Member Info for stewart3250

Been going over all the reports from BPC and comments etc going back some time, also including the RNS where the Major bailed last year.

We are now in a position where providing we get the placing away at a decent price , then with the CLN etc we can drill on our own, clearly we would like a farm in as it makes cash and shareholder value certainly short term better.

The only thing which keeps going over in my mind and is now focused on is if BPC is as good as the board say it is then why has a major not signed up, these companies know the oil industry inside out, Shell, BP, Chevron, Exxon know it all and yet no farm in from any of them, I find that strange and a little worrying.

At the AGM was that question asked as to why no major has yet to farm in, I will stay but I would be much happier with a farm in than go it alone, if we miss drill one it could well be over.

Just my view.

Thanks for that, very well explained so basically the farm in is the best option for shareholders as the Major is relying on future oil which they are funding whereas the Capital rise is an immediate dilution for BPC shareholders.
I assume though it will depend on the capital price 2.5p or 6p for example, 6p much less dilution.

Page states SP said no less than 6p at Conference but not able to check that at moment.

Either way I am going to remain and not sell but I understand could sell now and perhaps buy back cheaper, conversely if they announce a farm in the price will shoot up.

I can only see this

Once advanced, the Conditional Convertible Loan would be for a term of 3 years, with a coupon of 12% per annum, convertible at a price of either 6p per share or a 25% premium to any hypothetical future equity issuance, whichever is lower.

6p in a capital raise, is that with a farm out, it must be or why would the price be 2.55p now, If it is 6p people would be selling their granny to get in.

I am assuming the lack of share price movement upwards is down to the fact that if we go it alone we will have about 1.8B shares extra therefore large dilution.

That said the dilution will happen whether we go it alone or farm out, clearly less dilution if there is a farm out, although we will lose our 100% of the ownership so in effect also dilution

The above said what are peoples view on a capital raise price without a farm out and with a farm out.

The result of the AGM is just out, give it a little time

Thanks for that, very interesting and much to look forward to

I have to say I was very sceptical about your comments but I have to say you clearly have a decent understanding of the sector so I won't filter you and see how things go, I would be interested in your opinion of the size of any find and relative potential price, I know its up to 30 Billion but is a fair figure 3 Billion !!

I did like your post from yesterday and hope you prove to be accurate, all up in the air but we will know in early 2020.
Specialist post from 10 Sept 2019
If they drill with a partner we will be around 12-14p - without a partner we will be around 7-8p. Miss oil and we will be at around 0.2-0.3p. Find commercial quantities and we will be at around 25p initially before the level of "find" sets the price.
During drilling we will fluctuate between 11p to 17 p with a partner and 6.5-11p without a partner.

So you should have a smirk on your face in 2020 before hearing whether the actual oil a hoax or real - so all good :)

Yes still on Facebook

Well I had a go at him the other day but I have to say he said 2.5p yesterday and indeed he got it right, so always admit if I was wrong. A good chance to pick a few up and should have waited but there you go.
Hope you are correct about a move back up, any views on a placing price if no partner I had though 2.5p but rather unsure at the moment.
Cheers and good luck all especially the Bahamians

bonum,
Fully agree we could well hit 5p in September perhaps more based on the best RNS I have seen from BPC, far better than that Non disclosure with a major.
As for Specialist100 or similar avatars they use, I was waiting for it to appear, they state the obvious, blatant ramping or doom and gloom, watch what they do, how anyone can bother even reading their completely obvious posts is beyond me.
Go on prove me wrong and contribute to this board and not gibberish.

jimtheknow,

Fully agree with your comments, a question though the AG said he thought BPC would drill which in my view they will now.
However he said did he not that he knew who the partner was, if that was correct why have BPC said they are still looking for a partners as things are taking longer than expected.

I find that strange coming from the AG
IMHO, DYOR.

jaytee41,

Companies with no income have to raise money through a capital raise which dilutes as the number of issued shares increase for the money received and normally at a price lower than the current market price or options often a lot less, that said some raise at a premium.
The other way is a farm out of its assets in this case we could farm out 50% so that's dilution as we only own half of the asset but its the same because we are giving a % away for a price in our case to drill the well.

jaytee41,

If your asking those questions I would say why are you investing in a company you know nothing about because it would seem you don't. do some research its all there if you look.

A, Macquarie in my view were brought onboard to get a partner or get BPC in a position where they can drill their first well, looking at the RNS yesterday they have gone a long way towards that, now whether that is the board or Macquarie I do not know but their guidance would be crucial or why have them here.

B. Dilution will happen when we have a capital raise or as per yesterdays RNS shares are to be issued to cover deferred salaries and as a bonus for achieving certain criteria, (if that is not quite correct just advise accordingly) Dilution would have occurred this way or if we get a joint venture.
Regarding a consolidation of shares, to me that's not an issue because if its 10 / 1 then the price would be adjusted to bring it back to the same market cap.

I posted this on the other board, be interested in your responses.

I assume some people have worked out the value per share of BPC with a successful outcome based on going it alone with the dilution for the extra shares or dilution restricted but with only 50% retained.

I did some quick calculations and the price per share with both options is quite remarkable but I would like to see other peoples calculations, they state 30 Billion but I worked on 1 Billion, work it out or whatever you think the reserves would be.

DYOR. IMHO.

https://oilprice.com/Energy/Crude-Oil/Exxon-Makes-Another-Discovery-In-This-New-Oil-Hotspot.html

This was my post on ADVFN the other day, echo's many on here and I would suggest needs answers.

Whilst I am very happy to hold as success here would be life changing for me and I would think many others. I cannot understand why this company and as MD Simon Potter can not update us on what is happening, their communication skills are very poor.

Based on the fact that us shareholders pay the directors by placings to keep it going it beggars belief why we are not MUCH better informed, it really is poor and needs to change, surprised this was not brought up at the last AGM, I assume the next one will be in the IOM so being in Cumbria I may just go.

Let's hope by then a partner will be announced and it's all perfect.

Pete,

Yes I can see it timed at 3.36, 1,405,565 shares.

Agree next year will be or should be superb however the rest of this year should see much progress as we await news on Potential partner in Block 29/11 China, Duyung sale or more drilling into a larger structure from memory and don't forget Sacramento, Alvares re-entry very soon, Dempsey to start flow again soon.

IMHO, DYOR.

Apologies the target price is 30p a share with a BUY recommendation and a valuation of 31p a share,