Barryroe Offshore Energy Share Discussion Threads

[pwhite73] 09/10/2023 13:31

NAH/ps200306 - For argument sake lets say he intends to turn BEY into a green energy business. The new enterprise has to be making a net profit for him to realise a single penny of the Barryroe tax write offs. Any brand new green energy business would incur heavy losses itself during the early years before it turns a profit. So any tax write offs would come from the start up losses of the new green energy business before it need utilise any tax write offs from Barryroe.

If you think a new green energy business will be profitable from year 1,2,3 or 4 then you might have a point. Otherwise its Barryroe the oil and gas field or nothing at all.

LG will initiate litigation against the DECC if the decision not to extend the licences is not rescinded.

[ps200306] 09/10/2023 13:03

The whole point of the exercise is most definitely *not* the development of Barryroe. Who in their right mind thinks Larry is putting up real cash money on the miniscule chance of being able to overturn the lease decision in court. The only avenue open to him is judicial review and that can only investigate whether proper procedures were followed, not whether Ryan "should" have granted the lease.

No, Larry intends to get his money back without developing Barryroe. His plan to turn it into a renewable business would allow tax write-offs to be used as it's an energy business that plenty of oil companies have gotten into.

The idea that he's going to develop Barryroe and pay out money to existing holders is for the birds. For starters, even if he got the license back there's no way the field would be developed *and* ramped up to peak production within 10 years. A sale to another developer/operator would be unlikely to be for much cash, but for an interest in future profits. Again, nothing for existing SH.

Larry intends to pay exactly zero for Barryroe. The only alternative is to make him pay at least *some* consideration to get his hands on the tax write-offs.

[murmurs] 09/10/2023 10:44

the most likely renewable products from Barryroe in the near future are hydrogen and types of solid carbon (carbon black, graphene in different forms).

These products are obtained by splitting NG (methane) into its chemical components using pyrolysis. The process uses electricity to create a plasma that splits the gas to create clean hydrogen and deposit the carbon in a solid form. The process is currently being used in several countries to provide the products.

Both products are valuable and in addition by capturing carbon could qualify for up to E100 per ton for removing and storing carbon.

The process can also be applied to biomethane

[messer2] 09/10/2023 10:40

If, optimistically, Barryroe really has 300 mln bbls of (easily) recoverable oil and these are valued at a discounted price of, say, US$5 per bbl then the Barryroe's 80% share of the field's net present value post a 50% farmout would be US$0.60 bn (300*0.8*5*0.5). Based on 1.145 bn issued shares, the NPV per share would be 52 cent and 5% of this would be 2.6 cent assuming Larry plays fair and there are no delays in getting into significant production. More conservatively, the 5% offer might be worth only about 1 cent, or nothing at all.

If the pre-examinership situation had pervailed with initial fundung from Larry and with a subsequent 50% farmout, the share value after 4x dilution might have been, say, 13 cent (52/4) for all shareholders including Larry. That's about four times the average share price (~3c) during 2022 and about 26 times the final pre-suspension share price (~0.5c).

Finally, if the examiner's proposal goes through and the field is developed then it could be worth up to €540 mln after same 50% farmout (300*0.8*5*0.5*0.95/1.06) to Larry.

So, we could be looking at 47c NPV per share (at best) for Larry as compared with (maybe) 2.6c for other shareholders or at 13c to all shareholders if the development licence had been granted and examinership avoided.

[murmurs] 09/10/2023 08:07

We know about the value of Norway's wealth fund. Australia is about to create a similar fund that will work to provide monies for social housing.

It will be funded initially by the government with $10bil and expected to return 9% per annum. The generated wealth will be used to build social housing with no further cost to taxpayers. $90mil each year could build a useful number of houses each year on an ongoing basis.

Ireland is expected to have a balance of payment surplus of E65bil in the next few years. E10bil of that in a financial setup for the purpose of providing social housing would give relief to homeless people and less tax to taxpayers in Ireland on a permanent basis.

One area for investment could be Barryroe, providing the necessary finance to develop the project. The fund could also take a substantial shareholding in the project. The fund would be a source that provides profits and return the cost of development funds with interest. The country would have security of energy supply, jobs, and taxes to use to increase the fund or provide the monies to create other funds (a long list).

A current political party in power could initiate a like fund. If they do not, another party (SF) surely will.

[swizz] 08/10/2023 18:58

Agreed PS, but you can understand the frustration from a number of Barryroe’s ordinary shareholders, which I am one, but I do wonder how many that post on here actually are?,

My main holding in the project has always been via Lansdowne and considering the position the BEY board and major shareholders found themselves in, I do believe the most tangible way of seeing the Barryroe project develop, is with the backing of LG’s financial muscle and that in turn, I believe will be the best outcome for Lansdowne, so my BEY votes will be heading LG and Vevan’s way, ..GL S

[murmurs] 08/10/2023 01:00

Yes NAH!

I would rather go down fighting. Reverse into LOGP. Embarrass the Govt. at a time they are going for election.

[theshenagainagain] 07/10/2023 18:14

I would have thought Goodman would have put a more attractive package together to ensure that his offer was accepted. Nobody likes giving anything away for free. What he is proposing is garbage.

[paulsavannah] 07/10/2023 17:22

LG is 86 years old. I would safely say he cares as much about writing off tax losses as he does about the Kardashian's. He probably won't even be here in 10 years time. The 5 percent is worth more to existing shareholders in 10 years time than what we have at present which is zilch.

[jotoha2] 07/10/2023 15:46

Sure the Beefman is trying to pull a fast one here , he is not interested in doing the best for the Company and its shareholders , taxes loses are worth more then he is prepared to pay , but the real culprits and dodgy individuals are the BOD ,shakers of the worst kind , always invest in the people they say , especially those with a good track record !

[swizz] 07/10/2023 13:34

PS, my thoughts also, I find it quite extraordinary the number of good Samaritans that frequent these bulletin boards, on the premise that anyone needs their advice,Whilst I would concede the 5 percent of future profits or sale proceeds is a distant possibility, whilst someone of LG's financial capability is keeping the Barryroe story alive, I am going to take that distant possibility, rather than just accepting sweet FA out of some ridiculous form of martyrdom, that some appear to be suggesting,..GL S

[northatlanticholdings] 07/10/2023 12:14

This is over. The 5% is meaningless.

[paulsavannah] 07/10/2023 11:30

LG could get the necessary approval without having to depend on the other shareholders to vote anything through. I may be naive but I'm taking this at face value as I have nothing left to lose anyway. I can't see why he would offer this when he doesn't have to offer a thing as things stand today to existing shareholders.

[pwhite73] 07/10/2023 10:27

swizz - "I would also add, I think the actual term “other” is being used in the context of “other” than Vevan"

What normally happens in these cases is that the investor who injects new cash takes 95% of the company leaving existing shareholders with only 5%. What can also happens in that the PLC is placed into administration or liquidation but in all three cases the shares of the existing holders still exist.

What's happening here is not only is the listing being cancelled but the ordinary shares are being cancelled, that's the difference. So once the proposals are given the all clear by the High Court there are no ordinary shareholders to hand 5% of any future Barryroe profits to. So a date of 21/07/2023 on the share register is meaningless as there are no shares.

LG is pulling a fast one here but needs your vote for the proposals to go through. So he tries to trick you into thinking a pot of 5% of Barryroe profits may await you.

Reject the proposals you have nothing more to lose. He either comes up with a proposal that legally keeps you in the game or force the company into liquidation placing him back to square one.

[hermana3] 07/10/2023 09:52

Ordinary existing holders are getting this payment. This gesture will not cost Goodman much in context of what he stands to make with Barryroe. One would have to think that this was his plan B when he started buying in here. Either get permission to drill or pursue "The Rockhopper" model.....

[swizz] 07/10/2023 08:51

Yes, that’s the correct term, as in “other shareholders”, and excuse my glass is half full approach, although it is part of a broader series of reference points, sub headed by the title of “existing shareholders” so the prudent approach would be to wait until the documents are received in full, ..GL S

I would also add, I think the actual term “other” is being used in the context of “other” than Vevan and it does indeed apply to ordinary and existing shareholders on the share register, as of July 21st.

As below,..

Existing Shareholders and Cancellation from AIM and Euronext Growth Markets

When the Court confirms the Proposals (with or without modification), the Scheme shall be binding on the shareholders and creditors of the Company.

Where the Court confirms the Proposals, the interest of the shareholders in the total issued share capital of the Company will be eliminated. The shareholders shall receive no distribution on account of their shares under the Scheme or under these Proposals. On the Effective Date, the existing shares and all and any rights attaching or relating thereto will be cancelled.

Any rights and / or entitlements of the shareholders as members of the Company pursuant to the articles of association of the Company or any other document, or otherwise, shall cease as of the Effective Date.

Upon cancellation of all the existing issued share capital the Company will immediately seek cancellation of its listings on AIM and Euronext Growth.

The Proposals provide that the Investor will allocate to the other shareholders (as at 21st July), other than Vevan Unlimited Company, 5% of any after-tax net profits realised by the Company from the Barryroe field, either through its sale or operation at any time in the 10 year period after the Effective Date. Those other shareholders shall not be required to commit additional funds to participate. Documentation giving effect to this element of the Proposals will be prepared and distributed by the Investor to those other shareholders within 30 working days of the Effective Date.

[pwhite73] 07/10/2023 07:55

swizz - "An interesting twist in the Barryroe update that LG/Vevan are making a compensatory gesture to existing shareholders of a 5% profit share of future production"

The update did not say that. The update only refers to other shareholders. A company can have an infinite number of classes of shareholders so you have to know who the other shareholders are.

My understanding of the update is that ordinary shareholders will receive nothing from the scheme of arrangement and not only that their shares will be cancelled not just on the London Stock Exchange but cancelled outright from the company's register. Therefore how can ordinary shareholders be entitle to 5% of anything at a later when their shares no longer exist.

[ps200306] 07/10/2023 02:17

I'd love to know what you all are smoking here. Larry makes a killing just by soaking up the tax write-offs. And all he is offering is 5% of the sale of something he doesn't even own, nor has any particular incentive to pursue. Once he takes the company private you will not see him again for dust, nor will you ever see a red cent.

[swizz] 07/10/2023 00:46

Agreed, the other interesting part, is the 100 per cent and 70 per cent payments to secured and unsecured creditors, along with the 1 per cent decommissioning costs payment, as this includes the Irish government and the DECC, is that an olive branch to get them to sit up and take notice? I would suggest it is,..GL S