Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video 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.
Has anyone else seen this , there are new shares being issued, could it be our new shares after the stock splits any thoughts https://www.lse.co.uk/rns/ANGS/saltfleetby-field-finance-and-operations-update-6ubb80yfyuet376.html
I was wondering whether ZEN has legal standing against AAOG for the purchase
of Tilapia in the event the licence extension do not go through by Congo Ministry of oil.
AAOG stagnation is in parallel with Tilapia purchase.
Very quite. Is it all over?
Probably yes !
Unless the board are not a lot of crooks, with one brain cell between the lot of them !
Which I very much doubt!
Do I take it that we have all lost our shirts?
gkb47: yes, quite. You’d have to be quite naive not to see this SEL option deal as part of the suggested SEL/Anguish/Mercuria loan deal announced today. The months it’s taken to get this far with that loan may have been spent getting accountants’/counsel’s/HMRC’s opinions on the use of the tax losses.
I don’t understand why investment management firms with shares in this would not want to exert their influence to get a better deal, if the tax losses are the primary factor here, as it seems they are.
To me it is so clear that SFI , SEL etc ... are asking AAOG to come tap dancing blind folded
with them in a mine field. Why cant Sara see that? Please Sara our lives are in your hand.
As Sarah Cope holds the voting rights to most of our institutional investors she can out vote us as we have found out in the past. As we can do nothing we just have to trust she will do the best for us.......but I doubt it.
...that’s my opinion, it’s not intended as investment advice.
Shareholders here can probably assume that the new shares proposed in the option agreement will find their way to Mercuria, where, if the tax losses can be used, they will be. If this is the case, your company is worth quite a lot of money and the terms you’re being offered are, well, to say “not very generous” would be extremely generous to the option holder. I’d vote against the deal, replace the Board and suggest that the new one find an investment bank willing to earn a fee to find a more sensible price for the tax losses.
Please see the Angus Energy RNS today if you dont understand what I’m talking about.
HITS: yes, I agree with this analysis. I wonder in what circumstances and to what extent these losses can be used by a company taking AAOG over. If Paul Forrest has found a way of using them, the AAOG shareholders should try to make him pay something for them. The current terms offer them nothing and they are, after all, the people who’ve invested the money that’s been lost and appears as losses in this balance sheet note. Their accounts (SEL and Forum Energy Services) are due at the end of this month, aren't they? I see that gkb47 is wondering whether Wingas left some money in SEL. I doubt it.
I noticed this and copied it to another site yesterday, from June 2019, concerning the Angus involvement in the Saltfleetby licence:
“The heads of terms (including exclusivity provisions) agreed note that completion of the acquisition of 51% of the licence is conditional on the prior acquisition of the field and licence by a third party abandonment operator.”
I've assumed that the third party abandonment operator is SEL. there’s been no mention of anyone else in this role. SEL is responsible for £8mm. or so of abandonment costs for the pipeline, as I understand it.
I also agree that it’s very hard to see Anguish getting the loan they want. And it's hard to see how they’ll make any money if they do. So tax losses are unlikely to be of much use to SEL/Forum there. And there's no news of any big project, or of how they would pay for one. It would be galling for AAOG shareholders if AAOG disappears, the losses disappear into Forum and that company gets sold off to someone who CAN use the losses. In the absence of evidence of any such sequence of events, I think, as you know, that this option deal is misdirection.
Oh and PS, of course do not forget that the mucky fingers of Forum Energy Services Ltd (which for the record has nothing to do with Filipino owned Forum Energy Ltd) are all over this. On both sides of the prospective"option". So it's heads FESL wins... and tails AAOG PIs lose, I'm afraid.
Oofy, dear chap. I grant you that my analogy was in no way exact. This is perhaps forgivable, since its primary purpose was to disabuse any existing or putative ANGS investors insanely naive enough to believe the arrant BS being spouted by the Ocelot PR machine and a few brand new IDs that have very recently popped up like mushrooms on a dung heap. In case you hadn't noticed, this latest desperate fairytale claimed that the AAOG/SEL option clearly demonstrated that the Poundland gas field simply must be worth £32 million and therefore ANGS' 51% share was proven to be an asset worth £16+ million. I mean, I can respect a good and slick hustle, but this latest attempt to rope-a-dope into ANGS was pathetic in the extreme.
As to AAOG PIs? I'm gutted for them, but they are truly and inevitably shafted, whether this option goes through or not. If it doesn't, AAOG has next to no asset value, except for a small dwindling pile of cash and a tax loss it can't use, because it's got no active businesses. If it does go through, as you point out, AAOG PIs get a 90%+ dilution, in exchange for 25% of a non-producing gas field that needs at least another £12 million of funding to see if it can even be got to first gas... and SEL will have acquired massive majority control of AAOG over in the process.
So, from an SEL point of view, it gives away nothing and acquires a handsome tax loss. Not that I suspect this will ever be utilisable by SEL, because:-
a) from a cash point of view, SEL has even less of a pot to make water in than AAOG
b) Poundland gas is proving to be yet another onshore fossil fuel fairytale - and at the absolute best given abandomnet liabilities, it can only be valued at what ANGS paid for it, namely minus £2.5 million.
Where I do fractionally differ from your analysis though is in terms of AAOG acquiring any nasty abandonment liabilities, if it acquires 25% of Poundland from SEL. Why? Because at that stage SEL will have 90% ownership of AAOG courtesy of the mammoth confetti issue and so the two are effectively one... and because SEL's liability for (currently 49%) of any Poundland abandonment costs have (I believe) already been agreed by ANGS to only be payable from SEL's share of profits from Poundland. I imagine the self-same thing would apply to AAOG, even if it remains a separate corporate entity (albeit in name only).
So since there's no sign of anyone wanting to lend the credibility-bereft board of ANGS the extra £12 million it suddenly announced it needed for Poundland, there's no chance of Poundland ever having a hope of generating any profits for any of its owners. Hence ANGS remains solely in the frame for all abandonment expenses.
The only winner in this looks like it's going to be SEL, who'll get a £40 million tax loss in exchange for diddly squat. If the deal goes through, I imagine they'll hawk that around to parties that might be in a position to use it for all it is worth.
HITS: an amusing analogy. However, the car didn’t belong to you to start with. It had chugged to a standstill and you’ve offered your 8 smarties for it. The car isn’t worth anything except that its registration document may offer you a value that the current owners of the car can’t access and therefore don’t attribute any value to. You’ve offered your 8 Smarties for it, which many appear to think is a fair-to-generous offer in the circumstances. However, in this tube of Smarties there’s a nasty trap in the form of liabilities if you stain the carpet with them. None of this offers anyone any value at all, except if you can realise the value of that registration document.
It will be an act of generosity if the AAOG shareholders let you have the car with its valuable document (the tax losses) free, gratis and for nothing. All they’re being offered for it is a 95% dilution and the assumption of unaffordable abandonment obligations in an unaffordable gas project (Anguish’s Poundland). Whereas, if he can get access to the document, SEL is acquiring something of considerable value to its shareholder..
gkb47: I imagine that, if AAOG remains a separate corporate entity within SEL, It will need to be a signatory to any agreement that requires security for a Poundland loan. It’s hard to see what it brings to the table for these purposes, and this is unlikely to escape the attention of any “funding partners”. So it will tend to make the negotiations even more protracted.
Re the £8mm, they’ve merely calculated how many shares they need to get at the 0.10p par, or nominal, price to give them 90%+, haven’t they? £8mm. worth of AAOG shares at their nominal value does this for them. £8mm. is entirely irrelevant for valuation purposes.
In any case, it’s just misdirection. Surely?
gkb47: apologies, I should have entered the whole figure and wouldn’t have made this mistake. Still, it’s the same number as it was in the 29 September RNS. So no new ordinary shares have been issued since then.
gkb47: re the option: SEL will own 95% or so of AAOG if this deal is approved. Under English law (as I understand it) if AAOG remains a separate entity and a subsidiary of SEL, SEL won’t be held responsible for its debts or its performance under agreements which it enters into.
In any case, it’s unlikely it will go though, isn’t it? It’s just a distraction.
gkb47: according to ADVFN, the no. of shares in issue is 499.3 million, the same number that the Company gave in their 29 September 2020 RNS following the conversion to 10mm+ AAOG shares of part of the Riverfort loan.
If shareholders ie Kilkenny etc pull together with Miton with a vote on how AAOG goes forward from this.