Global Petroleum Share Discussion Threads

[p1nkfish] 13/6/2014 10:17

Elite - unfortunately - I would tend to agree.

Have a relatively small cash pile means NOTHING when cash can be raised by others in excess of the pile.

[el1te] 13/6/2014 08:58

I have been tracking at GBP for a 9 months now, but I have never been interested in investing because the strategy set out by the board is completely out o kilter with the size of the company. The reason for the initial interest was the cash pile which is between £10m and £10.5m as stated earlier.

First and foremost, the money that Peter Hill is making is excessive, for bringing very little to the table. £212k in salary plus tens of k in share options plus further cash in super-annuation just doesn't stack up for the progress the company has made.

However, the real issue lies in the strategy. The portfolio of assets is very high risk, and the chances of them getting a farm-out in Namibia have always been relatively slim (pending the result of TRPs well). Sector exploration budgets are being cut back and there is very little appetite for these high risk areas where there is very little in the way of a proven resource. The Juan de nova interest is pretty worthless too, especially since GBP are partnered with WSX.

There are numerous options that I'd push for if I were a shareholder. These both rely on firstly disposing of the Namibian assets. Since the licence requirements have been met, it can be relinquished at year end at no real cost. They should probably also see if they can delist from the ASX, but if there are many shareholders over there, then do not, as it often leads to follow on selling on AIM. The problem with ASX listings is that they are often illiquid

Since the company is not even being valued near cash, there is a clear lack of faith in the board to deliver any real shareholder value. It would surely make a lot more sense for GBP to change strategy completely and focus on either farming in or acquiring low cost producing acreage that carries upside potential. With the ~£10m cash pile, they could easily acquire a material stake in a producing field, or even go through formal permitting. That is of course not likely in Africa so a shift to either North America, Central America or Europe would work. Then juan de nova could be disposed of at a later date

The problem if they carry on along the current path is that the cash will be whittled down on exploration costs, yet the end result is likely to be, no material resource, and even if they find a resource, there will be a long time spent on trying to commercialise it, which will in turn require more cash. It's not surprising the previous Chairman stepped down last year.

The Italian acreage is relatively interesting, but it is offshore again, so will require higher levels of cash to develop. Once again, the end result will probably end up being continued cash burn that ends up being a punt on a well - most of these cases end up failing.

I suspect st the moment that GBP cannot be a serious investment proposition.

El1te

[oilretire] 13/6/2014 08:36

Daft 3.25-4pps spread!

[nash81] 13/6/2014 08:24

thanks guys. it seems overreation in GBP despite our cash at 5.75p/.

we could get update on licence application for the Juan from French authority. was submitted Q3 2013 I believe.

regarding namibia, perhaps all the oil actually in our block? remember, HRT drilling last time confirmed the hydrocarbon system, hence the oil must be somewhere.

not to mention, could get the update on italian licence anytime. (though not sure how soon)

[illuminati1] 13/6/2014 07:40

Net cash sitting at 5.75p.

[nash81] 12/6/2014 19:50

can someone reminded me, how much cash we still have? in other BB, someone was saying cash around 10.45m gbp, equates to 5.24p?

is that correct?

[stockologist] 12/6/2014 07:43

Money coming from Kurdistan oil refugees ?

[p1nkfish] 12/6/2014 07:13

Because alternate sources of oil become more valuable & oil price spike.

[p1nkfish] 11/6/2014 23:39

You would think GBP share price would benefit if Iraq goes bad but not holding my breath.

[p1nkfish] 10/6/2014 14:45

yep, sounds like the way I see it.
A job for the boys, you can only do nothing for so long & expect people to hang on in there.

[ifthecapfits] 10/6/2014 13:48

Well (no pun!) I'm going to give this one until after the results of the TRP drill, which if positive should have an upward effect here. If TRP fail - think i'll sell and put funds to work elsewhere - more BLVN maybe.

Getting frustrated with the mgmt.

[p1nkfish] 08/6/2014 16:09

hxxp://tools.morningstar.co.uk/uk/stockreport/default.aspx?Site=uk&id=0P00007OD6&LanguageId=en-GB&SecurityToken=0P00007OD6]3]0]E0WWE$$ALL

says it all really:

[p1nkfish] 08/6/2014 16:02

No news from the data room?

[bam bam rubble] 08/6/2014 15:09

Some relevant numbers;

Salary/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 $450,000 plus use of director expense account

[p1nkfish] 08/6/2014 12:51

The most sclerotic bunch ever.

The mantra of having cash carries little weight when others can raise funds cheaply.

This isn't even a cash shell as the cash is being eroded.

It is time to get on with the job and show shareholders there is a real company here, with explotable assets.

[chinahere] 07/6/2014 23:03

But they won't get paid then.

[p1nkfish] 07/6/2014 19:59

Why don't they just delist and save the cost?
Might as well.

[p1nkfish] 06/6/2014 19:19

Is there anyone at work at this company?
Or even alive?

[aim999] 21/5/2014 11:02

Gbp sale now onEnds soon