|Brilliant news today. Have to admit I was not expecting an offer of 5.50. Will sell out tomorrow|
|Always a strong possibility after the unconvincing Transglobe deal - happy to take a quick profit.|
|Thanks to you too, Marvelman. Best of luck for the future.|
|Ditto Duke...have done exactly the same @5.41. Thought it was an ADVFN glitch. Been a hairy ride but patience has had its day. See you on another board and thanks for your input over the months.|
|Wow! Glencore X are buying us for 550p per share. Great news. I'm not sticking around for 9p and I've just sold the lot at 543p and 541p.|
|Me too marvelman, my average is 427p. Although I reduced my holding at 395p after the merger announcement, I'm still nursing quite a big loss on my remaining shares.
I am sure that without this TGL merger nonsense, the share price would be flying on the back of today's news!
Wonder if we'll still get our results on Thursday as RBC have stopped mentioning any thing about CRCL as they are in blackout period too.|
|Thanks Duke, I only wish the market was as positive. This "merger" is still a running sore with some investors and it has hit my investment pretty badly since I innitially bought at circa £4.50.|
|Broker note courtesy of Tigris72poo from iv:
CRCL (BUY, 770p tgt) Positive 1st export cargo lifting completed 950,000 bbls gross, 560,000 net to CRCL. At current Brent pricing, and given full cost recovery we estimate a Caracal take of ca. $77.40/bbl => $43.4MM cash receipt net to CRCL on 30 days basis. Badila production: 14,100 avg for March, 40,000 bfpd production facility on schedule for 3Q14 installation/commissioning. Valn: On EV/DACF, trades on 3.5x 2014E DACF, 1.8x 2015E (3.4x & 2.0x as newco); NAV: 1P NAV: 298p/sh (312p/sh newco) 10% downside, 'core' 2P NAV: 613p/sh (572p/sh newco) 65% upside; risked NAV: 771p/sh.
David Dudlyke, MBA | Vice President, Senior Research Analyst
DUNDEE CAPITAL MARKETS|
|* Good news. Refreshing that this was actually on schedule.
Caracal Announces First Sales of Crude Oil from Badila Field
CALGARY, March 24, 2014 /CNW/ - Caracal Energy Inc. ("Caracal" or the "Company
") (LSE:CRCL) today announced that the first shipment of Badila oil for export
sales has been loaded at the Kribi sea terminal offshore Cameroon. Total cargo
size of the lifting was approximately 950,000 barrels of oil, and Caracal's net
entitlement share was 560,000 barrels of oil. Caracal's partner, GlencoreXtrata
plc ("Glencore"), was entitled to the balance of the cargo. Caracal and
Glencore joint lift cargos, and Glencore markets the shipments on behalf of the
Ceremonies were held in Kribi and Douala to mark this significant event. In
addition to Caracal senior executives, also attending were high ranking
officials from the Republic of Chad, senior executives from Société des
Hydrocarbures du Tchad (SHT), the Chadian national oil company, COTCO, the
operator of the Kribi offshore terminal, and senior representatives of the
Pipeline Committee of Cameroon (CPSP).
Gross production from the Badila field during March has averaged 14,100 barrels
of oil per day (up from 12,000 bopd on 20 January 2014), and Caracal is on
schedule to expand the production processing and shipping facilities during Q3
|Caracal Energy builds critical mass as it agrees friendly takeover of TransGlobe Energy to create US$1.8 billion Africa-focused oil producer
19 Mar 2014 by Our Oilbarrel Staff
In what was billed as a merger but was in reality a takeover, London-listed Caracal Energy, newly buoyed by its ramp in oil production from its oilfields in Chad, announced a combination with Calgary's TransGlobe Energy to create an independent Africa-focused oil producer with a combined market cap of around US$1.8 billion.
There are few natural synergies between the two companies, with Caracal focused on its recently onstream oilfields in Chad and TransGlobe a long-term producer in Egypt and Yemen.
Together the companies have production of over 25,000 barrels per day, expected to rise to 31-34,000 bpd over this year, and 2P reserves of 135 million barrels. There is plenty of scope to add to this tally, with Caracal aiming to drill up to 42 high impact exploration wells on its acreage in Chad by 2016, targeting 70 per cent of its 833 million barrel gross risked mean prospective resource. The TransGlobe portfolio includes low risk step-out exploration targets in Egypt's Eastern Desert, although investor appetite for that country has waned in the face of ongoing political turmoil. Indeed, TransGlobe boss Ross Clarkson noted that an important aspect of the deal was "increased country diversification".
Both companies agree that the deal will bring the critical mass that is important in the current market, providing a platform for future organic and acquisition growth in Africa. Gary Guidry, CEO of Caracal, which used to be called Griffiths Energy ahead of its IPO in London last year, said the "enhanced scale will expedite production growth and increase cash flow".
The all-paper agreement values TransGlobe stock at C$9.32, an 11 percent premium to its closing price on March 14. Caracal shareholders will hold two-thirds of the combined entity, which will retain the name Caracal and be headed by Guidry. Board members will include Robert Hodgins as independent non-executive chairman with independent directors including well known names Carol Bell and John Bentley. Two directors from TransGlobe, Ross Clarkson and Lloyd Herrick, will join the Caracal Board.
It's fair to say Caracal knows the workings of the TransGlobe portfolio: Guidry, who recused himself from the process of considering the arrangement, was a director of TransGlobe from October 2009 until last week. The agreement carries a break-fee of US$9.25 million.
Analysts at FirstEnergy Capital Corp said the deal is "compelling," but noted it wouldn't result in "significant" cost savings nor preclude the need to raise additional financing further down the line. Shares in Caracal tumbled on the news, and by Tuesday afternoon had lost 15 per cent since the news was announced on Monday to trade at 350 pence per share in London. Shares in TransGlobe ticked lower on the news and on Tuesday were trading at C$8.09 per share.|
|Caracal has not made a convincing business case for the merger. The consequence is that it:
- seriously undermines the credibility of the directors
- smacks of empire building at the expense of shareholders
- undermines the confidence in the potential of the concessions in Chad (else why give a third of it away in return for a company with low exploration potential?)|
|SP rightly being destroyed and will be destroyed further the deal just doesn't make sense. Looks like they are paying the equivalent of $100 a barrel for the other companies reserves -they don't seem to have any exploration potential or any significant reserves. To make it worse it dilutes the exploration upside for caracal, it seems that this deal has been done at a hefty price to access cash flow. I do not understand why considering the ramp up in production that they claim is about to take place or is there.. The last placing was a warning for me didn't make sense when they were so close to production something doesn't add up I guess.|
|Well it seems someone really does not like this deal. share price being destroyed beyond reason.|
|FT this evening:
Glencore holds 25 per cent of Caracal oilfields in Chad following a financing deal in 2012. Pushback from Caracal shareholders not wanting to add Egyptian exposure suggests Glencore could emerge as a white-knight bidder using proceeds from the sale of its Las Bambas Peruvian copper mine, traders said.
Caracal closed down 6 per cent at 385p.|
|Well summed up in your second paragraph duke. £3.80 appears to be where the market has placed our revalued position. That old phrase WTFDIK really does say it all. Up to now I had this company not setting a foot wrong but who knows, plenty of time for this to play out to its fullness. But for now patience is required.|
|marvelman, this share price drop is indeed a hard pill to swallow for all of us, including the insiders who bought at 450p. The cash situation is the only plausible explanation I can see here. Numbers are due out next week on 27th so we shall soon see if it is all about the cash or not.
Going by the 6% drop in CRCL and the 4% rise in TGL, this deal looks to the market to be fairer for some more than others!|
|Well only 3 months ago they pulled in $200 million at 4.50 a share. With revenue about to start flowing I find it difficult to accept that the reason for the merger is that they needed more free cashj flow.Very disheartening to see the share price at these levels as it must be for the ii's that bought at 4.50.|
|It looks to me like CRCL have under estimated capex and they may well need the cash to fund their exploration programme.|
|The prospectus as announced is very detailed in terms of benefits.Certainly did not require a mark down but who knows who is pullinmg the share price strings to their adavantage.|
|It is not clear what advantage the merger provides. Are they looking at cost savings, accelerating drilling due to larger cash availability?|
|Disapointing reaction. Opportunistic shorting?:|
|Caracal + Transglobe Merger - New Presentation
|Going on the share price movements of both companies late into the Friday session would suggest that the market likes the merger. Looks reasonable to me. I like particularly the country diversity and cash position which puts to bed any issue with exploration funding. I take comfort from the large amount of skin the CRCL insiders have in the game. CG and RBC see it as fair, I suppose they would, wouldn't they. Let's see what comes out of the conf call in the morning (1pm afternoon GMT).|
|Well there's a turn up. Looks an very good combination and still under the Caracal name.|