For those who doubt my integrity - firstly that's your problem. Secondly, I did not seek funding to go, would have gone anyway and am still very much minded not to accept it as I don't think I achieved what a lot wanted here. Finally on this subject while I was away on Sunday my mother died (and no I'm not looking for any sympathy as she was totally incapacitated with dementia in a nursing home so it is a great relief to the family).
In my own mind I have seen how I think the company is operating first hand.This is a small scale AIM company running operations in Georgia with major issues managing its current cashflow and maturing debt amidst a resource bear market and serious local and regional politics but with potentially very large resources. A lot of the problems are of their own making but not all. Anyone who underestimates the risks here at the moment are foolish.
Might just be deemed a prudent move by the GG - to wait till after the 9th of July.
And to be perfectly honest no poster on this board has a clue what it like to live in Georgia. Live in Georgia with a population of only 5.4million. A small country next door to one of the worlds largest nuclear powers. Many English fans ran away from only 20 or so Russians. What would you all do in front of their army? Run away also I expect.
You could always stop being a c*** and call Ben at Buchanans and ask for confirmation of Mole's visit to the GM as they were in correspondence all day. That wouldn't suit your purposes though, would it?
Back at work today catching up as only got back late last night! I haven't read the details in the accounts yet - but headlines are in line with what I would expect. The company is running on fumes which is why the last six months have been so value destructive. From what I saw in Houston I would say they have cutback on the admin staff - seriously when I went up to the 11th floor there were NO staff visible in the office and that included NO receptionist!
Todays RNS finally says in one line what has been implied in several RNS going back to Feb. The Georgians don't want to develop the gas at the moment because of the balance of interests in the region where as a transit country they get cheap gas! If you look back to around February that is when attention went back onto the oil and the gas targets became vague but SN upped the AC Black sea agenda. If you think back to January with oil in the bottom of the cycle just about any oil investment decision would be brave! But with the gas route being thwarted they have been forced back into the oil which Varang should have paid for but progress on the ground has been too slow.
The second consequence has been that the company has been unable to generate revenue to manage the debt. Hence the debt has continued to grow - the interest (even though paid in kind) is bigger than the revenue.
The "transaction" is the final result as the company needs to be capitalised until the cash flow picks up in H2 2016 into 2017. Without this they would lose everything as they would not meet the conditions tom declare commerciality before the development licenses run out. The immediate danger here is the CLN conversion terms that is more important than todays results. If they can roll that over at not too exorbitant terms then the race is on to get the revenue going from the oil campaigns. I have to say I'm not at all convinced you are going to get a series of operations updates to boost the share price. Ask yourself who would benefit from that?
My biggest take away from going out there is not to fool yourself into thinking you are aligned to anything that is currently going on. You are most definitely not aligned except in the very broadest sense and as private investors this is a very high risk investment with in my opinion Georgian interests driving the current agenda and the existing shareholders are very low down on the order of significance.
That is not to say that there is not value here. There is and if you look beyond the current crisis the way out is via the increasing oil sales which will leave the company profitable and cash generative by 2017 and mid term looks ok. To get to that point however we are going to lose a lot of the company - first too the service providers and at a later date to the board when they do convert the RPN's. Even then we are sharing production with Varang and GG. I don't think this is a scam - but I do think we are in a tricky situation as a company and PI's
US Secretary of State John Kerry will visit Georgia on July 6, Georgian Ambassador to the US Archil Gegeshidze announced today.
In an interview to "Rustavi-2", he noted that the head of American diplomatic department will discuss "a wide range of cooperation issues between the two countries" with the leaders of Georgia, including Giorgi Kvirikashvili
This Co in September 2015 informed that the Revenue Upto 30/06/15 =$3,150,321 Today revenue for 12 months Upto 31/12/15=$3,712,058 ------------- So Last six months revenue =$ 561,737 ========
Can this be correct? Or Can we believe the accounts , So all the funds received from share issue from Jan 16 to June 16 used as working/capital expenses? Mr.S.N is HONEST U.S citizen operating in Georgia and his co is listed in U.K registered in Cayman Islands
So he can continue to fool all of us for few more months.
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