BPT - Beach Energy

[oldblue]

The trading halt continues until the book-build for the private placement is completed. That will be the next announcement but there shouldn't be any surprises there - the institutions will jump at the chance to buy BPT at $1-43.

BPT are now suspended from trading until the placement is completed. May take a few days but not a concern.

 

[vishalt]

Yeah.

I think someone may have mentioned it but the smaller oil companies have had a spate of capital raisings recently and their share price has generally risen by 20-50% thereafter.

This is a good investment for Beach for expansion of reserves and more exploration prospects.

It scared me ****less this morning though because Beach was as "$0.00" on my position statements and my overall portfolio plunged 30% lol because the suspension created an anomaly.

 

[karundus]

Excuse the seemingly stupid question as i am new...

I currently bought into beach @ $1.34 however how do i excercise my right to secure the bonus options that are on offer, also how will i be able to buy @ $1.43sp up to $5000 worth as i am a current holder (as they say we are able to do)

I'm confused

 

[oldblue]

Excuse the seemingly stupid question as i am new...

I currently bought into beach @ $1.34 however how do i excercise my right to secure the bonus options that are on offer, also how will i be able to buy @ $1.43sp up to $5000 worth as i am a current holder (as they say we are able to do)

I'm confused

As I read it, the options will be automatically issued to all holders on the register at a pre-determined future date. Will then have up to 30 June 2010 to exercise by paying the strike price of $2. ( Or selling the options at some stage: or letting them lapse.)
Likewise, the SPP offer of shares at $1-43 up to $5000 ( up to 3496 shares? ) will be sent out in due course. It is usual with SPP issues to offer holders the option of taking up a lesser amount, say $2000 or $3000 worth if they don't want the full $5000. Don't know if that will apply in this instance.

 

[vishalt]

So is a retail investor like me with 1000 shares in Beach going to get a chance to get involved in this raising? I'd be happy to buy 1000 more shares..

 

[oldblue]

So is a retail investor like me with 1000 shares in Beach going to get a chance to get involved in this raising? I'd be happy to buy 1000 more shares..

The usual procedure with a Share Purchase Plan is for all shareholders to be offered up to $5000 worth of shares, irrespective of the size of their holdings. In fact, I've never seen an offer for less ( although you normally can opt for less) but I imagine a company could nominate a lesser amount.
BPT have specifically said that a SPP is part of their capital raising but no details yet.

 

[56gsa]

The trading halt continues until the book-build for the private placement is completed. That will be the next announcement but there shouldn't be any surprises there - the institutions will jump at the chance to buy BPT at $1-43.

Interesting they're saying they will use some of the proceeds to close out their hedge book - must be expecting oil to stay high although not sure what their hedge level is at present?

What will be the opening price when it re-lists? will it fall to $1.43?

I've tried to crunch some numbers

903,448,006 current shares + unlisted option
$1,508,758,170 mkt cap (@ $1.67 last trade)


133,600,000 placement shares
$1.43 placement price
$191,048,000 proceeds

Now how much from SPP (3497 shares @ $1.43) - because this depends on how many take it up...

28,000 current number of shareholders
50% estimate of what % take-up SPP

48,951,049 estimate of SPP shares issued
$70,000,000 SPP proceeds (@ $1.43) - note BPT don't seem to say what they'll be doing with this cash

90,344,801 options issues (1:10 of current holders @ 16 June)


1,176,343,856 New number of BPT shares (add red numbers)
$1,769,806,170 estimated mkt cap (current mkt cap + proceeds-blue numbers)

$1.50 estimated share price based on above

Not sure if this is right - ie market is currently pricing in egyptian purchase - so do you also add the placement and SPP proceeds or is this double counting? If you don't add these in and just use current mkt cap you get $1.29 est share price

there must be a standard spreadsheet stock brokers use to calculate all this??!!

 

[oldblue]

It's too hard for me! There probably is a theoretical ex placement, ex SPP price but recent experience with other companies, eg NMS, indicates that theory doesn't count for much in these circumstances, and especially, I would suggest, as far as oil companies are concerned.
I think market sentiment towards the POO, the excitement over CSG ( BPT has 40% of the Tipton West field, so is involved in the AOE/Shell business to some extent ) and whether the instos feel filled up by the placement, will determine where they trade when suspension is lifted. The timing of that event will have a big bearing, particularly if it coincides with a bit of volatility in the POO.
There will be a period between re-start of trading and close of the SPP when we can decide whether to buy/sell/take up SPP. Should be exciting!

 

[vishalt]

I phoned investor relations and they said the letters will go out after an announcement on Friday, so yeah we do get to participate .

Oil is having a bit of a correction at the moment but who cares, long-term is US$200+ easily.

 

[Tysonboss1]

It seems odd to me that they have suspended trading just for a capital raising.

I wouldn't expect that they would do that. is anyone aware of any other factors.

 

[TRUST_ME]

standard practice to suspend stock poending placement with insto's and big investors.

i was offered some stock for the placement but this stock rises and falls with the oil price so I think the share price will actually fall due to oil price easing and the dilution effect due the palcement.

i'd take my chances on the open market and maybe buy in after the oil price goes back under $115 mark.

long term this stock is a good buy especially due to their 40% stake in a CSG tenement with Arrow energy.

 

[oldblue]

BPT has resumed trading ( currently $1-54 ) having successfully completed the placement at $1-43.
Announcement says the Share Placement Plan at $1-43 and the bonus options issue will now proceed.

 

[mime]

Haha BPT has fallen 8% or so which was against the general mood of posters. So will there be an option to purchase units for $1.43?

 

[oldblue]

Haha BPT has fallen 8% or so which was against the general mood of posters. So will there be an option to purchase units for $1.43?

Company says
(a) shareholders on the register at 16 June will be offered opportunity to purchase up to $5000 worth of shares at $1-43.
(b) Shareholders on the register at 1 July will receive listed options in the ratio of 1 for 10 shares held. Options will have an exercise price of $2-00, expiry date of 30 June 2010.

The determination date of 1 July, 2008 for entitlement to the options may indicate that the SPP will close before then and that the shares taken up in the SPP will also be included, but that's just speculation on my part, It hasn't been spelt out by the company at this stage.

 

[56gsa]

Haha BPT has fallen 8% or so which was against the general mood of posters. So will there be an option to purchase units for $1.43?

Mime - not sure what the 'haha' is about - i didn't get any sense of outrageous optimism from posters about the re-listed price - my prediction was $1.50 which turned out pretty close to the mark

I wouldn't be surprised to see this go down to $1.43 or even less after the record date for the SPP as so often happens with SPP - makes sense as demand for BPT i largely soaked up by shareholders by through the SPP

Interesting the options are 1 july - haven't read anns so can't make sense of this just yet...

 

[vishalt]

I might put in $1000 more.

Wall St is probably not in the mood to scatter away from the oil market. They gotta inflate something else up to make up for the pathetic losses they took from the sub-prime markets.

 

[roland]

What is wrong with Beach? They are pumping oil like there is no tomorrow, coal gas coming up, thermal in the pipes (so to speak), great news release today - where's the action?

I picked up a few thousand at $1.335 in any case

 

[dan-o]

these shares still below SPP price. anyone know of a specific reason why or is this one of those potentially good buys in oil?

 

[oldblue]

these shares still below SPP price. anyone know of a specific reason why or is this one of those potentially good buys in oil?

BPT has been a bit of a disappointment SP-wise for a couple of years now. A lot of shares issued - now over a billion out there with more to come if anyone takes up the SPP! It seems that the SP trades in a fairly narrow range and gets clobbered with a new issue whenever it looks like breaking out!
Concern in some quarters that company has sold down its 50% in BMG to 30% ( for $246m ) while venturing overseas - Egypt, Turkey, Albania, Tanzania - and dilution of management focus that this entails when there are a lot of opportunities at home, not the least of which in the developing coal seam gas scene.
BPT recently spent a big amount - $50m from memory? - to settle a big chunk of its Delhi related hedges. So future profitability should be enhanced if the PoO remains firm!

Disc: Holding, but not adding.

 

[oldblue]

Should add that practically every stock is currently taking a beating in this bear market. So how much is BPT specific is anyone's guess.