UkBBinvestor
05 Dec 2014
Re: Sale completed Seems nobody wants to buy a £10 note plus several lottery tickets for a fiver today lol.
UkBBinvestor
05 Dec 2014
Re: Sale completed Market a bit slow to catch on as usual (mayne the Friday effect).This has the potential to close around 70p today then up again on Monday.
UkBBinvestor
05 Dec 2014
Sale completed Fantastic news.Short-term target £1 no less, perhaps more.
UkBBinvestor
24 Nov 2014
Waking up? Looks like this sleeping giant is starting to stir today ready for expected deal completion around the end of this week / start of next.Clear some stealth buying going on here
UkBBinvestor
24 Nov 2014
Waking up? Looks like this sleeping giant is starting to stir today ready for expected deal completion around the end of this week / start of next.Clearly some stealth buying going on here
UkBBinvestor
20 Nov 2014
Re: Analysis And of course any such further drilling / working-over will be optional and by that time they may well have sold those assets on for another hefty sum.
UkBBinvestor
20 Nov 2014
Re: Analysis Sure, I'm not saying if further exploration / development is done after the 5-6 wells that won't require capital from GED - of course it will.My point is that the 5-6 are going to take at least 12 months I would have thought, in which minimal capital will be required.
Tentative Predator
20 Nov 2014
Re: Analysis See the RNS"Although the Farm Out Agreements are intended to partially fund the near-term development plans for the Middle Magdalena properties, further exploration and development will require additional capital"
UkBBinvestor
20 Nov 2014
Re: Analysis Hi Tentative Predator,Thankyou for your analysis.It would be great if you could perhaps give your reasoning for one of its central assumptions?I am specifically referring to:- The money is needed for development of the retained assets. Given the terms of the farm-out agreements signed on both areas earlier in the year when do you see this money needed to any extent, given they have a completely free carry on 5-6 wells?I would honestly be very surprised if the proceeds are mostly or wholly used for development of the existing assets.Nevertheless (going by Platino's expected completion date) we do not have very long to wait to find out.
UkBBinvestor
19 Nov 2014
Re: Analysis Remember they have a free carry on 6 wells (5 if Catalina #1 is not included) on the retained assets, so they are unlikely to require much or any capital from Global for some time.
UkBBinvestor
19 Nov 2014
Re: Analysis Sorry, ignore that it is of course 36.1m not 31.6m. I still get £16.8m rather than £18.6m though.
UkBBinvestor
19 Nov 2014
Re: Analysis Hi TP,I don't agree this money will necessarily be used for development of the remaining assets or even for mainly that reason, but would like to know the number of shares in issue you used to get the current market cap. Splitting hairs maybe but I have 31.6m shares and a current mkt cap @ 46.5p of £14.7m?
Tentative Predator
19 Nov 2014
Analysis Current mkt cap @ 46.5p sp is £18.6m. Selling the production assets (held in a subsidiary) for $50m (there may be variations from this, but shouldn't be much). This will eliminate the current $7.5m loans, leaving ~£26m net cash in the company, approximately 50% more than the company's mkt cap. $50m looks to be a reasonable price for the asset once you include decommissioning costs.Additionally, they retain 2 undeveloped Colombian assets with proved reserves of 43mmbbls, partially farmed out for development. Worth somwehere between $1bn and nothing. Could probably sell now for ~$30m. So my risked valuation of the company now is ~100p.There may be tax due on the sale, I don't know Colombian tax law on a capital disposal; the UK tax cannot be offset by the operating losses, but are likely to be offsettable against other capital investments.There is unlikely to be a special dividend (or possibly one of something like ~3p as a sop to shareholders) as the money is needed for development of the retained assets. As such, this becomes a funded play on those assets, they have a higher than average chance of being developable so I put this as essentially an evens bet. A good bet for those who like a gamble, downside is less than 50p per share, upside is at least 200p. Most gamblers would like those odds. But it'll take years for the bet to come in, and in the meantime the price could drift anywhere. As such, this is one to watch, but not invest in just now.Good luck to existing holders.
UkBBinvestor
19 Nov 2014
Re: Wakey Wakey ! BUY GED Unless there are unforeseen delays I would say the market has 6-7 more trading days to wake up to this, else there is going to be one almighty mark-up the morning of the RNS.
UkBBinvestor
19 Nov 2014
Re: Wakey Wakey ! BUY GED Thanks MathsGuru.I know the type of situation you mean re: money wasted by the bod, but we're not taking about a few £m that could be easily frittered away before you know it, we are talking over £30m!I think and hope they will be giving us a detailed and definite plan for this money once the deal is completed (estimated to be around 28 Nov).Given they have little capital requirement near term due to the farm-out agreements arranged earlier in the year I anticipate a combination of an acquisition (could be left-field) and a special dividend to shareholders - which could be a very nice xmas bonus
