||EPS - Basic
||Market Cap (m)
|Oil & Gas Producers
Real-Time news about Timan (London Stock Exchange): 0 recent articles
Can I firstly ask: you stated in an earlier post that you would contact Pearl first thing Monday. With today being Wednesday. Please my I ask have you done this?
What did they say?
Are they prepared to do a deal.
The way I see the deal to be structured is this, please correct me if I'm wrong.
Pearl want an initial 23% stake of the Target (Timan) and were prepared to pay $105m dollars. Shares presently outstanding are 280m, 23% of 280m = 64.4m shares. Therefore they are buying in the 1st stage 64.4m shares for $105m. This gives us at the 1st stage, a share price of $1.63. Obviously included in that price we have to settle with the CVA.
In the 1st stage Pearl planned to pay Levant $20m cash, $40m in Pearl shares, and $45m in convertible bonds (which would be converted into Pearl shares at a later date).
Now in the 2nd and Third stages Pearl were to buy 196m shares and 104m shares (300m shares) respectively at $1 each, ($300m) 50% in CASH ($150m), 50% in convertible bonds.
At the end of these three stages Pearl would then own 63% of Timan, having spent just over $405m, giving Timan a valuation by their calculations of $642m. These figures actually values our shares at $2.29 each, not the $1 being branded about. This shows the amount of further dilution intended!!
In your last post you state "there is a limited cash component to this deal". If you look at the figures above; the three stages would be worth around $170m in CASH. Enough CASH in my opinion to buy-out the minority shareholders at a fair value, and pay off the CVA with quite a bit to spare!!
Looks a good deal to me, $2.29 per share, half in cash, half in shares/bonds. I'll take that, anybody else!!!
At the AGM, Dmitry stated that if 'KNG' were lost, we would go through the courts to have it retrieved. since we have been TOLD we have indeed lost the license, can I please ask, has this court process been instigated? if not, why not?
Your comments on the above would be appreciated.....|
|richie1218: This article doesn't mention who the "Vendors" are, so I guess it's not us then ??
Sina Financial News July 2, according to Finet reports, Pearl Oriental Oil announced June 7 entered into an agreement to acquire Timan Oil & Gas plc's 23.79% share, prescribed a total consideration of $ 105.6 million (approximately HK $ 824 million) , and the other was two lots of share options, the total consideration of $ 196.7 million and $ 104.3 million, if exercised in full and assuming full implementation of restructuring transactions, the target company is expected to hold approximately 63.05% of the enlarged share capital.
Assuming completion of the first phase of the acquisition, the shares of not less than 23.79% of its share capital, prescribed a total consideration of $ 105.6 million (approximately HK $ 824 million), if less than 23.79%, then the pro rata reduction in price. Consideration $ 10 million was paid in cash and the remaining $ 11 million will be paid in cash, the issue of the Consideration Shares 4,231(http://www.best-news(Finance News http://www.best-news.us/).us/).8 million U.S. dollars, as well as cash or a combination of convertible notes payable 4,231.8 million.
Vendors have also granted to Pearl Oriental Oil first and second tranches of the options will be in cash and half of each issue of convertible notes be paid or reimbursed, per option share price $ 1, as appropriate, in the first phase of the acquisition During one week from the date of completion of the exercise, and if such stock options are fully exercised and assuming full implementation of restructuring transactions, the Pearl of the Orient Petroleum Target Company will hold approximately 63.05% of the enlarged share capital.
Target Group through a number of Russian subsidiaries holds four major assets, including in Russia two onshore oil fields in Russia, the Caspian Sea and the two offshore exploration blocks, holding in these fields and exploration blocks for exploration, investigation and production of oil and gas required for the effective use of underground mineral licenses, permits ownership group has yet to be further due diligence.
Two existing onshore fields (ie Nizhnechutinskoy Oilfield Oilfield and Khudayelskoye) has licensed a total area of 395 square kilometers. Nizhnechutinskoy has 1.18 billion barrels of proven oil (1P) oil reserves, 2.84 billion barrels of proven and probable (2P) oil reserves and 6.09 billion barrels of proved, probable and possible (3P) oil reserves, is currently in the early production of the field, ready to enter the field of comprehensive development.
Khudayelskoye oilfields 1C (low estimate of the amount), 2C (best estimate amount) and 3C (high estimate volume) Contingent Resources were 5,400 million barrels, 1.02 million barrels and 157 million barrels. Khudayelskoye oil reserve has been preparing to enter the amount of resources trial production phase and exploration potential in the deeper areas.
Pearl Oriental Oil resumption of trading this morning. (Natural)|
|jamie62: Odd that it quotes a share price!|
|cfccfc1970: Just an aside while we wait, have you noticed the company have put a share price box on the new website.....may just show their intention is to relist at some future date....
Just an observation while we wait!|
maybe they could take a leaf out of two other UK listed totally Russian players.
Exillon Energy PLC.
2P reserves = 239 mmbo (as at 14/2/2011 RNS).
Production grown from 2400 bopd to 8100 bopd (average for year to end dec 2010 = 4656 bopd).
Cash end Dec 2010 = $56.3m.
Debt of $50m maturing in 3 tranches 2012/13/14.
138m shares @ 395p = m/cap £545m (just recently £620m @ 450p/share).
Petroneft Resources PLC.
P2 reserves 96.9 mmbo (RNS 10/3/2011).
Year end (Dec 2010) production = 2750 bopd (RNS 5/1/2011).
3 year loan with Macquarie Bank for $30m with potential to increase to $75m.
411m shares @ 54p = m/cap £222m (just recently £295m @ 72p/share).
I hope common sense prevails and that those now running the show can see what this company could easily be worth relative to our reserves and production start-up. Even with dilution the potential is for a share price at multiples of where we languish - perhaps this explained the greed and wrangling by some, over the assets.|
|fsu gold investor: Thanks for the update Miami.
Victor is not the problem. As far as I can tell, he has been acting honestly, and his prior record shows he is an achiever and not an agent for corrupt hands.
What I do not understand is why Kaminisk and Lebedev expect shareholders to approve their deal when it appears that we will be left with nothing or so little that we quite possibly stand to recover more by voting "no" and then suing their asses?
We need to be given a reasonable expectation of recovering more for ourselves by voting "yes" than "no". How much dilution of our intersts should we expect? And what would be a reasonable share price valuation for the company if these arrangements are carried out?
Show us why we are better off financially voting "yes" rather than making you pay through the courts for your malfeaseance and nonfeasance.|
|whe4to: From Victor.
re fears of massive dilution - in the current loan agreement there are no conversion rights at all - it is a loan.
To further finance the Company, I understand Mr Lebedev may be willing to provide furthter loans and/or have the current loan converted into equity - but this will require shareholders' approval. If there is a new share issue - that's what is needed for dilution obviously - I undrestand Mr Lebedev will wan that you and other shareholders will be invited to participate at the same price, to make things absolutely transparent.
What are fair commercial terms is difficult to say as no lender would lend to Timan plc at the present time (winding up process, no assets, litigations, debts). But the loan is made as if Timan plc were a "normal" company.
Without Lebedev's support share price should be approaching zero as the company.
So the more Lebedev supports the Company now with his funding (to win back assets etc) the higher price he will be required to pay if there is new share issue; from economics point of view it goest against his interests but I think he is prepared to do that to eliminate questions like yours re massive dilution (ie all shareholders are invited to participate in any share issue at the same price - is there any other way to alleviate fears that terms are not fair?
Pls forward to others
I personally don't believe AL can be any fairer than that!|
|inv3stwise: Whe4to-CL, cannot see an offer coming from either Kaplin or Redbell. The one thing I cannot get my head round is the immediate rush by Redbell to give us a chance of re-listing, with no strategic partner, no true finance to speak of (just a little to keep the company going) and all the hassle with the assets the share price on re-listing would take an absolute hammering! The share price would be lucky to open at 4p and would be at 2p before 8.10am.
What's to gained by re-listing as we are? I cannot see any from OUR point of view. Now the Redbells, Kamanisk, Kaplins can just buy them all up....
Can we have some debate on this, just cannot see the sense in re-listing!
I cannot see a happy outcome to this; can someone give me some serious banter/debate as to how this could turn around!!!
A very worried/nervous shareholder|
|riptracker: we are now awaiting limit buy orders to be filled above current tman share price level, initially wonr be to long for activation..|
|zchanl1: Oil Majors Set to Gain As Smaller Rivals Struggle
by James Herron Dow Jones Newswires Thursday, October 23, 2008
LONDON (Dow Jones Newswires), October 23, 2008
Major international oil companies may emerge from the current financial turmoil and the sharp drop in oil prices strengthened as they cherry-pick reserves from smaller companies that run into trouble.
As access to financing dries up and share prices get hammered, some of the smaller oil and gas companies will become extremely vulnerable to forced asset sales or takeovers. And the cash-rich majors will be waiting to snap up vital new reserves at bargain prices.
"The majors are in a fantastic position," said Mike Wachtel, head of the oil and gas practice at Watson, Farley and Williams LLP, a law firm that advises on corporate mergers and acquisitions. "There are a lot of (small oil and gas) companies now that are having financing problems. They're going to have to either sell their assets, put themselves up for sale, or go to the wall. And of course that produces a lot of opportunities for both the hedge funds and a lot of the large, predatory companies."
The valuations of oil companies of all shapes and sizes have taken a pounding as the price of oil has more than halved since its mid-July peak. Shares in the world's largest oil companies including BP PLC, Royal Dutch Shell PLC, ExxonMobil Corp., Total SA and Chevron Corp. are down by more than a third from their peak in May.
Smaller companies have been hit even harder. The value of consultancy Ernst and Young's index of 20 oil and gas companies listed on London's Alternative Investment Market, or AIM, has halved since the beginning of 2008.
But the major companies have low levels of debt and the production and cash flow to get them through tough times. Many of the smaller companies don't.
"Against the backdrop of high and volatile commodity prices and a nervous market environment, many of AIM's junior oil and gas companies are finding it increasingly challenging to secure funding from investors," said a report from Ernst and Young. "Without cash, a company cannot progress from exploration activities to the development and production phase."
The smaller exploration and production companies "have no access to equity markets and no access to debt markets," said a London-based banker who advises on corporate transactions in the energy sector. "Anyone with a hint of financing problems has been whacked," and many of them will either go bankrupt, be forced to find a buyer or cut expenditures to the bone and drift along as "zombie" companies, the banker said.
There is plenty of evidence of AIM-listed companies facing funding difficulties and cutting expenditures.
Canadian company Oilexco Inc., which is active in the U.K. North Sea, lowered its 2008 production estimates and said it was having difficulty raising its credit lines to $1 billion from $700 million because of "unprecedented liquidity and volatility issues." In September, London-based Sterling Energy PLC was forced to issue new equity at a one-third discount to its share price and sell a portion of an oil field in Iraqi Kurdistan to raise funds.
Such problems create opportunities for larger companies with secure credit lines and stronger cash flow.
"Everyone is expecting a big pickup in (merger and acquisition) activity," said Andrew Bartlett, global head of oil and gas corporate advisory at the Harrison Lovegrove subsidiary of Standard Chartered Bank. "I look at '98 and '99 and see a lot of similarities."
The end of the '90s, when the oil price dipped to around $10 a barrel, saw the last great wave of consolidation in the sector. BP bought U.S. companies Amoco and Arco, Exxon merged with Mobil and Chevron began merger talks with Texaco.
'Everyone Is in Play'
"There is fantastic value across all the sector. It's fair to say that everyone is in play, from the very big to the very small," said Bartlett. The best opportunities are for the major companies to pick off smaller players and boost their reserves. "The companies that have gone -- Imperial Energy, First Calgary -- have all had a very large undeveloped resource base," he said.
India's Oil & Natural Gas Corp. has made a $2.59 billion bid for Imperial, which has large reserves in Russia that haven't yet been developed. Italy's Eni SpA agreed last month to buy First Calgary Petroleum Ltd. for $868 million.
"Companies with more than 100 million barrels of oil equivalent of commercial or near-commercial resources...are in our view the most likely takeout targets," said a report from the research arm of corporate advisers Fox Davies Capital. It listed JKX Oil and Gas PLC, Regal Petroleum PLC and Cadogan Petroleum PLC, all of which are developing resources in Ukraine, among likely targets.
The steep drop in share prices recently means that even larger companies whose funding is secure may also be vulnerable. "I'd be very surprised if one of (the major oil companies) doesn't snap Tullow up just for the Jubilee field in Ghana," said Wachtel of Watson, Farley & Williams. At Tullow Oil PLC's current share price, "you could buy the jewel in the crown for 30% less than it's worth and get everything else for nothing."
"Cairn is exactly the same story. So there's a lot of opportunity out there for people with money and the appetite to go and do some of these deals," Wachtel said.
The London banker said North American gas is likely to be a big focus for the majors. Oklahoma-based gas-producer Chesapeake Energy Corp. looks particularly vulnerable, he said.
Chesapeake has been selling assets and cutting back on drilling as U.S. natural gas prices have fallen. The company also drained its credit facility to boost its cash on hand. Chesapeake has already sold large stakes in two shale gas resources to BP, which has expressed an interest in further deals.
The banker said Oklahoma-based Devon Energy Corp. and Texas-based Anadarko Petroleum Corp. are also potential targets.
"I think the majors are gearing up for more substantial transactions," the banker said. ExxonMobil and BP are the most likely acquirers because both are cash-rich, but don't have enough projects in the pipeline, so will need to buy more reserves, he said.
"The trigger point is Jan. 1," by which point banks should have less doubt over their own balance sheets and be willing to back deals again, the banker said. Even then they will remain cautious and $20 billion to $30 billion may be the maximum size of any cash deal, he said. Given the febrile state of equity markets, Bartlett of Standard Chartered said all-share takeover deals, such as Salamander Energy PLC's recently withdrawn offer for Serica Energy PLC, are unlikely to succeed.
"For companies with a hole in their production profiles in the longer term, this will be the time to seize the day and replenish the portfolio with quality reserves at low prices," said a report from analysts at broker Sanford Bernstein.
However, the Western oil companies won't be the only bargain hunters out there.
Jiang Zemin, the chairman of PetroChina Co. Ltd., told a shareholders meeting in Beijing this week that he was also looking at buying foreign oil companies caught short in the financial crisis, according to the China Daily newspaper.
"The Chinese are definitely back in M&A markets," said Bartlett. They weren't active this year, at the top of the cycle, but they have the cash and are definitely value buyers, he said.
Copyright (c) 2008 Dow Jones & Company, Inc.|
Timan share price data is direct from the London Stock Exchange