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Unc - are you for real " I think they will go slowly on the deeps" they have been doing this for about 5 years how more slowly can this be. I get the part about cashflow during the COVID crisis but surely to be seen by the market to not be really trying to flow a deep well would be game over for these guys, that is (unless anyone else can tell me otherwise) the only thing keeping people on board...
Adrianz, thanks for providing this useful information. I had assumed that the reason for the placing was that KO was not in a position to provide credit, but lacked the research you have helpfully provided. I am less certain about the court cases.
I also was fairly sure that CASP, like all oilies, would have had cash flow problems during the worst of the Covid crisis. They have resolved their short term problems with a small placing. It is my view that with Brent around $45 at present, their export sales should be more than offsetting their continued poor domestic prices.
Expanding MJF seems the best approach for now as my understanding is that they would only get the very low domestic price for the deeps until an export licence is granted. They need to work their way out of the cashflow issue, which I am confident will be occurring, before too much further expenditure on the deeps. I think they will go slowly on the deeps because they will be selling any oilfrom the deeps at a loss to begin with and need to be in a better financial position to withstand this.
No CC, I am the painter. Share capital up 0.0005%, SP down 11.45%. Possibly an over-reaction!
uncertian .... my post was highlighting the problems to come ... they came sooner and deeper than even what I antcipated.
KO's KazSmartEnerKon and STK geo have both gone bust. The troubles started two years ago for KazSmart and we provided them work (nearly $4mil each year - read the accounts) . KazSmart lost a case recently against Frac Jet LLP (creditor) which appears to have been the final nail.
KazSmart cancelled the MJF workover in Oct 2019 due to financial issues (check e-license). We bought the rigs and that's why in the accounts they mentioned we were starting up the workover program again.
The oil traders know KO is in trouble (businesses can credit check each other) so they want their money back. Casp is being buried in taxes and oil debt and production from MJF isn't covering it.
Kazak investors have known this from day one, hence they dumped stock from Sept 2019 onwards.
KC Caspian Explorer LLP is in similar trouble where workers have brought a case against the company for non payment of wages. Hard to translate russian but that's my understanding of the proceedings.
Here are the cases for 2020.
# 1
Act number: 2340-19-00-2 / 322
Judicial body: Indersky District Court of Atyrau Region (General Jurisdiction)
Participants in the process: Limited Liability Partnership "KC Caspian Explorer", KUTHUJINA MAYRA SABITOVNA
Category: DAMAGES DISPUTES
Status: denied the claim (statements, complaints)
# 2
Act number: 2399-20-00-2a / 329
Judicial body: Atyrau Regional Court (Appellate Instance)
Participants in the process: Limited Liability Partnership "KC Caspian Explorer", KUTHUJINA MAYRA SABITOVNA
Category: DAMAGES DISPUTES
Status: the complaint was dismissed
# 3
Act number: 7527-19-00-2 / 18146
Judicial body: Specialized Interdistrict Economic Court of the city of Almaty (Civil cases (part 1 of article 27 of the Code of Civil Procedure))
Participants in the process: Debt Bureau LLP, KC Caspian Explorer LLP
Category: DAMAGES DISPUTES
Status: denied the claim (statements, complaints)
# 4
Act number: 7599-20-00-2a / 3346
Judicial body: Almaty City Court (Appellate Instance)
Participants in the process: KC Caspian Explorer LLP, Debt Bureau LLP
Category: DAMAGES DISPUTES
Status: complaint satisfied
Got the painters in - that answers a lot of questions ....
Sorry I was too busy decorating yesterday to answer your little puzzle. Its too late now for two reasons: Tucson provided a better answer than I could have thought of; and the discussion has moved on to the £1m placing.
The latter seems a storm in a teacup IMO, a very minor dilution compared to Boaty McDrillface. Share capital has increased by 0.0005%.