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Because the 'debt' is front loaded. They have used their cash reserves and debt facility to pay for the majority of next drilling campaign with an upfront payment. So in the years that follow they will have minimal capital expenditure on the books. The net cash position was around $170 million before they made this upfront payment. Current market cap is $168 million.
Hi Gambier, Can you elaborate how the company is worth below cash? Interim on 1st Sep states cash balance of $45.1m vs debt of $124.6m. So net debt position is $79.5m... Thanks
wow i made some here a few years back and then moved on. thanks for the informed posts. too risky to buy back in here
No worth well below cash. Crazy stuff.
Minus cash EXI now valued at $50 million (£39 million). This values each 2P barrel of reserves at 10 cents and gives an P/E of less than one. Looks like this is going to be valued at cash very soon.
Khotin could move the money out with a click of a button. The issue is where the money is going. There isn't any proper governance in this company, the CEO and Chairman are literal servants of Khotin. A few Russian media sources are claiming that this has allowed him to steal oil from Exillon , and through bribes at Transneft and sell the oil through the national pipeline for personal profit. One particular site claims it is on the verge of publishing an article explaining how he was able to steal these 'extra barrels'. I don't believe any of the drilling results or production figures over the last four years and if they were independently audited you might well see this scam. The FSA are not willing to act on this premium listed company so you can't expect them to expose him. Putin has had enough of him, he has closed his bank and now he wants his assets. Looks like the next oligarch who goes to prison and loses his wealth. He is on borrowed time.
Doesn't it looks strange - EXI had almost all cash (146 m USD) in Ugra as at Apr 27,2017. And it reported that "that its financial exposure to Bank Ugra is immaterial.". I don't believe they got it out between Apr 27 and Jul 10 when bank was taken over by authorities
From EGM document it looks like Net Profit peaks at around $100 million for 2020 with $500 million in bank. The document is quite confusing, would be interesting to see it reviewed by an expert O and G analyst as think there are many assumptions to be made and these figures might include double counting.
Putin and Sechin are reported to want Kohtins oil assets and intend to take them as 'compensation'. Exillon Energy is a listed company on LSE and so I imagine that is why the Saudi Prince is interested in this asset. Khotin knows that Exillon is worthless as long as he is associated with it, I wouldn't be surprised if he sold the lot. However, this might all be a diversion to buy himself time.
Deprivation of the bank "Yugra" license forced its owner Alexei Khotin to seek additional funds for his projects. He wants to attract an investor from Saudi Arabia to the oil company Exillon, and, according to Kommersant's information, suggests that the Saudis think about investing in Russian Oil of their partner Sergei Podlisetskiy. The owner of the bank Yugra, Alexei Khotin, discussed with Saturday's Saudi Prince Al-Walid ibn Talal the attraction of investments into Russian projects of a businessman, businessmen said yesterday. It was, in particular, about investments in the lost license bank Yugra, in the oil company Exillon Energy and the Four Seasons Moscow Hotel in Okhotny Ryad. Also yesterday, Exillon suddenly announced the holding of an EGM on August 30, which is likely to be the subject of an investor attraction. The Exillon reports for 2016 indicate that in the second half of the year the company attracted consultants "in connection with the potential M & A transaction", spending $ 5.5 million for this purpose. The interlocutor of Kommersant asserts that negotiations with the Saudis are being conducted actively, the scheme of a possible deal will be ready for the shareholders' meeting. However, he assures, Mr. Khotin does not intend to go out entirely from Exillon's capital, but wants to raise funds for his projects after the license was withdrawn from Yugra Bank at the end of July. In addition, the emergence of an Saudi prince as an investor could protect a businessman from possible attacks by creditors.
RNS statement published by Exillon on 19 July deals with this by stating "that its financial exposure to Bank Ugra is immaterial."
A circular has been published for approval at EGM, which contains 5 year investment program and cashflow forcast that shows Exillon Energy plc with almost $600 million cash by end of 2021. http://exillonenergy.com/uploads/eeplccirculardated14august2017.pdf
Minus cash market cap stands at £45 million and falling.
Minus cash this company is currently worth about £54 million. So a P/E of 1 and 2P reserves valuation $ 0.14 per barrel. Current Russian Oil company average is P/E of 9 and $2 to $5 per barrel.
Russian news today announces that Ugra Bank (owned by Khotin and where all EXI cash is deposited) is bankrupt. Khotin is claiming he will inject $500 million into the bank via 'shareholders' - the market doesn't accept the claim and it looks like the Russian central bank will have to step in and put the bank into special measures.
As to Khotins plan, he will do what he does to every business he is involved in. He buys a controlling stake in the business - takes out huge loans through that business - deposits the cash in a bank he owns (Bank Ugra) - then moves that money into accounts held in Cyprus. He is stripping Exillon Energy.
The 2017 H1 results in August ought to show a net cash position of around $160 million. Minus a likely market cap of $250 million, the company will be valued at $90 million. This produces a 2P/EV of 20 cents per 2P barrel and P/E of about 1.8. The company is 75% owned by Russians working in concert with each other. The remaining 25% free float is valuing the company as fraud - which it ought to be.
Our financial position remains strong with US$146.5 million of cash and cash equivalents as at 31 December 2016 As at 25 April 2017 our cash balance amounted to US$144.1 million. (where’s the cash generated in 4 months on 10k bopd gone, oil was $54pb) Exillon Energy plc ("Exillon Energy") (EXI.LN), an independent oil producer with assets in two oil-rich regions of northern Russia, Timan-Pechora and West Siberia, announces the signing on 7 April 2017 by its Russian subsidiary, Kayum Neft CJSC ("Kayum Neft") of facility agreements (the "Facility Agreements"), under which Kayum Neft will borrow from Gazprombank (joint-stock company) ("GPB") the aggregate principal amount of up to USD 206,000,000. The proceeds of the loans will be used for general corporate purposes. On 10 April 2017 Exillon Energy entered into a deed of guarantee (the "Guarantee") with GPB to guarantee and secure Kayum Neft's obligations under the Facility Agreements. So potentially $350m in cash with $75m as operational expenses in 2016 what are they planning to do? where is the report on payments to governments gone and why have II been selling off last 6 months, ownership is poor by II anyway, very odd indeed.
Not too far off being valued at cash
Correction, meant to say over a quarter of a billion pounds in the bank (more exactly £270 million)
Net cash position of $141 million. Add this to the $206 million loan and you have a company with quarter of a billion dollars sat in a bank. For an oil company that only spends $2 million per year on drilling its 2P reserves of 500 million barrels, that is a very bizarre financial position to be in.
That aeroplane is the most significant news of the last three years!
...another areoplane of course!