Cloudbreak Discovery Share Discussion Threads

[turbotrader2] 30/10/2007 14:43

would agree with that, absolutely

[theshareguru] 30/10/2007 14:32

It is in the interest of major shareholders to keep the quote and reverse
into it, I agree with natalia that there are rewards in seeking out a new venture, although there are small pi's in this company most of the shares
are held by a few major holders.
If silverpoint had bought the assets we would have nowt, at least this way
we have a fighting chance

[turbotrader2] 30/10/2007 14:27

cant wait for Xenas post later, that will put things into perspective hopefully

[omellete] 30/10/2007 14:02

Well whatever the company says - $2.18 a barrel for P2 and some of it producing and others with near term production potential is too cheap IMO>


Zengas will have the best view on the price.


What about the RC field reinstatement?

The new owner may get that option and the original shareholders get nothing. Plus if Hares and Kuwaitis get along, they are more likely to be able to do it.

Well this is the stock market and these kinds of deals occur all the time.

[theshareguru] 30/10/2007 13:41

cardinal to become condor, this is the new investment, this was put in place
well before suspention and now all we need to know is what condor have in there
locker, this is only a guess but I'm sure it will be in the circular, one think
about it we will have trading shares and hopefully some kind of future, all is not lost

[omellete] 30/10/2007 13:25

got this reply:

The deal for the sale of the assets is not considered to be low. At $71 million we are getting $2.18 per BOE on the full 32.5MMBOE we report in our ECL report. The fact that the shareholders get less than we would like them to get has nothing to do with the fact that the purchase price we are getting - given our circumstances - is attractive.

As for the distribution of the proceeds - per the agreement Cardinal would have a 6 month and contingent liability surrounding representations and warranties made to the Buyer, the plc must maintain assets during that period. Thus an immediate distribution will not be possible.

Also if the Board were to distribute cash to shareholders it would trigger full payment of severance, settling up all other outstanding liabilities of the plc and the costs of a wind up leading to the lower number.

If the Board were to look at a new investment then many costs could be avoided and while many of the accounts payable would have to be retired, some would not, the Company would keep its $1MM per year of revenue from the Condor services agreement and could potentially realize greater value from its Condor investment.

We are looking at ways to restore value and have alternatives that will be discussed in the circular. The value shareholders would have in the Company for reinvestment far exceeds any liquidation value. We would present the going forward strategy for shareholders approval.



Best regards,

Natalia

[theshareguru] 30/10/2007 12:19

to snaptastik
I go along with you theres more to this than meets the eye, otherwise the major
shareholders would have a blood bath at the egm, condor is an inigma nobody
knows what it has, lets wait and see rb is on the board, life could be very
interesting late 2007 early 2008, plus there is only at present 110m shares
.

[turbotrader2] 30/10/2007 12:15

condor is private yes and CDL have 7%

Had a long conversation with the company and worst case is you should get around the current level give or take a penny

[theshareguru] 30/10/2007 12:08

are condor a private company, i see a reverse takeover and name change comming
off plus hay ho south america here we come

[pomp circumstance] 30/10/2007 11:31

what about a head?

[turbotrader2] 30/10/2007 11:27

well i cant make haed nor tail of this

[omellete] 30/10/2007 11:01

zubaydah- Well a benchmark has been set for the asset valuation.

However can another bidder get involved?

Can we see the penalty clause for another bidder? I cannot so far/

The Directors of Cardinal have
reviewed all the options available to obtain the most value for
shareholders of the Company and have now agreed the principal terms and
conditions on which Cardinal would enter into a binding sale and
purchase agreement ("SPA"), subject to shareholders approval and other
conditions, to sell its Ukrainian assets.

[jam2day] 30/10/2007 10:59

Make no mistake about it CDL was all about the Ukraine asset,with out it its back to square one,
deals have been struck and the pi has been shafted.

[snaptastic] 30/10/2007 10:55

agreed zub.. i think others will at least look at the assets now... they need to move quick though as they wanna get this deal done asap...

what u think Xena?

[zubaydah] 30/10/2007 10:52

'But a sale of 30Million P2 for $71 million is too cheap - even if it is Ukraine.'

Especially with a pro western government to work with. I'm hoping this brings out another bidder.

[omellete] 30/10/2007 10:49

snaptastic - Cash is normally discounted by the marker IMV. They need to quantify what Condor is and worth to justify a Mcap at the cash level.

The newly reduced admin costs will likely eat up the $1 million a year - and so unless they buy a producing asset then 7 pence may be as good as it gets for a while.

[snaptastic] 30/10/2007 10:41

everything but Condor gone and the cash of $19 million less expenses for this transaction which i would be suprised if its more than a couple of million $.. i think they have tried to work it so that shareholders get their 7p cash if they want it.. the good think is the market usually values companies greater than cash so with a good strategy, cash and no debt there shoulsd in theory be upside after all of this... condor cashflow too... if we have 7p cash and a good strategy along with the Condor cashflow then 10p market cap is not unrealistic imho when trading resumes. I would love to know what assets Condor has and what they are worth.. maybe this deal has a silver lining?

Hares get the same as us i guess.. a chance to grow their money in Cardinal via South America...

it would be nice the think that Cardinal will somehow get to aquire new assets on good terms at the end of this but nothing to suggest so at the moment... one things for sure, Hares will do what they can to help along with the other big investors now that Silverpoint is history..

[omellete] 30/10/2007 10:39

snap - What do Hares get out of CDL losing their Ukraine assets? Have they got a side deal with Kuwait?

i.e. Kuwait buys for less than the real market value - and give a kickback to Hares.

[omellete] 30/10/2007 10:37

snap - cheers. Is the Gas gone as well?

Sound like it to me from my reading of the RNS.

[snaptastic] 30/10/2007 10:23

spoke to Natalia.. not as good as i thought but better than nothing.. Ukraine assets are gone for good by the looks of it... the good is that the company will have cash left after the transaction on $19 million less expenses to take the company forward.. likely to be focusing on South America and not back in the Ukraine... if we can start a fresh with £7 - £8 million sterling cash then that should support the current share price in theory and upside depends on the strategy going forward.. We still have the Condor shareholding too which is an unknown from what i can tell but is generating cashflow for the new company already as below..

its administrative and technical services agreement with Condor pursuant to which it is entitled to a minimum of US$1 million per year in revenue as announced on 9 August 2007 Hares are likely to support the deal..

Natalia said there is also the chance now that another party would bid for the assets now that everything is out in the open.. always a possibility i guess which would mean more cash for the remaining company..

[omellete] 30/10/2007 10:13

Upside Potential - I don't see it a problem now in getting a new Nomad. Also did you note that Nabarro Wells got into trouble elsewhere? That could be why they left CDL.

CDL are not going bust.

I guess what snaptastic said may happen. A placing (possibly to Hares) for the purchase back of the assets.

I guess we need Xena to talk it through with the company and to give an update to the rest of us later!

But a sale of 30Million P2 for $71 million is too cheap - even if it is Ukraine.

So looks a backdoor deal to get rid of Silverpoint.

[upside potential] 30/10/2007 10:09

lets not forget they need a new nomad asap or we de-list