I can't see what everyone is surprised at here. Look at the history of this company and the track record. They have shafted PI's from the beginning. I know over the next 6 mths this will increase in price, it always follows the same pattern. I intend to get my average down to 1p by buying at the troughs and then sell the lot at breakeven. You need to face facts 199 million shares is a drop in the ocean with this company. Private shareholders do not and never will make a sh**s difference to any company. The only ones that matter are the large institutional shareholders.
So dilution, dilution dilution with more dilution is the best way forwards when you have reserves he says he has? Or would a farm out to another company be more value to shareholders and the company?
Of course the farm out would be better, but no one is interested so ask yourself why. I know its nice to tick up the nice warm fluffy posts because they make us feel good and that everything will be okay, but that does not look after your investment. To look after your investment you need to research, investigate and question everything. Start with why the so called cpr was done in the way it was? Why not a full CPR? Well, i would suggest because he wants to paint a nice fluffy warm picture his way because if he allows someone to do a true picture it will not look quite as nice as he wants us to believe. It will perhaps show something that would not reel us in like the idiots he believes we are. This stinks - been here before
Its not the dilution balrog its the way this has been engineered and the way we are being kept in the dark. I am seriously considering shifting 50 % of my holding as this method of running the company without caring for your shareholders has got to stop. The 350m is bad enough. But to have issued it after the collapse post the CPR and other good news which was destroyed by the previous funders selling is galling. To then do it at such a discount with recent placing at a higher price is not explained. Such raisings are often required to fund going concern or short term funding gaps. That does not seem to be the case. The explanation that it is to accelerate the delivery is good if we avoid the dreaded nobull scenario of debt conversion. To announce the raising above the share capital limit before shareholders have approved it at such a low price is provocative and shows very poor skills. I would like to think they are just in a hurry and the end result will justify the way they have gone about it. I think we at the very minimum deserve a q an a session with SN. I will be suggesting FRR look at what SOu did last week with an investor conf call. I think we deserve that as a very minimum. But I fear we are being expected to vote and shut up. They are to my mind keeping something back. I hope so for their sake. There is some positives in today's news but it is very tough on long term retail investors and the company will undoubtably be hearing that this morning.
Good man. Vote NO. Plenty of other shares communucate regularly with loads of RNS and the SP is reflected and you can predict sone rises. This BOD needs to be learnt!!! You keep on telling them but they do not listen, maybe they will when the don't get their money. Especially at such a discounted rate. Vote NO
I'm gutted at this morning's RNS - truly gutted. I think it is clear that we have been played for fools. It was probably inevitable that further dilution would occur but what we are lacking is the detail behind it - how much gas & oil are we extracting NOW, what are the revenues NOW, what profit/loss are we making NOW? These are extremely simply questions and I can't understand why we aren't getting regular updates answering these.
This RNS confirms one thing though - there is no intention to sell-up or farm-out nor is there any interest regarding a t/o from a big player at this time (nor is there likely to be for a significant time). I agree with pyrotech in that this appears to be the BOD trying to take the opportunity to put their hands in the biscuit bowl again and again.
I'll be voting NO until we get clear transparency (which means I'll be sticking at NO). I'm hoping my 4m shares in the hope for a spike and an opportunity to get my money back. My 7.27p target is obviously shot to bits now.
As much as I used to look forward to his rare posts, I am a little concerned now. I saw a black swan event posted on Afren, and we all know what happened there. Long term, I think we'll do alright here, but SN has allowed dilution at a very uncompetive rate. Perhaps he needs to do this so that he can ramp up production to get the share price motoring, so he can then dilute some more in the future to pay off debts or commence other operations. At 1p ave dilution through more placements, he can raise £15M. If production ramps up and we head towards double figures, the fund raising capability is of course raised as well. This has been in the back of my mind as possibility, and if he really does ramp production it could be viewed as positive. Like most here though, I'll probably look to derisk at an appropriate price.
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