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More bumbling, more fumbling , more uncertainty........you really couldn't make this one up. One day someone will write a book. GLA?
Did you read the end of the RNS? SMP now have a seizure order over all the equipment at the well site.
SMP has now retaliated by seeking a seizure order over the fixed assets located at the Company's Tilapia site and one of the Company's Congolese bank accounts. The grant of this order was announced by SMP late last week and its effect is to grant SMP security over no more than $650,000 worth of the Company's fixed assets at Tilapia.
Yes, perhaps David does read this board, much clearer and readily understood.
An RNS describing a legal claim has the least legalese language of most recent RNS.
Also, I don't like this idea, but have to ask the question:
"Exercised a retention right over the Rig which remains at the Company's Tilapia site."
We know the SMP-102 rig was a bag of spanners, but as its on site, could it be used to do the minimal 25 day sidetrack following a comprehensive rehaul/repair?
This as a mediation cost neutral agreement? SMP don't pay the $3.1m claim, AAOG don't pay for the sidetrack, honour satisfied?
Its scary that aaog hired this rig without having a 3rd party inspect it, i hope it didn't damage the well and that the board has learned from this expensive mistake.
Transparency you joking ? It was on ADVFN first.
Can't see any of this in subsequent events inthe accounts released 28th June when they could have mentioned it (as they could have ATOG/Tunisia DD).
They previously RNSd that the mechanism for compensation was through a renegotiated reduced day rate.
Again the court order brought to light on AD V F N on friday by a poster but no one commented until proven it was factual.
If the rig is/was so dodgey what was the company doing that AAOG used to give it a full inspection/sign off.
AAOG continually mired in problems, staff leaving, rig disputes etc.
Also didn't they delay driling until they found the best rig when there was previously one in country.
If they have the money to pay this they should do so because others may be less willing to deal with them in terms of rig supply. Also if they do pay SMP does this now leave them with a drain/shortfall of $650k in their forward palns for drilling/capital raise.
Now involved in a legal case and if they pursue it and actally lose it where will that leave AAOG ?
Finally a RNS that I understand. Very clear. This will hopefully be sorted by the mediation arranged. Clearly from what we know of the rigs performance and as stated in this RNS, AAOG claim is warranted. No impact for AAOG but may result in 3.1m added to the balance sheet.
To be fair the rig was a bit of a joke. Having to have a welding crew and workshop alongside it just to keep it running throughout the drill.
Plays right into Seftons expertise as well. Glad to have him around for this one.
SMP cost AAOG much more than $3.1m so this is a fair amount to claim. Seems like all the dirty washing is being cleaned at the same time, decks being cleared for the production plan, the transparency is welcome.
On SMP-102 rig shipping logistics last year from Finncap Note Djeno Unchained, p10:
“The rig is currently in Gabon and will be inspected by an independent third-party but should be in good condition, given it was last used by TOTAL. The rig is expected to leave Gabon for the Congo via barge and will be transported via trucks once in the Congo to the drill site. “
So the rig was supposedly checked out by an independent third-party and presumably deemed fit for use by AAOG, even after TOTAL obviously totalled it.
The mistake made by this third party in signing off on this drill, SMP actions was a direct cause of many delays and cost over runs, one of many factors impacting AAOG caused by others.
Bit early to xall it failed perhaps?
Stage Two - Not only did the drilling of TLP-103C show a 26-metre column in the Mengo Sands (the "Mengo") but also found 13 metres of oil columns across new horizons between the R3 and the Mengo. The current plan is to perforate the well at the Mengo and/or Pointe Indienne R1/R2 reservoir once the Djeno drill has been completed. This should further increase daily production, with a positive effect on cash flows and asset value. Should the Djeno sidetrack be unsuccessful at both depths, the Company plans to perforate the well at the Mengo and/or Pointe Indienne R1/R2 reservoir, as these reservoirs continue to provide the Group with a strong alternative to increased daily production, cash flow and profitability.
Can you really buy a guaranteed 11.000BOPD producer in Tunisia for £24m?
At current $66/B you 'd get your cash back in 33 days.
Doesn't that all sound a bit pie in the sky?
Imo, Sefton would rather walk than lose ATOG if it's producing. I'd rather own a 20% stake in the Tunisian asset than take £200k (such a scandal to give himself a 100% for delivering shareholder benefits!) from a company Ive never wanted to invest in. If he does it'll be in the hope that FCA give him a pass.
The funding is what it is... it'll be interesting to see what it actually is and if it stands up.
Never seen a BoD take a salary cut, ever... but can imagine him taking that £100k increase in shares and warrants if there's a good chance the sp will rise. It'll stop him having to actually buy shares with his own cash too.
Personally, I'd like more details of the asset and the numbers that BoD halted and why. I read it was £24mill for an 11,000bopd guaranteed producer? Better than a £7mill failed 1500bopd and finger's crossed 5k bopd producer at £8.5million. $3.5mill profit per month sounds cheap in comparison.
Time he delivered something good.
Sardy, if you replaced your post with the name 'Sefton' where you wrote 'Bennyson' then you'd know just how I feel.
Was just beginning to trust you bennyboy but you showed your colours again with that last one
I am concerned and I have spoken at length with DS and Finncap-the company needs a couple of non execs who will control this exuberance.
Meanwhile the wallowers, and there are plenty, will continue to look for trouble.
Best things they can do are;
-announce the funding
-merge/give a stake in ATOG to AAOG
-defer salaries above a reasonable number
-get on with the drill
It’s not that complicated
Truthfactory, you have a personal bent againt that bloke because, from what I can see, you're invested there (I have too, in the past... got stiffed! what a surprise... :))
But the accusation stands, regardless of who leaked it. I would think you're more concerned with a chairman who seeks to make personal gain at the expense of the shareholders and who 'arranges' a funding deal with private business partners to make up some of the DD spend they're both attempting to benefit from in the first place?
If there's something that damages AIM it's ceo's and BoDs who run simulataneous private businesses, seemingly in an attempt to profit from their public job. I only wish there were more whistleblowers (not of his calibre, prefer someone with less of an agenda!) and I'm frankly surprised that the rest of the BoD were okay with all this, as, too, were the ii's until the last minute. But I've no idea why they thought it sucked as an idea... would've thought they'd be calling for his head as he's not an oilman anyway, he's just a moneyman and he seems to always make sure that he benefits over the company.
Without 'that man', none of the last two weeks would have materialsied. Now, you could say the sp would be in better shape but for how long? IF Djeno is the thing Sefton and, presumably, Berwick say it is then it's irrelevent. I added at 10p and the last funding to production... fat lot of fu***n that did me and all the other optimists who bought in. How is the consistent failure of the company to deliver on his words not the bigger concern?
I always believed leaking inside information to the market was a criminal offence-have I missed something?
ALL of the parties, including me, were wall crossed by Finncap-let’s hope the culprit who leaked the fundraise and content are caught as this stuff gives the small cap market a seriously bad name.
This isn’t whistle blowing.Far from it.
Winnifrith may think he’s smart but peddling this stuff is pretty pathetic.Have a look at the poor shareholders in Minoan who have followed that beauty all the way down from over £1 to 2p-
AAOG : No denying been a few false dawns , management under a cloud but main prize is still available . The hard work completed with oil discovery , just get funding sorted, then company on cusp of significant Djeno bopd production .
Current market value £10m provides a great opportunity/entry point for investment return in my opinion .
Remember “ bashers never bash a bad stock “ tells you all you need to know !
of course, that also means forgiving the damage to shareholders over 12 months, his private dealings, shareholders stumping up £580k of DD witt no authorisation, dodgy funding deal with his ATOG partners who got him in on WDC, spending £900k (I'm assuming that includes the £580k but wtfk) and wondering just how much of that is solely AAOG spend? You start to wonder how many times he claims the same expenses off the several companies he's involced: WDC, ATOG, AAOG, Linton Capital, Rose...
Bet ABO are trying to work out their own exposure to him, since they introduced him to WDC and their options. Won't be surprised if there's more hindsight rnsing to wriggle out of FCA scrutiny, even as we speak. Nice to think of him sweating out of FOMO (fear of manacles and orangesuit) instead of the order of his bs presentation catchphrases.
Would be better to put distance between him and AAOG's future dealings, in spite of any v short term hit. If that oil really is down there then springclean the company and move on.
Few additional costs on TLP-103C incurred :
Remember AAOG had to carry SNPC share of the costs (unpaid share reached approximately US$8.5 million) they still owe approx. approximately £4.7 million).
Also “The delays caused mainly by (i) the instability of the SMP rig and the subsequent need to reposition it over TLP-103C and (ii) the rig's poor condition both contributed to AAOG suffering considerable overruns on capital and running costs during the year without any increased offsetting sales revenue.”
Also “The operational team in the Congo was strengthened considerably by the presence of several specialist consultants and AAOG has engaged further expertise since the year-end.”
What did we get for the spend ?
“The Tilapia development expenditure incurred has enabled the Group to discover oil across a total of 56 metres in all the horizons through which it drilled. This success has resulted in the drilling programme currently planned for the latter half of 2019, “
Next phase1 stage :
“The side-track is a 25-30-day programme and we intend to complete this work before the end of the year, subject to rig availability.”
“i. Re-enter TLP-103C Rig up onto the existing TLP-103C well head and then drill through the two cement plugs inside the 95/8” casing in preparation for drilling the new side-track5/8
ii. Drill new 8½” side-track Drill a new 8½” hole section as per the directional-drilling plan, penetrating both the Upper and Middle Djeno formations, and then acquire a comprehensive suite of formation evaluation logs across the Djeno reservoirs
iii. Set 7” liner Run and cement a string of 7” liners across the open-hole interval in readiness for producing from either the Middle or Upper Djeno
iv. Perforate Djeno formation Use high-shot density perforation guns to perforate the Djeno prior to running the completion string. Following that, clean up the well before putting TLP-103C-ST1 onto production, utilising the existing enhanced surface facilities.”
"The well now flows without any assistance for the entire duration of the bleed without a drop in its flow.” --- AAOG team let's get the show on the road please .
We do seem to have raised a lot of money and spent it and got nothing. We are having to drill again to get oil that we should already be selling. DS needs to wake up and smell the roses.
How on earth can anyone seriously think the financing deal will be a death spiral? The company CANNOT issue shares below 5p. So impossible to have death spiral at these levels. SP probably won’t move much until drilling starts again, but we won’t be in a death spiral situation again.
Funding in and of itself isn't the issue - the issue is the (heavy) funding that's already been done and "spent" with (unless I missed a memo) absolutely nothing to show for it except for alleged drilling success that, for reasons passing understanding, cannot produce either a flow rate or the promised CPR.
Also key is DS repeatedly saying in interviews that funding to increased production was secured with the 10p placing plus the monthly payments from the national they would be getting yet here they are going to the market(s) again for yet more cash and, apparently, struggling to tie that down - little wonder really.
The positive that you state IS the only positive in the v short term... but until the new funding deal is announced I'm not sure even that guarantee is... guaranteed, unless the funds have already been handed over,, which isn't the case, as far as I'm aware.
My only faith in AAOG is that, once the bottom is reached there'll be a good chance to make money here... not on the Djeno itself but the promise of it as a whole bucketload of new money/investors come in spouting the same stuff that TT and others have for the last 9 months. Whatever that low is, I'd put some cash in then and wait for the "5,000 barrels a day is going to make us riiiich" rise. But if Sefton is still in charge at that point and not waiting for visitor's Sunday, I'll take every positive statement as a chance to make money off the nubies and proably sell sometime in November when we start getting the delayed news and claims that the sp's dropping 'to let in mates'.
There'll be plenty of time to make on this if it's a success. I'll stick a grand back in at 3.5 and wait for it to turn into £10k... or £500.
Best of luck, though, God knows, every AAOG investor deserves it.
I stated he wrecked the initial deal which was withdrawn after the leak , claim of it being DSF and the immediate drop in the sp which I think is quite fair.
"IT is soooooo disingenuous to imply that the las ttwo weeks of damage done is because of TW"
These are your words not mine and you can keep them thank you.
Courtesy of VTM 12 Jul 2019 | Ben Turney
Rather sobering but fair summary of past events , quite like the conclusions - better to look ahead rather than dwell on the past . ( hopefully lessons learnt )
"However, none of that might end up mattering in the end. If TLP-103C can be brought into production, producing from the Djeno at a few thousand barrels of oil per day, the market will quickly forget events of the last few weeks.
In the heat of the emotion, it is easy to lose sight of the fact the company looks like it is about to secure a significant funding package and has potentially made a transformational oil discovery.
Thanks to what has happened the chance of any speculative run in the share price now is pretty much zero. However, if Anglo African actually delivers on its plan then there could be a decent opportunity. In the short term the market looks weighted towards the downside, but once there is clarity on the newly structured funding package and the dust settles on today’s mess it might well pay to take a fresh look at this company"