Amerisur Resources Share Discussion Threads

[sji] 19/7/2019 17:25

IMO, today's RNS has a lot to read between the lines.

1) The decision to put the company for sale follows "the receipt of interest in the Company and its assets from other industry participants".

2) Furthermore, "the Company confirms that it has received a non-binding proposal regarding a potential sale of the Company and various other indicative proposals regarding the sale of certain assets of the Company".

So, there is at least one company that is interested to buyout AMER and instead of continuing dealing with this company, the BOD decided to invite other interested parties to bid for the company or some of its assets. This is a clear indication that the BOD intention is to force the hand of the prospective bidder. If you were interested to buy the company, would you wait until other companies get more information about it (from the BOD) and evaluate their position or would you hurry up and place a firm offer on the table immediately?

Today's RNS states that the formal sales process initiated today can be terminated at any time by the BOD. So, if a firm, acceptable offer is forthcoming, competing offerors will be cut-off! This is another incentive for the current prospective bidder to hurry up.

The delay in updating on SOL-1 can be a play by ONGC which is one of the most likely parties interested in bidding for at least some of AMER's assets. If the update was positive, AMER share price will rise making it more expensive to acquire. If the update was negative or not as good as expected, it would be in ONGC's interest to publish the news AFTER it bids for the assets/company. Any negative news at this point would make any offer more enticing for current AMER investors. Also, the fact that Indico-2 was delayed after Sol-1 would make more sense now since Indico-2, being an appraisal well, will increase the current production from CPO-5, making hte latter more valuable. So, it only makes sense to drill AFTER buying the assets/company. These things increase the likelihood that ONGC maybe the interested bidder.

Today's RNS also makes it clear that the BOD will consider both a total sale of the company as well as its assets individually. This is a clear invitation to OXY to consider bidding for the 5 blocks they already have 50% of. By now, OXY should have started carry out the seismic on these blocks and so, they should start getting an idea what there is underneath. Also, there is the OBA which would be a highly-priced asset for OXY considering they already have oil production in its vicinity.

After reading today's developments, I would be disappointed if we would not get some concrete developments (bid for the company or some of its assets) within a couple of weeks or so.

All IMO.

[xxnjr] 19/7/2019 17:20

Or a large player buying our OXY blocks?

[fatgreek] 19/7/2019 17:14

So basically a possibility could be?ONGC buy CPO5OXY buy the blocks farmed intoGTE buy the rest we own and operate

[fatgreek] 19/7/2019 17:12

Hi Yasrub,Please do, it could get interesting if OXY bid also, they over bid on their recent deal and may join the party and we could have a bidding war....Be even better if ONGC decide they want the other 30% of CPO5 and join the bid....

[xxnjr] 19/7/2019 17:11

As will ONGC on CPO-5.
So OXY and ONGC can sit back and see what unfolds.

OTOH, it may be that ONGC were one of the parties interested in bits (rest of CPO-5).
Likewise OXY maybe interested in bits (e.g PUT 30)

Hopefully potential suitor is left of field, cash rich, not one of the usual suspects!

[xxnjr] 19/7/2019 17:07

Their (GTE) stock price is basically static today.

[blackdown2] 19/7/2019 17:07

I suspect that Oxy will have a first refusal provision in relation to the concessions they have farmed into.

[yasrub] 19/7/2019 17:05

Hi Fatgreek

I posted a couple of months ago that GTE were in the process of raising money - will have to relook how much - memory fade!

[fatgreek] 19/7/2019 16:56

If that's the case....read this.....Gran Tierra Energy is an energy company founded by Dana Coffield, Max Wei, James Hart and Rafael Orunesu on 6 June 2005. On 29 December 2010, it has a market capitalization of US$838 Million.[1] The company, based in Calgary, Alberta, Canada,[2] focuses on oil and gas exploration, development and production,[3] particularly in South America.Our director who sadly passed away founded this company, they're based in Canada and they operate in our back yard....my question to you all is can they afford us

[blackdown2] 19/7/2019 16:52

Apologies if this information has already been posted but maybe of interest to note that the BoD has appointed a Canadian bank as its adviser.

[xxnjr] 19/7/2019 16:46

cheers Yasrub!

For the regulars:-

the links to ANP Monthly Field Production Data, including historic data, are here, towards bottom of page

[rollthedice] 19/7/2019 16:38

+36.5% on the day works for me.

[master rsi] 19/7/2019 16:29

but it does not last by "AT"s taking it away

[master rsi] 19/7/2019 16:28

A bit of a bounce at the end of the day

[master rsi] 19/7/2019 16:27

Last orders, the time is running OUT to buy

[cudmore] 19/7/2019 16:18

Next week will see 20p broken as analysts/brokers make their predictions and the FOMO will kick in.

[cielos] 19/7/2019 16:15

so far the weekend buyers are not in a hurry

[kumala] 19/7/2019 16:13

:) Same here nr Swansea. :)But sun shining over AMER:)CheersK

[cudmore] 19/7/2019 16:10

I understand that now it’s out in the public domain an offer RNS could come as early as Monday???

[cudmore] 19/7/2019 16:07

Watch the scramble towards 4.30 for stock. This is one stock I would NOT like to be out of over the weekend. 👍👍

[bryet] 19/7/2019 16:02

Sp off the boil now till Monday just hope papers have something positive to say over weekend.

[knackers] 19/7/2019 16:00

Not wrong there Bas. Mentioned earlier, announcement today may go some way towards explaining the news blackout from the Sol-1 ST test. ONGC radio silence explained.

They know what's up there in CPO5. AMER's 30% share has to be worth $150-200m. MIN.

[nicksig] 19/7/2019 15:59

Hopefully will see a surge into the close and then some decent weekend press

[bigbas] 19/7/2019 15:52

Isn't it interesting that todays news has not even brought us back to where we were 6 months ago - its a fickle market !!

[meneither2] 19/7/2019 15:51

The thought was there! ;)