Geopark Share Discussion Threads

[bbluesky] 11/9/2013 16:57

The news flow q is interesting as they brought forward their second quarter results from third week of September to 2 September. There is no doubt in my mind that these guys want to big and have consistently played an impressive hand.

[zengas] 11/9/2013 15:35

No probe tyler. Yes I think it was in around £11.

This fund raising could be a significant growth strategy for the company.

They are already a significant producer at near 18k boepd imo and must be close to doing $500m/yr revenues as it is.

The $200m of bonds don't have to be paid for nearly 7 years I believe.

£150m of new funds could buy a lot of new production, bigger revenues and along with existing exploration could pay off handsomely.

The last 3 acquisitions for $240m brought them just under 7k boepd + reserves.

Pacific Rubiales hit $10b m/cap last year and their growth trajectory is worth looking at.

I still think as thegreatgeraldo pointed out, they could have better promoted the company here in the UK and addressed the liquidity issues.

There's 45m shares in issue now and they plan to issue 30m more = 75m and then consolidate them on 2 for 1, making 37.5m shares, ie less than now, in issue so surely it could still be fairly illiquid ?

[tyler90] 11/9/2013 15:17

Sorry Zengas; did not mean to misrepresent you. You are absolutely correct; didn't LG pay £11 per share?

[zengas] 11/9/2013 15:03

I never suggested it would be 550p.

What I meant was that if we used a figure of £5.50 as a placing price and the number of shares to be issued, it would give them £165m of cash. It could easily be priced higher giving them much more cash. Worth remembering that the first two tranches sold to LGO appeared to be valued much higher.

Possibility of further newsflow that could take the valuation higher.

[tyler90] 11/9/2013 15:01

Nearer 600p is my guesstimate.

[thegreatgeraldo] 11/9/2013 14:48

Presumably the US offer price will be closely related to the price over here when the US price is set? Whatever that may be.....

[dasv] 11/9/2013 14:39

bought in today - thanks Simon.

[tyler90] 11/9/2013 13:39

Easy money when you know how!MM's picked up shares yesterday around 520/530 and selling them today for 550/560.

[tyler90] 11/9/2013 12:26

Buys going through at 550; is Zengas right to assume this is going to be the equivalent US offering price?My feeling is that it is going to be higher. We shall wait and see.

[stevenlondon3] 11/9/2013 08:57

A NYSE listing is expected 7th November. Presumably the CEO will be doing an extensive roadshow in the US during October which in theory should generate buying interest. Hopefully the roadshow presentaion will be made available. Does anyone know of comparable companies with south american oil/gas interests already quoted in the US? Cheers.

[glasshalfull] 10/9/2013 23:16

"You're the man!"

Well done WC

Regards,
GHF

[woodcutter] 10/9/2013 22:52

nice to see you held and topped up ghf...........I'm in the grand final !!!!!

I've already a shed load and can't see anything other than good to come from this. I'm not an expert on this type of process but expect it to be in my interest to hold so lets hope we're all making the right move.

WC....................aka................Tiger W

[glasshalfull] 10/9/2013 22:33

Simon - I checked with both brokers today re. my legacy holding and prior to buying a further batch. No issues with either.

Remember that there was much nashing of teeth & debate on EROS a year ago when they mooted a NYSE move and I remember noting the following then,

If you wish to invest in US (United States) stocks and shares, you will need to complete the appropriate Form W-8

Quick search tonight reveals following link re. Form W-8

hxxp://www.tddirectinvesting.co.uk/investment-choices/international-stocks/~/media/uk/pdf/w-8_ben_substitute_form2011.ashx

As you mentioned, probably best to clarify with you broker.

Regards,
GHF

[simon gordon] 10/9/2013 22:23

Melody - thanks.

[melody9999] 10/9/2013 22:18

I called my broker today - here is the comment:

Reading the RNS out today it appears we are going to receive CDI's which will should still be able to be held in crest. Obviously its still early days and more information will come out in regards to what will happen and if it is able to be held and traded by us.

I enquired about CDI's and was advised:

Crest Depositary Interest Shares. So you can sort of gauge from what they are turning into it will be ok to hold. But obviously we cant confirm that until we get confirmation ourselves.

[simon gordon] 10/9/2013 22:12

I think I am misinterpreting the above paragraph and that CREST can trade through the DTC settlement system. Will call my broker tomorrow to clarify this. I have never held a stock that has transferred outside of the UK before.

--

WIKI

The electronic settlement system in the U.S. is called DTC. If a shareholder holds electronic stock in the U.S. they will hold their securities electronically in DTC. In reality they will hold the securities via a custodian, so the custodian's nominee details will appear on the DTC register. This is known as holding stock in the 'domestic' market. Securities held this way can only be traded domestically i.e. in the market of the country of origin. If a shareholder wants to trade his securities outside of the U.S. 'domestic' market he can instruct his custodian to transfer his securities to the Crest account in DTC.

[simon gordon] 10/9/2013 17:17

To answer my own question, I have re-read this passage from today's RNS, specifically the first paragraph, and it appears to me that they will not be CREST legible:

Information on how to trade on the NYSE

Following the NYSE Listing becoming effective, the Company recommends that Shareholders transfer their Shares to a brokerage account that is able to hold securities administered through the US-based depositary operated by DTC prior to attempting to trade on the NYSE.

All new Shares registered in the US Offering will be immediately available for unrestricted resale in the US following the registration statement becoming effective. The Shares will continue to trade on AIM until the AIM Cancellation becomes effective.

If a Shareholder wishes to trade on the NYSE, that Shareholder would need to use a brokerage firm authorised to carry out business in the US and, to the extent such Shareholder is an affiliate of the Company, abide by the additional limitations imposed by Rule 144 under the 1933 Act.

Shareholders are encouraged to consult their stockbroker, solicitor, accountant or other independent financial adviser in the event of any doubt.

Consequences of the AIM Cancellation and de-registration from the Santiago Offshore Stock Exchange

If the AIM Cancellation becomes effective, the Shares will no longer be traded on AIM, the Depositary Interest Deed will be terminated in accordance with its terms and the CREST facility will be cancelled. Oriel Securities will cease to be the nominated adviser to the Company and Oriel Securities and Macquarie will cease to be joint brokers to the Company. The Company will no longer be required to comply with the AIM Rules.

[simon gordon] 10/9/2013 15:38

Does anyone know if the newly listed shares on the NYSE will be CREST legible?

My broker has told me they will not be able to hold/trade the shares if they are not CREST legible.

[sailing john] 10/9/2013 15:08

Good decision imo GHF - I'm overweight here already and a very long termer. If price drops further as move across the pond approaches I will probably add otherwise content with having about 10% of my portfolio invested here.

SJ

[tyler90] 10/9/2013 15:07

PS 90 is not my age!

[tyler90] 10/9/2013 15:05

Exactly GHF, feel sorry for the PI's who panicked and sold this morning. I have done it myself (long, long time ago) and have learnt the hard way. Unfortunately, it takes a lifetime to get hang of this share business and even then there is no such thing as a 'no brainer' but if ever there was one.....

[glasshalfull] 10/9/2013 14:59

Excellent news & yet some punters panic selling which is unfortunate.

I'd expect GPK to command a substantially higher rating on the NYSE & have used the opportunity to top up. Exciting times ahead.

Regards
GHF

[sailing john] 10/9/2013 14:56

I don't think we will have to suffer a 3-5% spread and silly limits on trade volume when we are in New York.

[tyler90] 10/9/2013 12:19

Zengas: "Should raise £165m if at say £5.50 issue price.
This should leave them hefty capital for acquisitions."

Usually, the price for placings is the price at close of play the day before which I think was 585. IMO it will be nearer 585 or higher.

thegreatgeraldo: I don't think the offering would have had the response on AIM as it will receive in the US. Makes sense to go where the benefit is greater. With the stock being so illiquid it was difficult to promote. Had an inkling something was afoot when no presentations were done in April.

I am excited by this move. US investors will go for it. This company is worth far more than £227M and especially now there is a real prospect of its true value being realised. Sounds like a ramp unfortunately and I hate doing it but IMO a sound, shrewd and calculated move by the board.

[thegreatgeraldo] 10/9/2013 12:03

Can't say the move is a big surprise, volumes in the stock on AIM have been all but non-existent & the stock hasn't performed. The reason for the listing, AIUI, was obviously to provide a market in the stock, but also, critically, to raise funds. As funds have been raised in Chile, clearly the board believe the stock is undervalued. The question is - whose fault is that - the board for failing to promote the stock or AIM? Board have to take their share of the blame, imvh.

Wonder why they chose NYSE over TSX...