Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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You're probably right Panther - I didn't have the data in front of me when I wrote. PMO certainly came on their holdings in EDR in an unusual manner. Inertia is a good word to describe PMO - it's unbelievable that they are just about the only one of the small UK companies set up in the 80's who still exist!!!
EDr is such a small asset it must be missing off the corporate spreadsheet...............
Hi Mirasol. Are you sure it was Premier that bought Alkane? My recollection is slightly different. I think Premier's present 15% involvement here is because the former EnCore Oil swapped all their onshore licences, plus a small interest in the offshore Ceres gas field, for a significant holding in EDR. It may have been nearly 30% then. Some time later EnCore were acquired by Premier. I believe this was done mainly to obtain EnCore's interest in the offshore Catcher field which was about to be developed. I don't think Premier have much lasting interest in the UK onshore, or particularly in shale gas., and it may be only inertia that keeps them here. However, they have supported some EDR placings in the past, but they have also allowed themselves to be diluted slightly over the years
"I'm not sure why PMO and Yates got into this in the first place. I presume it was for exposure the tight gas "fracking" play ?"
Yates have been associated in various JV's with EDR going back at least 20 years - I seem to remember they (Yates) may have been active onshore UK about 30 years ago so maybe they just like working with Egdon.
I think PMO are in as they bought Alkane who had swapped their unconventional acreage for EDR stock - that gives them exposure to UK fraccing developments at very low cost - plus a couple of days out of London every year. Total were involved in a similar arrangement (without buying the stock) IIRC a few years back
I'm not sure why PMO and Yates got into this in the first place. I presume it was for exposure the tight gas "fracking" play ?
Thats now dead in the water, and in my view the moratorium will never be lifted, the public are already against fossil fuels and so fracking for them is just politically toxic.
For PMO this investment is now immaterial, and they have other issues at the moment, and for Yates et al I suspect they may not understand the politics of the anti-fracking agenda in the UK, and may believe the company line that its just a matter of time before it returns. Either way I don't think either (for their own reasons) can be ar*ed to do anything about the moribund governance here. The lack of cash will necessarily bring the whole issue to a head very soon...
Mirasol. I think it's about time the two large LTH's actually tried pushing! I can't see why they would be happy with the current situation, unless things at Premier and Petrichor are just as bad, which they could well be, I suppose.
Panther - I'd agree - I suspect the 2 large LTH's are also quite happy with the situation for whatever reason and aren't pushing for change
To my mind cumulative CEO salaries over 11 years of £1.65 million (I've not researched this personally but, if correct, it averages £150,000 per year) would not be excessive if the company had been performing well. I note that the CEO's salary to July '19 was £177.5k with a further ££28.5k in benefits including pension, health insurance and presumably a car. However, I recall from the April interim statement that Egdon’s staff have recently taken a 20% salary cut, and I assume this applies to the board too. What concerns me rather more is company performance. About 10 years ago our shares were trading at between 10p and 20p, and I think the market cap was about five times the current £7 million. For more than 10 years our non-exec board has been almost unchanged, apart from the institutional investors’ representatives. In fact, most of them have been there for so long that an outside observer might say they are no longer independent. This may partly explain why we have been producing at a measly rate of less than 180 boepd for so long, although I realise it should almost double soon, thanks to Wressle. In my opinion Egdon and its board need to be shaken up a bit,, starting with the Chairman and some of our other non execs, and possibly also the CEO. I wonder if they have considered merging with another UK onshore player, maybe either Angus, Europa, UKOG or Union Jack? However, as usual this is probably a non-starter because of the personalities of the CEOs involved.