for contra and short term have to cut loss because their funding or cash is very limited they have to keep switch and rolling the cash. If you are not the contra player then you have more options; hold; sell; sell half and etc is all up to you.
I personally advice you to keep if you have the power to hold. At least give yourself a chance to see more details what will happen later even the QA is firm and no one know yet what the revenue and profit of the acquisition once they sign and firm deal.
Remember this is just the beginning and NOT REALLY done yet!!!
I think it is good stuff based on the LSE reports. Here is what they release. I think should add more lol
5 June 2014
Salamander Energy plc ("Salamander" or the "Group")
Agreement to Sell 40% Stake in Greater Bualuang Area
Non-Binding Heads of Agreement ("HoA") with SONA Petroleum Berhad ("SONA") Salamander is pleased to announce that it has signed a non-binding HoA with SONA to sell an effective 40% working interest in both the B8/38 concession (containing the Bualuang Field) and the surrounding G4/50 concession for a total cash consideration of US$280 million (together the "Transaction"). Under the terms of the Transaction: · SONA will pay Salamander US$250 million for a 40% effective interest in the B8/38 concession · SONA will pay Salamander US$30 million for a 40% effective interest in the G4/50 exploration concession · Salamander will carry SONA's costs associated with the drilling of two exploration wells in the G4/50 concession up to an agreed cap · SONA will pay Salamander a contingent cash payment in the event of a commercial discovery in G4/50 of up to $15 million
As at 31 December 2013, Salamander's estimated gross Bualuang Field 2P reserves were 32.7 million barrels of oil ("MMbo") and gross 2C resources were 32.3 MMbo. The Transaction has an effective date of 1 January 2014 and following its successful completion, the Board has approved a US$50 million capital return to shareholders, equivalent to approximately 11 pence per share. Post closure of the Transaction, and ahead of the next phase of development of the Bualuang Field, the Group expects to retire between $200 million and $250 million of current debt. The HoA remains subject to, amongst other things, the signature of final documentation, including share sale and purchase and shareholders' agreements, which is anticipated to occur prior to the end of June. A further announcement will be made at that time. The Transaction is expected to close by the end of Q3 2014 following satisfaction of all conditions, including receipt of both regulatory and shareholder approvals of both Salamander and SONA.
Update on Formal Sale Process Today's announcement is consistent with the strategy articulated by the Board of Salamander on 1 May 2014 when the formal sales process was announced, where Salamander stated that it had been considering a divestment of certain assets, and had also received a number of preliminary and conditional expressions of interest in relation to an offer for the Group. The formal sale process (with respect to potential offers for the Group) has not yet concluded and continues in parallel, as the Company and SONA progress Transaction documentation. A further announcement will be made as appropriate. James Menzies, CEO of Salamander, commented: "Our Bualuang field and surrounding acreage has proved to be a highly successful growth asset for Salamander. The Group's hub strategy is designed to bring assets to phased maturity, releasing value in turn and providing for both re-investment in early stage development and capital return. The price achieved reflects the quality of Bualuang barrels, and the prospectivity of the G4/50 acreage which surrounds the Bualuang Field. Today's announcement demonstrates the value embedded in the Group's portfolio, and the Transaction provides an excellent opportunity to crystallise a portion of that value."
Enquiries: Salamander Energy + 44 (0)20 7432 2680 James Menzies, Chief Executive Officer Geoff Callow, Head of Corporate Affairs
Could it because Sona has insufficient funds raised from its IPO to psy for the QA which cost some RM900M plus equivalent? Thus,Sona needs either bank borrowing or some other form of financing to make up the difference.
They r preparing for the W/CUP Gala, in line with the general market SWING (down).
More details : Posted by pdtan > Jun 6, 2014 04:57 PM | Report Abuse X
Overall Market/klci : Dip(bottom) target 1861-0 reached Reversal now to close towards 1866-1870.
If next (mon) day OPENING GAP UP +5 1870 n above. Traders Beware!!! 1887-1888 reversal both monday close and tueday morn.
Tue(2nd)day close low will set the stage for the NEAR-WHOLE-MONTH's BLATANT MANIPULATION of the WHOLE MARKET MOOD, shoud scare the shit out of the retail-investors and traders and results in good losses before month's end. Traders : Stay safe, avoid losses, and keep PLENTY OF CASH TO BUY CHEAP AGAIN!!! p/s : This picture shd generally concur with the earlier poster about WCUP..
I will cash out of DSonic + CA by Tueday if the double peaks is confirmed...
Posted by abdulrahim > Jun 6, 2014 12:32 PM | Report Abuse
contra loss again today...
---------------------------- I will buy next when price CLOSE LOWEST @ 0.49, next morning further dip to 0.48, and sell T+2 morning at 0.52..... not much, I will go for other MEATIER counters.... like Dsonic-CA now @ 0.28
Do the general market view positively on Sona' acquisition of the 40% interest of Salamander? Was it really a ggod buy? Are the 2 oil fields currently producing? Earlier, every one was anxiously awaiting for the QA news. Now that the news was out, no one seemed to bother about it like what had happened to Hibiscus. I really can't understand why its price dropped further despite the QA news?
Becoz the deal could be way offf... Now sona in debt ma.... If not clear debt in certain period, may go into pn17 lo... Risk is high lo.... And big player think sona mgmt is donating money to salander which already in debt lo... Just my understanding
This is called gearing with bank support. Almost all listed companies are filled with loans. Don't be afraid of debt, it helps you to grow faster in a manageable way. Just like how you buy a house. You pay interest for it, doesn't mean you are bankrupt after you take a loan from bank.
PN17 won't happen if there is a profit every month. Cash flow management this is.
Comparing cliq and sona.1 Sona is a better buy now, with a solid oil field asset in hand, funded with help of bankers.
Cliq is still an empty shell company in the dark. NOTHING
when sona-wa still intact,it means the deal is ok. else,they would have dump WA which now premium stand at 18.25%. Unless,next week sona-wa start dropping below .28 then i would consider Sona is in dilemma.
Else, i think there will be upside after AGM which will revealed the actual scenario to shareholders as they still need shareholders approval to buy 40% of salamender oil fields.
5 sen? That means waiting to be delisted wor..... Or pn17.... Hehheheheh
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Posted by kenlfo > 2014-06-05 16:18 | Report Abuse
attractive price now...can collect at 0.29...