Sirius Petroleum Share Discussion Threads

[htrocka2] 05/9/2015 20:00

mcmellon or who ever you are. There's not a company on that AIM and ADVFN that doesn't have their fair share of bashers and rampers... That's life and some thing you just have to live with.

[keysersosse] 05/9/2015 19:47

Ghost, I think Bron's post was aimed at the others rejoicing in the death of a fellow human being, not directly at you.

You do know what they say about imitation don't you ?

Have a good one Cyril the Squirrel.

[bronislav] 05/9/2015 17:55

Mclellen still lives ..why?........because she still has a material effect on the thoughts and actions of others .......if our sudden influx of new posters are indeed obsessed with the past actions of mclellen as opposed to the present actions of Sirius then they have to ask themselves are they in bondage ,has mclellen imprisoned them ....personally I believe it is nothing to do with mclellen but simply a group that for some agenda ,which is likely profit, are focussing on Sirius ....nothing spooky about that ....

[dr rosso] 05/9/2015 11:52

Block 241 currently split between Oilworld (Lease Operator)20% and Owena 80%.

Farm-in fee to take half of Owena's equity stake is thought to be $60m. The newcomer has to go in via Sirius which holds the right to take a 40% stake in the block ie it buys out half of Owena's stake. $400m is required to develop the Block over its first 5 year period.

a) NewCo can do a straight buy out of Sirius 40% stake. they'll need to pay the farm-in fee of $60m, plus an acquisition sum likely to be in the region of £600m.
NB NewCo can only access the Block through Sirius.

b) NewCo can jv with Sirius. The outcome would be Owena 40%, NewCo 20%, Sirius 20%, Oilworld 20%. A 20% acquisition involves buying out half of Sirius interest at a likely cost of around £300m.

From what I can gather, Sirius is seeking the best deal on offer from the 2 Africa-centrics, these being Ophir or Oando. Both have access to the necessary funding. Whichever one it opts for, already debt-free Sirius becomes cash rich and is free to pursue the development of OML95/Ororo as it wishes. Again, jv or sell-off.

I think we can safely say that Mr Regan will exit on the outcome, with iis coming in. I think we can also safely say that oil Block 241 is dictating proceedings, not vice versa. Whoever wants in sees the Block as the prize. 95 is the bauble.

[htrocka2] 05/9/2015 09:59

He certainly is a colorful chap.

[htrocka2] 05/9/2015 00:15

at least one division is doing well.

[chris shiherlis] 04/9/2015 23:29

Time goes by, So Slowly......

[ropot] 04/9/2015 22:52

I was wondering about "restructuring" as well.

The questions in my head are based on Doc Rosso's theories, however speculative they may be. Ever since he mentioned two potential companies interested in our assets, I have been thinking how asset sales would work.

Let's say Block 241 gets sold to Oando for £600m. How do shareholders receive their "30p"? A special dividend payment? But would that be treated as Income Tax rather than CGT? Maybe that wouldn't work with the Big Boys who want to pay as little tax as possible... do their share shuffling accounts shelter them from Income Tax in they same way as them trying to reduce their Capital Gains Tax liability? I don't know; maybe it does and therefore it's not an issue. Once everyone gets their "30p" payout, and SRSP no longer owns the Block 241 asset, the share price can be valued just for the Ororo / OML95 assets and sold to Ophir.

But what if SRSP retain the £600m? That's a lot of money in the company's bank account! The share price re-rates to "30p", the Big Boys sell their holdings to ii's, and those ii's now have shareholdings in SRSP valued at "30p". And presumably us P.I.s would have to settle with dealing on the usual market when we want to sell our shares... no special deals for us!

But that means that if Ophir want to take over the company afterwards in order to acquire Ororo / OML95, they would also be getting SRSP with £600m in the bank. That means they've got to stump up a lot more money than they would if they were just buying us for our asset value. Ok, Ophir are quite cash-rich at the moment, would they spend £600m of their cash to effectively receive £600m of SRSP's cash, or would the two just cancel each other out and they bought us just for the asset value (e.g. £200m)?

Alternatively, a company "restructuring" occurs. Could SRSP be split into two companies, one for Block 241 and one for Ororo/OML95, and we end up with a proportionate amount of shares in each company based on asset value? Then each company could be sold separately, and shareholders proceeds would be treated as Capital Gains Tax, thereby eliminating an "Income Tax" liability if this was an issue (as mentioned above). I recall when Leyshon Resources (LRL) split their company into two, and shareholders ended up with proportionally different shareholdings in both companies, so could we do something like that?

Lots of questions which I've been wanting to post, and which now seems appropriate since the "restructuring" comment has just been made, and I would welcome any sensible discussion from posters who have more experience and/or knowledge of these sort of things.

[mclemon] 04/9/2015 22:52

Some very nasty people have been spreading rumours that I am dead. One of the boldest of them has set up a name saying he is my ghost. Well, you are all going to get a very nasty surprise, because I have reported all of you to the police for harassment. You are all going to be arrested. I don't deal with ones lower down, only the top, I always go to the top, to the very top, you hear!

This share is very undervalued, and I expect it to reach £10 by Christmas.

[nobby43] 04/9/2015 22:41

Surely one of the key elements in the Sirius equation is the dramatic fall in oil prices. I believe that we will not see any significant movement in wealth until the price of oil has increased and stabilised. The BODs must have an extremely difficult task trying to bring about any monetary deals or JVs in the current economic climate. I am also 60% down at the moment, but we must keep the faith ATB

[nobby43] 04/9/2015 22:40

Surely one of the key elements in the Sirius equation is the dramatic fall in oil prices. I believe that we will not see any significant movement in wealth until the price of oil has increased and stabilised. The BODs must have an extremely difficult task trying to bring about any monetary deals or JVs in the current economic climate. I am also 60% down at the moment, but we must keep the faith ATB

[drrichard] 04/9/2015 22:17

That is what I took shuffling to mean Shez20, changes at board. Restructuring implies other stuff to me

[shez20] 04/9/2015 22:08

Restructuring-In regards to the bod?

[drrichard] 04/9/2015 22:06

Fascinating Share-cruise. Realigning the BoD for production perchance?

[them0se] 04/9/2015 21:59

Interesting post share cruise.

[share_cruise] 04/9/2015 21:25

The key here is Sirius linking up with the right partner to JV the field and the block

As a pair the block and field are very attractive, I beleive we are very very close to announcing this. Before that though I beleive we will see some restructuring/shuffling which will make a big difference to the end game