Reabold Resources Share Discussion Threads

[wesnewton] 05/11/2019 11:21

RNS

Rather than read just the RNS's I find a quick visit to Companies House is usually more enlightening, companies can't be a bit vague and wooly and overlook stuff when posting statutory notices and accounts.
Ive been digging around there after the announcement about Corallian and indeed the ASA RBD entered into with them to fund the Colter drilling and sidetrack, that was 300k plus 750k at a 30% discount to the next fund-raising.
Subsequently they announced that Corallian had a fund raising of 1.225mm at 2.20/share. A 47% premium to the last one at £1.50, despite being short of cash and effectively drilling 3 non commercial wells. They used much of this to buy assets from Corfe Energy and Corfe Resources, all RNS'd by RBD..

Here's where it gets interesting: The accounts from Corfe E and Corfe R state (right at the end, under post balance sheet events) that both companies were "cash constrained" and could not settle their liabilities with Corallian, so they transferred their assets to Corallian in settlement of their debts.
So why state that Corallian purchased these assets?
Corfe Resources also owed 1.2mm N Myles the wife of the 80% owner of Corfe Resources, (CR owned 100% of CE). So who is the 80% owner of Corfe R ?
According to Companies House its Guy Myles, appears to be a co-founder of Octopus Investments, leaving there to found a new wealth management company called Flying Colours (seems to be a mini St James Place.) 10% is owned by Malcolm Butler a Director of both CR and CE as well as Exec Chairman of Baron Oil, another of the partners in Corallians licences (this has been declared by Baron).
...looking at Corallians accounts and filings, it seems they did indeed have a fundraise at 2.20 to buy these assets . Although it seems there were only 2 subscribers...Guy and Nicola Miles (not Myles!).
Why was Corfe (80% owned by Myles)unable to pay its bills to Corallian?, apparently handing them to Corallian in settlement of debt, only then for Mr(and Mrs) Miles to be the sole subscribers for 1.225mm at a premium to "buy" the assets from his companies which had apparently given them in settlement??
Why was it 2.20?
That did of course did mean that Reabold was then issued shares at a price higher than the previous 1.50 raise (interestingly it was 1.54 , 30% of 2.20).
Did RBD know who the subscriber was, and that his company had apparently handed over the assets in settlement of debt, then why say Corallian bought them?
Lots of questions
Wes

[cashandcard] 05/11/2019 10:47

Divmad,


Good question. Plough it back into other parts of the portfolio. I'd like to see them move forward with Parta and North Sea assets.


Cash

[divmad] 05/11/2019 10:42

Could only be if some or one of the other private shareholders in Rathlin are also now subscribing for more shares for cash at the £2.75 per share valuation basis that rbd is subscribing. I doubt the price has gone up since the RNs, as another explanation, as that would have been a material change that would have needed to be RNSd. But also, what is RBd going to do with the £7mn cash raised if they can't complete the equity swap as verbally agreed?

[stockport loser] 05/11/2019 10:17

As I say, Ant and Dec only do happy talk. Granny - I didn't say there's not money to be made here, just that this deal does not increase any profit, more likely the opposite. For me it's not an issue, I sold out on placing and have bought back, most under 0.9p. I need circa 1.05 to be hitting profit.

[rnstranslator] 05/11/2019 10:09

All,
Has anyone noticed the discrepancy between what they said and what has happened, without any explanation? In their own press releases.
They held 36% of Rathlin.
They stated that they were subscribing 16mm for new shares and 7mm for an equity swap on the same terms - this would take them to 74.99%.
Thats 39% equity for 23mm.
The swap never occurred, for "administrative and tax reasons" (Canadians are I think still subject to CGT on share swaps, unlike UK residents.)
So the 16mm should have bought just over 27% (and the aborted swap 12%)
Question why don't they have over 63%, rather than todays announced 59%?

There was also the previous ASA for 1mm, out of a total ASA raise of 1.73mm at a 20% discount to the next fundraise.
If they subscribed for 55% of the ASA then why didn't they have even more than this?, I assume it was cancelled, but they still spent 1mm for more equity where did this go??.

[cashandcard] 05/11/2019 10:07

hd,


I think the overall experience of the blokes running this company and their ability to attract solid institutional backing is one of the big draws here. The way they have used the downtime to move in and take control of PEDL183/West-Newton is testament to their ability. Just need the remainder of the deal to complete and I imagine they will move forward quickly.

They have nailed a large part of the future of RBD to the outcome of PEDL183/West-Newton. As insiders, it tells a story.


Cash

[grannyboy] 05/11/2019 10:01

Well you'd best find an investment that suits your investment criteria better then you think RBD does !!

[stockport loser] 05/11/2019 09:47

Yes, you are correct. But their company shares are now worth far more given they can develop the asset thus monetise. My argument is will the RBD dillution to legacy shareholders be offset by greater rises in share price - I think the answer is no.

[dlm2602] 05/11/2019 09:41

Stockport,

Legacy Rathlin shareholders will have suffered because their shareholding will have been diluted from the fund raise.

[stockport loser] 05/11/2019 09:36

We will see, it's not the asset, it's the 2 billion odd overhang that will effect the share price on any news flow. You can see from the additional interest what the current value of WN is, that's not to say there is not significant upside - but it doesn't guarantees it. I'm sure in your history you've seen how many assets were overstated from first drills, Gkp, Regal, Solan, RKH, XEL...The BOD partnership here of Ant and Dec love to fluff up any newsflow andvsweep away other less attractive items.

[hiddendepths] 05/11/2019 08:30

Well, I for one think Reabold have played a blinder here. I analysed oil companies for a living for a couple of decades and I'm well impressed.

[stockport loser] 05/11/2019 07:27

It seems there was a lack of money to develop WN, we should have played hardball with the other partners.Currently legacy Rathin shareholders have had their investments fully funded without having to dip in their wallets and by not converting have the full impact of WN upside.

[stockport loser] 05/11/2019 07:24

Correct, I'm still sanguine about this deal, RBD put down £3m for 36% share of Rathin and 24% economic interest in WN . There was a RNS on a further £1m but this seems to have been superseded by the new placing. So for circa £16m we have taken a further 23% to 59% of Rathin. With 50% increase in shares in issue will we get the same increase in share price with successful testing, CPR etc?Of course not.

[nina65] 04/11/2019 19:40

Highish volume ,probably an RNS tommorow..

[astralvision] 04/11/2019 18:15

Nice volume, precursor to heading north?

[astralvision] 04/11/2019 17:41

Re news on WN, I would have thought very soon, on a number of fronts.

[astralvision] 04/11/2019 17:40

16m buy ticked through.

[ccr1958] 04/11/2019 16:42

When are we expecting news ref WN ?

[stockport loser] 04/11/2019 16:35

UJO move is on wressle asset.

[astralvision] 04/11/2019 16:33

Think you are right SL, this is now all about WN. They know they're sitting on something that could range from very good to phenomenal. The other assets are nice to have but WN will drive this.
Interesting to see a bit of late movement at UJO, I thought RBD would drive UJO, we will see.

[steelwatch] 04/11/2019 15:45

UJO Oil Capital conference presentation: