Member Info for SteveV

I think we will only get favourable("optimum", as AM called it) terms for both the JV and RBL when we are at a position of cash flow positive.

That can be achieved with the increase in production with the planned work to address the high pressure issues.
We now have the cash to do that.

Goldman Sachs is predicting oil pries or around $94 for the coming 12 months and $97 for 2024.

5000 bopd x 94 x 365 days = $171.5m annual revenue

THEN we start drilling the Fed deep........!

Not sure if any the current funding is earmarked for the Fed deep horizontals.
I would expect to start after the RBL or JV is finalised.

"...The proceeds of this Convertible Financing will be used for: (1) facility improvements to increase production; (2) paying off outstanding payables; and (3) operating capital...."

The JV and RBL are dragging on.

I suspect both have been playing hardball with terms.
RBL people possibly looking for uptick in income stream before committing with favourable terms
JV people possibly want to see a financially viable partner, and maybe results of CC re-completion wells before committing with favourable terms.

We don't want to enter into agreements from a position of weakness.

"...In conjunction with the G&A commitments outlined below, these measures increase COPL's working capital and afford COPL a solid footing ensuring the best possible outcomes be negotiated for refinancing and joint venture...."

Things could start coming together very nicely this year for COPL.

Get the the RBL sorted
Start work to get up to 5000 bopd

Sign the JV agreement. (The backing of a large oiler vindication of the huge
potential and speeding up of exploitation of the field)
Start work on the 2 x Fed deep horizontals (potentially 2000 bopd each)

USA NOW very keen to start producing much more home grown oil.
Most analysts suggesting oil prices set to rise as demand increases later in the year.

COPL could come very good, production wise, JUST when demand and prices are sky high !!

I agree the bonds have been EXTREMELY onerous.
BUT...It's easy in retrospect.
Maybe Art should have done a GIGANTIC placement on the back of the Fed Deep discovery when the SP was 35p.
LTH would maybe have whined like mad at the time by the dilution but in retrospect it would have been probably a lot better than where we find ourselves now.

But don't lose heart, everything still to play for. Going to be a good year for Oilers....I think! We may be on the cusp of greatness...!

Is the looming potential banking crisis holding us up. RBL is pretty crucial to our plans.!

I'd be amazed if the JV doesn't happen now.
Are the stars finally aligning for COPL?.....I think so.

Pique, the lender is the senior lender that we are trying to exit with the RBL.

The main bondholder is going to top up more cash to tied us over in the short term. (probably more bonds)

Does beg the question, where is the RBL? It was waiting on 2022 reserves update which was due end of Feb.

I would agree. Think RBL next before JV. I expect the JV will want to work with a co. on a sound financial footing.

JBL waiting on 2022 reserves report, JV waiting on RBL.....
Dealing with high pressure to increase production waiting on RBL...
Drilling of the Fed deep waiting on JV......
Waiting !

Well we got the permits for the horizontal drills. Ready to go. Just waiting for some cash/partner!

It really depends on how this pans out. IF we get good terms for the RBL...then good terms for the JV, then the skies the limit. Plenty of working capital and a major partner who realises the potential.

Why is it taking so long? Maybe the JV don't want to partner with a penniless company so want to make sure they can hold their end up with an RBL. The RBL are waiting for end of year reserves to be booked.

If we get neither then we'll struggle along and shareholders may feel the brunt of more dilution in the short term as we try to raise enough finance to get to cash positive. Not that I think that is too far away.

The SP seems to be at an almighty pause at 6p right now. ........Everyone waiting !!!!

My VERY last top up at 6.1p . Thanks.

Just waiting now............

The mood music has definitely gone from IF to WHEN.

More likely to happen than not I'd say. I guess it may depend on the offer the JV make. But surely that has been
discussed already between them.

I have said it previously and maintain that 2023 will be big year for oil companies.
Big oilers will be snapping up small oilers with reserves, resources , or production.

COPL has million of barrels of sweet light crude in highly desirable territory. Only a matter of time before it is swallowed up.

"You are making Art to sound like Jesus. "

He not the Messiah, he's a very naughty boy !

" big enough but not that big"

I have viewed every recent video and RNS and don't recall Art saying anything like that at all.

All he aver said was "a large oil company"

It's what the RBL bank(s) have been waiting for. Should be able to sign off on the term sheet(s) now.

I am fully expecting RBL and JV by the end of March.....but of course I could be wrong.

One could speculate that the JV may? have be waiting on the RBL, or maybe the RBL have been waiting on the JV. OR, not at all! Who knows. We'll find out soon.

You can be pretty sure the bondholders wont be converting at 6p !!!!

I had another little top up this morning at 6p. Thanks...... Increased my holding by 35% this month.

1400 bopd with crude at $78 = $3.276 million revenue per month (currently unhedged.)

Current Production 1400 BOPD
"Most importantly our principal stakeholders understand this too, and are working with the Company to exit this period stronger than it entered."

Well we entered at 42000bopd in December.

We are now at 1400bopd = 42000 per month, AND art is expecting more to come ("stronger")