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At the moment the Market cap is totally moribund, no buys or sales.
But what about when Forum make a move, assuming they don't wish to lose their £400k investment and time spent for no reason, a move will be made.
Miton for example have 50m shares at 5.2p
If they invested £100k now, or just 4% of the previous amount bought, they need the SP to rise to 2.7p for them to get back to evens on their original investment with 100m shares total.
2.7p SP = a twelve bag from this low level and could be construed as good money after bad of course.
But on Forum taking a position?
2.7p in pure cash terms = around £10m mc
If Forum bring Salfteetby gas asset - £2.5m worth, pre production, then upto £3m p.a revenue for then years in production.
They could RTO into an exciting and viable project, after all that's what they said they would do when taking their position.
If Zenith can walk up with no cash and potentially get a 700 bopd producing asset, paid for by forward revenue, what project could Forum RTO into AAOG with perhaps the £12m cash or more from their big backer who just wants the UK listed shell to work with, gain the tax losses and move forward ? This would then no longer be AAOG with all its baggage.
"Forum is pleased to have taken a strategic stake in the Company and we are looking forward to working with the Board to create shareholder value. Forum has, through its investors and network, access to sources of funding as well as exciting and viable projects in the natural resources sector that could be suitable as acquisition targets for AAOG."
So each to their own, but in the next four weeks its expected Forums plans could emerge, it may be a chance to break even at some stage, if you have the appetite.
So the Big Question is , Will Paul Forrest the Chief Executive of Forum , stab us in the back , like everyone else has , or not ?
Proffit, I don’t think that comment is fair. Give Forum a chance before criticising them.
Well if all goes as currently is planed (its a long shot but its what the board had organized) he has 24% of a shell with the following to use:
£1m in Cash & Shares from Zen
$1.1m debt owed to AAOG from SNPC
£1m worth of free carry
And an option to sell the remaining Congo stake for £1m or £2.5m
And if Zen do renew the license and start drill preparations in April they might even have a stake in a producing well that might even get the sp back up a tad.
Or if AAOG Congo goes tits up and the subsidiary gets liquidated (or sold off as is with all debts and baggage for £1 to.... Forum?) he has the whole asset, 24% of a shell with no assets or cash that he can RTO a controlling interest of a project he wants off the books, then have AAOG raise some cash to fund developing said project, and no doubt he can sell his shares here at brake even or even for a profit shortly after listing the RTO.
Worse case he does that and Sarah and James stay on the board permanently , but with all the companies DS and JB have set up recently i think they will be moved on once this is done, as their masters will be calling.
Still the same as it was last month. Red or Black on a tilted table.
It was not a criticism, it was a question, we have been taken to the cleaners by everyone so far ! And I have a bad feeling Forum will turnout no different to all the others . I am sad to say I expect this company to delist soon !
Hope to be proved wrong !