Amerisur Resources Share Discussion Threads

[3roach] 20/7/2019 17:31

Yep - to FG

[huncher] 20/7/2019 17:29

I have been in this since pre history (believed the story) have no confidence in the BOD not to play the brown paper envelope game in whatever guise and end up getting screwed.

[davwal] 20/7/2019 17:29

Yes he did - he won’t get mugged...

[fatgreek] 20/7/2019 17:26

Didn't Giles sell Majestic wines and some pet chain for good money before?

[davwal] 20/7/2019 17:23

Far simpler and probably more cost effective if an acquirer took the whole shooting match and sold on any bits they don’t particularly want, probably at a premium. I can’t see our lot wanting to carry on now, especially after cherry picking has happened.

[knackers] 20/7/2019 17:23

Spot on, Quid.

This is certainly NOT a forced sale situ, perhaps more an exercise in having Mr Market 'smell the [Colombian] coffee'!

[quidnunc] 20/7/2019 16:56

Many posters here seem to have seized upon one part of the rns and then run a standard rule of thumb over it. I'm thinking they should re-read the whole thing which basically says that if amer received an interesting enough offer for any part of the business or the whole shebang, it might consider it. Further, that it has received such interest. All of which suggests to me that the message to the market is that any reasonable offers would be considered even though we weren't actively marketing but since we have received such queries, come forward and put your cards on the table and, if its tempting enough, we'll talk further and maybe take it forward.Don't forget, the company is both cash and asset rich with an ambitious drilling program in hand plus an OBA to get the product to market and the possibility of a second down the line.So it's not just the fundamental value, it's location, location, location.Add to this rns 1645G, Slater Investments taking a position and ask yourself why?Then there's JW's answer to a sale/exit question at the last AGM. So what might happen is that a rival will pay a premium for an asset and amer use the cash for another acquisition.Or there might be a bidding contest for part or all of the business.What there won't be is a fire sale as some seem to imagine.Q

[charlieeee] 20/7/2019 16:46

As others have said, this is an asset valuation exercise.

Given that the likely bidder is GTE, why not look at how the CEO operates?

Petrolatina went private in 2012 (it was 73.54% held by Tribeca/JRC) with a market cap of £20.4 million.

In 2016, GTE bought Petrolatina, by then producing 3200 BOPD from Acordinero (and 5000 BOPD in total) for $500 million plus £25 million deferred until December 2018.

GTE paid that premium for potential, a factor of 20 X the 2012 Petrolatina buyout price, secure in the knowledge that production would be ramped up and profitability increased in short order as has happened: just take a look at the speed and cost of GTE drills (not to mention synergies slashing admin).

"By increasing the field production from 3,200 bopd to the current 21,000 BOPD, Gran Tierra Energy (GTE) has shown how to create value and opportunities generating[GC3] benefits for the region, and the country". That is an industry quote.

If GTE see that kind of upside in the AMER portfolio, then it will pay to secure the opportunity. It did not balk at handing Tribeca a cool 20 times what Tribeca itself paid for Petrolatina only 4 years previously.

OXY looks to be just as gungho and that could make for interesting times ahead, as they have deep pockets.

We are dealing with professionals who will want to make the best deal that they can, but know the real value that can be extracted from the AMER assets.

And Ross, I don't expect 20 times: just fair value and certainly more than for Petrolatina, as the parts of AMER are better: CPO-5 is spectacular.

[3roach] 20/7/2019 16:41

Until there are more cards on the table then it's all conjecture at this point. May be G.C's forte wasn't in the running of an oil company, but the selling of one might be.

[bryet] 20/7/2019 16:39

Next week will be the guide if we have other parties that are interested the share price should push on to above the mid 20s then things could get interesting but anything less imo is not a good sign as a lth I just hope they don't let it go cheap or worse still break off bits and leave us with the rest all or nothing at all please.

[blackdown2] 20/7/2019 16:31

From the BoD’s Point of view, 38p will be out of the question. If they can’t get 50p a share for the lot, they will either not sell, or just dispose of part.

The OBA has a much higher value than posters think, and the board will want a significant hope value premium, based on the probability of short term - say 12/18 months - drill success.

[lucyp00p] 20/7/2019 16:07

Mr Market hasn't got a clue I'm glad to say.

[tommygriff] 20/7/2019 15:56

Do Amerisur still have around 50m of tax breaks from the purchase of platino and petrodorada?Also the payments made towards the pump station are recoverable

[haideralifool] 20/7/2019 14:48

jotoha I think Friday's price movement likely reflects the value of the offer currently on the table.

So the share price could go one of 3 ways depending on how bidders react in the coming days/weeks.

[jotoha2] 20/7/2019 14:45

Mr market knows this will not hit 38p , buying on friday was not strong enough , so 20/24 max , still fine for all new entries .

[xxnjr] 20/7/2019 14:44

Lucy, may we ask how you arrived at a valuation of 38p?

[tommygriff] 20/7/2019 14:42

Is Paraguay for sale??

[11_percent] 20/7/2019 14:10

charlieeee,

Cheers.

[shakin not stirred] 20/7/2019 14:02

yes also value at circa £500million. OBA priceless to other companies, that and CPO5 jewels in the crown. Slow rise to 25p imho over coming weeks

[moneylender] 20/7/2019 14:00

Lots going on in Colombia.

CALGARY, Alberta, July 17, 2018 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the “Company”) (TSX:PXT), a company headquartered in Calgary, Alberta and focused on Colombian oil exploration and production, announces that its Board of Directors ("Board") has determined it is timely, prudent and in the best interests of the Company to initiate a formal process to explore, review and evaluate strategic repositioning alternatives with a view to enhancing shareholder value. Parex' Board and management team believe that the Company is ideally placed, given its strong financial position and the stage of development of its assets, to undertake this process.

[charlieeee] 20/7/2019 13:59

11%

Put simply, it is just compliance with regulations and there is no "why".

Of course Michinoko can trade their shares, but the rules recognize that anyone holding over 10% is not really a part of the day to day market.