Borders & Southern Petro... Share Discussion Threads

[whoppy] 31/1/2022 16:36

Extension to conclude funding? Government must have had an assurance the licences can be developed.

[mesquida] 31/1/2022 16:19

Surprise, surprise ! This morning's sellers must be feeling a little embarrassed.
Fact is that market was very happy to take stock in this morning, that was all you needed to know !

[iamnotanumber6] 31/1/2022 16:18

RNS out - licences extended to 31/12

[mesquida] 31/1/2022 15:22

I would not pay too much attention today to ADVFN's trade definitions, I suspect that all the trades reported since 3 p.m. are purchases, and not sales as reported by ADVFN. In fact there have probably been more shares bought today than sold !

[mesquida] 31/1/2022 14:30

gus, suspect that we will see a large worked buy reported later today, and It seems that the buyer goes on. As you say, something is bubbling....

[gus 3000] 31/1/2022 14:10

3.5 million on the BID at 0.95. The ASK will get taken out soon if the bid isn't fed, no trades for hours. Something is bubbling.....

[whoppy] 31/1/2022 14:04

Sounds good. I don't have 2 million to sell! ;)

[mesquida] 31/1/2022 12:37

Just been doing a few dummy sales, market is bidding for 2m shares at least, for sure something is cooking.

[mesquida] 31/1/2022 11:16

Market seems quite happy to take the stock in, I have the feeling that they are working a large buy order.

[mesquida] 31/1/2022 08:11

Judging by the number of sells first thing this morning it looks as though some people do not fancy waiting for "a further announcement" !

[cyan] 30/1/2022 17:30

'intriguing ' it certainly is.

Trying to fathom what is going on from reading BOR's RNS is tricky.

Could have been clearer. I really did not like that word 'options' and an inference that could be made from it. Perhaps I have read too much into that wooly word.

Logically thinking one has to ask whether BOR's management are really going to let BOR fail the 'going concern ' test?

BOR must have been working on refinancing in the last 4 months since they lodged their application to extend the licenses. Is it credible that the FIG will not renew the licenses as they have before?

ARG successfully refinanced to give themselves more time.

The half year results RNS dated 30th September 2021 had this line;

"During the last six months the Company has undertaken a re-marketing initiative to attract partners. This work is in progress."

Was it fruitful?

Are they in the last stages of a farmin?

Should know soon enough;

"A further announcement will be made shortly on both matters."

[iamnotanumber6] 30/1/2022 00:05

Mesquida is right, it has to be his own holding, otherwise it would be Canaccord's name which comes up in the RNS. What you might be getting confused with is that he probably has to deal through his employer for compliance reasons - here in the UK, employees in the wealth management industry have to have dealing accounts with their employers, so I would assume it is the same in Canada. Certainly intriguing though!

[mesquida] 29/1/2022 17:11

Actually , Gus , I read it as investment in his own name , I am not sure why you think he has made the investment on behalf of clients. But whatever, he clearly is not an idiot and I believe that his arrival on the share register at this late stage can only be good news.

[gus 3000] 29/1/2022 16:12

Cyan, i think you will find it over a 100k punt and i agree its an interesting time to buy. Nothing to do with a wealthy guy, he didn't spend his money- it was his client's money. I believe they are a wealth management company that specialise in mining, oil and gas investments.

As for the RNS by BOR, it was vague but deliberately vague in my view and the market were very ambiguous to it. In fact there wasn't even one sale after the RNS, so like me all is reasonably cool until the next RNS apart from yourself, who i believe has no investment in BOR.

Of course i could be wrong on all counts, it certainly wont be the first or last time i am wrong.

Good luck all holders.

[whoppy] 29/1/2022 15:17

I'm surprised they even stuck their heads above the parapet and released an RNS with nothing to say. It's more a holding RNS to let shareholders know they are aware it's close to the licences running out, but hang in there, we are working on something and will update shortly. Hopefully good news.

[cyan] 29/1/2022 15:11

Good afternoon Whoppy

Yes, POO is great at the moment. In 2018 it averaged $71 and still no progress on moving Rockhopper's SEA LION to sanction or BOR attracting a farmin partner.

Year after year of excuses.

If its going to fall into place for Falkland oil company's in general; this HAS to be the year, imo.

It MIGHT be that BOR is in the final stages of an outstanding farmin/refinancing.

All anyone can go on is the uninspiring RNS issued in the middle of Friday afternoon, of all times.

IF BOR are seriously 'working' on a specific finance solution, they would have been entirely in order to make cautionary references to a potential deal with a financer/farmin partner.

BOR could have stated they were in discussions with a third party that ' may or not result in financing the next stages of their license commitments '.

Additional cautionary remarks along the lines "there can be no guarantee's an agreement will be concluded" would be entirely reasonable and not unprecedented.

"working on funding options" is wooly and not encouraging.

[whoppy] 29/1/2022 12:47

Things do take a long time, particularly when you are putting together a proposal and business opportunity such as the Darwin prospect. A suitor, either finance partner or oil major, will have said go away and come up with a proposal that reduces costs and is the most economic to develop the Darwin prospect, and minimise the environmental footprint, so it sits well with investors. If you can do that and we like it, then funding is possible. That's what they've been working on. Oil at $90 is also a factor in any proposal making it attractive, where as earlier it may not have been. Obviously the FIG will also want a proper proposal that is going to ensure a development happens before they extend the licences.

[cyan] 29/1/2022 11:12

Good morning gus 3000

I think you are referring to DOBSON who is described by BOR below;

"Harry Dobson

(Non-executive Chairman)

Harry Dobson is a former investment banker and senior partner of Yorkton Securities. He currently engages in various merchant banking and venture capital activities in North America and Europe, and has acted as Chairman of a number of resource companies (including American Pacific Mining Company Inc. and Lytton Minerals Limited). He was formally the Chairman of Kirkland Lake Gold Inc. (a Toronto Stock Exchange and AIM quoted company) and Rambler Metals and Mining plc (an AIM quoted company). He is experienced in the organisation and funding of resource projects, including those located in inaccessible locations.

Harry is Chairman of the Remuneration Committee and sits on the Audit Committee."
See here;



He does have a large 'interest' in BOR shares in a convoluted way;

"Directors and their interests

The beneficial and other interests of the Directors and their families in the share capital at 31 December 2020;"

Extract;

"Harry Dobson 26,670,000 "

"The ordinary shares in which Harry Dobson is interested are held by the Zila Corporation, a company owned by the Whitmill Trust Company Limited, as trustee of The Lotus Trust of which he is a beneficiary."

Source; page 14



This line from his Biography is interesting;

" He is experienced in the organisation and funding of resource projects, including those located in inaccessible locations."

All well and good BUT BOR has not yet raised the necessary finance to remain a 'going concern'; its five to midnight and still not sorted; why not?

Anyone reading the BOR RNS will not be filled with optimism , imo, its poorly worded.

It could have been much more definite and reassuring. As it stands it reads to ME like they are struggling; working on more than one finance option; looking around.

This should have been sorted well ahead of critical deadlines; the licenses expiring and the YE 2021 audit and the requirement to demonstrate they have working capital for the next 12 months.

I can only conclude it was not sorted well ahead of time because they are struggling.

IF there was a potential farmin partner in the wings they should have have indicated so in the RNS with caveats.

If DOBSON was keen to personally support a refinancing somehow you'd think he would have done so by now.

The real mystery is the circa £100K recent buy. I think most viewed that as a big positive; making assumptions.

I suppose we can not discount the possibility it was just a punt from an extremely wealthy guy.

The stark facts remain; BOR's licenses are close to expiring and they still have not reassured the market and the FIG that they have the necessary finance .

[gus 3000] 29/1/2022 09:08

Cyan, i have been reading your posts and i disagree with your scaremongering. First of all a drill right now in the southern basis is nowhere near your 110 million usd rate, rates have dropped significantly. Nevertheless, its money we don't have for 110 million or less. You also seem to forget that our CEO has a vested interest here with around 26 million shares and is a near billionaire, he's also a bit of a financial guru. Harry can provide a loan to the company with ease to keep the lights on either personally or through one of his other companies, or indeed offer security for a loan via a third party. He could subscribe for a small placement for himself, a bit like what happened at Arg. Finally our new investor would not have taken 3% of the company at such a time without knowing something, he is investing other people's money. I actually think something positive is brewing due to the lateness of everything and not the other way around, the board are very astute and know the score.We will see next week for sure.

[whoppy] 28/1/2022 21:04

And yet Mr Brimacombe bought just over 3% of the company. 3% is deliberate, imo. Could have just stayed under 3% and not have to notify. He would also need to notify if he went below 3%. No sign he's sold. What does he know?

[cyan] 28/1/2022 20:01

They have a financial crisis on their hands; remember this;

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."

They have the audit and MUST be able to demonstrate sufficient working capital for the next 12 months.

Its looking grim.

[whoppy] 28/1/2022 19:44

I'd be surprised if they've got funding options. Can't be many options open to them at this late stage, with it's share price where it is and the amount required to drill a well. If they have options that allows them to drill, then they either have a partner entering or some other finance from an oil bank that wants the light oil, which is pretty unique and very valuable, but it's not going to be an equity raise.

[cyan] 28/1/2022 19:19

The RNS wording is somewhat alarming, imo.

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

If BOR were close to completing a farmin I would think you would word the RNS along the lies ; " The company also confirms it is working on A funding OPTION."

"working on funding optionS..." suggests to me a desperate flailing about for rescue
finance.

"options" is the warning word; they have not got a firm plan.

[whoppy] 28/1/2022 18:53

Hi Cyan, yes agree what you say. Makes you wonder why the Canaccord investment manager bought 3%. I would be pessimistic if he hadn't recently bought shares. Unless he's just having a gamble. £100k is still a far chunk to pour down the drain. I note they say they will update shortly, so yes, they've left it late, but sounds like they've been working on something for a while, and Mr Brimacombe maybe has got wind of it.

[cyan] 28/1/2022 18:36

Good evening Whoppy.

This is what was RNS's on 30.09.21

!Chief Executive's Statement

The current phase of the Company's Falkland Islands Production Licences (PL018, PL019, PL020) and its Discovery Area Licence are due to expire at the end of January 2022. An application has been submitted to the Falkland Islands Executive Council requesting an extension to all licences. As part of the approval process the Company will have to demonstrate that it can meet its financial obligations under the terms of the licences."

From that we know that BOR have had an application to extend with the FIG for at least FOUR months.

Todays almost 'last minute' RNS tell us that the licenses have not YET been renewed.

That means the FIG are not content; they are looking for more to fall into place.

Its all about finance; BOR's ability to raise funds and reassure its a going concern with a realistic chance the exploration well commitment can be honoured.

The FIG have renewed again and again and so on. The fact that the licenses have still not been renewed suggests to me that BOR are now between a rock and a hard face. It maybe that the FIG are playing hardball.

IF anyone is interested they are going to have to be VERY wealthy indeed to mobilize a rig and exploration drill in the SFB. Drills in the SFB were about $110m each.


Are they on the verge of a new spectacular dawn supported by a wealthy partner or are they about to collapse into administration.?