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Hi Bigbas2all,
No new surprise.
It is already in the accounts, I highlighted it several times before ! Cost is $16M see half year accounts (section 3.3 of the notes).
They will be trying to let it out or sell it on to someone else.
They are staying on the ground floor of 50 Lothian Road I believe ( or using part of it there is only going to be under 40 staff there).
As I've said many times before the old board knew how to spend money like water & make terrible deals, I just hope they lose out through forfeited bonuses salaries & shares.
Thanks for the update I didn't know where the new offices were meant to be.
LOTM
Welcome to the 140's.
Hi again LOTM.
Just thought I would inform you , on a wee stroll around Edinburgh today I went to inspect the new development at Haymarket. Noticed that one of the completed builds is up and running with new companies occuping the various floors. Then to my surprise notice the board on the ground floor indicates who is on each floor, to my amazement I noticed Capricorn Energy have two floors ( big building?). I enquired are CE in the building (as we all know they made a large number of staff redundant ) to be informed no CE staff, the lease is for 15 years ouch!!!! That is another sum that will have to be found from somewhere. Did you or any of other shareholders on here have any knowledge of this?. Has this been taken in to the accounts ,? Or maybe another surprise for us all.
I await any feedback.
Just did a dummy trade for 5,000 shares & I can get them for £1.4824 but not interested at that price.
I have put in my 1st limit order but it's set for a lot lower than than.
GLA
LOTM
Well I got a bit of a shock yesterday when I totalled up all my Capricorn trades.
1st thing on 6th October my CNE trading over recent months had led to an overall banked gain of £6,227.75 & I still had 16,666 post consolidation shares in my account which had a further unbanked gain of @ £858 on them.
By the time I had sold them & the other 39,334 shares I'd acquired since then, that gain of over £7,000 had turned into an overall loss of £2,999.49
If I hadn't got out of most of my holding at an average of close to £1.635 I'd be looking at an additional loss of at least £4,000 & rising by over £500 for each additional £0.01 fall.
If it goes to £1.50 as I'm pretty sure it will, that would have been another additional loss of £3250 ( So £7250 on top of the £3,000 I currently have)
I will be back in but only when the risk / reward looks right to me.
GLA
LOTM
Hi RagstoRich,
Hmm we don't know what's all in the agreement the old board signed with Woodside regarding liabilities.
Worth noting the letter went to Woodside not Capricorn.
They might want to leverage Woodside for the money & they are not going to want any more hold-ups on getting that field into production given how much they've spent on it so far.
Capricorn may find themselves being sued from both & that means having to pay for lawyers which is never cheap & you have to also abide by what the accountants say in clarifying your accounts to.
I just think people haven't thought through the implications yet & the effect it could have on the company.
Personally I think there is a reasonable chance of getting the contingent consideration from Woodside, of course if they are now suing you for the other money there's a good reason for them to hold up the start of production to mid July instead of doing it ASAP.
In which case NO payment & possibly $42.7M+ going out the coffers to.
LOTM
LOTM do you think they will spend time / money contesting it? I think they will just accept the $50mln SNE payment wont come. There is no way for Senegal to get more money out of them easily, hence the lack of share price movement. People had already written off the SNE payment
I was reflecting overnight on the lack of share price reaction & I am very surprised by the lack of an adjustment (fall) so far given the facts in the cold light of day.
Back in April $42.7M would have been about 7% of the cash balance & around 5% of the company's market cap.
Today that sort of sum is around 70% of the net cash balance & 25% of the market cap !
The reality is that Capricorn is going to have to take that sum & an allowance for legal fees in defending its position into account until the issue is resolved one way or another.
So sadly there will now be NO payout from the Waldorf contingent consideration in 2024. I had highlighted previously the year end issues Capricorn might face & into early 2024 if payments from EGPC hadn't improved since the half year stage.
Because there is now NO update at the end of November we are totally in the dark as to how bad the cash balance is going to be.
We don't know if they have reduced D&P expenditure in the 2nd half or not & part of that is up to Cheivon as the operator etc.
If they haven't & if the trend from Q2 continued then we would barely scrape by (without accounting for that $42.7M).
So the board is now under really pressure, what looked plain sailing has turned into double storm in literally the blink of an eye.
I will not be in the least surprised now to see this trade under £1.50 in the next couple of months.
Good luck to all
LOTM
Were the company notified about this before (under the old board) & just ignore it & didn't notify shareholders about it ?
Just a stream of unanswered questions come to mind as to who knew what when & what the legal costs alone might be defending this.
I have sold the rest of my holding in the meantime until the dust settles on this at a substantial loss.
LOTM
This is not good news
What a total disaster area the old board of directors seem to have been. I hope they can be held accountable through there salary bonuses or share schemes for any money that Capricorn might end up having to payout.
Any thing they have should be suspended until the matter is resolved. Everything they touched was a disaster area.
LOTM
Looks like I was reading the wrong tea-leaves this morning!
LOTM
Having reflected further on last weeks events I have reduced my holding again this morning at over £1.63 but neither of the trades is showing up on the LSE list. These sales are at a significant loss to the price I bought them at but I see far more downside risk than upside in the short term so nee to go with that view for now.
I have put limit buy orders in place just in case the MM's decide to do a tree shake or the like in the coming days.
The buyback is going really slowly still not managed to buy back 1% of the company in 5 weeks let alone the 5% they were hoping to do before the end of the year. Still if they keep munching away at these prices or lower it will benefit everyone more in the long run.
Good Luck to ALL
LOTM
An article from 2022, worth a quick read
https://egyptoil-gas.com/features/building-on-egypts-oil-gas-potential-an-interview-with-eleanor-rowley-capricorn-egypts-managing-director/
Sadly I can't get to this article .....
Global web icon
egyptoil-gas.com
https://egyptoil-gas.com/news/el-molla-emphasizes-commitment-to...
El Molla Emphasizes Commitment to Sustainability at Egypt Oil
WebNov 5, 2023 · This came during his opening speech at the 9th Egypt Oil & Gas Convention, ... Capricorn Review Western Desert Exploration Potential. 31st October 2023 ... El …
& what happened on 31st October ! :(
LOTM
Starting to join the dots now .........
"Minister of Petroleum and Mineral Resources Tarek El Molla emphasized the oil and gas industry’s commitment to sustainability and decarbonization, acknowledging the ongoing challenges in securing sustainable energy sources.
This came during his opening speech at the 9th Egypt Oil & Gas Convention, held under the theme ‘Driving Sustainable Growth in Egypt’s Oil and Gas Industry’, which is taking place from November 5th to November 7th, at the InterContinental Citystars Cairo Hotel.
--------------------------
Note the timeline - 5th to 7th November, so Capricorn could well have had meeting with the minister or officials at the Convention & not got the answers they were looking for....... hence the announcement on 9th November
--------------------------
Just found this as well
hxxps://egyptoil-gas.com/news/el-molla-reviews-capricorn-energys-ep-plans-in-egypt/
Which show's Capricorn with the minister on 19th June 2023 as well & Capricorn is in the top status group of international O&G's working in Egypt.
For the record - I Have liquated half my holding for now.
LOTM
Just found this by chance when looking for something else!
They seem to know more than we do !
https://www.oilandgasmiddleeast.com/news/capricorn-energys-egyptian-gamble-talks-with-authorities-delay-update
LOTM
Maybe the buy-back will have filled Santa's boots full of cheap stock by then ...................
Ho Ho Ho
LOTM
Hi Bigbas2all,
I been thinking about your comments & spent much of yesterday trying to find positive reason's as to why they might have postponed.
I can't find any !
Especially when they didn't give any guidance as to current cash in the bank & outstandings payable & whether development spending was to continue at the levels given in the half year report or has been delayed due to delays in receiving payment from EGPC.
Without such information we are totally in the dark & will be for quite some time & will need to look at announcements from other company's to see if there getting paid on time or not etc, to get an idea of what will be happening with Capricorn.
AndAnotherThing thought there might possibly be an "offer" on the way hence the delay, but that would in actual fact be the last thing they'd want to delay this review for, because without it, it will be hard for them to recommend / decline an offer without knowing the new reserves & thus the value of the company.
The fact there was no sign of institutional buying yesterday (after the news) may mean its taken them by surprise as well & that they are re-evaluating things to.
I'm waiting on one piece of news & that may change my mind, hopefully it will become available to me in the next couple of weeks, but until then I think caution might be the buzz word, so I'm sadly reducing my CNE holding in the meantime as I see more downside risk than upside presently. Or there is more clarity.
Good luck to all
LOTM
Not long now.
lotm.
i smell a rat, egypt not going to pay up?????. just a thought!.
we went to the last agm they said they would be keeping shareholders updated at all times. now moving the agenda to suit their fumblings.
another lot of forked tounge directors by the looks of it.
tell us what is happening no more bull ****.
a very cross long time holder.
Mr.kioto,
They announced this morning that they are postponing it until early 2024 ! :( :( :(
We will have to wait a while now until an actual date is given for it :( which isn't great news. As I was really looking forward to the update.
We now have no news on the horizon until January at the earliest when they might tell us how much is due from Waldorf for 2023. Other than that we could be looking at Apr/May sadly!
LOTM
LOTM
If anyone gets information about the November operations update, please share here. I do not see anything posted on the capricorn website. Lets keep our fingers crossed and hope they were able to execute!
Have reduced my exposure for now, given the sharp drop in oil price & the cancelation of the update, something not quite feeling right.
Only time will tell if I'm right or not, but I can see this going back into the £1.5's again which would be good for the buy-back provide of course there's any shares to be had, rather than returning to the £1.7's or £1.8's any time soon.
LOTM
Seems to me to be a scrambling RNS...if they had planned to delay the update, they would have communicated a new date when it was going to be delivered. This RNS suggests to me that something landed on their desk yesterday that they weren't expecting and that is going to take their focus for the next few months, at least.
A lack of a Holdings RNS after yesterday, if it is not just delayed, is a bit worrying with this RNS today. Makes me wonder if NewMed and GS are/were linked and lurking but perhaps Egypt now isn't a 'friend' of NewMed, or at least relations have cooled down pending the outcome in Gaza and in Egypt. Whatever, time will tell. Might be nothing, lol.
Hmm was really looking forward to that 30th November update, so not best pleased especially when its being postponed for so long.
Is there more to this than meets the eye is the question.
We now have no possible news catalyst for several month's now, which will not bring in any new PI's nor will it help create volume for the buy-back either.
So a double whammy .
AndAnotherThing, Yes I was kind of expecting at least 1 if not 2 Holding RNS's as well, maybe Goldman Sachs are done buying up stock for now ......
LOTM
It will be interesting to hear the real factors, not just the 'we didn't realise we had to do a report - it caught us by surprise' bogus one, lol. Sometime early in 2024 too, when is that, before the end of June? Was expecting to see a Holdings RNS from someone yesterday or first thing this morning. Feels like some big news is imminent.