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Thanks CC, very informative
For me investing in CASP is dependant on credibility, I only hold 50k shares currently, only a toe in the water, but with means to dive in - you seem pretty certain that divis are on the way fairly imminently, but its not just about the returns, as that would also signal that raises would be a thing of the past. And therefore any investment safe from dilution.
The feeling seems to be that July is too early for divis, although CASP have not ruled it out - July IS 'later' after all, but I'm prepared to wait if it should be more prudent
Stu
cont ...
The Board is working with the Kazakh authorities to renew the licence at 3A Best, following which the Board will assess 3A Best's position in the Group. While the Board remains confident that the licence will be renewed on favourable terms, the Group cannot currently make any progress with the asset. Accordingly, the Board has decided to impair the asset in full, resulting in a $12.5 million impairment charge in 2021.
The Beibars cost pool remains impaired based on the continuance of the force majeure. The Group has decided to formally relinquish any interest in Beibars.
During 2020 the Group simplified its intragroup loans as follows: (i) the Company acquired Eragon Petroleum Limited's long term receivable of $18.9m due from BNG Ltd LLP in exchange for a loan payable to Eragon Petroleum Limited; (ii) the Company's long term receivables from BNG Ltd LLP were transferred to Eragon FZE in exchange for a receivable from Eragon FZE; (iii) Eragon UK declared a dividend of $49.3m to Caspian Sunrise plc which it settled by offset against receivables due from Caspian Sunrise (see note 19). The receivable from Eragon FZE is repayable on demand but is classified as long term because this reflects the expected timing of actual funds flow. As part of the restructuring US$ 66m at the Company's standalone accounts were reclassified from the investments to the receivables from subsidiaries (note 16). (Around the same time they were going to relist Kuats kids shares in Kazak, then kept them in the UAE when it didn't go bust )
On 6 July 2020 the Company has issued total 8,938,570 ordinary shares at 3.2 pence per share in settlement of outstanding salary and expenses. On 4 August 2020 the Company raised £1 million through placing of 36,363,629 new ordinary shares to new and existing investors at an issue price of 2.75 pence per share. The cash has entirely been spent on repayments to the Company creditors.
Conclusion: As they tell us and we know they very nearly went bust, cash flows improved and increased allowing debts to be repaid.
As at December they had caught up on the bulk of it, and had managed to increase cash at bank figure.
3 X new shallows about to come onstream and it is all systems go for Divi payments.
Cash Position
At the year-end we had cash balances of approximately $0.4 million (2020: $0.3 million). This reflects the continuing extremely tight working capital position following the impact of Covid-19.
The financial position of the Group and the Company has improved in the past year and as at 1 June 2022 the Group had cash of $1 million.
BNG historic costs
We have continued to pay down the historic costs assessed against BNG. At 31 December 2021, of the original $32 million levied in 2019 approximately $22.5 million remains to be paid over the next seven years.
Cashflows
During the period under review approximately $24.3 million was received from customers and approximately $16.6 million paid out to suppliers, creditors and staff with a further $0.7 million spent on unproven oil and gas assets and $7.1 million spent on property, plant and equipment, resulting in cash balances at the year increasing slightly from $0.3 million to $0.4 million.
$6.2 million of debt has been converted to equity
The Group continues to forward sell its domestic production and receive advances from oil traders with $1.8m currently advanced and the continued availability of such arrangements is important to working capital.
We continue to work with the Kazakh authorities to renew the 3A Best licence. Until we are successful on this the farm-out will not proceed. Our investment in 3A Best has been fully provided for. - $12.5m impairment taken the hit upfront = Operating loss $4.0 million.
Purchase of property, plant and equipment (7,136) see note 13 - book keeping exercise.
Nevertheless with net current liabilities of approximately $22 million as at 31 December 2021,
The Group has $6.0m of liabilities due on demand under social development program and $0.4m of BNG licence payments due within the forecast period to the Kazakh government. Whilst the Board has forecasted the payment of BNG licence payments, there are no payments planned for social development program within the forecast period as the Board expects additional payment deferrals to be approved. Should the deferrals not occur additional funding would be required ( As at December 2021 ).
The Group holds VAT receivables of $3.8 million (2020: $3.8million) as detailed in note 16 which are anticipated to be primarily recovered through offset of future VAT payable in accordance with Kazakh legislation. Management have assessed the recoverability of the asset based on forecast levels of VAT payables which demonstrate that the balance will be recovered within 2 years (2020: 3 years). This required estimates regarding future production, oil prices and expenditure.
BNG Licence fee paid in 2021 £3,014M
Looking to keep 3AB and have dumped Beibers is a Government protected site as is 3AB, one military, latter commercial due to the Total owned field – horse trade, swap one out for the other.
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