Edge Res Share Discussion Threads

[carpadium] 07/11/2015 21:01

Understandable for EDG holders to feel down and losing patience what with the state of oil, Keystone, Trudeau, BN's silence etc etc. But since the above frustrated post I've been in touch with Brad asking if there's any chance of a rare UK visit to meet shareholders, put a face to the name and basically bring us up to date.
His reply was that he didn't have a solid plan to visit prior to Christmas but if he was to close a major event that he'd been working on for some time he would likely make a trip over as there would be plenty to discuss.
Whilst it's common knowledge that Edge, together with the strategic investor group, are engaged in seeking acquisitions it's nonetheless encouraging to hear that they've been and still are working on a target that could be a game-changer for shareholders .. and additionally it was confirmed that 'several irons in several fires' existed too.

This massive industry downturn we're seeing, which could go on for much longer (who knows?) is, as stated by Brad earlier this year producing 'opportunities rarely seen in a lifetime'. If Edge can raise the backing to take advantage then that route to shareholder value is infinitely more rapid and practical than sinking a couple of wells each year. GLA

A reminder of the last para. RNS 28/7....

Brad Nichol, Edge's President and CEO commented, "Being able to raise new capital in this very challenging market is an accomplishment that few have been able to demonstrate. We have consistently proven it to be one of our core strengths and it is an absolutely critical competitive advantage in our industry; and one that is currently enjoyed by few. To have a new capital partner commit now, as we embark on an aggressive growth strategy through consolidation of medium and heavy oil assets, signifies a major kick-start to Edge becoming one of Canada's high-growth E&P companies. I am especially excited that the Investor Group, combined with the support of our current lenders and major shareholders, should allow us to expand our existing production and growth profile as acquisition prices approach historical lows. We aim to become one of the largest E&P companies focused on medium and heavy oil, for the sole benefit of our existing and new shareholders, and today's news is a significant step in that direction.

[carpadium] 02/11/2015 16:40

The disillusioned rule, the large majority of LTHs given up on adding even at current price until it's clear as to what's going on/where we stand with our loans and a lack of new investors to take up the slack. No prizes for guessing why.

[mark10101] 02/11/2015 15:01

I would take PANR inflated bubble statues over our languishing in the cesspit situation, I look for over valuation to sell, not been given the chance here......

[jamesiebabie] 30/10/2015 10:29

PANR - another over inflated bubble reay to burst imho.

[mark10101] 30/10/2015 10:11

Hi JB a few others said the same and we have be at $46 oil before at much higher prices, though I do agree the landscape improves dramatically at $60.

Let's hope some hot money from bizzare rise in Pantheon Resources ends up here. It behaving like some of the oilers did in 2014 may show that the appetite for oilers is returning. Certainly some spectacular entry points avilable for those still with cash.

[jamesiebabie] 30/10/2015 09:40

ps. I'll try and update the header over the weekend to reflect where we are at.

[jamesiebabie] 30/10/2015 09:38

mark - I was one who said would load up if the share price tanked, which it has, however fundamentals have also changed; ie. the PoO also collapsed; so the risk reward has not materially changed and hence why I have not bought anymore, nor have I sold.

[mark10101] 29/10/2015 13:37

Lazarus, I did not disagree but my point is look what LGO did with what they had, imagine if Brad engaged shareholders and increase interest in the way they did. LGO share price was like Wylie coyote the last six months. I sold LGO at 4p and invested in what I felt to be more robust companies, all of which have performed significantly poorly to LGO until recently regarding share price.

As you point out equity dilution is likely but as a current share holder I would like this equity raised at 5-10p rather than 2p where we are. This is where BRad needs to engage the market, I like his plan for the company and appreciate he can't make stuff up but he can keep his shareholders better. It was my criticism in 2014 and it is the same now. There is huge potential for edge which is why we all invested here, however I do want to make a return on my investment and like many here will need multiples from here just to breakeven.

Loads on here said they were going to add if we got to 5p and few did.

[lazarus2010] 29/10/2015 12:58

ps, allowing for dilution as he raises cash via equity for asset purchases (my assumption although it could involve bank finance to some degree), and these are earnings accretive, we could see the value of shares for current holders increase multiples of where we are now. The new investors are not in the game for getting back the same amount as they are putting in.

aimvho

[lazarus2010] 29/10/2015 12:55

Mark, sorry, you cannot compare EDG with LGO. LGO hit 6p and had a market cap of well north of £100mln and it was all based on hope and expectation. NR has done a terrible job of managing the share price He worded rns' very carefully so as to try and fool the market into expecting more than 2,000bopd. The 5,000 bopd tanks were a sign to pi's that production would be on the up and NR never tried to damp down pi's expectations. The share price was also based upon 100% success with the drill bit and wells far exceeding initial forecasts. Against this backdrop of a failed well, high decline rates there has also been the issue of the PoO dropping.

LGO share price was also based on hope of finding elephants, however they don't have the cash to go huntig them down. They have also vastly increased their staffing levels and now have to support high G&A costs. Add to this DL's high consultancy fees, they have a huge drain on resources and could even be in danger of going bust if they can't manage their costs and production continues to decline.

BN has issued news when appropriate. He cannot invent news. As Sleveen rightly states, in the current market the focus is cost control not wasting money on risky drilling.

If the strategy of acquiring new assets works, then I would expect that in time we shall see a significant re-rating in the sp, assuming we manage to buy decent producing assets at firesale prices which are immediately earnings accretive.

If this strategy fails then it is just a case of hoping that the PoO rises and things turn around eventually, so staying in the game is a priority.

I note that Hawk issued an rns today and they still plan on drilling 2 more wells and spending $3mln, plus the $1.5mln they just spent on a failed well. With $4.5mln they would have been better off to acquire some producing assets and holding back with the drill bit.

Two companies have had success recently, panr and sqz and their share price have rocketed by comparison to most E&P's on aim. However they have yet to prove that their wells will be profitable and hence commercially viable in the current market.

When I wrote to BN I did of course mention the fact that if his strategy of building a large E&P company plays out, then he should be promoting this strategy in Canada and getting more investors on board.

Time will tell...

[mark10101] 29/10/2015 12:05

I love that sort of comment. If Brad was successfully running the company we would not be 1/10 of many of our entry point and the share price would not need managing. His lack of comunication to the market means we have no momentum and little interest at a time where things are tough anyway. A few hundred thousand shares can add or wipe out 20% of share price value.

You are a big fan of LGO, I was in them in the early days and they showed exactly why managing the share price is a key part of life on AIM. They have managed to raise millions due to the strength of their share price and although things are tricky there ATM it has been invaluable to them, their market cap was defying the weak poo for a long while until there were technical issues. A huge following kept them strong while many oilers like EDG suffered in this tough climate, EDG IMHO has very similar prospects to what LGO had last year when they implement their strong drill campaign. Two similar companies one with excellent PR one with none.

EDG should be doing much better even in the current climate.

[sleveen] 29/10/2015 08:46

Have to disagree.

Brad's job is to manage the company not the share price.

Cash conservation is the name of the game atm.

I think the CAZA crisis is having an affect on many small oilers including EDG.

[mark10101] 28/10/2015 18:51

Brad may find that given his terrible management of EDG's share price performance is now putting us into a category he said he would be taking advantage of.....

On paper EDG's current share price even at this level of POO is a back the truck up opertunity but due to Brad's ability for promoting the share we are just not attracting interest. Bonkers share price but when you have a bonkers manager that is what you get. His arrogance at $100 oil was inappropriate given his ability to deliver for shareholders at $45 he is looking a fool.

[carpadium] 28/10/2015 17:56

494K buys vs. 261K sells and 17% down on the day, a bit bloody rich!

[carpadium] 28/10/2015 17:29

Thanks Laz, Jamesie re-assuring you're still strong and more than good to see strength in opportunistic buys later on in the day, would have thought they mopped up most of the excess the MMs carried. As per many, can't wait for a revival in fortunes courtesy of rise in PoO or the rarity of broken silence from our CEO or, fingers crossed, both!

[lazarus2010] 28/10/2015 16:48

well some buys coming in at last but seems that there are too many shares available atm and this is stopping the share price from rising.

New strategic investments or just existing pi's doubling down?

[jamesiebabie] 28/10/2015 16:23

Carp - I'm still here, but as Laz said, we need oil up.

[lazarus2010] 28/10/2015 13:26

Carp, not much to say. we need oil up, we need these new investors / BN to finalise a deal and show shareholders that the intentions in the rns to grow the company size are being implemented.

I hadn't noticed that big sale until you mentioned it. No matter who sold it, somebody bought it.

[carpadium] 28/10/2015 12:56

Same seller as last week unloading? Not that many PI's holding large amounts.

Not heard from Laz or Jamesie since last week's 800K offload.

??

[telbap] 28/10/2015 08:51

I have a small holding, which is in huge loss, like most here I expect. Anyone been following the news flow??

[carpadium] 23/10/2015 16:21

Hendersons maybe, splitting the advised desired offload into smaller chunks?

Takes all sorts of course, together with all sorts of circumstances but I can't see a PI selling that amount at such a low price when fairly imminently we're expecting Edge's capital partner to add value. Unless they know something we don't.

[mark10101] 23/10/2015 14:48

The good news is the last time we had a trade like this the share price double in the preceding trading days.