Global Petroleum Share Discussion Threads

[sawney] 24/7/2015 07:58

Watch this space!

I admire your optimism....

at least......

As a result of its cost review, the Board is implementing a substantial reduction in corporate costs, including a significant reduction in the cash element of the compensation of the Board and management.

For "speedy" Italy...see PCI

[emptyend] 24/7/2015 07:09

Very interesting news update this morning. Plainly things are afoot - and they are much more confident of a near-term deal (changes to comp an indicator here?). Also sounding highly positive about Namibia....for some reason.....Watch this space!

[emptyend] 23/7/2015 17:26

Yes I read that briefly. Closely enough to see that their price target was 0.4p per share - and not 40p!It is all about the terms.....

[bushman1] 23/7/2015 16:53

Emptyend, you have most probably read the GMP Securities ' spec buy ' rec. of 21st July for TRP with a 40 p price target. If you had to ' best guess ' a course of action for GBP over the months ahead, would you opt for us joining TRP in funding future work on the Welwitschia 1A licence or look to a different strategy ?

[emptyend] 23/7/2015 08:55

It is also interesting to see how few people are looking at the possibilities here. Granted there has been no action at all for aons, but it really wouldn't take much to start moving the price, given that the free float is only around 110mn shares......

[emptyend] 23/7/2015 08:33

I think the options are a bit of a side-issue. Owning 40%+ is rather more important.Changing the functional currency was a sensible and overdue move, but must help a bit in a merger situation by removing one uncertainty.I sold the vast majority of my (6-8p) shares at 23p a few years ago and got left with a few (was on holiday and it was difficult to deal) but I've quintupled that rump stake since last week's TRP news. I'm confident something will happen - but less clear exactly what and when. I think it is a low-risk punt though, given the discount to cash and the large number of deals that GBP will have seen in recent years. Financial pressures in the sector suggest to me we are close to the point of maximum leverage for The Peters and their cash pile.

[ohisay] 23/7/2015 06:34

Well its good to know we are on the same page EE.
I also note that while they changed the functional reporting currency to USD last year the options they reawarded themselves (mainly Peter Hill with 6m) in November 14 are actually priced in AUD*.
As of last month all of those are exercisable.
The options price was .0656 AUD which means that as the Oz dollar has gone pear shaped since the exercise price is now 3.1p per share.
Thats quite something when its 25% below the nominal cash level.

So Carpe Diem!

*they were based on 25% above the 5 day AUD price of around .052c in late November as far as I can see.

[emptyend] 22/7/2015 12:20

ohisay,

I've taken the same view and made the same bet. The market is assuming (more than) half the cash will get bled away - but there must be a limit to how long the present sitting-on-hands continues. You don't own 40%+ of a cash rich company and just watch it get paid away in third party salaries.....

ee

[ohisay] 22/7/2015 03:56

Cash end March 13,557$ [000]
Fc admin to end June 527$
Fc explo to end June 493£
Fc cash end June 12,537$

Shares in Issue 199,445

Fc Cash per share 6.285$ or 4.05p @1.55.

Results for June qtr out next week.

[ghostofahangman] 21/7/2015 16:45

Nice post Ohisay, how much per share is cash here ?

[ohisay] 21/7/2015 16:22

That 100k buy at 1.8p today was me.

Odds are a TRP/GBP merger in the next few weeks.?

My very brief thoughts.

1.The Peters aren't dummies.If the cash on the GBP books gets much lower it will not have the critical mass it rightly should have.
2.Everybody knows whats really been going on here - it was a one step removed lazy play on the TRP Namibian drill result.It didn't work out.In their position I might not have been much less cynical.
3.When I looked at the recent TRP RNS I was really surprised they got so much backing from M&G.Do I deduce there might have been a nod and a wink there might be some more cash flowing into TRP.?
4.Whats the point of 2 companies in todays oil price/insti funding environment?
The merger idea has been around for donkeys years but whenever I thought about it it always seemed justifiable to keep the 2 companies apart for "options flexibility" if i can describe it like that.
That just seems to have gone now.
5.TRP says it been working closely with the Namibian govmt..Tower are currently negotiating new acreage positions offshore Namibia, with the aim of providing economies of scale and lower risk in future exploration, full details of which will be announced in due course:
That's just a tie in with GBP's acreage isnt' it - what on earth could it be if not that?
6.TRP need the cash.


While its been below cash for a long time I held off at 2.2 and 2p but at 1.8p it seems a fair punt particularly as I went into big cash position in early June.

[hugepants] 15/7/2015 15:40

Fair dos but even consultancy fees at that level won't have come close to compensating them for the cash burn last year.

[bam bam rubble] 15/7/2015 15:02

A post from last year (08 Jun 2014 - 5223 of 5355)


Global's admin expenses
FY 2012 -$2.4 million
FY 2013 -$3.0 million

$352k paid to non-execs Taylor/Blakey for consultancy fees/services (2012: $377k)

CEO receives annual remuneration of $450k plus director expense account

[joestalin] 15/7/2015 15:00

Salaries was the wrong word. Having been a director myself, I should know that. There are various ways and means of burning cash to the benefit of the directors.

However, I am sure that they have an eye for the main chance.

[bam bam rubble] 15/7/2015 14:52

The Peters have been rinsing the coffers for years with their consultancy fees.

[hugepants] 15/7/2015 14:46

Joe the 2 Peters collectively own about 40% of GBP. But they are only taking 30 grand each in salaries. So they will definetly not be comfortable watching the current rate of cash burn. They are the biggest losers the longer this continues.

[emptyend] 15/7/2015 14:28

Well historically you would certainly have been correct in that concern! It has been amply justified by events.

But there may well be a limit to their willingness to pass up a succession of possible deals - and their track record seems to clearly indicate a preference for "sweetheart" deals. I have a feeling in my water that at last the time has come to move.....but, whilst they effectively control GBP (42% stake), they don't control Tower (5.6% stake).

[joestalin] 15/7/2015 14:08

I believe that some of the directors have a foot in both camps, so they will be aware of the opportunities.

My only concern is that the GBP directors are very comfortable taking their salaries without doing very much for their money supply.

[emptyend] 15/7/2015 13:50

...precisely, JoeStalin.

[joestalin] 15/7/2015 12:23

Not sure exactly how much free cash GBP have, but Tower would have a greater need of it than GBP, right now.

[emptyend] 15/7/2015 08:23

In fact the Peters have put £323k into the Tower placing, so not as modest as I'd thought at first glance.I'll be surprised if there are no implications for GBP, given the central role of Namibia in the Tower deal.A merger would make a good deal of sense to me.......

[emptyend] 15/7/2015 08:14

Interesting to see the Tower placing today and their entry into Namibia apparently being endorsed by M&G. The Peters have contributed modestly to the placing.I'm wondering whether there are implications for GBP of the Tower comment in their RNS:Tower is currently negotiating substantial new operated acreage positions offshore Namibia and these will be announced once they have been secured.

[joestalin] 23/6/2015 13:03

I may be doing him an injustice, but I seem to recall that he bought Afren, too.

[hugepants] 23/6/2015 09:25

PAUL CURTIS ‏@paulcurtis123 Jun 16
Been buying Global Pet (GBP) at 1.9p. NET cash at end June c.4.5p or $12.25m. Burning c. $2.5m pa. Seeking corporate deal. Very illiquid.


OK, he also bought TRAP!