Upland Resources Share Discussion Threads

[zengas] 08/3/2018 08:11

Just to recap on post 989 20th Feb

Cash in at no dilution means shares in issue at the 460m level.

$9m available cash, M/cap at 2.5p = £11.5m.

Possible that in Sarawak they could get in on a producing asset imo given the greater support from the Chairman, Tune and Optiva. They have got incredible skin in the game now, just need the deals to flow and this is another significant building block in place. 4-5p price range and this would still be only £18-£22m m/cap given that amount of cash for deals.
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Post 989 20th Feb 2018

"In terms of value, EME could have been bought at circa 1.5p in October 2016 - about 223m shares and a m/cap of £3.5m.

By June 2017 with the open offer that wasn't even 50% taken up, placings and option excercises they had $8.5m cash and 10% in Duyung before farming into some US exploration assets.

By August 2017, 9 months after the 1.5p lows, there was 399m shares in issue.
The share price hit a high of 31p in early September 2017 and a m/cap of circa £125m. Fallen back since and waiting on further positive news to drive it forward again.

Likewise Sound Energy in Morocco. You could have taken up the open offer at 4.2p in 2014 before the share price raced ahead to 103p in 2016 and £530m m/cap.

In relation to UPL, i beleive a similar potential opportunity could happen here.
2.1p here now, 457m shares, £3m ($4m) cash. M/cap £9.6m. Main listing and huge director skin in the game and able to attract a cornerstone investor. Imo it won't be unreasonable to see this circa 4p and still under £20m.

Wick has potentially some $200m+ of value = 31p (on current shares in issue). As for now it's funded though maybe the cash will go towards a further project first and some more shares to come.

In the presentation - they highlight Malaysia, "unique access to opportunties" Unique ? Maybe this attracted Malaysian Tune to become a cornerstone 16% investor ?
What might one or two of those new assets potentially also create even by early investor sentiment?

Next potential opportunities - "Onshore Morocco and Tunisia - now accessing several attractive opportunities" - specifically highlighting - "Permit with estmated in-place resources > 1 TCF gas potential in open acreage. Multiple low risk discoveries & prospects".

Why specifically highlight that ie multiple low risk discoveries/prospects ? Could it be a similar opportunity that still has Sound at over £500m on Tendrara ? Wasn't Steve Staley involved some way in bringing the Tendrara permit to Fastnet ?

If they land a 1 tcf permit/low risk discoveries or some of those unique Malaysian opportunities the potential could be significant as per Sou or EME. (EME got into Malyasia for $2m and a existing discovery - just not flow tested - rest is history) .

Whatever way you look at it, the assets being chased are very significant in addition to the Wick asset.

Tune 16%. Optiva Ned on board circa 7.25%. Chairman 26%. Bolhassan Di (NED) 1.6%, S.Staley CEO 4.3%, A.Bin Nasharuddin 5% (all rounded) = 60%.

Free float from the 457.242m shares = 182m. I'm over 1.25% and i've seen some other large holdings posted so maybe not that much of a free float in reality. I expect to see this get coverage in the press/tip sites in due course as Sou/Eme were covered early days. The CEOs associaton with the £1.2b sale of Cove will add to investor sentiment as will 60% being held by 6 inst/director investors.

[soulsauce] 08/3/2018 07:57

Great post as usual Zengas. Makes it very clear.

[yogaboy] 08/3/2018 07:55

Wow. Our man sure knows how to write a deal.

[zengas] 08/3/2018 07:52

The loan notes are redeemable by 30th June 2020.

The available cash ($9m) is way in excess of what they need for Wick ($3m/dry hole) - so what will they put the other cash towards ?

The free float will remain tight. There are 457.242m shares in issue. They are paying £40k of the £110k fee in shares so that will take it up to 460m shares.

If with a further asset (regardless of Wick) and the shares are somewhere between 2.5p and 10p that would mean at the 10% discount (ie 2.25p - 9p) for the average price over the preceding 5 days - somewhere between 39m and 155.5m new shares if redeemed by issuing shares rather than paying cash to settle up.

If those new shares were in issue 2 years from now at either of those 2 price targets ie a total in issue of 615m @ 2.5p = £15.35 m/cap or 499m @ 10p = under £50m m/cap.

Bottom line is this company is again funded by 3 of it's main share holders, minimal dilution to existing shareholders and gives the company an amazing cash level of $9m.

[croasdalelfc] 08/3/2018 07:51

https://twitter.com/walty_pic/status/971431148663529473Not sure if this has been shared

[soulsauce] 08/3/2018 07:41

OK good luck Jung .

[argyle underclap] 08/3/2018 07:41

Euclid - 'subject to a 6month lock in and can't be sold or traded'

That's the way to do it. Absolutely Great stuff.

[jungmana] 08/3/2018 07:38

Soul, sold half and then 3 days later the remainder . Invested the money into i3e and rbd as i said.I knew some form of funding was needed soon as about £2.3m of the £3m must be reserved for wick. Todays news looks good and imo is better than what i feared, a large hugely discounted placing. I may buy back in but in no rush yet.

[soulsauce] 08/3/2018 07:35

'Expect to become increasingly active over the coming months'

Happy days.

[soulsauce] 08/3/2018 07:28

Agree Zengas excellent news and Tune getting involved again what does that suggest. As I have said before Tune aren't in to risk money on Wick.

Sull when Jung said he had sold half he had actually sold the lot he reckons at 2.5p.

[kemche] 08/3/2018 07:28

Agreed Zen. Especially with regard to your recent postings.

[kemche] 08/3/2018 07:26

This is how CLN should be structured - not with some dodgy outfit, no death spiralling, but with connected parties already having substantial holdings already. They would have more of a clue than all of us as to what is in the offing!

[zengas] 08/3/2018 07:22

Excellent news. We have to be nearing a major deal soon.

£3m existing cash and £3.5m in loan funding means a very significant $9m of available cash.

Share of cost for Wick is £2.24m/$3m (dry hole) but not until later in the year.
If it's not a dry hole, then if a success no one will mind another $1-$2m spend given it's a $200m+ potential net target.

Funded by the 3 main shareholders - Tune, the Chairman and our Ned (Ned is Optiva).
Free float is going to be as tight as ever !

[euclid5] 08/3/2018 07:21

Upland shares issued in repayment of the Loan Notes are subject to a six-month lock in period, during which time they may not be sold or traded.

[thejaba] 08/3/2018 07:20

So an interest free loan of £3.5m is bad. Dear me where do Dome people come from.

[snickerdog] 08/3/2018 07:19

Jagzoil, this is the opposite it's not some dodgy complex thing just a simple deal they can draw down on and shares issued to Tony F, the Chairman and others who are aligned to making this work

[thejaba] 08/3/2018 07:11

They've negotiated a 3.5m loan with no interest. That is really good news. Normally loans notes are prohibitive in terms of interest....but Dr Staley is proving a shrewd negotiator.

[goodbloke1] 08/3/2018 07:07

Just seen it sorry

[sull75] 08/3/2018 07:07

This will be a useful facility over the coming weeks and months as the Company expects to become increasingly active, principally through its participation in the drilling of the Wick well in Q3 this year; which although fully funded from existing cash resources allows flexibility towards over runs.

[goodbloke1] 08/3/2018 07:06

Hi Sul.Is Loan news just out.Cant See ii on rns

[sull75] 08/3/2018 07:04

Fantastic news! 3.5 million interest free loan! Jung, I hope that puts your mind at ease with regards funding!

[zengas] 07/3/2018 23:09

This 3 day event to initiate business 'Sarawak Dialogue' last week Feb 26th had the Chief Minister of Sarawak opening address immediately followed by Tony Fernandes.




KUCHING: More than 200 local and international delegates will be flying into the state’s capital for the inaugural Sarawak Dialogue, which will be held from February 26 to 28.

The three-day event, themed as “Sarawak, The Bridge to New Beginnings”, is organised by the state government with the objective to attract partnerships and investors from various industries, including digital economy, tourism, education, and health.

Some of the speakers will include AirAsia group chief executive officer Tan Sri Tony Fernandes; Stanley Yang and Khailee Ng from USA’s Silicon Valley; MATRADE CEO Dr Mod Shahreen Zainooreen Madros; Ukrainian ambassador to Malaysia Olexander Nechytaylo; Chief Advisor for Digital Economy of Sarawak Prof Jugdutt Singh; and Tan Chee Peng of Business Technovise International Singapore.

“We want people to share their business journey garnered over the years, discuss both opportunities and constraints, help to address immediate and existing needs that will eventually help formulate new project partnerships for the state and potential investors,”

Apart from that, the dialogue, which will be held at Riverside Majestic Hotel, will also act as a platform for delegates to pursue discussions and partnerships of possible win-win business ventures.

[thejaba] 07/3/2018 22:30

Looks to me like the cats well and truly out of the bag...did you know it was the chief minister that announced PETROS, the same chief minister that is in the UPL twitter pic at the meeting with UPL last May in a London.To me it's a done deal re Malaysia, once out in an RNS, watch the herd come to upl.

[zengas] 07/3/2018 22:18

The December presentation said discussions were well advanced in Malaysia and strong positive near term newsflow potential.

Page 12 (Malaysia)
Relationships with Petronas & in Sarawak
Excellent local contacts and unique access to opportunities
Politically stable
Discussions well advanced

Page 14 (Future)
Strong, positive near-term news flow potential:
Progress on high potential opportunities in Malaysia/North Africa