Member Info for Starchild

Lay. What comes from your lips, is honey to my ears. Please post on BPC forum! As for 'CERP holders being angry' i experienced their wrath. Following a few posts i did thursday/friday, based on the feedback, Samaritans gave me a 24x7 direct line

Lancy: I don't know much about CERP although have a honorary PhD in BPC stuff. Please do let us know on both forums when this interview is out. Thx

Chesh. Sorry for the 'old chap' salutation. I'm a granddad and quite posh. I imagine you are a young kid aged 40 and felt it was the best way to address you. xxx. (The xxx is platonic)

Rickie. I agree. I think there's a lot of gold in dem hills!

Brill Cerp! Please spread your words of wisdom to the BPC forum. It's been allegedly hijacked by persons who sold last week and shorting the stock to buy in future.

Chesh old chap: if you are on the fence, await RNSs. I think some good ones are on the way anytime from tomorrow. Good luck. Let's all get rich

Lay: No. I'm saying the merger of both farms creates the catalyst for leverage. Sum of the parts greater than the whole. Your sheep and our hay could create a winning team

Leo Koot, a seasoned oil man was very impressed with the data-room. Remember his presentation was geared to CERP shareholders not so much BPC's. CEOs don't predict share prices or market caps, expert analysts and stock brokers such as Shore Capital do. Furthermore if we have 700mbboe it's value is dependant on various factors: POO on the day, POO forecasts, quality, type etc. I cannot see how proven reserves are worth 70c per barrel!

I feel more confident of a successful spud based on this interview.
And £500m (a figure taken out of the blue) could be the beginning, because if we strike gold, there's more gold in dem hills

Leo Koot, a seasoned oil man was very impressed with the data-room. Remember his presentation was geared to CERP shareholders not so much BPC's. CEOs don't predict share prices or market caps, expert analysts and stock brokers such as Shore Capital do. Furthermore if we have 700mbboe it's value is dependant on various factors: POO on the day, POO forecasts, quality, type etc. I cannot see how proven reserves are worth 70c per barrel!

I feel more confident of a successful spud based on this interview.
And £500m could be the beginning, because if we strike gold, there's more gold in dem hills

Paul, I fully believe in the BPC BoD

I still believe a farmout/JV on cards. See my prior post 'eureka moment'

BPC can leverage the CERP assets (oil reserves) not cash or company cars. No dilution. Brilliant.

Here's a point to ponder. If the merger took place and by 4th qtr 2020 for the BPC spud there was no JV/farm-in interest, at least BPC could take out a commercial loan repayable as a lump sum in say 3 years, secured against CERP assets currently valued at £25m/$30m and not need to do a mega rights issue.

Out comes
1. no oil found: Regroup and go for a 2nd drill
2. some oil found: leverage it to repay loan and go for a 2nd and 3rd drill
3. huge reserves found, jackpot. There are likely similar reserves nearby.

Isn't that a good reason to vote Yes for the merger? All thoughts from everyone welcome.

Here's a point to ponder. If the merger took place and by 4th qtr 2020 for the BPC spud there was no JV/farm-in interest, at least BPC could take out a commercial loan repayable as a lump sum in say 3 years, secured against CERP assets currently valued at £25m/$30m and not need to do a mega rights issue.

Out comes
1. no oil found: Regroup and go for a 2nd drill
2. some oil found: leverage it to repay loan and go for a 2nd and 3rd drill
3. huge reserves found, jackpot. There are likely similar reserves nearby.

Isn't that a good reason to vote Yes for the merger? All thoughts from everyone welcome.

I spent 2 hours this morning doing a deep dive of the 11/6/20 merger RNS. I did this in detail line by line compared to my original read through notes after the announcement. I believe everything you are looking for is there as far as the synergies between the companies. The one thing I cannot find anywhere, is a one liner stating (a) how much proven reserves CERP has, and (b) the sum of its potential reserves in licensed (sea) or leased (land) acreage.

I recommend everyone reads the prospectus in minute detail. IMO, this document and the Leo interview shows the merger case has brilliant potential. Compounded by the fact both BoDs unanimously voted in favour.

There are some who are on the fence awaiting RNSs before voting yes, which I fully understand and respect. However, I believe a steady stream of further info will be disclosed in the next 2-3 weeks.

One issue that appears to have confused or concerned some on both the BPC and CERP forums is posts relating to a 'funding gap.' The authors of those posts, quote from the drill rig contract RNS of the 26/5/20 https://www.londonstockexchange.com/news-article/BPC/drill-rig-contract-signed/14552335 which states.....
'.......the Company's current funding "gap" for Perseverance #1 is in the range of $12 million to $16 million (plus a further $5 million to $10 million depending on the extent to which potential contingency / provisional costs may be required / opted for)....'

This I believe has been taken out of context, because at the end of the same RNS it reassures investors. I quote......

'......Overall, given that drilling operations will not commence until at least 15 December 2020, the Company now has in excess of 6 months to refine, implement and complete its optimal funding strategy in a measured way. In doing so the Company's previously articulated funding principles will remain unchanged:

(i) to ensure that funding is available as and when required;

(ii) to seek to minimise shareholder dilution from such funding, such that the dilution required to secure the funding for the well would be less than or at least no more than the dilution that would result from a farm-in transaction; and

(iii) to create multiple funding sources with maximum flexibility and optionality.....

Key takeaway: BPC has access to various live funding options to fill the funding gap, with the minimum of shareholder dilution.

Prospect, I can understand your point of view although I don't currently share your opinion. But here's a point to ponder. If the merger took place and by 4th qtr 2020 for the BPC spud there was no JV/farm-in interest. At least BPC could take out a commercial loan secured against its CERP assets currently valued at £25m/$30m and not need to do a mega rights issue. Isn't that a good reason to vote Yes for the merger? All thoughts from everyone welcome.

One issue that appears to have confused or concerned some on both the BPC and CERP forums is posts relating to a 'funding gap.' The authors of those posts, quote from the drill rig contract RNS of the 26/5/20 https://www.londonstockexchange.com/news-article/BPC/drill-rig-contract-signed/14552335 which states.....
'.......the Company's current funding "gap" for Perseverance #1 is in the range of $12 million to $16 million (plus a further $5 million to $10 million depending on the extent to which potential contingency / provisional costs may be required / opted for)....'

This I believe has been taken out of context, because at the end of the same RNS it reassures investors. I quote......

'......Overall, given that drilling operations will not commence until at least 15 December 2020, the Company now has in excess of 6 months to refine, implement and complete its optimal funding strategy in a measured way. In doing so the Company's previously articulated funding principles will remain unchanged:

(i) to ensure that funding is available as and when required;

(ii) to seek to minimise shareholder dilution from such funding, such that the dilution required to secure the funding for the well would be less than or at least no more than the dilution that would result from a farm-in transaction; and

(iii) to create multiple funding sources with maximum flexibility and optionality.....

Key takeaway: BPC has access to various live funding options to fill the funding gap, with the minimum of shareholder dilution.

Carscoffee, I spent 2 hours this morning doing a deep dive of the 11/6/20 merger RNS. I did this in detail line by line compared to my original read through notes after the announcement. I believe everything you are looking for is there as far as the synergies between the companies. The one thing I cannot find anywhere, is a one liner stating (a) how much proven reserves CERP has, and (b) the sum of its potential reserves in licensed (sea) or leased (land) acreage.

I recommend everyone reads the prospectus in minute detail. IMO, this document and the Leo interview shows the merger case has brilliant potential. Compounded by the fact both BoDs unanimously voted in favour.

There are some who are on the fence awaiting RNSs before voting yes, which I fully understand and respect. However, I believe a steady stream of further info will be disclosed in the next 2-3 weeks.

Carcoffee, morning. BPC snapshot as of pre-merger RNS below. I am working on a summary of benefits after CERP merger as it will be useful to have the intel in one place. I think it will take a couple of hours as I have a few other things I need to get done.

60 minutes BPC deep dive so you can make informed investment decisions......

1. Listen to Simon Potter (BPC's CEO) speaking about the new Uruguayan exploration license announced in an RNS June 2020. 12 minutes. https://castbox.fm/x/1GPRA

2. 'Bahamas Petroleum Company PLC's (LON:BPC) Eytan Uliel speaks to Proactive London's Andrew Scott after inking a rig contract for its Perseverance-1 exploration well which is slated to start potentially as early as the fourth quarter.' May 2020, 12 minutes. Watch https://www.youtube.com/watch?v=FfU_9wVTndo

3. Excellent slide show (14 pages) giving elevator pitch. Read https://www.bpcplc.com/wp-content/uploads/2020/02/BPC-Proactive-Presentation-website-20-February-2020-FINAL.pdf

4. Very informative 'deep dive' by industry expert Dr Zac Phillips. February 2020. Read and watch https://www.proactiveinvestors.co.uk/companies/news/912143/bahamas-petroleum-company---countdown-has-begun-912143.html/long

Please refer to my previous posts and other long term BPC holders who have undertaken substantial research and held the stock for several years, such as I. I am of the opinion a lot is going on behind the scenes under strict confidentiality agreements, such as funding for exploration (I think a JV with Stena or a major), otherwise the Columbus BoD would not have unanimously agreed to this deal and instead would have broken down into hysterical laughter when approached.

I very much believe in BPC and its Board, however you have to make your own investment decisions. Have a great day.