Borders & Southern Petro... Share Discussion Threads

[cyan] 27/9/2017 21:41

Article from 2014

"I have my notes from the AGM of Borders where Harry Dobson claimed he is willing to wait for another drilling campaign for a better deal and has rejected two farm in deals already. So where does that stand if Borders decides not to enter the 2015 campaign? In my view: 7p and with a 15% spread."




I did not say I had the details of the companies or offers.

Do a bit more research.

[gunsofmarscapone] 27/9/2017 21:00

Cyan

I very much doubt that you have discovered details of actual farm in companies or the value of any prospective offers; all you are simply doing is to talk yourself out of building a position here inspite of the margin of safety implied in the share price

[knowing] 27/9/2017 13:00

Nice to know they have enough cash for at least 5 years

[bigsi2] 27/9/2017 12:42

YesOil is essential for modern lifeHow many barrels of oil go into making a car? It takes seven gallons approx for each tyre alone- Forget running it

[bit coin] 27/9/2017 10:53

will there be an oil market in 10 years time when battery technology is able to drive a car from London to Glasgow on one charge?

[cyan] 27/9/2017 09:48

I did a little research about farm-in interest. Apparently, if reported correctly; BOR had two farmin offers ,a few years ago, which were turned down .
Could have been so different here if greed had not taken over.

In 6 months spent $811,000 USD. Has $8.6 million USD in cash; so, in 5 years that will all be spent. What are the chances of a farm-in in that time?
The report does read pretty bearish.

"Relatively few deep-water exploration and appraisal wells are being planned as companies continue to face budget constraints. When presenting our project, the technical aspects are commonly well received, but there has been little appetite to commit to large offshore capital projects in the current environment."

Things can change , who knows where the oil market will be in a couple of years?

[brian boru] 27/9/2017 07:08

net assets $299 million, market cap £9 million, ermmmmmmmm

[ride the wave 1] 21/9/2017 11:21

I'm here 🙋‍a94;️

Still holding

[cyan] 20/9/2017 17:55

Too right GOM. I have some RKH I paid as much as 93p for a LONG time ago. Oh dear. Must confess to a little trading.
You are right ; one has to trade when one can.
Have been buying RKH in quantity recently.
Good luck.

[gunsofmarscapone] 20/9/2017 16:00

Cyan, is it possible that you are not thinking laterally? Its not that Noble would operate a well in the Sfb but it is that a high probability that Nfb well(s) will be operated, therefore optimising cost of any other wells. Exploration involves analysis of found data, therefore gaps in a well programme created by syncopating ops are valued by the pointy heads.

"Wildcat drilling", not really worth comment...

What is certain is that it is impossible to make profit on Aim without trading between positions, evolving a strategy yet being prepared to flex. Some very good derivative traders do well. What usually happens is that puntvestors dig into savings or borrow to buy shares which sink until the minnow investor capitulates.

I bet you bought those Rkh shares for a fair old wedge fella.

Edit: syncopating not really the right verb!

[cyan] 20/9/2017 15:12

Best of luck fadilz.
There remain actually two big questions for me;

1. Why the huge sale

2.What happened to ride the wave 1?

[fadilz] 20/9/2017 14:50

Well cyan, each to their own. RKH is realistically a 4-5 bagger. BOR would be more like a 50 bagger. Question is punk: do you feel lucky? If oil looks set to stay in range $55-$65, then I certainly do. End of, from me for now.

[cyan] 20/9/2017 13:39

You beat me to the punch; Noble have given up on the SFB.
ITs all about the NFB. I do not see anyone keen to speculatively drill in SFB .
What can we be sure about Scharnhorst?
The old numbers for SFB drills were around $110 million and at that time NFB about $50 million.
Yes, most likely less now but the ratio is likely the same. Still very expensive whatever way you cut it. Wildcat drilling in SFB will not be very attractive for anyone despite the theoretical juicy targets down there.

The big question is why the huge disposal.?

[fadilz] 20/9/2017 13:27

To my mind it is all down to poo. If poo supports RKH FID, then BOR will not be far behind, IMO. BOR are not in a position to fund-raise at this sp, but would farm-out.

Noble no longer have an interest in SFB - all RKH now. I think it unlikely that RKH would spend money on Scharnhorst until they have Sealion producing, but at that stage, anything could happen.

[gunsofmarscapone] 20/9/2017 12:59

My point re Noble being the availability of mob, de-mob sharing etc etc. Atb GoM

[gunsofmarscapone] 20/9/2017 12:58

Hence the mcap Cyan, there is the truth in real time.

Envisage this scenario, Rkh could recover to 150p; irrelevant but that is a ten bagger for me based on the average traded to from Bor profits, Des profits xferred into Fogl shares then rev t/o by Rkh. Therefore I am an Rkh holder too!

The risk for me in continuing to gather Bor is obviously the spread and any (minimal) downside risk from the present mcap value which is at virtually zero risk of decline sub 1p. Now, back to speculation and don't forget, Tim Bushell (who is a first rate individual whom I have met several times) is retained as SFB expert. Here is the punt, when Noble announce Pl01 Argos wells (should be around Q1 2018) an opportunity will arise to issue new equity and fundraise for a Scharnhorst exploration well. I believe that such a well has a high cos and supports the potential of Bor, as the contiguous licence and discovery, to skyrocket into space.

Also, you have become fixated about the cost of Sfb wells, this has reduced hugely due to the depression in oil service company charges and also, the number of wells needed to produce in Darwin and most probably Scharnhorst and other plays/prospects in the SSFB is much lower than the fresh water fan plays of the NFB.

May not happen but a far safer position to take than buying Des shares at a delusional mcap or other, ahem, tin pot oilies in the Aim graveyard.

[cyan] 20/9/2017 10:06

Good morning fadilz.
I will take at face value the claims that BOR's per barrel cots are competitive in comparison to SEALION.

I am invested in RKH I should declare.

I say BOR missed the boat because there are unsubstantiated rumours that BOR DID once have farmin interest. The suspicion is that BOR management may have been greedy and turned their noses up to a deal. They were different days of $100 oil. I am not so sure we will ever see them again.

RKH were smart enough to close a deal and lock PMO in during those buoyant days.
Look globally at where big oil and gas are heading. The super majors who once might have bought into BOR's acreage are now switching emphasis. They are all moving to majority GAS developments.
Oil is not dead by a very long chalk but, imo, the road ahead is becoming clearer. Cleaner low carbon energy is the future. I suspect the best days for oil are past us. In the 70's we all talked about oil running out. In fact there have been many major discoveries and there is an oil glut. PMO; RKH's partner has recently announce a billion barrel discovery. There are many examples in areas of the world so much easier to work.
There has been statements that there are going to have to be oil fields left in the ground for ever. I genuinely believe that BOR's asset is one that will never be developed. Maybe the huge seller is seeing the writing on the wall too.

[barvin] 20/9/2017 08:47

So that 22m at exactly 1p was a delayed trade from Friday.

That'll likely be Zila, so if they were so desperate to sell at 65% of market value. Do they know more than the average investor?

Management is such a letdown, with poor investor relations. Get rid of em, overpaid oiks. Is it going to be same old with the Interims in a week or so time?

UPDATE: That huge sell is now showing twice, so only Lansdown have a recorded holding this big (67,613,605)
hxxp://www.bordersandsouthern.com/media/pdf/2016%20Annual%20Report.pdf
So could they still have another 22 mill to sell?? 22,347,107 x 3 is 67,041,321 so not far off.

[fadilz] 20/9/2017 07:40

cyan costs to develop Darwin are similar to Sealion phase 1, with similar recoverables. Simpler trap so half the wells. Breakeven claimed at $40.


Agree they must find a partner, but if they do it will have a stellar effect on share price Just consider that RKH has a mcap of 12x that of BOR. High risk but potentially huge returns.

If we stay above $55 for the foreseable, then outlook improves. If RKH get to FID then outlook improves.

This is a bet on poo.

[cyan] 19/9/2017 21:20

Goodness that was a big sell. I see there is a lot of enthusiasm on the LSE BB for BOR. I just do not see BOR ever getting a farmin . They missed the boat.
SEALION will go ahead imo in the NFB but this deep water asset in the SFB has challenges.
Drill costs in the NFB are half the SFB. I think the pi's have missed out the main problem facing BOR. Its not just the money but the fact that they will need a major oil company to partner them. There is a limited pool of very large oil companies up for these deep water expensive projects and I think they do not need the political hassles affecting their South American interests. Big oil is watching its expenditure these days and, frankly, there are cheaper less political risky fields to buy into first.

[ohisay] 19/9/2017 20:12

well that was a big sell

[comedy] 15/9/2017 12:20

no idea..just seen..taken another 100k just now. sitting on 300k now.

[happyholder123] 09/9/2017 10:44

HNR -
TWO wells successfully drilled with abundant oil and gas in samples extracted!
Fracking and FIRST OIL next month!
Don't miss this train!