Columbus Energy Resources Share Discussion Threads

[12bn] 03/7/2020 09:47

As Mr Linton says, this is a ceiling for the maximum allotted shares the company will have available to issue if it chooses to in the future at a market price. The par value of all BPC shares is 0.002p,/////// Eggy,do you understand what this part of the post means,I doubt if you do. I do but I will not ask you to explain it,I will just explain it for you. What is called 'the par value' here is often known as 'the nominal value' of a share. A company cannot issue new shares below the nominal value price without having an EGM or AGM to change the nominal value price. So with a low nominal value price a company can issue as many shares as it likes and this is what will happen if by some miracle BPC decides to drill the Bahamas and needs more cash. BIG DILUTION of shareholders.

[12bn] 03/7/2020 08:34

So you think that the ability to issue 10bn shares won't be dilutive? (I realise that the issue price is just irrelevant,it is the 10bn number that is shocking). You need to start seeing reality here Eggy not just thinking 'what if the share price hits 125p,I will be a millionaire',that is silly wishful thinking.

[eggchaser] 03/7/2020 07:41

And here is a response to that post too 12bn.RE: Motion 4Tue 12:08They are not issuing 10Bn shares to raise £200,000. Good Lordy..LolAs Mr Linton says, this is a ceiling for the maximum allotted shares the company will have available to issue if it chooses to in the future at a market price. The par value of all BPC shares is 0.002p, (please look at your share certificate) the increased share capital increased to £200,000 which when divided by 0.002p gives a 10Bn share structure. Lets say P#1 is a success and the company want to raise money to drill develop and produce oil in the Bahamas all for themselves for the next 30 years, and they want to raise money. They will have a share structure that will enable them to be able to raise at whatever the share price is after a discovery knowing they have enough authorised share capital. So they can go it alone if they wanted to after a discovery at Perseverance. It's all about having optionality. Of course those people who are not optimistic about BPC will say this is just confetti dilution that devalues the share price However, just remember these shares don't have to be issued. aimho, dyor.

[12bn] 03/7/2020 07:37

Wow,a lot of dilution expected at BPC! Will Cerp do the same? No wonder Lind and Schroders are selling out fast//////////Resolution Four: Conditional on the passing of Resolution One and Resolution Two, as an
ordinary resolution, that, in accordance with the Companies Act 1931 and the
Company’s Articles of Association, the Authorised Share Capital of the
Company be increased beyond its current registered capital to having a share
capital of £200,000 being 10,000,000,000 shares of 0.002 pence each.
For Against Withheld

[12bn] 03/7/2020 07:28

If the share price gets to 125p ........... 'Dear Santa........'. IF the Bahamas gets drilled then the odds are 1:3 of success evidently but I am no expert on wildcat drills but it does appear that many BPC posters don't think it will be drilled,it hasn't in the last 13 years and it is close to the US but we shall see. Selling 76.1% of Saffron/SWP/Suriname/etc for a chance on a wild cat drill is terribly risky imo and if I was a holder I would vote against this merger/robbery.

[eggchaser] 03/7/2020 07:18

Finally just for 12bn and LittleSi a little piece ref the P1 still going ahead! What did that poster say about two drowning men clutching at straws!!BPC's locally incorporated mutual fund ready for tradingJune 29, 2020Bahamas Petroleum Company (BPC) has finalized all administrative formalities related to its locally incorporated mutual fund, the shares of which could begin trading on the Alternative Investment Market (AIM) of the London Stock Exchange as early as today, the company revealed in a statement.According to the company, the effects of the novel coronavirus (COVID-19) pandemic delayed the processes of the BPC Investment Fund Limited, which will now be issued 35,337,328 ordinary shares in the oil exploration company."Application has been made for the fund shares to be admitted to trading on the AIM market of the London Stock Exchange with an expectation that admission will take place and trading in the fund shares will commence on or around June 29, 2020," BPC stated."As previously announced, under the terms of the fund going forward, month-end valuations will be undertaken. At each of these valuation dates, the fund may utilize net subscription proceeds to either purchase additional shares in BPC on the open market or, at the company's discretion, subscribe for new ordinary shares in the company at the then prevailing market price."Chief Executive Officer of BPC Simon Potter said the company has wanted to include Bahamian investment for a long time, but especially as the company prepares to drill its first well in the southern Bahamas."Facilitating the capability for Bahamians to invest in our nationally significant project has long been an ambition of the company," said Potter."This objective was realized with the creation of a Bahamian domiciled investment fund back in January. Understandably, various administrative processes had been difficult to complete owing to the impact of COVID-19, but with those now resolved, formal admission of the shares is expected shortly and I am delighted to see this project finally coming to fruition, whereby Bahamians can choose, albeit indirectly, to participate in the outcome of the project."As I have discussed in recent days, we are operationally ready to begin the drilling of the Perseverance #1 well, targeting 0.77 billion barrels of oil. With the signing of an unconditional rig contract, the company has confirmed a specific window between December 15, 2020 and February 1, 2021 in which drilling will commence. We eagerly await the start of this drilling program and I look forward to updating shareholders on our progress in the near future."Leno Corporate Services Limited, the fund advisor, helped the company to raise almost $1 million this year.BPC announced this month that it and Columbus Energy Resources, an international oil and gas exploration, development and production company headquartered in London, have agreed to the terms of a recommended all-share merger by way of a share-for-share exchange, which would transform BPC into a full-cycle exploration and production company.

[eggchaser] 03/7/2020 07:14

It was an example - I hold more shares than 1m!!!

[12bn] 03/7/2020 06:32

The share price won't get to 125p Eggy,your wishful thinking is not reality, any more than Donald Trumps 'the virus will just go away' idea. You should both start your posts with 'Dear Santa......'. Let me explain my 'optimistic post' as you wrongly interpreted it. I was saying that I didn't think the Bahamas would get drilled and that the cash would be used on the SWP drill in Trinidad. I still think that will be the result but Cerp holders benefits are only 23.9% of the profits not 100%. It is a desperate plan from 2 desperate companies and Cerp are giving away the family silver on a gamble in the Bahamas which probably won't even come to fruition. Even if the Bahamas is drilled then the chance of success is only 1 in 3,poor odds to put your life savings on. You need to remove your 'rose coloured specs' and see reality before it is too late,imo.

[eggchaser] 02/7/2020 22:00

BPC's locally incorporated mutual fund ready for tradingJune 29, 2020Bahamas Petroleum Company (BPC) has finalized all administrative formalities related to its locally incorporated mutual fund, the shares of which could begin trading on the Alternative Investment Market (AIM) of the London Stock Exchange as early as today, the company revealed in a statement.According to the company, the effects of the novel coronavirus (COVID-19) pandemic delayed the processes of the BPC Investment Fund Limited, which will now be issued 35,337,328 ordinary shares in the oil exploration company."Application has been made for the fund shares to be admitted to trading on the AIM market of the London Stock Exchange with an expectation that admission will take place and trading in the fund shares will commence on or around June 29, 2020," BPC stated."As previously announced, under the terms of the fund going forward, month-end valuations will be undertaken. At each of these valuation dates, the fund may utilize net subscription proceeds to either purchase additional shares in BPC on the open market or, at the company's discretion, subscribe for new ordinary shares in the company at the then prevailing market price."Chief Executive Officer of BPC Simon Potter said the company has wanted to include Bahamian investment for a long time, but especially as the company prepares to drill its first well in the southern Bahamas."Facilitating the capability for Bahamians to invest in our nationally significant project has long been an ambition of the company," said Potter."This objective was realized with the creation of a Bahamian domiciled investment fund back in January. Understandably, various administrative processes had been difficult to complete owing to the impact of COVID-19, but with those now resolved, formal admission of the shares is expected shortly and I am delighted to see this project finally coming to fruition, whereby Bahamians can choose, albeit indirectly, to participate in the outcome of the project."As I have discussed in recent days, we are operationally ready to begin the drilling of the Perseverance #1 well, targeting 0.77 billion barrels of oil. With the signing of an unconditional rig contract, the company has confirmed a specific window between December 15, 2020 and February 1, 2021 in which drilling will commence. We eagerly await the start of this drilling program and I look forward to updating shareholders on our progress in the near future."Leno Corporate Services Limited, the fund advisor, helped the company to raise almost $1 million this year.BPC announced this month that it and Columbus Energy Resources, an international oil and gas exploration, development and production company headquartered in London, have agreed to the terms of a recommended all-share merger by way of a share-for-share exchange, which would transform BPC into a full-cycle exploration and production company.

[dodge_city] 02/7/2020 21:35

Why extend Goudron, it's a waste of money.

[eggchaser] 02/7/2020 21:03

Offer - welcome back - I trust all is well with the family and your good self - that's the most important thing.

I agree with JCG and feel the Goudron IPSC deal has been delayed for max impact post merger. I wonder if there is news on the deep rights at Goudron too? Anyway I cant blame them as timing is everything, regardless of AIM rules there is always a work around and it could be legit. Personally, Id rather see my new shares in the enlarged company begin to rise as it would appear the share price here now is irrelevant with Schroders and Lind offloading.... although Schroders appear to have backed off of late? Notice how BPC share price is remaining steady?

Offerman I can see your point of view when you speak of valuations however another way to look at it is a valuation is only relevant if something is sold - as we are being merged surely our valuation is therefore dictated by the success of the new company and the point at which either you sell or the company is bought? Imagine the smiles if P1 hits and we get further success at Saffron and a significant Suriname update as well as positive news on the Goudorn IPSC? I note that no one is talking much about Uruguay? The main thing is we still have all the old projects post merger meaning we are still invested into their anticipated success as well as P1 now and Uruguay. I agree the risk is increased and some may not have the appetite for this however we are not clear what the risks were had we of stayed as we were and tried to go alone?

I mentioned the large buys the other day and it appears that someone has cottoned on to buying shares here to see them increase quite a bit when/if the merger takes place as its dictated by the BPC share price on the day if I am not mistaken.

Just remember that LK and other CERP management will have shares in the new company and its also in their interest to ensure they deliver for us one and all.

Carp nice to see some positivity once more and a good find that. Just shows how people can process information two ways. That post squares a big 10BN share question up despite how some will try to manipulate it.

[eggchaser] 02/7/2020 19:46

P1 won't happen pmsl you do realise how stupid a post that is - but I'm not surprised!Even your mate 12bn was upbeat than late of the merger!

[12bn] 02/7/2020 17:47

Subject to the assumptions set out in the Announcement, Columbus shareholders and related parties will in aggregate hold approximately 23.9 per cent. of the enlarged issued share capital of BPC.////////// So 76.1% of all earnings will go to BPC share holders and only 23.9% to Cerp current share holders. So if Saffron B is drilled the driller will take their cut and then the remainder will be shared between BPC and CERP shareholders, who will be shareholders of a single combined entity. If after the driller takes their pound of flesh there is say $10 a barrel left for Cerp, under the merger deal Cerp shareholders will get $2.39c. If the SWP is drilled the same thing happens,after drilling costs the profits will be shared $7.61 to BPC holders and $2.39 to Cerp holders instead of $10 to Cerp. What do current shareholders in Cerp get for these generous gifts? A right to share in the costs and profits of the Bahamas drill,which I don't think will happen and nothing much else. BHP has $9m cash but Cerp don't get the benefits of this. Even if it ends up getting invested in the SWP of Trinidad BPC shareholders gain 76.1% of any benefits,whereas if Cerp didn't do the merger but raised cash elsewhere, they could keep 100% of profits not 23.9%!!!! Do I think that this merger will work out well for Cerp holders,NO, but they are between a rock and a hard place as imo CERP are pretty much skint.

[carpadium] 02/7/2020 17:14

Hi offer, good to see you back and on song. BPC's AGM schedule seemed to cover zillions of shares potentially floating around however, on the subject of that horrendous figure of 10 billion a decent post from LSE poster PageofCups re motion 4. It's all about getting prior s/holders permission for a 'just in case' scenario. Pretty standard.

RE: Motion 4Tue 12:08
They are not issuing 10Bn shares to raise £200,000. Good Lordy..Lol
As Mr Linton says, this is a ceiling for the maximum allotted shares the company will have available to issue if it chooses to in the future at a market price. The par value of all BPC shares is 0.002p, (please look at your share certificate) the increased share capital increased to £200,000 which when divided by 0.002p gives a 10Bn share structure. Lets say P#1 is a success and the company want to raise money to drill develop and produce oil in the Bahamas all for themselves for the next 30 years, and they want to raise money. They will have a share structure that will enable them to be able to raise at whatever the share price is after a discovery knowing they have enough authorised share capital. So they can go it alone if they wanted to after a discovery at Perseverance. It's all about having optionality. Of course those people who are not optimistic about BPC will say this is just confetti dilution that devalues the share price However, just remember these shares don't have to be issued. aimho, dyor.

[eggchaser] 02/7/2020 16:40

What you mean their payoffs in the form of shares in the merged company?!

[bahamasoil] 02/7/2020 16:22

Carp, you are correct it is small beer but AIM rules stipulate that the BoD are appointed to work for CERP shareholders and not a merged company that does not currently exist. Even if they have negotiated their payoffs.

There is after all the possibility that a merger may fail, fingers crossed.

[offerman] 02/7/2020 16:16

After my initial extreme disappointment by our 25m valuation for the deal I know I have to move on from this and forget about it. So no more on that from me after this post, what's done is done . What I find very encouraging ,when I had time , I checked the daily trades on several occasions and noticed a lot of hefty buys. ( not just a one day thing followed by continuous large sells like the old days of sole CERP . Buys are still matched by large sells as we know Lind, Schroders and contractors still offloading . There will have to come a point in time when they are gone . Lind sooner as they'll be paid off with the new financing deal. What is good is despite the sells is the fact someone or many sees us a good investment despite the risk of a failure from Pers1. So confidence has not diminished to zilch but instead looks like a lot of new investors jumping on board . I was shocked at the 10b circa ceiling to be in place and 200m options for management !!!! Retainers ? I would have seen that more fit on success of Pers1 . Reward for success not reward on just a big gamble . 'Tis the AIM , so guess I should have Expect that anyway !! At least we don't have to wait years for Pers to be drilled like the poor BPC have since 2007. At least we only have a matter of months before drilling kicks off ( pending any more unexpected news locally , globally , or some block by the Americans !) Not long to go in the grand scheme of things . If they do go the whole 10billion route then I hope they focus properly on SWP massive potential , Suriname too.

[carpadium] 02/7/2020 15:53

jcg, thanks for that, missed it. Great news. Masses of reading up still to do if it rains over weekend!

[jcgswims] 02/7/2020 15:48

Carp, this was in the Letter to Shareholders

"Mr Stewart Ahmed, the current Columbus Chief Technical Officer, will remain with the Combined Group under a consulting agreement for at least six months, and will assume particular responsibility for oversight of the Suriname operations."

[carpadium] 02/7/2020 15:43

Bahamas, they'll only miss out for three months on the difference between present terms and whatever the newly negotiated terms prove to be, small beer on prob 500-600bopd. Had hoped for info on possible licence for Goudron deeper zone. Agree with jcg that this news has been staged 'til after merger decision, wouldn't want CERP's price to climb too far prior to judgement day! Probably delay the revised STOIIP at Suriname too for the same reason. Anyone know if Stewart Ahmed still with company and leading ops there?
Great guy. hope we haven't lost him.

[bahamasoil] 02/7/2020 15:09

If it is price sensitive then the BoD are obligated to announce the terms. They appear to have side stepped this by not getting the Minister to sign off.

How much does CERP lose by this delay?

If we are ever given production figures we might be able to calculate.