf and https://d1ssu070pg2v9i.cloudfront.net/pex/bahamas/2021/04/28113530/Auctus-BPC-27.04.2021.pdf

Bottom line: The OO and Placing was mainly to pay legacy debts. Had $10-14m not been due to Stena, we would have been OK. A ‘spanner’ accidently dropped down the Percy-1 well, threw a spanner in the works and almost caused BPC to derail. It cost us 2B shares in dilution which I am NOT happy about, but that’s life. It was either that or nothing, but we can move on, unlike the turmoil facing Hurricane Energy. There are many potential goodies in the pipeline, and I hope all LTHs sitting on substantial paper losses, can recover most if not all their losses by next year, following this company reset.

This weekend is going to be very exciting. Forget the Trinidad spud Sunday, which I hope will be douze points. I’m talking Eurovision.

DYOR. GLA.

Starchild
https://www.lse.co.uk/profiles/starchild/

PS: it is pointless when LTHs publicly attack other LTHs. It’s bad enough when shorters and embittered ex-holders do so, so why add fuel to this fire? It doesn’t help, especially when attacking fellow LTHs integrity or honesty. It’s actually very spiteful. I have a thick skin, but it very much hurts when on the receiving end, while sitting on a current six figure loss.

SVS: eh?

New holders: welcome to BPC.

Elevator pitch
Let’s start at the beginning. Millions of years ago, lots of little creatures died and turned into crude oil. For >10 years BPC spent c$150m trying to find them south of the Bahamas. The 8/2/21 drill result was a WPS but non-commercial. The SP collapsed, however BPC believes this asset can be monetized by 4th quarter. Their cousins in Trinidad and Suriname are hopefully about to be found at the first attempt, via a 1st spud in 4 days. This is known as Saffron 2, however there are 9 Saffrons and the whole South West Peninsula potentially holds 230mboe, the size of a North Sea oil field. BPC is currently producing 450-500boe/day and is aiming for 2500 by y/end.

Deep dive
I suggest all newbies watch two presentations by Eytan Uliel, CEO.

• 29/4/21 (31 mins) https://youtu.be/oEl4lw107OA

• 6/5/21 follow up QA interview (38 mins) https://www.youtube.com/watch?v=97B0ZuskdrI

• Read the 5 page Auctus 27/4/21 pro-analyst’s report which discusses a 1.2p SP short-term: https://d1ssu070pg2v9i.cloudfront.net/pex/bahamas/2021/04/28113530/Auctus-BPC-27.04.2021.pdf

• Register for the UK-Investor-Mag conference on Tuesday. https://ukinvestormagazine.lpages.co/may-uk-investor-magazine-virtual-conference/

Warning: A small group, some who admit to shorting BPC and ex-holders, bombard negativity on this BB 24x7. Some resort to name calling and trolling, so be warned. There are several LTHs who occasionally air their frustrations. This is their right while sitting on 80-90% paper losses, however I believe this will change.

Some new holders will sell ASAP to make a quick 10-15% return. This is their right. But IMHO, at 0.35p the SP is seriously undervalued. Why? The funding bar is set @0.8p. Trinidad tax credits alone are c$25m net. In Aug 2020 BPC merged with CERP for c£25m at the hight of PoO collapse and Covid. Yet two years ago, a less developed CERP compared to now, had a MCap of >£40m. Lots of news is expected soon including the Bahamas autopsy. The large dollop of jam on the bread is if the Bahamas asset can be monetized 4th quarter. In the meantime, a lot is happening in Trinidad and Suriname to spread the risk/reward.

I subscribed to the OO and Placing and have been a shareholder since 2014 with 10s of millions of shares, mostly acquired since the Bahamas result. I post researched caveated opinion most days and we will keep an eye out for any questions you may have.

DYOR. GLA. Onwards and upwards.

Starchild
https://www.lse.co.uk/profiles/starchild/

Thebhoys: I am NOT a paid ramper. I do NOT post 24x7. I did NOT state ‘@0.9p, there’s not much room for the SP to drop.’ … I stand by the opinion I have stated on several occasions when the SP was 0.5p – 0.6p…. ‘There’s very little scope for the SP to fall further LONG-TERM, yet huge potential for a surge in the short-term. AIM is quick to punish and quick to reward its penny share companies.’

I am normally upbeat on BPC matters. Yet I honestly felt the OO would be subscribed by less than 25%. It is in fact more than 50% of this....>38%. BRILL

I have subscribed to the placement with more than 10m shares.

the next few days will be interesting. Upwards and onwards.

GLA

Starchild

Bohemia: your post is very disingenuous, implying i acted unethically. Firstly, I made it a point since the OO was announced to recommend everyone takes professional advice before subscribing. I did not ramp the OO ONCE and only lobbied almost daily for a yes vote at the EGM.

Secondly the RNS and Eytan’s presentation stated the Placement would be at the same price. It was not my words.

Had the SP been well below 0.35p prior to the placing this afternoon, the company I assume would have issued a bidding placing of between 0.3?p – 0.35p as was the case with the September one. I now very much doubt this will happen. It’s all about hedging not manipulating others with false information as some folks do. If I lose out on the placing this evening because it's oversubscribed, it’s my gain (and other real LTHs) for the 10s of millions of other shares I have.

As I saw it, all roads lead to Rome. Based on the current very low SP, when buying via the OO, Placing or both, the company reset with legacy debts ostensibly paid after the Stena dispute settled (or budgeted to be paid) creates upside moving forward.

Thebhoys: I do not exaggerate or hardcore ramp. I state what I believe is true with caveated opinions before the Percy spud, during and after. I still maintain the opinion which I stated when the SP was at 0.5p…. ‘there is very little room for a long-term SP collapse, but lots of room for it to surge….’ Furthermore, I firmly believe (as does BPC and Auctus) the current MCap is approximately based on current production rather than potential. For goodness sake, the net Trinidad tax credits alone ($85m gross/c$25m net) is approx. BPC’s current MCAP

Starchild

Eytan, BPC’s CEO designate (I think CEO by then), will be presenting at UKInvestorMag conference on Tuesday at 4pm. Register:

https://ukinvestormagazine.lpages.co/may-uk-investor-magazine-virtual-conference/

if link fails, try https://tinyurl.com/yu2e8rs2

GLA.

Starchild
https://www.lse.co.uk/profiles/starchild/

Bohemia: 'Why?' Hedging! In case Placing is slightly below OO price. Last week I thought this could be possible, but now I doubt this will be the case. Either way win win, on my assumption, IMHO, that the SP is seriously undervalued.

PS: Without appearing to give the façade of being a big shot………………..I have MUCH more than 10 million in liquid savings. As long as converted from Vietnamese Dongs, Colombian Pesos or Iranian Rials…… to get the Pounds Sterling total.

To use trading slang, I’m more of a cute/playful yet rather obese dolphin or kitten, rather than a whale or fat-cat.

GL

Starchild

Big day today

At +/- 16:35 today we will know via RNS how much of the Open Offer has been subscribed. Anything more than 25% will exceed my expectations. In the same RNS we will also know the price of the Placing. At 0700 am tomorrow we will get the result.

There appears to be some confusion on this BB, re who can be invited to take part in an ‘institutional’ placing. The simple answer is anyone who registers that meets the qualification criteria of ‘sophisticated HNWI investor’. You don’t have to be an institution, hedge fund, Warren Buffet or have £10 million in petty cash.

The simplest way to register is to contact your provider or broker and ask to speak to the Capital Markets Team. Which country you are resident may make a difference, however the chances are if you have an account with a provider, you pass this requirement. I do not live in the UK.

You will be asked to self-certify you are SOME, but not all, of the following:

1. Have been a professional investor for at least 1 year.

2. A sophisticated investor (a history of ‘substantial trades’ in the last 12 months)

3. Have liquid cash and similar assets excluding your home of between £250k-£500k.

4. Earn substantial income. (eg, >£100k)

You will be asked to sign a disclaimer as you will waive many rights compared to a retail investor.

To the best of my knowledge, there is no official minimum request, but appears to be 25k or 50k with some issuers. In fact for mega IPOs likely to be oversubscribed, your provider or issuer will likely only deal with their favourite fat cat clients such as institutions, pension funds, hedge funds etc who deal in millions per pop.

There will be a minimum fee of +/- £100 for the requested placement.

Although you service provider’s call centre closes at 5-6pm, the live brokers/capital markets team are usually on a different phone number, and work into the evening 8-9pm.

I have registered and plan to participate this evening, as I believe the SP is seriously undervalued. But that’s my decision and my opinion. I am not suggesting others will wish to, or agree with me. However, I doubt anyone will disagree with …. always DYOR or seek professional advice especially if contemplating registering for IPOs or placements.


GLA.

Starchild
https://www.lse.co.uk/profiles/starchild/

MacRS: be polite to fellow posters and it will be reciprocated. Before calling anyone an idiot or doubting their integrity, check your facts. No need to be rude. GL.

Bahamas License renewal

The latest anti-BPC rhetoric gleefully stated by persons who do not wish to share in BPC’s future success, relates to the 3 year Bahamas renewal from 30 June.

This morning’s ‘sermon’ provides opinion and commentary.

1. Based on the current SP and MCap, the market values the asset, its monetisation, and a potential farm-in (the aim is by Oct/Nov) as zero/zilch/nada. IMO, confirmation of renewal will increase the SP, rather than affect the SP negatively if the Gov plays games for a few weeks to try and extract better royalties.

2. The agreement is not in the public domain, only certain aspects of it such as royalties. If it were, the enviros would not have added its public disclosure as part of its EA case against the Gov.

3. How can the so called self-professed legal experts from ‘Earthjustice,’ provide unsolicited legal opinion on something they haven’t read?

4. Despite having a theoretical license to drill for over 10 years, BPC has and will argue it could not have done so without EA approval. This was only sanctioned in Feb 2020. Even if BPC had $100m in the bank between 2015-2019, it could not have hired a drill ship without EA approval.

5. Eytan and the BoD have stated the license is ‘water-tight’ and BPC has the right to renewal. It is unfathomable that BPC’s lawyers (headed by a serving Bahamas Senator currently in the opposition party), have the skills to negotiate a water-tight contract but leave renewal loopholes.

6. BPC now has a proven track record for funding and delivering an exploration drill SAFELY. BPC will state it will get funding: a JV, farm-in, ex-CERP assets bearing fruit, or raising equity in 2-3 years. There is risk appetite for billion-barrel exploration spuds.

7. The Gov may politicise this and play hardball as there’s an election on or before May 2022. IMO, the underlying intent is to leverage better royalties rather than pander to a few very loud enviros. The Gov would love $10B+ in royalties as the economy and the populous have suffered from a hurricane and Covid-19.

8. If the Gov denies renewal on some obscure technicality, BPC can sue and take the case all the way to the Privy Council in the UK.

9. The Bahamas is a reputable nation, not a banana republic. The State must be VERY careful. If it declines to renew, it will suffer severe reputational damage. Why would anyone, especially foreign entities, ever risk partnering with the Gov to invest in infrastructure such as building a new airport or wind farm, only to be taken advantage of a few years later?

10. Amen

Changing the subject to immediate potential, I’m pleased the resolutions were passed. I plan to participate in the placing tomorrow evening as IMO BPC’s Mcap is seriously undervalued. A cat has 9 lives. BPC has Saffron 2,3,4,5,6,7,8,9, SWP, Suriname and Farm-in potential. BPC is no longer a one hit wonder.

IMHO. DYOR. GLA.

Starchild
https://www.lse.co.

EGM resolutions x 5 PASSED... see RNS

Onwards and upwards. Read my post in the morning.

Starchild

xxx

Thanks Tonsan! Do you have the percentages for and against

Starchild

DavidBrent: do you have any shares in BPC? If so, ...

why do you regularly write posts in such an apocalyptic tone?

why do you attack other LTHs?

why haven't you sold your shares and moved on?

is it not akin to a divorce settlement, and you agree to share everything 50-50, but sell the house for 1000 quid, purely to get revenge on the ex-wife?

It makes no sense to act this way!!!!

Respectfully,

Starchild

Good morning.

Take professional advice whether to subscribe to the Open Offer or Placing. Do not rely on this BB with its many shorters, disgruntled ex-holders and anti-BPC persons (some who machine gun post negativity daily WITHOUT RESEARCHED LINKS OR EVIDENCE) for that advice.

Key dates and news timeline in BPC’s reset

This week

• Today 17/5 11am Extraordinary General Meeting with vote results at +/-2pm

• Tuesday 18/5 11am latest time and date for receipt of Application Forms and payment in full under the Open Offer

• Wednesday 19/5 4:35pm RNS announcement of the result of the Open Offer and the launch of the Placing

• Thursday 20/5 7am RNS announcement of the results of the Placing

Next week

• Monday 24/5 7am RNS confirmation Saffron 2 was spudded, previous day (UK overnight) Trinidad time.

• Thursday 27/5 8am: shares bought in the OO and placing appear in CREST (online) accounts.

• Thursday 27/5 4:30pm until next day's opening at 08:00 am: The 1 in 10 consolidation will take place overnight.

• Friday 28/5 when you wake up in the morning and logon to your share platform, the old shares should have been replaced with one in ten new shares at ten times the value (at close on 27/5) of the old ones.

By end of June (IMO)

• S2 spud interim results

• Detailed Bahamas Percy-1 autopsy (Eytan presentation, ‘4-6 weeks from now’)

• Update on Suriname spud

• Final Percy-1 costs as negotiated with suppliers

• Update on general funding needs

• Update on next steps in Trinidad exploration and production

• Update on the EA court process

• Y/E 2020 audited accounts including material events since 31/12/20 as at publication date

Summer 2021 (IMO)

• S2 full results

• Possible commencement of legal action against the enviros for attempting an injunction which cost BPC and its shareholders millions, while allegedly harassing suppliers (LOL and Lloyds)

• Confirmation Bahamas licenses have been renewed from 1/7/21 for 3 years……

• …..which could open the door to a farm-in announcement by a major player or a consortia of smaller ones to share the risk/reward. Will BPC get a percentage of the $140m spent and/or free Percy-2 and 3 drill(s) in 2022/3?

BPC’s Mcap is seriously undervalued and currently based on the tiny 450-500boe/day in production. The imminent corporate reset will clear the slate, so the company and its real shareholders can move onwards and upwards.

IMHO. DYOR. GLA.

Starchild
https://www.lse.co.uk/profiles/starchild/

ishty: you will need to phone your broker/platform. provide monday. They probably haven't updated systems since the OO extension.

Bohemia: Please stop this!!!!! I quote from actual recent BPC sources. CERP accounts ie PBT, are irrelevant. Take your case to BPC and not me. As a shorter you are trying to make a case to help your cause based on not providing the whole picture and questioning my sources (BPC RNSs) as wrong.

Starchild

I base many of my opinions on official corporate updates, interviews and pro-analysts’ reports.

$3m/yr free cash?

1. Bohemia, even though you admit to currently shorting BPC, let’s get this issue put to bed once and for all. You quoted CERP accounts to make a case BPC does not make $3m/yr in free cashflow. Neither BPC nor I have stated the company is making $3m/yr profit before tax. PBT is a different metric and includes ALL expenditure.

2. Key RNS: … ‘At a US$60/b, 500 bopd of stable production results in NET annual operating cashflows to BPC of c$3m…….’ Source https://polaris.brighterir.com/public/bahamas_petroleum_company/news/rns/story/ry4o93r

3. BPC has stated, ‘…extraction cost of <$20 per barrel….’. Source RNS https://polaris.brighterir.com/public/bahamas_petroleum_company/news/rns/story/w0y5j8x . $20/b has also been used in various presentations. Please DYOR.

4. How much of this $20 is included in the $4m/yr G&A (eg T+T payroll) we don’t know. I’m assuming zero. Hence 360 days x 500boe/day x $40 ($60 PoO - $20 costs) = > $7m

5. On 1/1/21 the gov increased the special petroleum tax threshold. Prior to then, CERP (and BPC since merger) had to pay an extra 18% when PoO sales were between $50 - $75/b.

6. BPC is sitting on $85m in gross tax credits. Royalties are payable from $1/b+, but until the annual accounts are published we don’t know the exact figure.

7. BPC has recently stated cost reductions of 20-30%. If the $4m G&A is reduced by $1m (25%), operating cashflows will increase from $3m to $4m.

Bottom line: case PROVEN. End of debate. If you believe the BoD are misleading us, I suggest you take it up with them.

Antha: You are an ex-holder and asked …. ‘ Please explain to the faithful what the implications are (financial, drilling, share price, etc) if the OO falls short and less than £5m is raised….’

8. My post yesterday and on 12/5 04:53am made a case that IF the OO/Placing totals < £5m, there are possible alternatives to retire legacy debts in full or in part using shares. This will save cash. However, IMO I don’t think it will be <£5m.

9. I do not have the time nor inclination to opine on every eventuality. For example, an ET invasion, a cold fusion invention, or Venezuela invading Trinidad tomorrow as an excuse to get hold of BPC’s valuable oil assets.

LLL: …. I believe you are an ex-shareholder and asked……………..‘ Are you are seriously suggesting that Stephen Bizzell is more loyal to BPC than his own company?....’

10. NO. I did not state this. I am pleased he is on the BoD based on his experience and repour with Simon/Eytan which historically made them millions. He will wear 3 hats: a BoD member, a mega shareholder and lender. The only conflict of interest arises IF IF IF things go very very badly, in which case (for obvious reasons) we are better off he is on the BoD rather than BPC owing money to a 3rd party.

IMHO. DYOR. GLA.

Starchild
https://www.lse.

Minor correction to my last post.....

Source RNS 21/8/2019 https://polaris.brighterir.com/public/bahamas_petroleum_company/news/rns/story/xj0o51w

‘…………….Board Rights: Effective from Completion (i.e. only once all conditions precedent are satisfied and funds are advanced to BPC) and until such time as the Notes are redeemed, BCI will have the right to appoint two (2) directors to the Board of BPC (but, for so long as both Simon Potter and Eytan Uliel are members of the Board, the right of appointment shall be reduced to only one (1))…..’

GL

Starchild
https://www.lse.co.uk/profiles/starchild/

IMO, Stephen Bizzell and Robert Riley joining the BPC BoD is very positive. I recently posted why I believe Robert will be a great asset. Observations why Stephen will, are below.

Experience https://www.bizzellcapital.com/investment-bank-team.html

Note his track record and successes. Specifically,….. ‘ Stephen was previously an Executive Director of Arrow Energy, from 1999 until its takeover in 2010 by a JV between Shell and PetroChina for $3.5 billion. He was instrumental in Arrow’s corporate and commercial successes and its growth from a junior explorer to a large integrated energy company….. ‘

Xref with Simon and Eytan’s bios on https://www.bpcplc.com/about/who-we-are/board/ and https://www.bpcplc.com/about/senior-management/ Note Simon was Arrow’s CEO, Eytan its CCO and Stephen an Exec Director.

When the original Bizzell deal was structured in 2019, the investor had the option to appoint its own BoD person(s) in the event Simon and/or Eytan resigned. Bizzell historically made a very good ROI with previous deals in orgs Simon and Eytan worked for including Arrow. And trusted them.

Opinion

After the EGM and placing next week, Bizzell will release 2m subject to at least £5m being raised. This means they will be owed +/- £2.5m in total. IMO, Stephen joining the BoD is to help steer BPC to success, rather than to ensure his company gets paid! A director’s loyalty is to the company and its shareholders. IMO this is positive. As a BoD member, Stephen will know in real-time what’s going on warts and all. Any future Bizzell advance to help BPC reach 2500 boe/day in December, will be a positive sign and endorsement.

If it wasn’t for the Bahamas legacy costs of +/- $14m some disputed, there would NOT have been an OO/placing at 0.35p. Bizzell set the funding bar @0.8p and likely would have advanced cash when needed at that rate.

IMO, PIs (some sitting on mega losses) will unlikely subscribe to >25% of the Open Offer. However, I believe the Placement will be successful. Professional investors and IIs are not stupid. BPC is seriously under-priced. It’s Trinidad net tax credits alone are worth more than the current MCap! However, BPC is in a catch-22 owing legacy debt.

The OO/placement will get us back on track, reset, relaunch, rebrand and move forward. I’m hoping the SP meanders its way over the coming months initially to the +/- 0.8p funding bar, then to the Auctus reNav of 1.2p. And that’s without a full SWP dev or a Bahamas farm-in 4th qtr.

IMHO. DYOR. GLA.

Starchild
https://www.lse.co.uk/profiles/starchild/

Bohemia: You have been open and admit to shorting BPC. Thanks. But respectfully, please do your maths again as you clearly didn’t read my post properly. Similarly to when you recently argued BPC is not making $3m in free cash from today’s operations, pre-capex/OTCs. You stated it was zero, despite RNSs and presentations stating $3m, and my maths going a long way to prove it. GL.