Hi Spuddy and I think you have the number of shares that will be in issue after the placement spot on. It really is a massive dilution of the small shareholder and places the institutional investors as the main stack holders of the company, just as the farmout is to announced. As you say the only way to protect yourself is to buy the same number of shares that you already have, which you may still be able to do, as not everyone will take up the offer. I suppose the only up side from a small shareholders point of view is that the institutional investor will bring more stability to the share price, but you are really left feeling that the big boys have being allowed into the game just as it is about to start, and in one way I hope that is right, as at least we will get some benefit from it, but of course only half of what we should be getting.
I think it looks like we are all entitled to all these shares, but my guess is that if everyone where to apply for the full allocation we would only get a small percentage of it. At the end of the day when it is all done and dusted there will be just over 126 million shares in issue at the end of this month.
all look like major shareholders at the minute. LOL
I think we all got the same message. Makes you feel wealthy really, but sorry to say that is just the free float of two million shares that people can top on if they feel like it. When you ring Goodbodys they will know the number of shares you are due under the one for every four point four that you have, and then you have the option of applying for more if you feel like it with the free flout of two million shares. Anyway as I say we
Another small bit of good news. Trust me, I know we have heard it all before. Providence Resources (LON
VR) has been raised to ‘buy’ from ‘hold’ by Canaccord. Today’s 3D seismic data from Drombeg in the Irish Atlantic Margin yields looked promising said the broker.
I suppose you just wouldn't know what is going on at that level of share dealing.
Would it be possible that he sold at a higher price knowing that the placement was coming and will use to take up his full allowance on his remaining shares?
This must be the statement of the year. If it is true, we should buy like madmen. Either way it really is some statement. At a fully diluted market cap of just £40m (as at 27 Feb 15) and with over 1bn (2C) boe in place at Barryroe alone, of which on the assumption that they farm down to say a net 40%, they will have a retained exposure to 400m boe, and with the company realistically targeting 5bn boe from within their entire portfolio then, by any stretch of the imagination, we believe this is one of the most extreme assymetric risk/reward profiles of any Oil E&P, indeed outright stock play, globally
I think you are completely right. You would imagine that if they would not have to pay the six million on the button. I am sure that it would take longer with legal delays and all that. I think the placement is let the big investors take control of the company. The only up side of that is that the big investors will not sell as quickly as the average shareholder, so the price in future should be more stable, as the free float will be much smaller. It has to be said that one of the reasons the share price has gone so much is that the average shareholder has being selling, cannot blame them really, with the lack of news and poor oil price.