Forum Archive Index - August 2002

["Lindley Smith" <lindleysmith@bigfoot.com>]

I'll chop out a few bits and reply to a few others to save a bit of space.

> According to my information, when the revenue stream was listed in
> 1997 it achieved a 75% subscription level.  Does this mean that BRY
> retained 25% of the rights?  Or was the other 25% sold off later?
> I'd love to know!  Can anyone help?

Sorry I can't remember what happened, but it would seem the logical thing
that they still own the rest, unless they 'sold' further bits off
subsequently.

> >
> > AIR and THO don't have any obvious buyers at the moment.
> >
>
> No they don't.  But they are listed, which means that we can value
> AIR and THO as the market values them.
>
Mkt value yes, realisable value, probably not at the moment.
>
> >
> >BSR could be sold off,
> >
>
> Essentially they have already done that (this is what BSO is), so I
> don't think they can do it again until 2007.  Or can they?  I'm
> afraid I don't fully understand what the $US69.1m as listed in the
> accounts y/e2001 under the heading 'Oil royalty' represents.  Can
> anyone help explain it?
>

They could sell any remaining units they have and/or sell the residual
ownership. May not get best price, but at least something.

Assuming THO isn't consolidated onto their balance sheet, then THO will also
have a pile of it's own debt.

So they've got a pile of debt, but to pay it off they either have to sell
all of THO or everything else, to get close to clearing their debt. And now
is not a great time to be selling things - in the case of THO it never is.

It seems to be in a 'rubicon' state already - just waiting for others to
make offers on the bits it has but doesn't necessarily want anymore.

I was trying to think of a way out for them/us. Guess the experts have done
the same and can't figure a way out for them, hence the share price and the
lack of action at the company. Only option I can see would be some variation
of the following: - pay of the debt from cash and FRN, cash issue to
existing shareholders at 1/2 mkt value of the entire THO holding to pay off
the remiaing debt, leaving AIR, BSR and the islands with BRY.

A few quick figures, currently BRY ~NZD0.60, THO ~NZD$4.00. 1:3 cash issue
@$2.00 for THO shares.

So for 3 BRY ($1.80) + $2.00 (total$3.80) you get one THO value $4.00 and 3
BRY worth (AIR $0.10/share, BSR $0.10/share, Islands $0.25/share) $1.35.
Grand total $5.35. Naturally there would be a discount on the 'new' BRY
shares, but whatever it was we would still be ahead as the THO share alone
would be worth more than we had paid.

Please check the figures I probably got something wrong, but if not, I
reckon there would be support for it, who wants to put it to the next AGM?

Maybe I'll buy some more.



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