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Nice to see SW had the usual impact on my pension. I don't know why I expected anything else-definition of madness? Staggering performance. Wonder how he'll cope when the funds run dry and the cars and fancy dining have to stop-bless.
I sent a message to RBD via their contact us page over the holiday period. My points were largely aimed at how the BOD planned to provide shareholder value over and above the investments made in Parta and Daybreak and the timescales, consistent with their stated business model. I also asked whether the horizontal well drill at West Newton was on track to meet their forecast H1 2024. (I seem to recall seeing something where the H1 seemed to have gone missing). I also asked if their new raised level of communication to shareholders which they promised (and have not seen in my view) after the last requisition is what we can expect from the BOD in the future should they survive the vote. I'll keep you posted!
My sentiments exactly JD. I was prepared to go with the flow at the last requisition and let S&S deliver on their promises. They clearly haven't delivered on anything for shareholders, if they ever really planned to. I don't know enough about these new guys, but I'm fed up with the current lack of communication, the very cagey careful use of the English language, and it appears the ongoing mistakes. I still can't work out whether it's arrogance or incompetence but I'm voting them out with my 10,000,000.
Are S&S actually trying to get booted out. The recommencement of the share buy-back (to give funds back to shareholders!) suddenly starts again when they're under pressure. On the basis of fulfilling the £600k balance of the original £750k promised it will take some 150 working days to complete at the current rate, that's 30 weeks. Pitiful and embarrassing.
My take on this is that S&S have brought this on themselves. When the last requisition was in play they promised a bunch of stuff and have failed to deliver them. Better communication-fail. £4m return to shareholders-jury’s out but a £750k share buy-back was an embarrassing farce. Was it about £150k before it petered out. Lowered the bar on their share option awards and snaffled the proposed £750k share buy-back. Still use NPV10 as a measure of value even after telling shareholders off for complaining about the Victory sale price. Italy doesn’t seem to fit with their stated business model, a business model they had secretly started to move away from until the last requisition forced them into the promised £4m return. I can’t work out whether it’s lying, incompetence or arrogance on their part. As I said brought all this on themselves.
So a while ago I did a rough calculation that at the then current rate of travel it would take over 1.5 years to achieve the £750k buy-back. That was assuming 5 days a week less bank holidays and closed periods. It didn’t assume there would be days with no buy-backs. Do they just forget? Embarrassing. They could have a look at their mates at UJO and their buy-back programme.
So at say £2k buy back a working day, 260 days in a year less 8 stat days and say 30 days ish closed period equals roughly 220 days. The £750k would take about 1.7 years to complete. It's clearly just a sop to appease shareholders but in my view it does the opposite and makes the management appear incompetent, clinging on to the cash for as long as possible. Then kept in treasury anyway. Not a good look.
As with many things in life there are two sides to every story. My take as of today is I believe the Vox interview was pointless and just a whinge about the poor share price. The distancing from the NPV10 is a bit rich after quoting it often and is a rewrite of history. On the plus side my questions and the company's answers are now posted on the RBD website along with some others. Also the "contact us" page is apparently working now, although I haven't tried it yet. I believe the "contact us" should be made into a public forum, albeit knowing that genuinely market sensitive questions are not allowed to be answered. I think that the next few months will be critical for S&S's tenure. If the company has to find funds to support Rathlin for the horizontal drill; If the timing of the drill wanders into the tail-end of this year or into 2024; If the £4m of shareholder distribution/buy-back gets watered down or disappears-all bad news. I hope the timing of the drill is therefore not dependant on the 2nd tranche of Victory sale proceeds. I hope they pull it off as I believe there is a genuine opportunity to grow this company and please the owners-the shareholders.
Latest reply from Camarco. Hit the anticipated stonewall earlier than expected though. I did try!
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RE: Re:RE: Better communications with shareholders
Sam Morris
To: Tony Bartlett1111 tony.bartlett1111@btinternet.com;
24/01/23 11:36
1
Hi Tony,
Apologies for the delayed response.
Unfortunately, a number of your follow-up questions are commercially sensitive, and we are therefore not in a position to answer them at this moment in time.
I have relayed your concerns on communications around Daybreak.
With regard to communications mechanisms, you will see on the company website, the following statement: *As a part of our commitment to better communications with shareholders, Reabold is currently working on a new website, due to go live in April 2023. The Reabold management team has also committed to bimonthly shareholder engagement events in the form of video interviews and/or interactive Q&A sessions.
I hope this is helpful.
Best wishes,
Sam Morris
Consultant
Camarco
My follow-up email to Camarco. I know the company is not allowed to share market sensitive information, but in the absence of anything else whilst it decides how to improve communication with shareholders.....
Thanks again Sam.
I'd like to follow up on some of the points if I may.
Question 3. The point I was alluding to was RBD's 59% shareholding in Rathlin. If Rathlin is unable to fund the next WN drill doesn't 59% of the cost fall on RBD? Assuming this is correct, if there turns out to be a liability here for RBD are there sufficient funds (including the Victory proceeds) to ensure no need of a fund-raise for RBD. That wouldn't sit well with a £4m distribution in whatever form that takes.
Question 4. The part of the question regarding estimated costs of the drill wasn't answered.
Question 5. With the Daybreak news today and the unaudited accounts, what is the company's view on the value of the RBD investment in Daybreak through the assets rolled into Daybreak? This seems to get to the heart of the communication issue. This information has arrived in the public domain with no comment from RBD.
Question 6. Is there any news on the development and production consent for the Victory gas field from the North Sea Transition Authority (NSTA), thereby giving a better idea of timescales for the payment of the 2nd tranche.
The last part of my last email asked about timings for the various communication mechanisms. This wasn't answered. Also my point regarding a place for a public forum wasn't answered.
Thanks again for your efforts.
Tony
I got the following response to my questions. Whilst not everything has been answered it's a start. I will go back to address the unanswered questions.
Hi Tony,
I hope you are well. I have spoken with Reabold’s management who provided the following responses. I hope this is helpful.
Best wishes,
Sam
What is the position regarding Parta and the licences in Romania? Have they expired or have they been renewed? Are the EU going to provide a grant for further exploration/development of Parta? Is that why there is a delay?
Parta consists of the IM production licence area and the broader Parta exploration area. ADX is in the process of attempting to extend the exploration area term. The production area has no near term expiry.
2. What is the company's view of the NPV10 value of projects in the light of the Victory sale?
The NPV10 value represents the theoretical and unrisked value of a project to a company that is sufficiently resourced both financially and operationally to take the project through development, production and to the end of field life. We will evaluate the optimum point at which to dispose of a project not only on the realisable value at the point of sale, but also how effectively we can redeploy that capital in new and existing projects to maximise returns for shareholders.
3. Is Reabold fully funded for the WN upcoming drill as previously stated, including its Rathlin resposibilities?
Reabold is fully funded for it’s share of the next West Newton well. Reabold does not have any funding responsibilities via Rathlin, however it is possible that Reabold will form a part of future Rathlin funding as it relates to the next West Newton well and beyond. Rathlin is working on securing final funding for the next well alongside securing final permits.
4. What is the latest regarding both cost of the next WN drill and the estimated start and finish timeline?
Reabold is targeting a start to drilling operations around the middle of this year. This will lead to operations taking place throughout Q3.
5. What is the latest situation regarding the RBD investment in Daybreak? Are there any issues with California regarding permits for the new drills and water disposal? If so what are your views on the timescales for resolution?
Permits are in place for water disposal and are being secured for further operations, The primary legal aspects we are working through relate to other legal aspects relating to the water disposal well.
6. What progress has been made on the proposed £4m distribution to shareholders from the Victory proceeds? What form will this take and proposed timings?
The mechanism and form of the distribution are currently under review. The distribution is intended to be made from the second tranche of cash proceeds from the disposal of the Victory project. The mechanism of the distribution will be determined at the time of re
Just for information, I did send the 6 questions I aired on here before Christmas (with some improvements-thanks) to Sam Morris at Camarco. He's promised to get back to me. I don't know whether there is any mileage in this approach but I've given it a go. As part of my email I asked whether a public forum could be set up so we can all ask relevant questions and have access to whatever answers are provided.
I recognise this process is a long shot but I'll give it a go. I have the following initial questions of Camarco. If anyone wants to add any or polish these initial ones please feel free to contribute. It may be the answers will simply be that it's all confidential and not in the public domain, but maybe it will kick off some RNS's as part of the process of better communication.
1. What is the position regarding Parta and the licenses in Romania? Have they expired or have they been renewed?
2. What is the company's view of the NPV10 value of projects in the light of the Victory sale?
3. Is Reabold fully funded for the WN upcoming drill as previously stated, including its Rathlin resposibilities?
4. What is the latest regarding both cost of the WN drill and the estimated start and finish timeline?
5. What is the latest situation regarding the RBD investment in Daybreak?
6. What progress has been made on the proposed £4m distribution to shareholders from the Victory proceeds? What form will this take and proposed timings.
Hi all. I've been in touch with Sam Morris at Camarco to see what the company is doing to deliver on its stated promise to improve communications with shareholders. Attached is his reply. Just thought I'd put it out there initially. I plan to go back to try to establish timings and some more meat on the bones, and also thought it might be of value to create an initial list of questions to see if we can open a sort of live dialogue. Any thoughts?
Going forwards, Reabold intends to use a combination of regular video updates, for example with Proactive Investors, as well as interactive sessions, such as those hosted by Investor Meet Company, where viewers can submit questions ahead of time or during the live presentation. Management are also considering in person shareholder events where appropriate and are currently in the process of putting together a redesigned website. The Company will continue to monitor the incoming questions on the Bulletin Boards and address them where possible through the aforementioned channels.
Please let me know if I can help any further.
Best wishes,
Sam Morris
Consultant
Camarco
What is the best way to communicate with the company? In the spirit of the stated need to improve communication with shareholders I sent a message through the RBD contact us page. That was three weeks ago. I then sent another over a week ago asking why I hadn't received a reply, not even a holding "we'll get back to you" response. Any ideas please?