Bayfield Share Discussion Threads

[mojomonkey] 19/10/2012 20:06

True and in a similar manner, the small, at the time RBS, bought NatWest, a much larger company and that turned out, O.... Oh.......Oh...... Sh1..........

[triples] 19/10/2012 19:57

That's how some corner shops get bigger!

[mojomonkey] 19/10/2012 19:56

triples, yes perturbing was what I was thinking too, having said that I am sure there is a simple explanation.

I might have missed something and Ultrapunch will probably put me right but on the face of it, it looks like we have been taken over by the corner shop.................................

[triples] 19/10/2012 19:16

Interesting post mojo... a bit perturbing.

The good news in there is how Bayfield's production had been growing. That team will still be there although the benefit of that extrapolated growth going forward will be now be spread across more than twice as many shares going forward.

[mojomonkey] 19/10/2012 19:06

Does anyone remember the T&T Governments consolidated monthly bulletin that covered the period January-July 2012? I cant find the link anymore but I printed it out in full a few months ago. Reading through it tonight I was shocked to see the following figures for Trinity.

In that document (Table 1A-Crude Oil & Condensate Production in 2012 (BOPD) BEH and TRINITY were shown to have the following bopd in the months:-

Jan-12 BEH 869 TRIN 615
Feb-12 BEH 1,157 TRIN 586
Mar-12 BEH 1,043 TRIN 574
Apr-12 BEH 1,578 TRIN 577
May-12 BEH 1,588 TRIN 575
Jun-12 BEH 1,708 TRIN 508
Jul-12 BEH 2,040 TRIN 493

Average over the 7 month period stated as being BEH 1,427 and Trinity 561.

These figures do not even come close to the bopd that we have been told that Trinity are producing. Anyone got any idea as to what has caused the huge difference? GLA

[triples] 17/10/2012 21:50

With hindsight, this two to three month lock-out was a risk. Hey ho.

I think New Trinity will be quite well received and I am hoping for a share price of circa 20 to 25p upon re-listing.

Tough on those with higher averages. Okayish for those with averages around 15 to 16p.

[ultrapunch] 17/10/2012 21:06

BEH had circa 216m shares prior to suspension. That will equate to 45% of the shares in issue after re-listing as the new TRINITY (presumably with a new EPIC code). That means that existing TRINITY shareholders will receive 264m shares (55%) in the new re-listed company. All this assumes that there will be no new shares issued in a placing prior to the re-listing.

Unless TRINITY already have a sizeable cash balance I think a placing to raise cash prior to the re-listing is odds on. Presumably the guys running TRINITY will have no problem raising cash from institutions, unlike O'Sullivan and Co running BEH, who had to pull a placing in June because of a lack of institutional interest. O'Sullivan and Co evidently blotted their copybook big time with the institutions.

It's a shame about the suspension as it means I have what is effectively "dead" money tied up for what could be months. However it's not a lot of money. I would have preferred someone like Repsol taking over with an all cash offer, but it's not to be

[mojomonkey] 17/10/2012 14:39

Now they can rapidly develop the areas that they needed funds for drilling, how can that not be a good thing? I am very happy with this and I trust our BOD to have cut a good deal, that is what they are famed for after-all. GLA

[triples] 17/10/2012 12:06

At least there were discussions, so it may not have been a one horse race. But as you say, we'll never know.

[ultrapunch] 17/10/2012 10:24

Yes triples, but discussions with other parties regarding a potential offer doesn't mean they actually received other offers. We shall never know.

[triples] 16/10/2012 23:07

ultrapunch,

From the RNS:

End of offer period

The Boards of Bayfield and Trinity having reached agreement on the Merger, Bayfield has terminated discussions with all other parties regarding a potential offer for the Company and, consequently, the Company is no longer in an offer period.

So there may have been other offers and this was deemed to be the best, I guess.

[ultrapunch] 16/10/2012 22:44

Good post Jemjem.

[ultrapunch] 16/10/2012 22:42

It's definitely not a merger of equals, stef77. Trinity are effectively taking over BEH. They will end up with 55% of the shares and from what I can gather their executives will be running the show. It's a takeover, not a merger, whatever gloss BEH puts on it in yesterdays RNS.

All we know about Trinity is whats on their web site. We know they are currently producing more oil than BEH and we know of their licences, but we don't know their 2P reserves, what cash they have, or what debt, if any, they have.

We don't know if BEH had any other offers apart from this Trinity RTO. We don't know how desperate Trinity were to acquire BEH so we don't know if BEH were in a position to extract the best possible price for it's shareholders from the deal.

O'Sullivan and Pannikov couldn't repeat their Burren success at BEH. They were effectively a busted flush when they had to pull a proposed placing back in June because of lack of institutional interest.

[jemjem] 16/10/2012 22:29

Playing a guessing game on the reopening price is futile.
Until the new Admission document is out and details of new funding/placing (if any) are announced, the price could be anything. It's not impossible that funds could be raised at 50p (let's say £50m) and some of the existing Trinity shareholders release some of their shares to the market. I'm sure they would like a way of realising some cash. Trinity were looking to do an IPO anyway and they will dress the price up as high as they can.
Expect existing Bayfield directors to be locked in for a while. The shares will still be tightly held and the share price easier to manipulate.

Do not underestimate how important this is politically for Trinidad. The first company to be quoted on a major stock exchange. They will want this to be viewed as a success and will get plenty of local help to ensure that it is viewed as such - both politically and financially.

As everyone says, time will tell.

Oh, and btw, this is considered to be a takeover of Bayfield, if you are Trinidadian!

[stef77] 16/10/2012 20:54

not so sure it's going to be such a good deal for us after all. this is just a merger, and not a take over as I would have liked. I guess on that basis we might not get much more value, I mean one Bayfield share might be worth pretty much the same as a "New Trinity share" and my holding will be worth the same. we'll also get diluted if they place extra shares to raise more money.
I also fear an exodus of Bayfield holders following the admission, people who invested in "Ex Burren" management, as they will have gone. O'Sullivan will probably stay for "window dressing" purposes, as he'll be a non exec ,I believe.
I hope I'm wrong, but I've got to be honest and say that Bayfield has been a disappointment for me. the fact that management is getting out of it after only 15 months following the ipo says it all.
But like you all said, what choice have we got ? in this cicumstances patience it's not a virtue anymore, it's bloody mandatory!! what am I supose to tell my kids now? that Santa Clause will in three months time when the "New Trinity" will be re admitted on AIM?!!
On a more positive note, the new company will produce 3800 bopd net, it's a very good figure, you never know,they might be the new "ex burren" management!

[ultrapunch] 16/10/2012 12:19

Very true marben. "No point getting impatient if it takes time. There is little choice but to wait."

[marben100] 16/10/2012 11:25

Caledon went thru this process in 2006. In that case the shares were suspended for 3 months. Could be considerably faster here but depends on how long it takes to finalise the paperwork, hold meetings etc. A new admission document has to be prepared and be vetted, final undertakings obtained from outstanding Trinity shareholders and a vote for Bayfield shareholders held. Plus debt/equity fund raising required.

No point getting impatient if it takes time. There is little choice but to wait.

[triples] 16/10/2012 11:25

2 to 3 months' time.

[bc4] 16/10/2012 11:16

Anyone know when we will relist

[jemjem] 15/10/2012 22:31

Video on Trinity website well worth watching. In the media section.

[luminoso] 15/10/2012 20:17

Mojo

Yes it was a typo and duly corrected. Damn predictive text on an iPad !
Thanks.

[mojomonkey] 15/10/2012 13:38

Thanks weissy for your reply, care to share what your brokers think once you get a reply, I would be very interested to hear their views.

[ultrapunch] 15/10/2012 13:17

As I suggested many times on here and the lse bb, Due Diligence was being done on BEH and it transpires it was being done by Trinity!!!!!

Obviously BEH couldn't raise the finance at a cost acceptable to O'Sullivan and Panikov that would have enabled BEH to continue with it's costly ongoing development program for the Trintes field and kept it's "going concern" status at the same time.

The writing was on the wall for O'Sullivan and Pannikov back in June when they had to pull the proposed placing due to lack of interest from the institutions. They had obviously lost the confidence of the institutional investors.

This Trinity RTO is likely to please the institutional BEH shareholders. Dingwall, the Trinity CEO has as good record, as marben mentions, at Venture.

[weissy] 15/10/2012 12:58

Mojo,

Shareholders will voice their opinions, in voting for or against the merger so that will take a week or two but that is just a formality as the deal is already done with the BoD owning 50.5%.

Great news IMO bigger company with great prospects, funding sorted on RTO.

However like you i have never been in this position and do wonder how this will effect my investment and what price the new listed company will be placed at. I will be contacting the company i invest through to confirm what the procedure is.

Medium - Long term though this is a great result for BEH holders IMO.

GLA

[mojomonkey] 15/10/2012 12:29

Anyone got any idea how long this type of deal takes to happen? I have never been in this situation before so have nothing to compare it too.

Are we talking a few days suspension or weeks? Will the details have been agreed already and its now just the formalities perhaps? GLA