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"Salary paid to CEO 2009-2019 before bonuses and pension etc £1.65mm"
I don't think you'll find many other small oilers were the CEo pays himself so little over such a long time - look at UKOG last year - Steve Sanderson paid himself a bonus of £ 310,000 on top of a salary of £ 314,000 plus £142,000 in shares in a year when he'd drilled a very expensive dry hole and cratered the stock price.
Hi RNSTranslator. The clock must be ticking quite loudly at Egdon as they need to raise more cash quite soon. Well, that's my opinion too. Egdon's year end was 31 July and their prelims should come out in mid November, with the AGM usually just before Christmas. Amongst their various cash requirements they need to find about £400k on first Wressle oil, and I think we are still expecting it to come on stream some time in the 4th Quarter. I'd agree with you that their auditors are probably giving them a very hard look right now. However, they have the capacity to issue a further 76 million shares without calling an EGM, so long as their two larger II's (Petrichor Holdings and Premier Oil) will let them do a fund raising. Watch this space because, assuming a small discount to the current 2.05p mid price, they are unlikely to raise much more than about £1.3 million via a placing without it being subject to an EGM. Perhaps some kind of production loan facility might be on the cards too, as recently announced at Angus Energy.
EDR 10 year performance report 2009-2019 Annual Reports.
2009 Mkt Cap about £9.5mm shareprice about 10-13p
2020 Mkt Cap about £6.5mm shareprice about 2p
Salary paid to CEO 2009-2019 before bonuses and pension etc £1.65mm
Fees to Chairman 2009-2019 £450,000
Amount paid to the Board members who were there in 2009 and still there in 2019/20 >£2.5mm (Abbott, Stevens, Ratcliffe and Roberts) this doesn't include any pay to Board members who came and went in this time.
These four have been on the Board since 2004. Thats 16 years and counting.
Governance rules suggest no more than 9 years.
Seems this lot are in for the duration... time for a change perhaps.
EDR need £400k on first Wressle oil, they may just about have enough to pay this, but they'll be short on working capital, and the auditor will be looking a going concern issues... somethings got to give here....
The longer they leave it the more pressure they're under...£2mm at 1.5/1.6p 125/130+mm shares. thats over 30% of the current issue.
Hi GP
It was interesting that in the last raise Petrichor (George Yates) didn't subscribe, but he got his brothers company Jalapeño to subscribe. This either suggests that Yates didn't have the cash, or that for some reason they want to spread the shareholding around the family. (as they're a concert party I'm not sure what advantage this gives them), so I suspect the former.
If Yates is short of funds (understandably as the industry over there has been hit hard by the price fall) then he may not be keen on a fund raise..however as you say, at some point they have to rattle the can.
The spread at present is horrendous 1.8/2.3 with hardly any trading. Somethings got to give here, and I suspect its a fundraise at 1.5p. The Board don't seem to be big subscribers, Premier are a bit short, and if Yates is short too, then its going to rely on new or the smaller existing investors, smacks of a discount if the 2 big shareholders holding 48% or so aunt putting their hands in their pockets... unless there is a new potential shareholder with some cash to spare!!
I also GP am a holder LTholder.... There be a placing that's for sure, but will it be b4 or after the wressle start up.... I was totally shocked when UJO done yet another placing thought that was a year a away if ever....there be around 20 billion shares for ujo... That's just crazy, u can c what going happen next... It be the 10 for 1 ratio or something like that..
It's all looking a bit pants at mo, low oil prices, just all ****e...
Been ere over 10yrs +... :'-(
They never ever hit the 500bpd they was banging on about back in 2008 or 2009... NEVER WILL... backed the wrong horse with fracking..
Any way good luck to all LTH's
gg
Someone on Union Jack's board was saying that they preferred Egdon and I thought "that's nice". Then I thought about it a bit more and I didn't find myself in complete agreement. I'm sorry to repeat my myself here - but I'd appreciate some other views on what follows:
"I rate Egdon too and I own quite few shares, but I still don't think they’re a better bet than UJO. I've two reasons for saying this. First, they don't appear to have significant exposure to any really large projects except for Resolution, and drilling there is quite a long way off as they haven't even done the 3D seismic yet. And I do realise they own 30% of Wressle, as do UJO. Wressle is potentially very profitable, but it’s not exactly huge, so it won’t pay many bills. Second, Egdon seem to me to be quite short of cash. They currently have the capacity to issue only about a further 75 million shares, which would bring in about £ 1.5 million at the current SP. Would that be that enough to do all the things they should (or must) be doing at Wressle, Biscathorpe, North Kelsey & Keddington, and at Resolution in due course? I think they will have to get shareholder consent to raise any more than this, and they have two shareholders (Petrichor Holdings with 33.99% and Premier Oil with 15.08%) who don't seem to have much spare cash. Well, not IMO, and I also get the impression that Petrichor aren’t very keen on being diluted. However, I’d personally rather have less than 30% of a well funded company than 34% of one that can’t afford to do what needs to be done. So I reckon they might have to give their consent for Egdon to raise a bit more than £1.5 million before we're much older. I therefore think we can expect to suffer a significant dilution here, as at UJO, before too long.
Probably true - but Egdon have have two very long term big shareholders - they've put many in for years and I'm sure they won't change just as they're about to reach serious production (and have the offshore deal as well)
Expect some dilution but the money will come from their LTH's - and nothing like the billions of extra shares the likes of UJO & UKOG shovel into the market
Hi RNSTanslator. I'm sure you're right. I can't honestly see UJO blowing much of that £7MM cash on Egdon, but maybe making some selective purchases. It loos almost certain to me that Egdon are almost "running on fumes" at the moment. All the best, GP
UJO won’t buy Egdons shale gas assets because they’re not actually worth anything. The Moratorium will never be lifted. You should be more concerned about how Egdon are going to pay the £400k+ due on first oil at Wressle.
They must be thinking of an imminent fundraise as they only took £500k in April at 2p, some more from Humber £400k?? And they’ve been spending money on Wressle, Salaries and licence fees...etc
UJO have announced a £7 million share placing today without saying precisely what it's for. In their own words: "The Company is already funded for the imminent drilling at West Newton and for the associated Extended Well Test activities and the cost to first oil production at the Wressle development. With the fundraising net proceeds, our cash position increases to approximately £11 million and will assist in funding our next growth phase. This fund raising will allow us to continue to invest in our conventional onshore flagship projects and invest for growth in our wider licence interests and drill up to four wells in our drill-ready portfolio before the end of 2021”. They then added: "We also believe there will be attractive acquisition opportunities available from the ongoing fallout resulting from COVID, energy prices and BREXIT”. Egdon’s market cap is only about £7 million today, so I'm wondering if UJO might have their eyes on some of Egdon’s better assets, or perhaps even the whole company. But, to answer my own question, I do hope they aren't wanting to own or operate Egdon's numerous shale gas assets.