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Many thanks Moleinahole
Justbe - do a search on internet for London Oil and gas and London Capital!
https://www.energyvoice.com/other-news/205331/independent-oil-and-gas-to-repay-22-4m-debt-to-collapsed-lender-log/
Basically LOG were funded by borrowing from London Capital who then loaned to IOG. London promised investors big returns and to do this loaned to higher risk investments. The investors were apparently unaware or didn't ask how such a return was made but there was also significant commission/marketing fees creamed off by various people as part of the set-up. It was stopped by FCA.
IOG have been the unfortunate recipient of a significant amount of capital from LOG. They accumulated a mix of loans and options. When London was stopped the assets needed to be unwound to return what they could to the punters.
Unfortunately for IOG that occured at a critical point in time just as IOG were financing both a drilling campaign and the funding for phase 1.
The consequences of it was that emergency measures became necessary to bridge the funding gap. Hence long term small investors here through no fault of our own have been very heavily dilluted allowing institutions in on the cheap. Rather than enjoying the benefits of the asset ourselves with a bond dea or offtake we have now had to share it with CalE as a partner and alot of institutions who came in on the cheap.
IOG have now repaid a significant amout of the amounts to LOG but the adminstrators for LOG have retained a significant equity interest (30%). They had agreed an orderly disposal and have not to date sold any more and seem to be sitting on the equity as their best chance to recover more of the London money. They did not sell when RRE offered 20p a share for their stake and backed the board.
So the issue is that 30% of the equity is in their hands which if combined with some of the institutions that now hold alot (like Lombard) then the company is vulnerable to an offer at the right price. That seems to be north of 20p a share at least - probably alot more. They will sell or sell down the holding if they have too.
The consequence of the events has been PI holders massively dilluted and losing effectively influence over the company direction - but all the equity seems to be in sticky hands hence the low amount of trades.
The institutions are in at 10p and LOG admin min par value is probably around 17p. So inspite of the good asset the history has left a sour taste and tarred IOG unfairly in my opinion by association.
The London punters will eventually I hope come to appreciate IOG and the small shareholders who through no fault of ours have been hit here. That will be a noteworthy media event if it happens in addition to the good job the company is doing investing at this time in the UK continental shelf.
Hi. Looking to build a position here. Would/could somebody give me the backstory or direct me to information relating to the log administrators? Thanks and Gla.