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How would they raise the money to drill if they ‘won’ and Zenith ‘lost’. Would be a colossal dilution for just one appraisal well with no guarantee of good oil flow. This has a total market cap of £3mm? No chance.
nothing delusional at all - your theory of losing Barracuda is all because of Zenith's RNS
When you read the two RNS's, you can see that ZENITH isn't taking the contract from ADME but actually looking at supplementing the development - i am more concerned over the finance arrangements moving forward, if i am wrong - i will apologise but just remember to apologise if you are wrong
we are all here to have a healthy discussion
Sorry Dan but you are very delusional. When an rns announced they have lost barracuda you’re going to owe us a big apology. This company is going down the toilet and the longer they lie to investors the worse the backlash will be.
we haven't lost Barracuda as it was mentioned - you would be insinuating that the BOD have said a complete lie, which honestly wouldn't happen with a decent Nomad - i still believe this ours and Zenith's contract is for a seperate part of the deal
That been said - we are responsible for the costs so where these come from is a major issue still, as is ADME General Admin Expenditure and lack of funds as this needs to be addressed very soon, as we have said - a placing must be due and the more they wait I think the lower it will be as people are waiting / selling / trading around the knowledge that this is due (it is an anchor on the SP which won't go away anytime soon)
Still nothing on Panoro / PetroNor on AJE - in respect of this been the smallest part of ADME, i think some people need to look at the numbers on AJE for the long term
As most of you know, I have had concerns for some time now as to whether or not the company still owns any share of Barracuda. Robert Sham is now saying that the asset has definitely been lost and while I have no direct evidence to agree with this claim I think that there is a lot of circumstantial evidence that points in this direction.
The annual report focused exclusively on AJE with barely a mention of Barracuda anywhere. Alongside the recent news that ADM have appointed a new chief engineer for AJE it seems that the company’s focus is totally on the small and relatively insignificant asset as opposed to the potentially company-making one. When this is combined with the fact that company did not respond to any of my questions asking them to clarify on this ownership question and it seems fairly clear to me that there is something rotten here.
Even in the event that AMD still somehow hold on to any of OML141 (which, as I have said, I have my concerns about) I think that we are on borrowed time anyway. As DanBrown and Spikey have mentioned, it is clear from reading the company accounts that ADM has no money to carry out any operations in Nigeria. However, it is also clear from the announcements about Barracuda that providing the money for the development was one of the key reasons that ADM was involved in the first place. If ADM are unable to come up with any money then I strongly suspect that we will be kicked out anyway.
It's a terrible situation really. We have either (a) lost Barracuda already as Robert Sham claims and I suspect. (b) We are about to lose Barracuda because we are unable to come up with any money to cover our investment obligations (c) We are going to have a fund raising of £1 or more million at our 52 week low in share price and are going to dilute existing shareholders by more than 33%. Though I doubt we will be able to easily raise any significant funds with the company in the current mess it is in anyway. Even death-spiral financing is probably out of the question as liquidity in ADM is so miniscule.
All three of these are terrible options. Can anyone come up with anything optimistic where we are not facing anything but disaster in the near future?
Short looking good. I believe Nigerian asset has been lost and in the know investors have realised and selling.
I told you guys my short is looking good. :)
Well i am holding long term but its obviously news driven
The first bit of news is the AJE completion by PetroNor / Panoro - this is the delay in the Development Plan for Phase 2 which albeit it will mean increased project debt, it will mean that there will be a large increase in turnover at AJE and that PetroNor will become the operator serving as the Technical Service Company - its good to look at there corporate presentation from 11th March (pages 29 & 30) that give a clearer potential of the AJE field and the increase in the bopd (25,000 bopd in Phase 3 / 15,000 bopd in phase 2) - with our ownership its clear to see that the revenue based on 1500bopd nett to ADME is going to be over $100,000 a day at $70 a barrel)
https://petronorep.com/media/1834/20210311_pnor_company-presentation.pdf
The truth about Barracuda is we are still involved
I personally (like when we discussed Barracuda on the board when we realised that 4 wells had already failed) think that the CPR report might not be what they hoped and it is more likely thats its no where near as good as the BOD made out initially
If we had lost Barracuda (if your interpretation is that Zenith have been offered what ADME had purchased) and that the BOD lied (as the Annual Accounts and Trading update last week both mentioned Barracuda as an ongoing project) what remedies are there legally if any to recover your losses?
In short term this will go down, next news is likely a placement to cover expenses
then hopefully something to say that PetroNor and Panoro have concluded and that phase 2 Development Plan can start
But delay after delay hurts SP and confidence
you will probably do well in the next few weeks on your short
And there we go already up on my short
1.995-2.2 down 3%
put a short on at this level. The board of directors have lied constantly and not telling investors the truth about barracuda. The asset has been lost and without it the company has nothing. Personally I see this go below 1p and put a short on to make the money I lost in this stock back.