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An excellent RNS today.
The share price however remains muted. I think the RNS today is merely part of a much bigger picture - hence it has been misunderstood.
It is of course conditional on a successful drill at TLP-103C-ST, and no doubt appropriate reports and CPR following that. They already have the cash for that under the financing deal put in place in July. So, the new financing deal won't be finally in place for a few months yet.
However, I also think that it is a matter of signalling - to SNPC and others that AAOG is fully cashed up and can develop Tilapia on its own if necessary. Important for the licence and also important if you are trying to negotiate a deal on Tilapia itself. If you are negotiating you want to appear strong and wadded, not weak and brassic.
It also raises further questions over why the Riverfort deal was done in the manner it was. Thus far AAOG is seriously out of pocket on the share sales, as anyone can see the price is around half that of the base price.
Whilst it raises questions, I'm sure there is an answer out there - but as yet we don't know what it is. I suspect that AAOG will ultimately do well out of the Riverfort financing deal - possibly very well - but there is more (I'm sure) to be revealed on that in due course.
Tiptop posted yesterday on an interesting thread regarding some Tunisian assets owned by Medco. There were quite a few interesting linkages, including Ophir/Berwick and staffing.
Here is another.
Quote from Tiptop's post -
"On April 23, 2019, Medco Energi Global Pte Ltd signed a share purchase and sale agreement (SSPA) to sell 100% of its shares in Medco Tunisia Petroleum Ltd. "As of the date of the consolidated financial statements, the sale transaction is still in the process of being settled," wrote Medco's management. Medco Tunisia Petroleum controls block ownership rights in eight working areas."
The clue is in the date and the fact the deal has not yet completed.
23rd April 2019 was the date Vanineuse, Pingray and Mamou-Mani were appointed directors of Anglo Tunisian Oil and Gas Limited.
https://beta.companiesho use.gov.uk/company/11899484/filing-history
It was also the date that the share capital was increased from £1 to £1,000 and it was that day the shares were split 50/50 between DS and JB's LLP and EHGOSF,
That all that happened on 23rd April 2019 is confirmed in AAOG's RNS of 12th July 2019.
" ATOG has to date been financed by a loan from EHGOS. This loan has been used to finance the initial payment for the assets relating to the Proposed Acquisition. In conjunction with the provision of the loan, EHGOS acquired a 50% equity interest in ATOG for a nominal amount and three representatives of EHGOS were appointed to the board of ATOG"
Continued/..
Continued?...
(Sorry to drone on...)
So. the dates and the deal all match. On 23rd April 2019 EHGOSF provided ATOG with funds, in return new shares were issued 50/50 and V, P & M appointed to ATOG's board. With the funds they did the deal with Medco on the same date.
But the deal hasn't completed at the date of the accounts - I'm not sure when that was, and haven't presently got time to look.
But presumably the deal was subject to conditions, including a final date for raising the rest of the capital and completion. Six months would appear a reasonable time. If it was six months, that would expire tomorrow, in which case the deal would be off as regards ATOG.
ATOG Midco Limited created 18th October 2019, possibly to take over the deal when the last day expires?
If DS has a sense of humour (I suspect he has) Midco and Medco would be a nice play on words.
Now, where could Midco suddenly get a load of cash from?
Obviously not EHGOSF.
Tiptop was almost there with the smoking gun; some great research there Tiptop.
I keep saying it - lots going on here behind the scenes - and watch this space....
SNPC and AAOG are partners
https://www.bloomberg.com/news/articles/2019-05-15/congo-trafigura-are-said-to-agree-restructuring-of-oil-loans
"Trafigura, rival Glencore Plc and local trader Orion Oil Ltd. lent Congo about $2 billion between 2015 and 2016 using so-called pre-export finance deals, in which traders advance cash in return for future oil cargoes."
AAOG need the $25m reserve based lending up front at this critical early time, then all is possible to full field development with no more dilution, one of these players may be the offtaker.