The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
So if they have enough funds to drill why is it taking this long to book one of two rigs with a November slot? Plus why start looking for a back up rig also. They stated in the interims they ‘expected’ the snpc and Riverfort funds to enable them to drill the side track. Ones late again and the other is 50% down on what was expected and no one knows how many shares Riverfort are offloading with AAOG keeping quite (there’s a red flag)Do you really think they would spend all they have on a rig and leave nothing to pay themselves with?
Good answer Tiburn,
I was working on the statement in the half year report where they reported they were relying on the funds from the placing and snpc making further payments to be able to progress but they appear to be doing better than I knew.
They were quite positive in the half year they'd go ahead too so guess with the funding post drill arranged they do become a stronger investment case now.
No way of knowing what the market will do pre spud but guess that doesn't matter really (not at 3p) all that matter is they do go ahead.
From Interim Financial Report 2019:
Administration Expenses for Period Jan 2019 – End Jun – 2019, page 6 = £2,123,488
Average spend per month in this period = £353k
This included multiple contractors costs evaluating the Djeno route to market, Tunisian asset evaluation, Licence costs, SMP legal fees etc.
James Berwick makes a point that these costs were unusual in period and that H2 2019 would be much less:
“We expect the second half of the year to show a significant reduction in non-standard operational expenditure.”
Significant reduction expected – assume 50% from the £353k p/m in first half of the year.
Therefore £175k average per month for period July, Aug, Sep, Oct, Nov = £875k admin costs assumed
Cash receipts in same period:
- £739k cash on account end June when accounts issued the morning of Jun 28th, as per page 9 of interims, cash and cash equivalents at end of period = £739,007
- SNPC payment was received the afternoon of June 28th after accounts issued =
“Anglo African Oil & Gas ….is pleased to announce that it has today received a further cash payment of approximately $850,000 from SNPC” = sterling equivalent of £672k
- SNPC payment received on Sept 19th of a further $600k = £474k sterling
Summary Total =
- On account June = £739k
- SNPC payment June 28th = £672k
- SNPC payment Sept = £474k
Total cash receipts in period = £1,885k
Estimated spend rate in period = £875k admin costs as assumed
Leaving over £1million on account after admin costs , plus Miton funds of £2.5m received – enough to secure the drilling company and AAOG costs in period to end November.
This does not assume any ISA payments or further SNPC payments in Oct or Nov.
Even if Admin costs were the same rate as H1 2019, there is enough cash to cover this spend and still pay for the sidetrack.
Typical sidetrack is $3m cost as benchmarked previously, but AAOG would pay this in installments as they did for TLP-103.