Having read more closely the release from Sequa regarding its Purchase of Tellus petroleum AS it appears that the deal with sequa could still be on course. Sequa Petroleum will give 6m shares in Sequa and 4m dollars in cash (max) to buy Tellus. Tellus will buy into a series of producing and soon producing fields in the Norweigan Continental Shelf from Wintershall (a subsidiary of BASF). The cost of Tellus´s investment in the Wintershall fields is 602m dollars. No where does the statement from Sequa say that Sequa will have to raise or pay this 602M dollars to Wintershall. So it appears that Sequa is acquiring tellus for 6m shares plus 4m in cash and likely assuming the debt that tellus has likely issued to pay for this purchase. Given that the Oil fields in question are either producing or near to production the coupons on any issued bonds are likely to be paid from Oil revenue stream generated from the % of the fields purchased. This would mean that Sequa still has its recently raised cash on hand and the statement by Providence that no change in status of Barryroe Farm Out (if Sequa is the farminee) would make sense
Yes Linkoping I believe Rothschild are still involved in the deal negotiations on a no foal no fee basis and Shadow it is hard to imagine how the big Private Institutions would have parted with their money without having some belief in the company. Surely they are not just sitting there whilst TOR and his colleagues draw generous salaries for what appears on the face of it to be a disaster for us Shareholders.
Hello Haribo. We can only assume the management are doing something for their generous salaries. It was surprising to see Sequa spend this money on Today´s purchase. So either Sequa have more cash, deal off with providence regarding Barryroe or else it was never Sequa to begin with. If it were option two i.e. deal off with Sequa regarding Barryroe, I would imagine that an RNS would have to be issued Today especially given the fact that Providence stated in RNS that they would approach the counterparty on commercial agreement regarding their funding situation for the Farm IN. So maybe it is not Sequa. Who knows. Surely they will have to -iss or get off the -ot at the AGM and tell us something regarding the FO. Another Option is that Sequa are looking at Barryroe along with another party. And the final two options are that another Paarty in the famous data room are interested with Providence negotiating Terms and the final option the one that seems reflected in the share price - Nothing happening with the company throwing money away on salaries and usless seismic surveys.
So it is all Very confusing. No RNS to say commercial agreement Off. In fact Nothing has changed regarding Barryroe FO according to email reply. Maybe the counterparty is not Sequa. Who knows ?. All Very strange. Irrespective we need a Deal. Company is producing nothing and spending money as we all Know.
Sent this email to company and got this response
Hello there
Sequa Have announced this Morning That they Have made a major purchase circa 600m US dollars in Norweigan Continental Shelf. If this is so and if Sequa was the counterparty to the commercial agreement announced in February it Would appear that they are spending their recently raised funds on a project other Than Barryroe. Can We expect An announcement on the matter from Providence.
Thank you for your e mail.
On 27 May 2015 we issued an RNS updating the market on the business of the company, including the status of the Barryroe farm-out. This position has not changed.
At the AGM next week, an update on the company's portfolio will be given.
As to any statement prior to the AGM, in accordance with our Stock Exchange obligations, we will update the market when it is appropriate to do so.
Have sent An email to Providence re questing clarity on Sequa matter and asking if a statement will be made
Question Is which side had renaged On Deal. Don't think Sequa now has funds for Barryroe
Looks Like Sequa spending Its Money elsewhere. Expect RNS shortly to say deal off with Sequa
We should thus know Friday 13th of June if the size of the Bond issue from Sequa.
On may 1st the following was released
¨In addition, U.S.$95.6 million in aggregate principal amount of the Bonds were issued and are held on behalf of the Issuer for the purposes of prospective sales to third party purchasers outside the United States. Any such Bonds which have not been sold during the period of six weeks immediately following today's closing will be cancelled and holders of the Bonds will be notified of the final issue size following the expiry of the six week period referred to above.¨
TOR should have an answer from Sequa by AGM on June 26th
Still believe we Will Get a Deal in spite of all the Messing. Fingers crossed. Will Know one way or other soon enough I believe