Member Info for SteveV

Patience Mercadooly . A few more months and we will be transformed.

We will in all likelihood be drilling the Fed deep with a new JV partner sometime in January.

Mercadooly, I am quoting the very conservative independent Ryder Scott report.
They are confirming at least that is there. So that is pretty much the minimum quaranteed!!

As the SP wallows a lot of us remain anxious, BUT, when we get news of the RBL and the JV we will be flying.

Not long now.!
1 billion barrels of oil..! (light sweet crude)

Art is not stupid. He is not going to give away a huge portion of the Fed deep for a low ball offer to JV before it has been delineated.
Let them dip their toe in the water. Get them to pay for the first 2 wells for a share of future revenue.
Works well for both parties. We aren't giving too much away, and they are finding out how good the find is without massive investment.
Let's see how much oil comes out of the ground then we can talk about $$$$$$$$$$$$$$$$$$$$$$$$$$$
I am hoping after that has all played out we will be taken over for around £1.5b+

But I don't think we will get a takeover until the Feed deep is proved up.
Quickest way is a JV. They got the money and equipment. If the first 2 wells produce 2000bopd each then we are in dreamland and it is lift off time.
Thats is what the market wants, easily monetised massive assets.

JV is key for me. Getting a lot of oil out of the ground quickly is the imperative.

In the last few years a lot of oilers have cut back on investment drastically. They have been paying dividends and buying back shares rather than exploring or developing new finds.

But now a result when we need more oil quickly it's a problem.

COPL need to quickly transition to a much bigger producing business which is generating good profit. That is what will drive the SP forward.
JV will unlock that.(And I guess AM has realised that also). Just a matter of time now.........waiting !!!!

Lots of posts/threads removed today !!

I think the JV will be in stages with initially the JV partner paying for the first two wells in the Fed deep for a share of future revenue from those 2 wells (potentially 2000bopd each)

If that is that successful then all bets are off. Either a massive JV over takeover.

Yep, kind of agree we may not see true value until ALL the dodgy finance is cleared.

COPL becoming nicely positioned.
US oilers are going to be taking the brakes off over the next year. Good quality production and reserves will be highly sought after.

I do not pretend to know the intricacies of what goes on in the way financiers and in particular hedge funds make their money.

They do seem to come out the richer regardless of the performance of businesses they fund.

Kind of wish hedge fund management was one of the jobs listed when I had my careers teacher advice when I was 12.

In COPL'S case I don't quite get why bondholders seem to be converting bonds to shares, and possibly selling them at about the bond price. Why not just keep them and take the interest.?
Are they hedging their position in case the bonds lose their value(i.e the perception by the market that COPL will be unable to pay them back in due course)

Hopefully this will all be washed through soon and the company can move forward and attain true value.

A liquid stock with predominately private investors usually flies on good news.

A stagnant price around the last fundraiser price surely has got to be related in some way to placees, bondholders, warrants. They aren't investors just money men. Maybe some kind of hedging going on.

Finalise RBL
Get production up to 3000bopd by Xmas
Announce JV to drill first two Fed deep wells

It's all within our grasp now and will transform our fortunes!
It's coming!

I am not convinced the Canadian market have much of a clue and the volumes are so low as to make them irrelevant.

We'll see in the morning, here!

Yep, all that extra production UNHEDGED. Lovely.

I think we may be becoming in the not to distance future a cash positive NON loan requiring successful business.

BUT, that is apart from the gargantuan Fed deep find that will be the envy of most. And yet to be monetised.
Puts us in a very strong negotiating position !!!

I would imagine we may hear about a lot of acquisition news in the next few months.

Big oilers will be looking at producing businesses with proven reserves.

I am thinking the initial JV maybe something like the JV's fund the drilling of the first 2 wells in exchange for a share of the future revenues of those two wells.

Depending on how successful that is will be the turning point for our fortunes.

£300m would be great but I very much doubt it.
Time will tell how the negotiations pan out. I would imagine the JV partner would want to dip their toe into the water first to see what the first few drills of the Fed deep produce before a major commitment.

But that might be a good thing. If the first 2 horizontal wells produce 2000bopd each then the skies the limit...lift off !!!
Probably more like buyout than JV

Exactly. COPL have by timing and circumstances found themselves in a VERY enviable position.
If January's drilling of the Fed deep is as fruitful as we expect big players will be queuing up to buy our assets.

Well what has been holding COPL back in the past?

Lack of production
Lack of oil reserves
Debt and dilution due to lack of access to decent finance.
Lack of investment into the oil industry in general due to perceived eventual long term moving away to renewables.

Well ALL of the above are resolved or are about to be resolved.
But it is the latter which is going to be a big driver of change. USA needs oil and it needs it now.
If can see massive investment into projects that can generate a lot of oil quickly. NOT exploration.
Proven large reserves that are easy to get to and don't require major long term investment before a drop of oil comes out.

COPL are ticking all the boxes right now.