AUT - Aurora Oil and Gas
- Thread starter nioka
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Hi Condog,
I was thinking that AUT, TCEI and Hilcorp would be buying up the infill acreage together and that AUT needed the cash to service its WI obligations rather than AUT going it alone (but I might have misunderstood). Its partners are private companies so there wouldn't necessarily be public information on their intentions. It has spoken previously about 'net acreage' infill additions. Hilcorp has been very acquisitive in the area, so it could well be leading the charge.
As you and sharejon say, this could be very good for AUT and could increase reserves value per share. They also might have a number of acquisitions lined up. With A$38m in the bank it's difficult to see the urgency otherwise. Perhaps it is just opportunistic and means that plans and strategy can be settled and commitments given to TCEI and Hilcorp.
In the excitement, nobody seems to have commented on the revealed length of Patino 1H, just 114 feet shorter than Kowalik 1R.
I was thinking that AUT, TCEI and Hilcorp would be buying up the infill acreage together and that AUT needed the cash to service its WI obligations rather than AUT going it alone (but I might have misunderstood). Its partners are private companies so there wouldn't necessarily be public information on their intentions. It has spoken previously about 'net acreage' infill additions. Hilcorp has been very acquisitive in the area, so it could well be leading the charge.
As you and sharejon say, this could be very good for AUT and could increase reserves value per share. They also might have a number of acquisitions lined up. With A$38m in the bank it's difficult to see the urgency otherwise. Perhaps it is just opportunistic and means that plans and strategy can be settled and commitments given to TCEI and Hilcorp.
In the excitement, nobody seems to have commented on the revealed length of Patino 1H, just 114 feet shorter than Kowalik 1R.
So really, in other words this cap raising could be PERFECTLY timed!!!!
(Keyword: could, as obviously the acquisitions have not been made public, nor are the flow-rates on Patino 1H known.)
Let's hope so.
If its infill acerage buying there will be delays as negotiations with each party and searches at the crowded title office will mean it wont happen over night but it will happen. The seem to have indicated in the report that they have already began several negotiations. For them to know they will be accreditive, they must also have spoken or identified roughly acceptable price points.
At $70M its straight cash onto the balance sheet and doesnt alter our EV. However they got an 8% discount on that $70M raised , ie by my clacs its only diluted us temporarily till its deployed by approx 8% of $70M approx 5.6M = approx 1.4% = approx 2c per share.
At $70M its straight cash onto the balance sheet and doesnt alter our EV. However they got an 8% discount on that $70M raised , ie by my clacs its only diluted us temporarily till its deployed by approx 8% of $70M approx 5.6M = approx 1.4% = approx 2c per share.
Sdajii
Sdaji
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The announcement is out...
Did I read it correctly? Are we not getting a chance to buy any?
Not happy, Jan
Did I read it correctly? Are we not getting a chance to buy any?
Not happy, Jan
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Confirmed 70mil to institutional and sophisticated investors..
in two tranches, second one on share holder approval..
thats a bit sad.. perhaps the second 20 mil placement is to the share holders.
could be good to get my re-entry cracking now...
in two tranches, second one on share holder approval..
thats a bit sad.. perhaps the second 20 mil placement is to the share holders.
could be good to get my re-entry cracking now...
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Well does anyone want a piece of the cap raising price now?
Jump in today! where's the bottom however...
Jump in today! where's the bottom however...
The announcement is out...
Did I read it correctly? Are we not getting a chance to buy any?
Not happy, Jan
I'm surprised that the directors have not seen fit to offer the cap raising to their loyal shareholders but rather they offered a cash bonus to the usual leech sophisticated #*^#* (censored).
They are about to get an ear full from me. I suggest that others do the same. I'll be voting against the second tranche unless it is offered to shareholders that held prior to the trading halt.
too.
Sdajii
Sdaji
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I'm surprised that the directors have not seen fit to offer the cap raising to their loyal shareholders but rather they offered a cash bonus to the usual leech sophisticated #*^#* (censored).
They are about to get an ear full from me. I suggest that others do the same. I'll be voting against the second tranche unless it is offered to shareholders that held prior to the trading halt.
You're the third person I know of who will be doing that, and hopefully many others will be doing the same.
They've given us no incentive to hold other than avoiding CGT if we bought in the last 12 months - if we don't need to be holding to take part in a SPP lots of people are going to jump out at anything much over $1.25 and just buy back in when the profit takers decide to sell. This was a guarantee to crash to price to $1.25 or close to it. Lots of loyal shareholders will be out due to a combination of practicality and principle. Surely it makes sense to keep the shareholders happy! Well, you'd think so anyway! Ugh!
I understand your frustrations, but i also understand exactly why they did it the way they have. Organising prospectus and SPP offers and giving time for return then processing all that costs valuable time and money and it distracts the entire organisation from its primary task of adding value.
Im not at all upset about it and whilst i fully understand why you are i dont think a linching squad is needed or warranted. AUT mgmt have done a bloody brilliant job and if they can now turn that cash onto more reserves and additional fast tracked development, then we will be laughing all the way to the bank.
For the sake of 3c just buy on market and try to understand why mgmt has to do it this way. It takes 48hrs and then they are on with the job of building value, instead of two months to raise the capital. They obviously have some deals ready to go and an SPP would not have been possible.
Point taken the 20m could have been spp, but we may be able to talk them into that just nicely anyway. Tranch 2 may already be an SPP an they just havent committed themselves yet, it may be a 20m underwritting thats been organised???
Im not at all upset about it and whilst i fully understand why you are i dont think a linching squad is needed or warranted. AUT mgmt have done a bloody brilliant job and if they can now turn that cash onto more reserves and additional fast tracked development, then we will be laughing all the way to the bank.
For the sake of 3c just buy on market and try to understand why mgmt has to do it this way. It takes 48hrs and then they are on with the job of building value, instead of two months to raise the capital. They obviously have some deals ready to go and an SPP would not have been possible.
Point taken the 20m could have been spp, but we may be able to talk them into that just nicely anyway. Tranch 2 may already be an SPP an they just havent committed themselves yet, it may be a 20m underwritting thats been organised???
Yeah I well understand your dis-satisfaction Sdajii and Nioka and must admit to similar feelings of discontent related to the proposed SSP which disregards the investment intrests of "US" the loyal (and in real terms) the "owners" of this company
I invested in this company for one reason... and one reason only, and that was to increase the value of the capital I was prepared to put at "RISK", it seems that now that that risk is more quantifiable ... markedly reduced in fact, my investment risk taking behaviour reaps no reward or recognition by the board of directors , and instead the benefits are to be directed to opportunist sophisticated investors who have shared little in the initial risk but will be the sole benificiary's of this SSP, and all at the exclusion of long term holders of AUT stock
This decision does not rest comfortably with me
I invested in this company for one reason... and one reason only, and that was to increase the value of the capital I was prepared to put at "RISK", it seems that now that that risk is more quantifiable ... markedly reduced in fact, my investment risk taking behaviour reaps no reward or recognition by the board of directors , and instead the benefits are to be directed to opportunist sophisticated investors who have shared little in the initial risk but will be the sole benificiary's of this SSP, and all at the exclusion of long term holders of AUT stock
This decision does not rest comfortably with me
Also dont forget we can rave on as if the majority of the share registry is owned by mums and dads, its not, directors and CA stewart own 20%, other big instos and funds likely own about another 50-60% between them, then thers some sophisticated investors who would have had access. So your talking about doing an SPP for about 20% of the registry at a huge cost.
PS im not a sophisticated, so have no vested interest, i just understand why managment have gone this way. And i think some deep breaths and cool heads are needed here.
PS im not a sophisticated, so have no vested interest, i just understand why managment have gone this way. And i think some deep breaths and cool heads are needed here.
Sdajii
Sdaji
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You make some fair points. If opportunities come up and the funds are required quickly, it is in our best interests to have the directors do whatever they need to in order to strike while the iron is hot rather than miss out. If the 20M is up for grabs by folks like myself I will be happy.
And yes, I agree, anyone who wants to jump in can do so at not much more than $1.25 anyway. I topped up at $1.275 shortly after open (got that out of the way before I had my rant ).
And yes, I agree, anyone who wants to jump in can do so at not much more than $1.25 anyway. I topped up at $1.275 shortly after open (got that out of the way before I had my rant
).Got this email, although i didnt send him one, but i have previously corresponded with them.
Dear Sir
Thank you for your correspondence.
I can assure you that the Board of Aurora take very seriously our obligations to act in the best interests of all shareholders.
There are a few comments I would make in response to your email.
1. SPP –ASX Listing Rules dictate SPP (Securities Purchase Plan) is only available once in any 12 month period and accordingly is not available to Aurora at this time.
2. Rights Issue – ASX Listing Rules prescribe the timetable for a pro-rata offer (ie Rights Issue) to take 23 business days from lodgment of a prospectus. The preparation of a prospectus takes at a minimum several weeks to prepare. As a consequence, there is not only considerable uncertainty as to take up, but timing implications that may not meet the specific business imperatives of the Company. If underwriting is able to be secured it adds considerably to the cost of funding.
In our present circumstances the biggest issue is timing to meet our corporate objectives. The market risk of a protracted fund raising has been clearly demonstrated by the market in the past 24 hours.
As one of the largest shareholders in Aurora, and unable to participate in this issue, I can assure you that I consider our actions to very much be in the best interests of all shareholders.
Yours faithfully
Jon StewartExecutive Chairman
Dear Sir
Thank you for your correspondence.
I can assure you that the Board of Aurora take very seriously our obligations to act in the best interests of all shareholders.
There are a few comments I would make in response to your email.
1. SPP –ASX Listing Rules dictate SPP (Securities Purchase Plan) is only available once in any 12 month period and accordingly is not available to Aurora at this time.
2. Rights Issue – ASX Listing Rules prescribe the timetable for a pro-rata offer (ie Rights Issue) to take 23 business days from lodgment of a prospectus. The preparation of a prospectus takes at a minimum several weeks to prepare. As a consequence, there is not only considerable uncertainty as to take up, but timing implications that may not meet the specific business imperatives of the Company. If underwriting is able to be secured it adds considerably to the cost of funding.
In our present circumstances the biggest issue is timing to meet our corporate objectives. The market risk of a protracted fund raising has been clearly demonstrated by the market in the past 24 hours.
As one of the largest shareholders in Aurora, and unable to participate in this issue, I can assure you that I consider our actions to very much be in the best interests of all shareholders.
Yours faithfully
Jon StewartExecutive Chairman
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Thanks for sharing that Condog. Sort of takes the wind out of all the uncertainty that is around today. Still like to know how this effects your targets.
As said before, I'm way overbalanced with AUT shares, just wish I had the cash to buy more.
As said before, I'm way overbalanced with AUT shares, just wish I had the cash to buy more.
Thanks for sharing that Condog. Sort of takes the wind out of all the uncertainty that is around today. Still like to know how this effects your targets.
As said before, I'm way overbalanced with AUT shares, just wish I had the cash to buy more.
I will await some more information. But in general , it delays positive cash flow, but possibly, depending on what acquisitions are made may boos the EV of the stock.
Remember we currently have $108M effective cash, giving an actual EV mcap of only approx $316M, not the $424 some knockers are quoting when they are saying we are over valued.
I will say this i think there are some foolish comments made around the traps in the last few weeks about AUT being overpriced. Clearly they have little idea why we have attracted such a premium.
Im still targeting about $1.59 - $1.70ish for end of 2010 and $3.29 +ish for end of 2011. Although i will update that once i see what the acqusition is.
But remmebr im a mug punter and this is only an opinion.
Euroz have quoted a current valuation and target of $2.20 and i believe we will see new targets from in the next week or two.
Its certainly in my opinion not a bad thing for AUT and im guessing we will see 3-5 weeks with a little too much supply, before we become tightly held again. In the mean time sit back and watch as the traders make lunch money.
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The announcement is out...
Did I read it correctly? Are we not getting a chance to buy any?
Not happy, Jan
I'm surprised that the directors have not seen fit to offer the cap raising to their loyal shareholders but rather they offered a cash bonus to the usual leech sophisticated #*^#* (censored).
They are about to get an ear full from me. I suggest that others do the same. I'll be voting against the second tranche unless it is offered to shareholders that held prior to the trading halt.
hey,, did the sophisticated only get a shot at it yet again??!!!
how many times have you guys been watching this type of activity in the past?
come on guys.. you know the drill..
one thing you dont get is loyalty from these type of shareholders, they have different objectives, so once the objective thresholds are reached you will get real strong plateaus..
imho, regardless of the respect the present directors thoroughly deserve, disallowing the LTH (whom are not in the soph category) from the cap raising will generate a different type of sp pressure in the very near future..
Agent im confused whther your bagging or congratualating managment. Im certainly congratulating them given its gone from 78c when you where adament it was going down, to 1.48 in only a few months. I like most AUt holders are supremely happy with our investment.
Im guessing however you must be dissapointed with your exit and entry points on AUT, you called it bad at 78c and missed out on 70c growth. Personally id rather stay in and suffer whatever CR brings with it and take the growth.
Im guessing however you must be dissapointed with your exit and entry points on AUT, you called it bad at 78c and missed out on 70c growth. Personally id rather stay in and suffer whatever CR brings with it and take the growth.
I just do not understand why investors moan about not being offered shares at 125c subject to scale down when they can buy in the market at 128c (as I did) and be certain of their exposure and cash commitment immediately. That is apart from the fact that the company would be forced to squander some of the money raised in providing that opportunity.
That is apart from the technical situation explained in that email posted by condog.
This project is moving faster and faster and management cannot be expected to plan ahead in an orderly manner when a company like Hilcorp is setting the pace. If AUT wants to maintain its WI, it has to commit to the spend.
And as to a flood of profit-takers: we waited last time, in June, and nothing materialised. The Board isn't going along to the nearest share shop, it is spending time and effort finding big wallets that are there for a period of time: that's what happened last time, anyway.
Reserve judgment until we see the after-market. If you see a flood of dumping, you're right. If you don't, give them a break.
That is apart from the technical situation explained in that email posted by condog.
This project is moving faster and faster and management cannot be expected to plan ahead in an orderly manner when a company like Hilcorp is setting the pace. If AUT wants to maintain its WI, it has to commit to the spend.
And as to a flood of profit-takers: we waited last time, in June, and nothing materialised. The Board isn't going along to the nearest share shop, it is spending time and effort finding big wallets that are there for a period of time: that's what happened last time, anyway.
Reserve judgment until we see the after-market. If you see a flood of dumping, you're right. If you don't, give them a break.
