Sadly for the poor souls suckered into Andalas Energy (LON: ADL) by the $600,000,000 fantasyman, CEO Dave Whitby and his pump and dump gang, news on the current situation has and is being deliberately withheld. Andalas should have released an RNS on Friday 22 April 2016, explaining exactly what the situation was within their company. The readmission document should have been published BEFORE the 22 April 2016. The key word in the RNS of 26/10/2015 is ‘BEFORE’
If Sarah Wharry, the Nomad from Cantor Fitzgerald, and the Andalas Energy fantasyman Whitby, do not update the market by 4pm this afternoon, then this site will unofficially release the news. It is a disgraceful situation whereby their shareholders are being treated as nothing other than lemmings. Whitby, Brand UK their SPIN DOCTORS and Sarah Wharry have shown no regard whatsoever for their own shareholders. Tick! Tock!
Keras Resources (LON: KRS) are to all intents and purposes a rare gem. A mining company listed on the London Alternative Investment Market in so far as they are actually now producing gold. They are debt free and have a mining team that has between the 3 of them over 80yrs of get your ‘hands dirty’ experience. The first small shipment of ore, from the Grants Patch tribute mining play, after processing, will generate approx. 12 Kilos of gold. This, as Reeves confirmed, should substantially increase over the next 12 months, the approximation of gold produced could be between 750-1000 kilos of gold. A tonne of gold would propel their share-price to what Reeves believes would be multiples of where it is today. The next parcel sent to the Paddington Mill is expected to be bigger. *Tribute mining is a deal where you operate the asset on behalf of the owner. This has favourable advantages in terms of no exploration costs, existing leases, while the toll treating requires no development capital, only working capital.
All too often retail punters are lead down the proverbial RNS garden path, by companies that just keep promising jam tomorrow. AIM is littered with so called gold, copper, Iron, coal and rare earth mineral miners that have for years promised much but never delivered one single gram of production. The only thing these ‘Lifestyle’ companies mine is city of London brokerages. Not so Keras Resources. They are delivering and producing gold.
My interview with the head honcho, David Reeves, was a relaxed affair with a man who knows he and his team have quite literally struck gold. What I liked is that he and his team have a lot of skin in the game. *(Pre placing) They held between them 26% of the company (Reeves had 11%) all directors fly economy class and are aware that keeping costs down at the corporate level, as well as the production level, is a statement of intent. Far better to rough it for a few years flying “Back of the bus” and use cost savings to increase company production and value. The Long Range Business plan (LRBP)is to build a 20, 30-40koz producer in Australia and bring on their African manganese and iron ore projects to full production.
Their manganese and iron ore projects in , Africa could, subject to permits, be up and running in a matter of 6-9 months. Funding from gold revenues should ease the financial pain. Manganese is a key ingredient in steel production. Revenues from successful projects could generate literally millions of double digit annual revenues of $18,000,000+ per year. All however is subject to finance being available. They have in my opinion kept these projects on the back burner so that they can focus on generating near term cash flow from their Western Australian gold assets. This strategy is a case of ‘real politick’. Driving shareholder value by acquiring access to permitted projects with low capex and opex, with the potential for near-term cash flow is key to the strategy. Hence why they’re concentrating on their tribute mining deals.
As ever I did ask the burning question on the next placing and as ever I was given the ‘stock’ answer. However I do have my own unique way of getting information from other sources. I tell it like it is, regardless of who it effects. My loyalty is to my readership and followers. I don’t take what CEO’s say to me as the gospel according to the company, even if as in the case of Dave Reeves, he is a genuine, decent businessman with the best of intentions. The Placing, and there will be one, is the only negative I can find in a sea of positives.
Placing
My sources, who I contacted post interview, told me that a placing is (was) being put together. Shard/Beaufort are whispered to be seeking £1M. (Now confirmed at £1.25m) I could be wrong (But was right!) but looking at the way the SP has performed post Shard warrant exercise, it is a pointer of jiggery pokery. I own shares in this company so I take a keen interest in them. The exercise of warrants by Shard Capital last week was indicative of city brokerages ‘cashing’ in on the recent rises in value. I see this as nothing more than business on their part, but a warning to shareholders that a placing is on the way. (Caveat Emptor) Cash is low. Now we all know that AIM is an incubator for companies who will place at the drop of a hat. (Just look at God awful Red Rock Resources (LON: RRR)) the placing here is to grow the company and not to line the pockets of corporates. It’s a bump on the road.
‘Jam today’ after the placing should be the launch pad for a minimum 3p target this year.
Viva!
Dan
N.B Technical Glitch yesterday on a draft that some how ended up live . Placing now confirmed.
So as predicted by yours truly the shining white knight riding to the rescue with $20 Million dollars to invest in LGO Energy (LON; LGO) that was at the time capitalised at $15 Million dollars has evaporated. Of course some would say that the mere notion of any ‘savvy’ investor wanting to invest $20 Million dollars in a Company capitalised at $15 Million dollars was a credibility stretch of Grand Canyon proportions. What I would say is this. It is wholly indicative of the way David Lenigas and Neil Ritson and the whole Jermyn Street Mafia run their plays.They stretch credibility using ramptastic notions that always seem to fall away at the last gasp. In other words when the push comes to sign the deal it always falls away.
So what now for the haplesss, witless, Ritson and LGO? There’ only one way forward and that is a massive highly dilutive placing. It’s a SMASH & GRAB £6Million placing. Ritson will be booted out. The whisper is that there’s a book opened up on LGO, which means some one is looking to place and takeover the reigns of power. I wonder who that could be?
NB 1st published on Feb 27 2016. Republished here as a warning.
As ever yours truly has managed to get the info no one else can, on the Horse Hill players. I can exclusively reveal that UK Oil & Gas (LON: UKOG) (As well as others) are lining up a huge placing on the back of their Horse Hill success story. The last piece of the jigsaw fell into my lap this afternoon. Our City sources have confirmed it. It’s a tightly kept secret however we have four different sources all confirming that the Jermyn St bat phones have been buzzing since last week putting out the placing feelers. Not only on UKOG but on most of the HH players. There’s a big dilutive placing being lined up, we believe it could be as high as £10,000,000. UKOG results released today make interesting reading
The current market conditions will almost certainly mean that it will have to be heavily discounted. This shouldn’t come as any surprise to all those who know how the market at this level works. There’s a big promotion going on to get the UKOG SP up to higher levels so they can reap the benefit and place into it. CEO Stevio Sanderson has been doing the rounds on the ‘Promo Circuit’ these are the usual precursors to placing’s. Regardless of what cash they held circa £4.5M in todays RNS. Make no mistake. They’ll go for a cash and grab while their SP is buoyant.
They’ll be seeking to get as much money in as is humanly possible. Like most of the placing’s that come out of the Jermyn St offices, they’ll move very quickly, the placing will be done within 24/48 hours after they give the greenlight.
At current levels the placing would have to be sub 2p on a 30% discount. What that means is that any one holding at these levels will automatically take a kick in the teeth.
News from the site is being tightly managed but we think the Upper Kimmeridge will not flow at Lower Kimmeridge levels. Educated guess possibly up to 150bopd. We did hear that 80-100 bopd had flowed but could not confirm this. Looks to me like they are trying to get the Upper Kimmeridge up as high as possible to keep the good news story going, hence the delay in news. Once they announce phase2 and phase3 they will seek to place.
Remember once all the hullabaloo/news dies down after the flow testing (like most AIM stocks) the Horse Hill players will slowly start to fall in value until the next phase of operations start to hone interest again. Repeat cycle.
It’s looking ever bleaker at the house of Solo Oil & Gas (LON: SOLO) who’ve now spunked away their 2015 placing cash. Punters will recall that they raised £2,700,000 this year via two placing’s. Just what in the name of Jupiter has the cash been squandered on? Maybe the ‘invisible man’ CEO Neil Ritson would like to explain to shareholders?
I’ve never met Neil, never spoken to him or had any kind of conversation via phone or email, so I’m not here to personally disparage a man I do not know. What I do know is that the current falling oil price has certainly had an effect. The Winnifrith preposterous claim he’s a “David Lenigas puppet on a string” holds no weight with me. Neil is his own man. The responsibility for Solo rests firmly on his shoulders and his shoulders alone. This is business and I’m now making it my business. What I am doing is setting out the case that Solo are going to do what their CEO has done through-out his tenure at the company and that is place and dilute for the 19th time and fail to deliver. Then place and dilute a 20th time then fail to deliver….. Reading through their RNS’s from 2010, when Mr Ritson took control, It’s a groundhog day company. Not one I would consider as worthy of researching, or invest cash into until there was a Board room clear out.
Looking tired Neil? You need a rest.
On a fundamental case Solo are as CaliforniaJoe writes HERE ‘running on fumes’ it’s my understanding that with the recent employment of Raylene Whitford (she who spitefully dissipated Sefton’s shareholder cash over a 12 week period to spike the incoming new management team while covertly running a smear campaign recruiting BB Trolls against Seftons requistioners) has been brought in as an oil & gas consultant. Her only claim to fame? 6 Months experience roughnecking on a rig in Canada. Just quite what this girl thinks she can achieve for Solo may become apparent over time. But it’s time that is quickly running out. With estimates varying of between £80k and £200k in the bank at year end 2015, Solo will place and or draw down on their debt facility. That is a 100% certainty.
Any investor holding stock here will receive a massive dilution not only to their holding but the actual cash value of that holding. If I was them I’d be out 1st thing tomorrow morning.The placing when it comes, and come it will, will have to be at a massive discount in-order for the bucket shops to entice the gullible into parting with their cash. It could be a case of Deja vu re’ the disastrous Whitford Novum Sefton placing at 0.065p
Time for Board Room Change.
How long should senior management get to turn a company into a viable business? Neil Ritson is entering his 6th year. One has to beg the question; When will the penny drop that his tenure at Solo is way past it’s ‘sell by date’? Shareholders need results there’s only one thing that can save him. Tanzanian gas production which has been promised and postponed more times than an USA inmate on California’s death row. The difference being that in California they eventually always get the gas to flow! If the gas doesn’t come for Solo then It’s time for a resignation with a new team taking control. If not then shareholders should band together en-masse and vote him out. For far too long CEO’s fill their pockets with shareholder cash while bringing absolutely no value whatsoever back into the pockets of the faithful.
I challenge Neil Ritson to a public platform debate in London on Solo Oil & Gas. I’ll organise it and pay for it. The gauntlet has been thrown. Pick it up Neil and defend your record. Failure to do so will speak volumes.
You maybe a good geologist however as a CEO you need to step away.
As you all know Sefton Resources Inc. (LON: SER) are presenting at the Master Investor Saturday April 25 2015. I look forward to being there in person. To push the case of what I believe are compelling reasons why you should research Sefton Resources. Soon to be renamed. More of which at the Master Investor show.
So with out further adieu. Let’s get down to business. We’ve managed to twist the arm of one of the most influential investing gurus in world finance. Jim Mellon. Or as I like to sycophantically call him ‘Mr Mellon’ One has to give respect to a Sefton share-holder. Especially Jim who has helped UK Share-holders no end. We’ve got free tickets for the show and there’s a discount code. BMD2015 Use the code. CLICK HERE to get your free tickets. Repeat FREE TICKETS
Master Investor 2015. FREE TICKETS!
It’s set to be a fantastic show with big names headlining. Jim Mellon, Nigel Farage, Evil Knievil, Zak Mir (Cat), James Ferguson, Merryn Somerset Webb. There are two British hero’s and I mean real hero’s attending. Sir Steve Redgrave and a man who epitomises suffering and courage in the same breath Mr Simon Weston OBE. Brings tears to my eyes just thinking about this chap.
There’s approx. 100 or so Companies attending and presenting. CEOs and Directors will be in abundance and unable to dodge your questions. Get down there and have a super day. Who knows I may even buy you all a coffee.
Quiet week this week. But it’s going to hot up soon enough at Lenigas & Oil! Fantastic story developing. Eyes on UKOG!
Empyrean Energy (LON: EME)
Released a strange one this week. It is launching a review of strategic options open to the Company to maximise value for shareholders. They’ve basically called Takeover without any takeover actually occurring. They’ve put the whole company up for sale! You can read the RNS HERE
Faroe Petroleum (LON: FPM)
Duster! Centrica-operated Butch South West exploration well 8/10-6S no hydrocarbons were encountered. Oil strike! The Bue side-track well (6406/12-3 A) was drilled to a depth of 3,656.5 metres below sea level, 2.1 kilometres north east of the Pil discovery well 6406/12-3 S. The objective was to investigate the extent, thickness and reservoir properties in the Middle and Upper Jurassic reservoirs in the Bue prospect and to establish the pressure regime and hydrocarbon/water contact. The well encountered an 18 metre hydrocarbon column in reservoir rocks of variable quality. Pressure data indicates no communication between the Pil and Bue discoveries and Bue has therefore proven a separate accumulation of hydrocarbons. An extensive data acquisition programme was carried out including a fluid sample and the operator’s preliminary estimate of the gross size of the Bue discovery is between 6 and 25 million barrels of recoverable oil equivalent In addition, following the Pil side-track, which encountered a gross hydrocarbon-bearing reservoir section with approximately 80 metres of oil in the Upper Jurassic reservoir of the Rogn Formation, the operator of the licence, VNG, has advised the partners of an updated gross recoverable resources range estimate for the Pil discovery of 72 to 172 mmboe (18 to 43 mmboe net to Faroe), up from a previous gross recoverable resource range estimate of 50 to 170 mmboe.
Fastnet Oil & Gas (LON: FAST)
Announces that its wholly owned subsidiary Pathfinder Hydrocarbon Ventures has entered into an amended exclusive option agreement with Oil and Gas Investments Funds, in relation to eight Exploration Permits comprising the Tendrara Lakbir Petroleum Agreement onshore Morocco. Following substantive negotiations with its partner OGIF, Fastnet has secured improved commercial terms from those previously announced on 29 May 2013.
Forum Energy (LON: FEP)
A UK incorporated oil & gas exploration and production company confirms that the Philippine Department of Energy has granted the Company’s request for an extension to the second sub-phase of Service Contract 72. The deadline for completion of the second sub-phase, comprising the drilling of two appraisal wells, has now been extended by one year to 15 August 2016; Further details regarding the Company’s plans for SC72 will be made in due course, as and when appropriate.
Frontera Resources (LON: FRR)
Announced that it has begun the start of a new drilling campaign at the Mtsare Khevi Gas Complex in the country of Georgia. Location construction for well #32a will commence shortly and drilling is expected to commence during the month of August. The well will take approx. 15 days to reach total depth. Well #32a is planned to be drilled to a depth of approx. 400 metres and is designed to continue to explore and expand the identified gas potential associated with the Mtsare Khevi Gas Complex. Gas production operations have continued since commencement in April and are delivering gas to Georgia’s national grid via the Company’s gas gathering/processing facilities and associated 14 kilometer transportation system. This system accommodates gas production at a planned rate of approx. 2 million cubic feet per day of gas.
Ithaca Energy (LON: IAE)
A production update following the end of the second quarter of the year came this week. Average pro-forma production in Q2-2014 was approximately 14,400 barrels of oil equivalent per day (“boepd”), 94% oil, including the contribution from the assets being acquired from Sumitomo Corporation. This performance is in line with the Company’s pro-forma 2014 production guidance range of 13,500 to 15,500 boepd.
Leni Gas & Oil (LON: LGO)
It’s just going to get better and better for David Lenigas & Neil Ritson at the LGO Trinidad drills! The fourth of its planned Goudron development wells, GY-667, was successfully spudded yesterday at 1530 hrs and is now drilling ahead in the Goudron Sandstones. The well is being drilled as a deviated hole from the same well pad as used for the recently drilled wells GY-665 and GY-666. Well GY-667 has a planned total depth of 3,600 feet true-vertical depth (equivalent to 3,840 feet measured depth) to a bottom-hole location that is approximately 590 feet south east of the surface location. The primary target of this well is the Gros Morne sandstones, the top of which are anticipated at a depth of approximately 2,180 feet TVD. The well will also investigate the reservoir potential of the Lower Cruse at this location. Separately, final approvals have now been received for the construction and installation of a new 2,000-barrel sales tank and construction contracts have been awarded. The new tank will be installed at the Goudron Field’s oil sales point at Tank Battery Station 134 and will be adjacent to the two existing sales tanks increasing total daily export capacity equivalent to approximately 2,750 barrels of oil per day. It is anticipated that the new tank will be commissioned to coincide with the completion of the four wells being drilled on the current well pad; of which GY-667 is the third. Negotiations for a second drilling rig are actively being progressed with a variety of different options emerging. It is planned to retain Well Services Rig 20 for at least a further six wells and no decision has yet been taken on the choice of the second rig.
Mosman Oil & Gas (LON: MSMN)
Couple of RNS’s this week. Latest progress on its drilling programme at the Petroleum Creek Project, New Zealand. Crestal-1 was drilled to 75m and 7 inch casing run and cemented. Drilling continues and on 6 July had reached a depth of 100m. Oil shows (fluorescence) from 55m to 70m and 80m to 95m have been encountered. Rock samples under ultra-violet (UV) light show fluorescence indicating hydrocarbons on rock cuttings circulated out of the hole and separated from drilling fluid (mud) by screens. These rock samples are collected as representative of every 2.5m of hole drilled. If there is no oil on the sample then there is no fluorescence shown in UV light. ****These standard site tests are useful qualitative indications and will be followed up with additional work, including wireline electric logs and flow tests before any technical and commercial significance can be determined**** Therein the stars is the truth of exactly what’s going on here. You have been warned. Second RNS Crestal-1, oil shows have been identified throughout the Cobden Limestone from 158m to 173m. (I’d hardly describe oil shows from 158m to 173m as “Through out the Cobden limestone.”) John W Barr, Executive Chairman of Mosman commented: “It is important to put our progress into context as this positive news is the first step of the drilling programme which will be followed by the appraisal process. The next stage of which will be to carry out flow tests, additional seismic acquisition and processing work, and then complete the economic modelling required to determine commercial viability of our wells, which as previously announced is anticipated to take several months.” Several months? You have been warned!
Providence Resources (LON: PVR)
Provided took a kick in the goolies this week. An operational update on activities in FEL 2/04, FEL 4/08 and FEL 1/14, which are all located within Quadrant 35 in the northern Porcupine Basin. Capricorn Ireland Limited (38%, Operator (wholly owned subsidiary of Cairn Energy (LON: CNE) operates these licences on behalf of its partners, Providence Resources (32%), Chrysaor E&P Ireland (26%) and Sosina Exploration (4%). The licences, which cover an area of c. 2,000 km2, are located c. 175 km off the west coast of Ireland in water depths of c. 400 metres. The Operator has advised that the Spanish Point appraisal well will not be drilled in 2014, as previously planned. Extensive delays in the refurbishment of the Blackford Dolphin drilling rig which had been scheduled to drill the well, mean that drilling operations would not be able to commence until at least October, thereby putting the Spanish Point drilling operations into the winter period. Accordingly, the Operator has advised that the contract with Dolphin for the Blackford Dolphin has been terminated and tendering for another rig to carry out the planned well operations in 2015 has commenced. Separately, the Operator has confirmed that, subject to regulatory approval, a large 3D seismic acquisition programme over blocks 35/13, 35/14, 35/15, 35/18 and 35/19 in FEL 1/14 will go ahead this summer.
Roxi Petroleum (LON: RXP)
Hit the oily stuff this week with news of a discovery at its flagship BNG asset. The BNG Contract Area is located in the west of Kazakhstan 40 kilometres southeast of Tengiz on the edge of the Mangistau Oblast, covering an area of 1,561 square kilometres of which 1,376 square kilometres has 3D seismic coverage acquired in 2009 and 2010. Roxi has a 58.41 per cent interest in the BNG Contract Area. Deep Well A5 the first deep well on the BNG Contract Area, with a planned Total Depth of 4,700 meters is targeting principally the middle Carboniferous formation at 4,390 meters of the South Emba sub-basin. Oil and gas shows have been detected at a depth of 4,332 meters. After the completion of clean-up work to deal with the oil and gas shows encountered, core samples will be taken to determine the oil bearing horizon. News also came today of a licence extension and operational progress at its Galaz asset. Roxi announced the extension of the licence at the Galaz Contract Area for a further two-year period to 14 May 2016. The licence has been extended on the current pilot production basis, although at the request of Galaz LLP may be converted to a full production licence. As previously announced Roxi Well NK-31 has been spudded and is to be drilled to a total depth of 2,500 meters targeting the Middle Jurassic. The well is expected to reach Total Depth by the end of July 2014. It is being drilled on the main Contract Area. Drilling has reached a depth of 2,350 meters without incident. Core samples taken between 2,070 and 2,079 meters in the Karagansaisky horizon contain an interlayering of argillite and conglomerates.
Sound Oil (LON: SOU)
Has issued shares in respect of the first equity tranche of the £14 million institutional funding first announced by the Company on 25 April 2014. Following receipt of a cash payment of £1.86 million, the Company has issued a total of 23,212,500 new ordinary shares in the Company to related parties of Continental Investment Partners S.A. The issue of the New Ordinary Shares represents the first of two tranches of the equity issue associated with the institutional funding. The remaining equity tranche, totaling a further £5.14 million, is expected to complete during July 2014.
Victoria Oil and Gas (LON: VOG)
Updated on its Logbaba gas supply operations in the industrial port city of Douala, Cameroon, operated by wholly owned subsidiary, Gaz du Cameroun S.A. The announcement is the first update which includes supply to both thermal and gas fired electricity generation customers. Much to lengthy an epistle for the round up. Click HERE to read it
Empyrean Energy (LON: EME)
Mosman Oil & Gas (LON: MSMN)
Sound Oil (LON: SOU)
Victoria Oil and Gas (LON: VOG)