Member Info for VistaMan

General Levy, here is the section from the broker report:

DSA risk

We currently forecast that RockRose must increase cash under the DSAs to c$120m by 2019/2020, in which case we estimate there is a small shortfall of cash in 2020 on our current assumptions for it to push ahead with all the developments, but we expect RockRose can secure short term debt/letters of credit to cover any gaps. However, DSAs might be higher or lower than we forecast.

ramblingsid,
I disagree with your "cost cutting". I don't think the BOD have reduced the cost run rate significantly. In the RNS dated March 27 I quote: "During the reporting period a number of actions were taken to reduce expenditure, which collectively delivered annual cash savings in excess of £500,000, representing over 18% of the Company's fixed costs. So the run rate before reductions was £500,000 / 0.18 = £2.77MM. The current run rate of £220k / month is £2.64MM per annum. Not much sign of cost constraint there considering Thanawala has left and therefore one less director to pay.
Is the remuneration of our 2 directors appropriate for a company that has never had any significant revenue? They are not running a mid cap company!

petergar, The BOD in total are applying for a measly £27,500 worth of shares. Its a very good return for the BOD to be able to draw their salaries for 9 more months. If these business leads are so positive how come the "partners" didn't invest? For gods sake I nearly have as many shares as the Executive Chairman!

Is anyone on this board able to explain how they are spending £220k per month. Its the very least LTHs should know before stumping up more cash to keep the BOD afloat.

munchbox54,
Enquest have no interest in Catcher, its owned by PMO, Cairn & MOL. I am not sure PMO, Cairn or MOL will relinquish a share of Catcher cheaply. It's exceeding expectations.
A farm-in with a partner to I3E's Liberator Field would work especially if the BleoHolm FPSO gets its extension to 2029.
The Broker Report however states that RRE (after they pay for ARRAN) will need their cash flow to meet the DECOM liabilities in 2021. So a significant farm-in would likely require DEBT.

Anyone from this board attending todays AGM? Interested in any feedback from that. I have a bunch of these, sadly at an average of ~10p and had essentially written QFI off but the recent RNSs may rekindle some hope.

simonm, with the tender offer removing 20% of shares the remaining shares should increase in price to keep the mkt cap similar. (I say similar because RRE did consume some cash to purchase the 20%) But remember the purpose of the tender was to give IIs who were selling and keeping price depressed, an opportunity to exit in volume. This should permit the SP to rise further and increase the market cap as the share re-rates with the help of the publicity from the Whitman Howard broker report which has a target price of 1421p.
Will be interesting to see the TR1's next week after the shares are cancelled.

Predators, I remind you of your post of August 5, 2018.

"...I am not short but did predict 6 weeks ago 10p could happen. When I said that the shares were about 50p and so it seemed ridiculous that it would happen in 2 months which is what I said. ...but look at what's happened. Of course I got abuse and the usual people with selective memories have a go. ....it is what it is and now I think around 5p will happen. Whatever you do with this stock short term do not right the aim market, sentiment and price action. Hope my post does not fall on deaf ears."

Maybe you should correct your 5p and 10p predictions? The problem with trading is you could miss out on a portfolio company divestment and that could be expensive. Its also easy to spot trading opportunities in the rear view mirror, not necessarily a good predictor of the future.

YellowSnow, I'll remind you of a post on Tern of yours in September 2017, and I quote:

"nice work for all who stayed the painful journey, paying off now.

DA pulling in the big revenues from 2018 as products are finally released.

exit strategy now looks very sure and on a p/e of 20 for 2021 $400m or $200m for TERN.
those figures look conservative."

Are you a schizophrenic? Which half is posting now?

YellowSnow, why would anyone believe your version of events when the NOMAD who has access to what is really happening says Tern has enough cash for the "next couple of years".
Now why would they say that? Perhaps revenue flows now happening or an exit of a portfolio company imminent.
Either way good news for Tern shareholders.

cf456, totally agree, made my 9th and 10th purchases yesterday and today. Good to see director buy post tender. Lots of news to come, I wonder what will come first?
Blake extension, A/B drill result, ex DYAS CPR.....

Made my eighth and last purchase pre-tender. Will add more post tender depending on tender result / announcements. I think depending upon outcome of the tender (have we cleared the sellers) we will be well north of 700p by year end. Hopefully can count on a rebound in POO post OPEC mtg early December to help sentiment.

jimmy, added my 7th purchase yesterday myself and a friend added 5k shares last week also. Its going to be exciting post November 23 with so many upcoming news flows, perhaps some news on DYAS CPR and infill drilling on Blake as well. (by the way a few typos: 5m barrels to RRE, 3k BOPD)

I attach a link to a presentation by I3E which own the Liberator field, right beside the Blake field / Bleo Holm FPSO. They also own a potential field Serenity which is right beside the Tain Discovery. They intend to use the Bleo Holm FPSO for the first phase of their production from Liberator East in 2020.
At approx. 7:20 into the presentation they mention requiring a production system of their own as Bleo Holm will likely only be on station to 2029.
Good news for RRE if it is on till 2029 and also potential farm-in for RRE to Liberator / Serenity given proximity to Bleo Holm and Tain.

https://www.brrmedia.co.uk/broadcasts/5bd340bc355d6764a6235b66/121-oil-gas-london-i3-energy-presentation

surfi,
Did you manage to get a full copy of the report? I tried on Research Tree to get a copy but was rejected because I didn't qualify as an "Elective Professional Client".
Anyone else successful? Anyone know where to purchase these? I would be intrigued to know the content.

YellowSnow,

I agree with antelope, its pretty obvious what your motives are here. Either that or you are incredibly dull to be valuing companies based upon historic NAV which only get updated upon a qualifying event. Did you ever stop to think that Tern might not actually want to raise money from just anyone for DA?

Glad to see you decided to invest workover.

Another couple of additional reasons to invest in RockRose today:

1.Will SP grow more rapidly post the tender and removal of large sellers?
2. If not will the company be taken private with typical premium required to do so? (Personally I hope not as I believe RRE has much value to offer in the future)
3. Reduced number of shares will make capital distributions easier and larger!

This on top of the existing reasons:
1. a P/E of ~ 1
2.A Mkt Cap not dis-similar to total cash
3.A growing production with the addition of Arran and most likely more to come
4. Zero debt

Can't find another oiler with this combination of attributes.

shareaction, I think the HL info means you won't pay any UK tax on dividends, in the case of DGOC its US Witholding Tax which is being charged.

lignumvitae, I can confirm that HL agreed what shareaction had posted. ie zero tax on DGOC dividends in a SIPP and 15% in an ISA. Text pf their reply pasted below:

Dear Mr XXXX

Thank you for your query.

I can confirm dividends received for Diversified Gas and Oil plc within a SIPP are taxed at 0% and dividends received into an ISA are taxed at 15%. These treaty tax rates apply as long as you have a valid W-8BEN.

I trust this has clarified the situation. If however you have any further queries please do not hesitate to reply to this email or contact our Helpdesk on 0117 900 9000.