Regal Partners Ltd V.RPL

My View

[InvestorSuperfan]

1) The debt is much too high for a microcap company - and investors rightly punish a small company with limited revenues and excessive debt. Too much debt is poison for a microcap O&G company that has a dividend and also needs to fund capex to continue / expand production. Thus we see the crippling plunge in the stock price over the past few months. The share price plunge is not unjustified, though I do think it is probably overdone given the assets RPL owns. 2) I don't see them reducing or eliminating the dividend until the full plan is presented - to do so would throw investors into a panic and further increase suspicion about the competence of company management. 3) The end goal should be one of two options: A) Establish financial stability by paying down debt in the most optimal manner possible as recommended by the financial advisors . I think the sale of assets is almost a certainty, possibly including the sale of some/all of the Viking play. I understand the desire to keep the dividend, but if asset sales alone are not enough to put the balance sheet in good stead, a cut in the dividend may also be implemented. B) Present a lucrative takeover offer to shareholders. If one or more O&G companies are enticed enough by the entirety of RPL assets and the financial advisor / Board believes the offer provides a good premium to what they consider the fair market value of the company, this may in fact be the way to go.