Member Info for TradingLad

How do people have the time to post about companies they won’t invest in, I genuinely must be doing something wrong, I find it hard enough to bother my arse commenting on the stock I own haha

I hope they do struggle to get a placing, a bit of debt round DB's neck might actually force him to make some better decisions!

I think that’s optimistic, when they place (and they will) I expect it to be about triple that.

Just to build on FYOZ and Fergu,

At the general meeting, I quizzed Stephen on this, my question was along the lines of "Do you think the £16m cash injection in Rathlin will bring it to fruition, as I would have imagined taking this to production you'd be looking at multiples of 10 of that" to which Stephen said "Our plan is to prove up the asset (WN) and sell in a timescale of ~9months and your quite right it probably would not be possible for us to raise the ~£300m to get this to production". also he added "we may not sell the entire stake of WN we make break it up into smaller blocks and sell it over time as we prove each are".

I'm sure they will hold on to some smaller asset through to production as they have done but not sure they can afford to bring the bigger ones to production yet... although they may use the profits from the sale of WN to develop Parta further but that would go against there business model... makes sense for them to be holding on to the likes of Cali to keep the lights on without further dilution.

Yes, absolutely agree.

With regards to leaving the gas to keep pressure high, this is no longer necessary with the advent of concentric gas lift where you effectively recycle the gas coming out to push it back in to artificially create pressure in the reservoir. But it is really a decision that will be made after a few years of flowing, depends also on supply and demand of course. I doubt it matters to us, and please don’t shoot me for saying this, I don’t think RBD would ever be able to raise the cash to develop this to production, £16m gets eaten up fast on drilling just wait until you see how fast you can chew through £100m on production infrastructure.

Please lads no, not the CPR vs EWT chat again!

I dread to think who that is...

Adoubleuk,

Someone did ask what the plans were for once the deal completed and Steven did say it would be full steam ahead, I think it's important to remember that even though the shares were issued on to the market it does take some time to move around that kind of money, it's not like transferring your mate a few quid (not being patronising), I reckon that it'll probably be completed by the end of this week and news next week, but you're right no reason why there can't be news tomorrow, end the week on a high!

Also, the equity swap deal has zero impact on this project progressing, which was said at the meeting. The only difference will be the share of Rathlin that RBD will own.

I get that it annoys investors that there isn't news and they want it thick and fast... I'm not in that much of a rush and the 9-month timescale that Steven suggested getting this asset to monetization will do me fine... I think in 9 months no one will really care that there was no news 4 days after the general meeting but I do understand the frustration.

anyway, hope this has been of some use.

adoubleuk,

Not entirely sure what you are disagreeing with? personally I don't know much about drilling (I'm on the process side) so please don't think that I'm trying to force a point across.

I had assumed the offshore side of drilling and testing equipment would have been a scaled-up version of the onshore equipment but since you are saying it the same I have to believe that companies would be making more money having it offshore than using it onshore, my point here is that the shortage would remain (with offshore bookings taking precedence) could be wrong though and I'm sort of entering into the world of speculation here which I don't really want to do.

on your point with Rathlin having "dibs" I would have to say that wasn't the impression I got from the meeting at all but who knows, come Monday next week I think we'll have all the answers... I'm in no rush.

thanks for your contribution though, everyday is a schoolday :)

Steven did say once the placing was done it was all systems go, all the planning had been done in the background and as soon as the cash was there we would be off to the races so to speak. It is also worth mentioning though onshore O&G exploration isn’t big business in the UK (when you compare it to offshore) so there simply isn’t the same abundance of equipment to get hold of, I think it may be the case that we are now waiting our turn for a shot on the roundabout...

I would agree with that. Once bitten twice shy.

The Rathlin shareholders involved in the share swap can walk away from the deal, that was categorically stated this morning. It was also stated that they don’t expect that to happen. I get the impression it’s more of a sitting the I’s and crossing the T’s exercise than anything too serious.

Hi Genghis,

That was briefly touched upon, in regards to WN Steve said they are looking at a 9month timescale to get it monetised, I asked about intentions for the £16m (as I thought it seemed far too small about to bring this to production), the answer I got from Steve very much leads me to believe they will prove this up a lot more and sell it or part of it. Parta was spoken about but the impression I got was that will take longer to monetise. I’m sure there are other who were there who will disagree though.

The £16m yes, no point speculating on the share issue really until we have the confirmation, i believe the figures quoted were (that we will own of Rathlin) ~60% from the £16m and ~75% if the share issue happens. Either way, it's a nice chunk to own.

I attended the meeting this morning, short and efficient. The 7m share issue to existing holders is expected to complete shortly but anything can happen, the £16m was a different motion so that would go ahead regardless of if the “up to 7m shares are issued” to existing Rathlin holders.

I'll probably go because all it means is jumping on the Northern line... definitely wouldn't go if it involved getting up at 4am, that's some serious commitment Genghis, respect! Looking forward to some newsflow in the near future!

Thanks for the clarity chaps!

It was this line that got me worried,
“placing of new ordinary shares of 0.1 pence each”
mis-read it as at 0.1 pence each

For my own clarity, reading the RNS are RBD about to place 20-24billion more shares on the market? Maths could be wrong but If they’re placing them at 0.1p

£24,000,000 / £0.001 = 24,000,000,000

Not a ramp or de-ramp just want to make sure I’m understanding what’s about to happen...

Didn’t mean to hit post there...

When I first read that it sound totally ridiculous but when you run the numbers on it, it actually sounds pretty solid to expect a special dividend of around 1p... wouldn’t mind seeing them use another whack of it to buy back a tonne of the shares in issue too