Borders & Southern Petro... Share Discussion Threads

[whoppy] 28/1/2022 17:34

It seems a holding statement to me saying yes we know the licence runs out, but we are working on something. Key part is they are working on funding options, which I presume allows for the drilling of a well as part of the licence obligation. Question is, who's going to fund that?

[cyan] 28/1/2022 16:10

"The Company confirms that it is in advanced discussions with the Falkland Islands Government about the extension of these licences.

The Company also confirms that it is working on funding options for the next period of the Licences"

What to make of that?

"options" ?

If there was a potential farmin partner I would have expected something a little more specific a long the lines ' the company is advanced negotiations with an interested third party'

Am less confident that there is a third party now. I think the going concern question maybe more serious than I thought after the new investor arrived.

[mesquida] 28/1/2022 15:57

Presumably you have all now seen the RNS ?

[cyan] 28/1/2022 11:31

The below text raises questions IF there really is farmin interest.

Suggests to me that the FIG would be expecting a new partner to make a commitment to mobilize a rig in a timely manner.

The delay in updating is strange.


13th April 2021


Going concern extract;

"The Group has a commitment to drill a well before the expiry of its production license in January 2022 (see note 18). The Group plans to fund the well through a farm-out. If the Group is not able to farm-out before January 2022, the Group is confident that it will be able to extend the production licenses and the associated commitment to drill the well. This is in line with previous extensions.
The Group’s board of directors have reviewed the Group’s forecasts for a period of no less than twelve months from the date of approval of these financial statements, the period to 31 March 2022.
Based on these forecasts, in the absence of a farm-out, the directors have identified that further funding may be required to cover administrative costs and licence fees beyond December 2021. Therefore, a material uncertainty exists which may cast significant doubt about the Group’s continued ability to operate as a going concern beyond December 2021."



The Note 18 referred to has this text;

"The Group Production Licence commitment is to drill one exploration well before 31 January 2022."

[mvp1689] 28/1/2022 08:58

Can't get a live quote so something must be happening in the background

[mesquida] 27/1/2022 15:24

This time last year there was a flurry of interest in the stock and substantial shareholder DAMILLE sold about 10m into the spike. So far they do not seem to have sold any into the current flurry of interest. Possibly they have been made insiders by the company and cannot therefore deal. Just thinking aloud!

[cyan] 27/1/2022 15:16

Oh , for a crystal ball right now lol.

IF BOR's management have an offer they had better not blow it this time by being greedy.

IF BOR had not had the recent buying interest from a rich guy one would have to be much more concerned of another possible darker scenario.

I think everything remains POSSIBLE; its what's HOPEFULLY more probable is what might attract buying.

Not long before everyone has an indication.

Don't like after hours RNS on Friday's. Lets see what the morning brings.

[mesquida] 27/1/2022 15:12

Can currently sell 1.25 m online, for sure something is cooking.

[whoppy] 27/1/2022 15:02

Brent just gone through $90.

[whoppy] 27/1/2022 14:59

Another 600k of buys.

[whoppy] 27/1/2022 14:58

BOR would get back a huge chunk of cash for the money spent on the drilling.

[cyan] 27/1/2022 14:51

The delay MIGHT be explained in a scenario that involves a potential farmin partner approaching VERY recently.

The licenses are up for renewal and BOR must receive a cash injection.

The FIG would want to look over and approve a new potential partnership; this would likely delay the usual licenses renewal.

The VERY recent sudden interest from a rich investor is 'curious' .

I imagine BOR's management would bite the hand off ANY potential new partner.

ARG once had a deal that left them with a 5% Overriding Royalty Interest under a Participation Agreement. Unfortunately that deal lapsed after the other parties walked away.

I wonder if BOR may agree something similar?

[whoppy] 27/1/2022 14:27

Some more chunky buys just gone in, 1m bought.

[mesquida] 27/1/2022 14:02

RNS tomorrow ?

[mesquida] 27/1/2022 14:01

I can sell 1 million on line, most unusual.

[whoppy] 27/1/2022 13:31

Someone is picking up large chunks. 400k buy.

[cyan] 27/1/2022 13:02

I would lean towards better news based on higher POO and the new investor.

Might just be a farmin; all guesswork of course

The concern is why hasn't the RNS dropped yet?

I suppose we can not discount the small chance that BOR have some 'difficulties' on the licenses or fundraising.

[whoppy] 27/1/2022 09:20

They would have made an announcement re: funding and the licence extension by now, if that was the plan. They are either going to relinquish the licence (highly unlikely because of the asset value), or have another announcement that they can't yet make, probably due to paperwork ie: farmout or something else.

[brazilnut1] 27/1/2022 09:13

No RNS again. Is this dead at long last or a last minute takeout coming ? Surely some announcement due ?

[brazilnut1] 25/1/2022 15:08

Party over just like Boris's.

[whoppy] 25/1/2022 11:02

Ticking up

[whoppy] 24/1/2022 15:52

Another way to look at it, he's sat on a nice profit and hasn't sold! Either 5p incoming or 0.5p.

[whoppy] 24/1/2022 15:49

Agree! Either Mr Brimacombe has it wrong and he took 3% in a company to be publicly humiliated, which won't do his street cred any good as an investment manager, or he deliberately bought a notifiable interest to look good!.

[cyan] 24/1/2022 15:46

There is the very urgent need for BOR to demonstrate it has the basic funds to ensure a smooth renewal of BOR's licenses.

The licences are due to expire in a few days

The 30th Sept. 2021 Half-year Report RNS had these extracts;

"..the Company will have to demonstrate that it can meet its financial obligations under the terms of the licences."

"...it is likely that additional funds will be sought before the end of January 2022 in order to meet licence and working capital needs and in order to meet the "going concern" tests of the 2021 year-end audit."

Note 4 makes a more definite statement

"4 Going concern

...the Company intends to secure additional funds by the end of January 2022 in order to continue operations as normal."

The big question is;

Has BOR now attracted a farm in partner who will inject sufficient cash to avoid a dilutive fund raise?

Has the recent investor just simply gambled. ? This is a very significant week.