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Apologies for my ignorance but would someone explain in simple terms the ‘common shares’ referenced in the latest RNS (at 20.28) ‘Prospectus Approval and Admission’. I do not understand the numbers:
“The Prospectus has been approved in connection with an application to be made shortly for the admission (the “New Shares Admission”) to the standard listing segment of the Official List, and to trading on the London Stock Exchange’s main market for listed securities of 113,589,348 common shares of no par value in the capital of the Company (the “New Shares”) that have been issued since December 2021. The New Shares Admission is expected to become effective at 8:00 am (London time) on or around 7 February 2023.
“The Company has a total of 277,858,812 common shares issued and outstanding including the New Shares. There are no Common Shares held in treasury and therefore the total number of voting rights in the Company is 277,858,812. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.“
And so is there already a buyer or is that to be determined as is the price per share.
Apologies if this has already been covered by folk.
TC
Rereading the RNS, it is the latter section, on Financial Initiatives that is pertinent and suggests to me that while acknowledging the risk re the covenants is a requirement, mitigating actions are in hand.
The most significant risk is the stance of the bond holders as they could well call in the debt if the covenant is deemed as having been breached.
However, I think the main prize, the JV, is worth hanging around for so bought some more.
We make our own decision to buy or sell but I’d urge folk not to be spooked by the “I was just passing and noticed the world is going to fall on your head” brigade.
Good luck all holders, whatever your next move.
TC
Anyone care to translate all of this detail into what this could mean for the sp? Sorry but I bought with the oil in mind but the takeover looks to be far more complex than my simple brain can manage!
GLAH
TC
Excellent summary and analysis, AJEP.
The comfort I take is from the activities of the trolls. That they work so hard suggests to me an organised attempt to suppress fair value for a third party. Announcing the billion barrel find back in early 2021 attracted the attention of that third party and set certain wheels in motion, in my view.
Looking fwd to seeing the figures you allude to.
Patience is key here, definitely.
GLAH
TC
Unnd, really helpful note. Just to tweak the comparison a little, Surge En is a Canadian co and the purchase was of resources in Canada and I presume the figures quoted are in C$?
Re the resource bought ie not the production, 400mbb oip but only 14% retrieval rate ie projecting 56mbb effectively being bought. COPL has approx 1bn bb with a retrieval rate over 25%(?) ie 250 mbb.
Hence, for me, the t/o price is more likely to be $750m+ and reflect resource that can be extracted not current / nr term production so upwards of 110p increasing as more is proved up/known about the resource.
No doubt my logic is awry but worth a discussion!
GLAH
TC
Thanks, Carwell. This article makes for good reading albeit reflecting COPL’s announcements.
Summarises the many positives, and the references to the timings a reminder that volumes are very likely to grow significantly towards Xmas given the ongoing work started in October.
Patience required but I suspect not for much longer.
TC
TH, I was expecting/hoping to get confirmation of JV progress - I now have that
I was expecting to have a positive update on the RBL - yep, I have that
I wasn’t surprised to read that increasing oil production ain’t as simple as turning on a tap
However, I wasn’t expecting to find out DD on the JV was at an advanced stage - great stuff
I wasn’t expecting news that the Shannon reservoir could be possibly 30% larger than originally estimated (inferred from the volume of additional gas needed) - lovely jubbly
I am not in the least surprised someone has already tried undermining this update by Art
ATB
TC
So, get 36 wells to 84 bpd and we have 90,000 bpm, generating $5m+ a month. Looks eminently do-able!!
“On the right trajectory”, is what I suspect the CEO’s message will be tomorrow.
TC
Probably be a tree shake this am (hence the green box brigade’s efforts), building to blue this pm and perhaps an RNS bright and early tomorrow. Whichever, patience as all will look v different by Xmas with sp above 50p very possible IMHO.
GLAH
TC
Still reckon Tuesday bright and early for an RNS, with MMs having another go at scaring folk by dipping the sp on Monday. Hold long and strong.
GLAH
TC
Not that it matters, as long as we get an update, but I’m going for a 7am Tuesday RNS with news on the RBL, and the production work plan. Does Art want to give folk too much time to think up questions by giving them the weekend to mull over details or ride a wave of excitement at fresh and hopefully positive developments? As said, not important but whiles away the time before news drops.
GLAH
TC
Anyone with L2 see a large buy trade at close or shortly thereafter? Big green bar appeared on my daily chart but can’t see it reflected in the LSE trades list.
Looking good today and building towards news by end of the week?
GLAH
TC
Sooo, gross value of 1&2p resources once extracted, at say $50 a barrel, would be about $2,500,000,000. And that excludes the new, billion+ barrels yet to be defined but likely to be x 4 current 1&2p resource.
And the current mc is about $50,000,000?
Not bad, not bad at all.
Re rate will have to start at some point.
GLAH
TC
Stas20, your post of 15.48 - apologies if I have misread but you appear to have confused BOED with monthly aggregate flow figures. Appreciate that we’re all optimistic for future flow rates but just want to ensure newbies aren’t mislead. Hopefully, these rates will be the actual boed per well at some point!
GLAH
TC
I wonder whether there’s behind the scenes agreements being enacted to extricate both EVR and HMG from this mess. Sell all non-Russian assets and distribute proceeds among Western shareholders while core Russian shareholders get to delist and retain their ‘home’ assets. Ok, we wouldn’t get full value but say £2-3 ps would be better than nowt. Yes, I know but stranger things etc etc.
Suncreamed weekend all.
TC
Paper cert arrived this morning. Now looking for a frame…..
Nope, not yet. Did wonder whether Comp. intends to hold them electronically. Be a tad irritated if so as taken the shares out of an ISA wrapper for the privilege of paper.
TC
Yep. Interesting accounting. A sleight of hand to hide true profit position which can be revealed at some point in the future and distributed as a ‘special’ dividend (to echo our Mr Putin) when more politically acceptable? We’ll see.
GLAH
TC
Nothing strange about the timing as far as I can see. Toronto is 6 hours behind GMT so 4 pm start here is a 10 am start in Canada. Timing maps on to Canadian and UK business hours… and Arty needs his breakfast, I’m sure.
Be great if he did make a BIG announcement though!!
GLAH
TC
Many thanks for your thoughts, BPP. I guess real world issues will always be there but EVR looks to be coping. Interesting observation by Infinity - let’s hope that billion plus will be revealed at YE!
GLA
TC