Upland Resources Share Discussion Threads

[goodbloke1] 10/3/2018 07:18

They will probably announce a deal shortly in my opinion! The lock in period and their allied interests and the impending deal are enough to convince me that the clns will present no worry.When deal ( you seem to forget) is announced funds will be raised at a much higher price in my opinion!

[lw425] 10/3/2018 07:12

So why didn't they insert a floor price into the agreement?

2.5p floor would have seen the share price at 3.5p now with me owning 2 million.

But no floor just makes the market nervous hence the muted reaction.

[goodbloke1] 10/3/2018 07:03

What about replying to my point which is not challenging! You seem to forget that UPL shares are subject to 6 month lock in agreement.When the deal is announced the share price should rocket and funds can be raised at a higher price! Perhaps the deal is very close hence the clns possibly

[tyler90] 10/3/2018 06:29

TheJABA, if you are referring to my post then it is not nonsense. My decades of experience is that the City is full of sharks. Not saying Optiva are in that bracket but no harm in asking challenging questions. Do not take everything you read and hear as gospel is my advice.

[thejaba] 10/3/2018 06:14

What a complete a utter nonsense post. Some people really need to think about what they post.

[goodbloke1] 10/3/2018 01:59

You forgot the 6 month lock in

[tyler90] 10/3/2018 00:06

Yogaboy, I would hope so but would be useful to know who they are.

[yogaboy] 09/3/2018 23:38

I guess the UPL ethos was spelled out to them before they offered up?

[tyler90] 09/3/2018 23:17

LW425 is a wind up merchant. I may be wrong but it is the impression I get from his post.However, I have my reservations about Optiva and I have said this in the past. I wonder who their clients are and what percentage are they the CLN holders?Not being negative but just how do we know that these clients have the same commitment to UPL as the other 2 cornerstone investors?

[euclid5] 09/3/2018 22:25

LW425, your forgeting that the LN issuer already owns 16% of UPL stock, so they would have a clear idea what they are using these funds for.

1p & under isn't a realistic price they will convert to, unless it was operated by a bunch of cowboy BoD's like most O&G Aim co's. i.e Newog, remember that dog well

so take a look at who is on this BoD

But guess you may be short the shares, good luck if you are, but the upside potential is greater than making 2p profit on any downslide!

Terms of the Convertible Loan Notes Facility

The Facility Providers comprise Tune Assets Limited, Norza Zakaria (Chairman of the Company) and clients of Optiva Securities (corporate brokers to Upland).

[sull75] 09/3/2018 21:33

Many thanks.

[kemche] 09/3/2018 20:55

The buffoonery defies belief!

As the filtered list gets ever larger.

[lw425] 09/3/2018 20:43

The loan notes will hold the share price back.

£3.5m at 1.5p = 233m new shares

£3.5m at 1p = 350m new shares

£3.5m at 0.5p = 700m new shares

£3.5m at 0.1p = 3.5 BILLION new shares. Yes Zengas that's 3.5 BILLION new shares at 0.1p.

£3.5m at 0.001 (one hundredth of one penny) = 35 BILLION NEW SHARES.

Therefore a £10000 investment at 2.5p could in extreme, unforseen circumstances one day be worth a paltry £40.

The above are all examples of course.

[spangle93] 09/3/2018 17:57

Absolutely

[zengas] 09/3/2018 16:51

re 1 "Secure substantial near-term revenues to underpin Upland by acquiring interests in attractive low risk assets near to start of production and with robust economics".

It doesn't have to be UK, quite possible that they could get producing or near to production assets in Sarawak after this weeks important news there or indeed Morocco or Tunisia that would fall into the above category.

[soulsauce] 09/3/2018 15:43

Hey spangle what you doing talking to yourself :-))

I'm not a fan of going for Oulton either. Don't want to be spreading ourselves too thin and I am hoping what is to come will dwarf anything like that.

[euclid5] 09/3/2018 15:11

closest is 1 - but that at least secures them an appraisal oil asset, we shall see

amazed we got that reply on the Matd thread!, some don't like comprehensive technical replies for some reason.

[spangle93] 09/3/2018 15:05

hey Euclid, just to prove I'm not you, I don't follow your reasoning.

Upland follows a Two phase strategy:
(1) Secure substantial near-term revenues to underpin Upland by acquiring interests in attractive low risk assets near to start of production and with robust economics.
(2) Acquire higher risk, higher potential transformative assets.

so which of these do you see Oulton meeting?

[euclid5] 09/3/2018 14:25

Would be a good move if they farmed into the Oulten appraisal oil asset!

one point that caught my interest was that compared to many other co's that complete CLN's in the lock in period. This avoids heavy dilution

"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"

[spangle93] 09/3/2018 12:14

Zengas - thanks, I agree with your thoughts. It's not a bad thing to have in your back pocket, though, and perhaps with a little money, they have the option to take EOG's share as it's peripheral to EOG, and move ahead at UPL's pace.

The geology is complex, and I think there will be surprises, but with higher oil price and lower costs, I think there's enough known from past production that the low case would make money, which de-risks it a lot. 3D seismic would really help visualisation, but it's not straightforward in a populated county (it's easy to find - look up www.oilwellnursery.co.uk and it says "Oilwell Nursery is a small, friendly garden centre located on the site of Britain's first oil well in Tibshelf, Derbyshire"), and for a small field may not be cost-effective.

Personally I would have been happier if the company had got production revenue coming in from Hardstoft or Wressle, because I don't really like rank exploration companies, but as tyler noted, you move with the circumstances, and I can live with it if the share price doubles!

[zengas] 09/3/2018 11:22

Spangle i don't doubt it's taken a back seat on account of planning i think.
It was from their own broker at the time I believe.

The presentation of March 2016 by UPL page 11 showed on a risked 0.8 mmbls net was a share price of 1.79p and 2.33p at $60 & $70/b oil based on 229m shares and a 16.67% interest.

457m in issue now lowers that to 0.9p and 1.16p at $60 & $70/b oil price.
But since increased to 25% stake meaning 1.2m bls (so share price value to increase by 50%) as in December 2017 presentation.

Therefore 1.35p at $60/oil and 1.74p at $70/oil plus any upside from the 3C. That works out at 50-66% value of current m/cap. Downside is the delay but for now it's not costing us anything and they may have bigger fish to fry in the not too distant future.

[spangle93] 09/3/2018 10:56

Yeah, sorry tyler90, wasn't meant to appear critical, it was an observation

[tyler90] 09/3/2018 10:54

Spangle, the best laid plans go to pieces sometimes. I think if Wressle & Hardsoft had gone according to plan, we may not have gone for the CLN route or a lesser amount, who knows?The sign of good management is how they react when things do not go according to plan. In that respect, I think they are proving themselves to be flexible and adaptable pretty quickly, that is, there is always a plan B.

[spangle93] 09/3/2018 10:41

Zengas - ref Hardstoft. I can't find any notice of 2018 drilling in UPL documentation, so it must be quite a way back. EOG presentations show a VERY different timeline, with seismic in 2019 and possible drill in 2021. If the partnership remains as it is, then I don't think there's much traction in the East Midlands.

Odd isn't it. The stated plan was to get some simple easy wins to underpin and then look for bigger fish. So far Hardstoft is stalled, and Wressle didn't happen, so the Phase 1 things haven't really happened at all, and now we're talking of a high-reward exploration well and significant activity in other countries with a bigger war chest

Will be interesting in the next presentation to see how this all comes together.