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It’s really NOT the most “sensible comment of the day” tbh.
Why would Energean want to pay £500m (lowball at 50p a share which AP wouldn’t accept anyway) when they’d still have to drill Anchois East and do flow tests etc, then , on top of that, foot the bill for the entire Capex of up to $850m, when they can just proceed as per the Farm In terms?
There’s plenty pie for everyone under the current deal (well aside from the seller obviously lol) and it mitigates risk (what little there is) for both parties.
Another possibility (and I’m just chucking options out now) is that whoever “made the approach” to purchase the entire company, which was dismissed out of hand by the Bod (as discussed in the Q & A) is the Seller?
If they built a stake, with the intention of making and offer, and that offer was dismissed, they may have another “target” in mind, and intend to try the same thing elsewhere?
We have no idea when that offer was made, or dismissed. It may have been 3 weeks ago when some first started to suspect someone was selling, and they are using the RNS volume to dump the rest?
As I say, just thinking out load.
Happy, you’re right, I should have caveated that with IMHO.
IMO, this dump of shares has the look of a single entity about out. The large 50k, 100k, 150k have been relentless, and started immediately after the RNS, and the price they are achieving appears irrelevant to them. We may never know tho, as it could be someone with under 3% who have never needed to declare. Time May, or may not, tell.
Nickshaw, No, I still don't accept that “the market doesn’t like the deal”. As I’ve said before, “the deal” clearly doesn’t suit one particular institution or individual, who appear, for whatever reason, to want (or need) to exit at pretty much any price (we’ll probably never know why).
Furthermore, I’ve not read anything anywhere that is particularly critical of The Deal, other than the fact it requires a bit more patience. More patience, doesn’t mean the deal is bad, it just means waiting a little longer (which is what PI’s don’t like).
As a snap shot of public opinion on the deal, I’ve not seen anyone on here suggest Chariot “have been ripped off”, I’ve also yet to see any of the regulars on here, post that they’ve sold out and moved on. If either had happened, you could maybe argue that the perception is that the deal was/is bad, but the bottom line is, this is the best deal for Chariot shareholders, they just don’t seem to realise it, because all they are looking at is the current share price.
GL
Yes, all rather silly.
At a basic level, if you take Cash in the Bank, pretty much the minimum lump sums from the deal, plus the promised back costs up to FID and The seismic costs for Rissana, that must be close to 50% of our current Market Cap 😂🤦
Fernan
“For now, the only reality is: Energean will pay US$ 25 million for a 45% stake in Anchois. If the flow test in uncessfull, we will only receive the initial US$ 10 million, and that´s all.”
But wasn’t/isn't that always going to be the case? Without a flow test, there would be no financing from anywhere, so all these things have to happen at some point, just potentially in a different order. This way, and assuming there are preset flow test parameters in the contract (which there has to be) everything is ‘good to go’.
Good point, Happy
If Chariot had gone (or end up having to go down) the self finance route, interest on any loan would have begun to accrue as soon as the loan was made. By doing it this way, there is no interest until production begins, so it’s in Energean’s interest to get us to that point asap. Interest on 50% of capex for a 12-18 months (albeit not all would be drawn down initially) isn’t insignificant.
……and are we just ignoring these bits? 🤷🏻♂️
o US$85 million gross carry including:
§ All Lixus costs up to FID, including the additional Anchois well with a gas flow test
§ Planned Rissana seismic acquisition costs separately capped at US$7 million
If ever there was anyone that deserved NOT to break even and/or lose money, it’s you kb. You are literally the most pathetic, whinging, embarrassing excuse for a so called investor, ever to grace these BBs.
I tried to tell you months ago to sell up and leave, because investing wasn’t for you, but you didn’t listen, you just kept moaning, and repeating your nauseating tag lines. Do yourself, and the rest of us a well overdue favour, take my advice now, sell your shares, take whatever money you have left and go buy some premium bonds or something!
Absolute 🤡
Laughable!!
There’s not a snowballs chance in helll that Chariot would be signing this deal, if ONHYM or the Moroccan Govt were even remotely concerned about the consequences from a geopolitical perspective.
Try harder 😂
“Wood for the Trees” springs to mind.
Couldn’t agree more Happyinvestor.
This deal gives Chariot the opportunity to earn vast amounts of revenue with no further dilution and zero debt (in fact less than zero due to structure of deal) off the back off 1 drill with a very high COS.
It’s an absolute no brainer. If people can’t see it, simply because the SP didn’t react “correctly” yesterday, more fool them.
CoolMax, there are ONLY ever 2 reasons for manipulating the price downwards imo ;-
1) To allow Short positions to close out
Or
2) To fill a large buy order.
IG are showing 97% Long 3% Short so not a huge amount of short positions to close out.
Anyway, time may, or may not tell what the reason for this ludicrous drop is/was, but imo, it’s not because of the deal announced today.
Wouldn’t they be more likely to drop the price like this if they had a large Buy order to fill? How would they possibly fill a big buy order in a rising market on a day of excellent news, if everyone else is trying to buy too. Especially if it was at a pre agreed price! 🤷🏻♂️
Nickshaw, I don’t accept that the market “doesn’t like the deal”. I’ll have to agree to disagree with those who say it doesn’t, but a drop of 20%, on this volume, with this number of buys v sells, just doesn’t add up. I may be proved wrong and a huge sell may appear after hours, but 1 person/Insti offloading still doesn’t mean “the market doesn’t like the deal” imo, it just means they want to sell, for whatever reason, and are using today to do it.
On the face of it, and at this point in time, there a pre 2m more buys than sells today.