The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
The most recent online presentation they addressed the dilution concerns for when acquiring production assets stating "there are lots of examples of raising at a premium". So for we can live in hope on that matter. They surely wouldn't be looking to raise at these lowly levels where the mcap is under £30m, would they?
Faroe's 17.5% stake in the Fenja field was sold to Suncor for $54.5 million (including tax) in 2018.
What price to buy it back now?
I believe Longboat moved to larger premises recently, however surely they must be v interested in getting their hands on these assets. It seems such an ideal fit, exactly the kind of thing they have stated they are interested in, in terms of both the assets themselves, where they can add value with their existing knowledge, and the deal size.
Good find Paul. This looks ideal for Longboat. In the sweet spot price-wise and Oda and Fenja they know well from Faroe days.
Seller has pushed us way below even cash in bank now, who'd have thought it
Yes OKEA have already confirmed the spud, which has been reported widely, so expect the RNS tomorrow morning
https://www.offshore-energy.biz/equinor-kicks-off-drilling-operations-in-norwegian-sea/
Not great is it, even the True Believers (amongst who I count myself) will be scratching their heads at this share price. Perhaps you are right, and the acquisition of a producing asset is what the market demands (regardless of price paid? level of debt?)
Cheers Trek.
So that seems to suggest that if the seller was e.g. Canaccord then we shouldn't expect a notification RNS as they started out with less than 3% (post placing)
Hi mozzabezza I believe they have been selling into any volume/strength for some weeks now and so should have issued at least one TR1 to say they have gone below a % threshold, although can't remember the exact rules regarding notification obligations. I have taken the opportunity to buy yet more (up to my neck now here, lol!) but I do believe as Malcy tweeted "the beginnings of a real oil company" is here.
These guys are super professional and are working with some of the best in the business with Equinor et al. Two hits out of two suggests a few more hits are a strong possibility.
Wouldn't it be great if they would soon also announce the acquisition of a producing asset in either UK or Norway, that would be the icing on the cake
Another two buys for me today, don't look a gift horse in the mouth as they say.
I'm so much more relaxed about the share price now after yesterday. I remember when one of the pension funds was a forced seller in Taylor Wimpey, sometime in 2008 I think it was. They just decimated the sp. I managed to buy a whole load of shares at 7p and sold them for a very handsome profit some months later, so big sellers can be a great opportunity.
I wish we could get some TR1s though, I'm curious to know who the seller is.
I liked this bit of the RNS "This could significantly increase the resource estimate for this laterally extensive discovery measuring approximately 80 km2 as defined by the seismic amplitude anomaly."
Anyone care to calculate the potential size of the resource if the whole 80km2 can be exploited? Sounds huge.
I think we still have a seller actually, perhaps one of the IIs who bought in at IPO and then decided they didnt want to be in fossils, selling down whenever they can, in large blocks. No matter, or even a good thing, as its provided some liquidity today and has allowed those of us who have wanted to to buy in at these prices over the last few weeks. When this seller finally done I hope to see us racing up to more realistic sp.
Me too - managed to grab another 5k worth @84p, took nearly an hour to fill though.
Happy days!
Great news - congratulations to all who held long and strong!
Well after my apparently ill times top up at 90p a couple of weeks ago I made another top up yesterday. Cannot believe we have fallen back down here and can buy again under the raise price of 75p. Of course, if the latest drill does not deliver what we hope we may fall further, however we have a good deal of cash in the bank due to the tax rebates, so I firmly believe the downside is limited.
I am also watching to see whether they are in the process of building a UK based team and whether they will be looking to be licensed as an operator within the UKCS. As far as I understand it at the moment, there are a few UK based people, but no proper office that I know of.
icemax - thanks, and you may be right about the sells.
daveri - I was referring to the most recent clutch of new recruits, not those that were taken on prior to submission of license application.
Icemax one of those 25k buys (@89.999) is mine....just the one though!
Decided to top up as I like what I see recently in terms of others buying in big (will he be going for 10% like Deltic? and incidentally I wonder whether there has been any dialogue between Longboat and Deltic). Also with the growing headcount it seems clear that further deals must be being looked at.
I would like to think of Longboat as Faroe in fast forward - the Board, as someone else here pointed out, are all getting on and are perhaps looking at a max five year project I would think, with a view to sailing off into the sunset and a wealthy retirement. All the experience gained at Faroe will be used here, what worked and what didnt work so well. Anyone who has ever run their own business knows that you learn an awful lot first time around, and are so much better equipped (or certainly should be) to bring all that experience to bear to make the next business better. In this case, better at increasing shareholder value rather than just MC, that what it should be all about!
Finally, I actually think there has been a seller recently, which has stopped the sp rising a lot more than it would have. Perhaps it is one of the original IPO investors getting out, so I am happy to buy more at this price.
Fingers crossed for early drilling success, and good luck all!
....under no illusions that this is a bit of a gamble, there is so much uncertainty at the moment. Fingers crossed for a good outcome for WN.
A question for RNSTranslator and anyone else who may have any useful insight: how much value and value potential would you ascribe to Reabold for the Victory Gas Discovery? If WN doesn´t deliver then that is where our hopes will then turn to, I suppose. I understand funding is going to be a concern.
I have got no agenda flatearther, I am just watching from the sidelines at the moment and trying to understand what is going on here. That article I referred to seems relevant here and now, from what I can gather by reading this board over the weekend and today, that is all.
Selfish - not sure what my IQ is but I would definitely be in the camp that would firmly believe that a placing leak is not something the Board would want. If, as you suggest, the problem is "certain brokers", then it would seem that the onus is however on the Board to fix the problem, otherwise who will do it? Or is this an insurmountable conundrum?