Member Info for SteveV

I think "Incremental" sums it all up for the time being.

I think the RBL is taking a while due to volatility in the lending market due to the Fed increasing interest rates. Getting a good deal is more of a problem. Thats why they are still talking to multiple options.(Art had initially wanted to do business with their current bank)

Well naturally we would prefer the JV to be Exxon not Apache.

But do Apache even fit the bill?

"What is driving our prospective partner is a long term EOR project utilising a substantial CO2 resource the hold in Wyoming.”

"I have done business with them before thus we know and trust each other, which is a condition of mine as well as theirs. They made it clear at the outset this was why they reached out as they tend not to deal with real estate salesmen. In addition, they know our geoscience team and one of our engineers from our previous joint venture."

"..In which case we still have debt and would still require an RBL?"

Yes that is Art's plan as laid out by him. Get an RBL. He never really wanted an early JV because it wouldn't reflect true value prior to the field delineation and production. But times have changed and needs must, and the field is humongous.
"too big to go alone" He said.

Yes he could say to to the JV "I want enough cash to wipe out all our debts" BUT they might want half the Fed deep for that.

I would also be inclined to think a phased JV may be being discussed. Works well for both parties.

JV dips their toe in the water. "Let's see what the Fed deep really has to offer". i.e. how much and how quickly can the oil be got out of the ground, before making a major bid.

For COPL they don't want to accept a low ball offer for Oip. Far better to delineate the field and get top dollar for P2 reserves once proven.

Trujack, if you believe the emails then I can't see any other interpretation than the JV is Exxon.

I can't see any other local oiler that fits the details we have been told.

Be nice to get a mid afternoon RNS whilst both markets open.

I'd certainly like to see us pay off all the outstanding bonds....less dilution

And of course IF the JV is announced and especially if it is Exxon the RBL will be a formality. (assuming we would actually still need it !!)

Surely we need an RNS. What happens if the sp doubles on the back of an email between a private shareholder and a CEO.
Is that not tantamount to insider trading for those that know?

Interesting how the de-rampers are moving on from COPL as a basket case to, now, how little we might be taken out for by the biggest oil company in the USA.!!
What's next..."OK so it's all come good...but you were very lucky there"

And don't forget It was the bonds that allowed us to buy CUDA. That gave us an extra 27% of the fed deep. Independently confirmed at at least 1 billion Oip. An extra 270 million barrels, just on the Fed deep alone.

I bet Exxon can't wait to start pumping all their surplus CO2 down there to enhance the recovery rate even more. Tertiary CO2 EOR(enhanced oil recovery) following on from primary and secondary recovery can take the overall field recovery to as much as 60%

Interesting article regarding CO2 and EOR(enhanced oil recovery)
https://www.iea.org/commentaries/can-co2-eor-really-provide-carbon-negative-oil

You could speculate where this might be leading - COPL(Fed deep), Exxon(Carbon capture/EOR using CO2)

JV and RBL and we'll be flying. We all know it. Could come any time.
Drilling the Fed deep in January. That will be exciting !!!

sorry, meant 13.25p

"Conversion price of 16.75p, being a 5% premium to the 5-day volume weighted average price of COPL's common shares on LSE prior to signing binding terms with the Investor. The Conversion Price is US$0.2001 based on 1.19480 GBP/USD FX rate as of 4pm London, UK on 21 July 2022. The Conversion Price will be reset to 13.25p (US$0.1583 based on the aforementioned FX rate) if, among other things, an RBL is not secured five months from the Issue Date, or on the twelfth month anniversary of the issue date of the Convertible."

I imagine Arthur didn't anticipate the delays in the RBL due to volatility in interest rates.
Additionally the ramp up in production has also not materialised YET which may or may not be a condition to get, or get the best deal on the RBL.
Is this why he is now entertaining a JV having previously not been interested. Yes the new find is massive and "too big" for COPL but actually we really could do with the money!

It is true the bonds revert from 16.75 to 13p if the RBL is not in place by 25 December so ideally we need some action by then.

Hey Oiler, but surely you should be selling out now, or your losses will be even greater, if that is how you think things will play out. If you are that pessimistic you would be crazy NOT to sell your entire holding and write the loss off to experience and move on.

We'll find out if all the bondholders who want out are out soon enough.
If the sp rises steadily and goes into the 17-18's I think they are done for now.

Does anyone know. If the bond holders convert some or all of the bonds are they still entitled to the full amount of warrants.?

Probably see the SP walk slowly up to 16.75 before the next round. Brilliant for traders !!!

JV could drop at any time though ! I'm staying put.

Well there you have it...the recent sp drop.

So we are down from $25m principal debt to $20m. Paid off 20% off the bond debt as of today