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Tooldforthat, they claimed they were trying to sell the aje stake several years ago - that announcement worked to pump the share price briefly, but then the supposed buyer evaporated …almost as though they had never really been.
i don’t think today’s RNS means quite what you think. ADME is a very small company, strapped for cash, with no income coming in, and shares trading below par … combination of that plus ADME’s awful reputation & stefan’s long-running proven history of massive value destruction for pis daft enough to back him means it will be pretty tricky to raise more funds via placing.
… BUT, in the meantime, ADME is on the hook for a chunky share of development costs at aje, and it currently has no way to fund those costs. if the bigger players at aje do try to step up the pace re development, then ADME will have to stump up bigger money and sooner, but with aje still being years away from generating any returns. …. ifADME can’t fund its share of those escalating development costs (in an environment of high interest rates and inflationary cost pressures), then it would default on its aje stake and simply lose it. (that’s kinda the story of how ADME(/MXO) got into aje in the first place, as jacka was a distressed seller of its aje stake because it couldn’t pay its cost share.)
so as it currently stands, ADME is in danger of defaulting on its aje stake, and of being unable to meet its liabilities as they fall due (i.e. no longer being a going concern - hence imv the mention of discussions with auditors in the RNS.). — they desperately need someone else to pay their bills for them, or take aje off their hands altogether, but there aren’t that many free lunches / altruistic benefactors out there.
ajimho.
So what will we get - $5m max to Petronor and that will be split into performance related milestones I reckon
M.youtube.com/watch?v=UCeoebH-dLo&si=mLuYgp8z2ViuAk6Y
100% !!Too old for that, I very much doubt it, there's an awful lot better investments than ADME out there, I'd avoid these people like the plague.
Should double in price today
Petronor will buy it, they have had a good year and they want control of that asset
I just remembered we have a bigger holding in it since the last valuation
Was it $19million last time
Knew they would put it up for sale.
How much?
Not so much “years old history”, more ‘year after year after year’ wrt stefan olivier - i.e. not a matter of ancient history, more a matter of repeated failure from him on many occasions (for pis, that is — i think he’s done just fine for his own pocket!). he has *never* delivered for pis at MXO / ADME, over many years of being in charge. (…brief equally disastrous interregnum when osa took over for a while, but no reason to suppose stefan changed his spots during that ‘holiday’ from running ADME...)
MXO / ADME perennially tries to come up with new wheezes to try to excite pis enough for a pump / placing, but never actually delivers on any of those for pis … as one ‘project’ fizzles out without sales or profits, ADME just tries to find another one to spin.
mexican marginal oil fields — no return for pis, abandoned.
johnny hon & the chinese big investors — been & gone, nowt for pis.
aje — £1m ‘first oil’ bonus for cornhill, but no return for pis.
aje - touted sale to GPDC pumped the s/p, but then evaporated.
aje now, no production, no FSPO, no funding to develop, a bust.
dodgy ‘sheikh’ - s/p pumped & dumped, but nothing for pis.
superdialectics — someone made money out of that, but it wasn’t pis!!
american work-overs — deal abandoned, nothing from it for pis.
& now, ADME splashes out shareholder funds on an app - bought from? ; )
barracuda (OK, this one seemingly more osa!) - no return for pis, abandoned.
While I am open minded that SO may just be working for the pi (unlike Spikey who is bitterly focused on years old history), I do find myself agreeing with him that we need to see more to drive the share price. I in particular want to see results on the new deal and something real on Aje before topping up.
Well I didn't expect that rise yesterday, are we going to get a December rally?
Last investment worked out well so we will see, but we still need AJE to progress for any real value to be added
Per RNS
- Company to focus on oilfield tech
- Revenue guidance of US$500k annual rate first of 24
- target for YE US$1MM+
If they hit the first goal, should be an interesting year. Now, we just need news on Aje!
They unwound that deal and reduced debt. See previous RNS. Spikey's point is well taken, Stefan is going to need to show some progress with this to regain investor confident. Particularly given it is a new area of focus for the Company.
https://www.lse.co.uk/rns/ADME/financing-update-and-debt-and-asset-restructuring-r8j1twa9mtktj59.html
Nothing they do seems to grab investors interest. All these acquisitions over the last couple of years and not a return on any off them, what happened to the well reworks in USA, supposed to be happening in the 4th quarter of 2024.
The herd is not exactly stampeding to back stefan with pi money. he has, shall we say, a certain credibility gap to overcome based on years of appalling share price performance while he was CEO here previously.
all these secured loans don’t bode well for any return to ordinary shareholders when ADME goes into administration - firesale of aje will help return something to the loan-holders, but there’ll be nowt left over for anyone else. jmo.
“… implies a value of OXFT …”
My point stands - in the RNS, they try to claim that the 1p consideration shares imply a particular value for the acquisition which is overstated because they are using 1p in their calculation to work out the supposedly ‘implied value’, rather than 0.5. (not that you would get 0.5p /share if you tried selling many into the market, lol.)
Actually, I believe par value is 1p and they are not legally allowed to issue shares under par.
… typical ADME games being played. consideration shares priced at 1p, when the current and recent market value of ADME shares is half that — makes the ‘acquisition’ appear to be worth more than it is.
In an oilprice.com article from 30 April 2023, "How New Technology Will Disrupt the Oil and Gas Industry", author Alex Kimani states: "Barclays estimates that the upstream market digital services industry will grow from less than $5 billion in 2020 to a more than $30 billion annual tab by 2025, thus enabling $150 billion in annual savings for oil producers. Opportunities for cost savings include cutting capital expenditures (CAPEX) as well as selling, general and administrative (SG&A) costs and transportation operating costs."
Www.ofxtechnologies.com
Stefan Olivier said, "The oil and gas digital services market is in a period of rapid growth, the investment in Efficient Oilfield Solutions gives ADM shareholders exposure to this sector through a company with momentum in the industry led by an impressive and focused management team. ADM intends to maximize the value of its traditional upstream oil and gas interests and consistent with its Investing Policy will continue to look at a range of opportunities within the natural resources space, however the Board of ADM have resolved to focus on energy technology as we believe the opportunities available to the Company are very attractive in terms of driving growth in both value and cash flow per share."
Adme pays over a million bucks for a phone app! Bent as a dogs hind leg this one! Avoid.