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It certainly wil raise capitall if we can quickly raise oil production by 50% which is not beyond possibilities.
Given we have 5 out of 7 Directors on the Port Board, I am hoping for an announcement that an agreement has been reached between the Group and the Kholmsk Port to secure JSC Petrosakh as a direct supplier of fuel oil to the Kholmsk Port, as originally intended. This should improve margins and ease the working cap situation.
loans from Petraco totaling US$9 million (being the pre-export short term loan of US$5 million announced on 10 September 2018, a further immediate loan of US$4 million provided prior to loading to cover export duty etc) and cash required for operations over the Winter on Kolgyev Island. the $5 mil was to cover export and taxes $4 mil is obviously to cover working capital over the winter period .so in real terms petraco have given the company $ 9 mil in working capital in two loans . I still be leave that all the money is accounted for petraco are happy to lend what is required because of the asset of the port . the continued production of aprox 2000 bopd the directors are still pissed he went ahead with the port without there consent. strong buy for at some point after all the dust settles it will return to were it was and further. the company is worth more now than it was 6 months ago
I think Kornonov will repay. I think he will arrange a loan for his man to keep the shares.
I think he will do it to save face and restore confidence in the group.
I also think we will get some but not all back from the port and agree to release our share of funding in tranches has and when required.
"The Board believes that the outlook regarding the Group's working capital position remains substantially unchanged since the Company's announcement of 1 November 2018. The Board believes that the Group's working capital position remains highly constrained and remains subject to a number of variables. The Board believes that the Group will continue to face a working capital deficit of at least approximately US$3 million in the coming months, unless the unauthorised transactions (as referred to in the Company's announcements of 1 November 2018 and 15 October 2018) are reversed."
So why the feck are they paying external accountants to review the working cap position. Why are they preEmpting that report? And anyway, they should have a management accountant on the staff who can produce working cap forecasts under a range of different scenarios. If they've got a beef with Kononov they shouldn't be letting him directly run half the company. This flim flam is embarrasing.
On the upside, its pretty clear that the company is in okay shape, apart from this battle between Kononov and the Board.
Still this Co sails close to the wind .
Best of All
Accountants will be doing this looking to 30 June next year. So the time horizon for the company to go into admin, or Kononov to stump up $3m has gone from end of last month, to end of this month, to soon, to middle of next year. The Board are a joke, they've lost all credibility over this. When's the AGM?
Decent load, price to be determined over the next week. It will provide enough money to repay loans and fund ops for Arctikneft over the winter. I am guessing that Petrosakh generates sufficient funds to wash its face, so the working cap shortfall must relate to fracking fleet, divi, and other aspirational stuff. Be interesting to see what the accountants report says. Although I bet they never publish it. Seems clear Kononov isn't going to repay, and they're long-grassing this affair.
I saw that the MMs absorbed a pretty big sell today without slamming the price down. Interesting.
SP Slowly rising. Just Quoted 36.4 to sell v 45p buy. Brent just under $70. tanker money paid for next week. GL.
The answer is yes, we do get a premium over brent for our light sweet oil.
I freely admit that I lose money on some trades, but I make money on others. And, on balance, I make more than I lose. Although most of my assets are property, for personal income I rely solely on trading, and have for the last 8 years. I'm still afloat, and my trading nut is growing. I expect to make money here because the company is patently not going broke, they're just having a boardroom squabble. I don't really care who comes out on top, but when the fight is over stability will return, and in the meantime this is ludicrously cheap. I don't expect every trade to be instantly profitable.
Oh dear, one of AIM's "you can't lose until you sell" losers.
Two a penny I'm afraid.
Enjoy your losses here
Do we get a premium over Brent because of the quality of the oil produced by Articneft? (Special light crude). I ask because the previous tanker RNS said "This pricing will based on the arithmetic average of the quotations for Brent DTD published in "Platts Crude Oil Marketwire" for the five trading days after the date of the bill of lading. The date of the bill of lading is 12 July 2018". But the price of Brent during those five days in July never reached the US$76.46 price achieved, let alone averaged it. Every dollar extra is around $158,000 more for the company, so not to be sniffed at.
Lol 4kandals, you're a legendin your own lunchtime. If you have to tell other people you are smart, you're maybe a little insecure. I haven't lost anything, or made anything, on this trade yet. That will only crystallise when I completely close out my position. A really smart person could work that out for themselves.
You seem a bit obsessed by me Urraca but you're wrong again, I only post under one name. I understand your confusion but it's worth remembering there can be more than one smart person in the same room.
How much have you lost here now?
So, Gambier. Joined on Sunday. Two posts. The first a blatant deramp, the next getting on the high horse when called to order. Is that you 4Kandles, with another id, by any chance? You've got the same insufferable, patronising, know it all attitude.
List the 3 main sources etc? Sure, buddy.
1 URA
2 TWA
3T
Bribes and threats worked for decades for GLEN, Rolls Royce, every bank, SPD, etc and most other ftse listed UK companies, Also works very well in the USA most companies there have a very checkered history. if anything I would say the low UEN price shows IF they are doing it - then they are not doing a very good job at it.
No, bribes and threats of violence is exactly how business is carried out in Russia - it is normal practice. You do understand that Russian stocks listed in the UK are subject to frauds? EXI, JKX, RPO and UEN. You do understand the origins of UEN, don’t you? You do understand that UK regulators have zero control over the activities of Russian management and accountancy firms find it virtually impossible to authenticate internal documents? You haven’t invested here not knowing this ? You sound like you have no understanding of the history of UK listed companies operating in Russia. Enlighten me, list the three main online sources that post information relating to frauds within Russian UK listed companies (that the Russian government keep trying to shutdown). Please don’t tell me you have invested here without referring to these sites daily.
Bribes and threats? Lol Gambier I think you're getting a bit carried away there. Getting a foothold in the Sakhalin Port was a stated strategic aim of the Company, elections to the Port Board were imminent, and Kononov had to move fast to secure control. My guess, for what its worth, is that he knew if he referred it back to the main Board for approval, by the time they'd stirred themselves to have a look, the opportunty would be long gone. And nothing he did was illegal, as the 15 Oct RNS makes clear.
If he buys the rest of the company now, he could probably flog Arctikneft for the cost of his outlay and have Petrosakh for nowt.
The fall to < 30p was well justified, I’m surprised the initial news of the complete lack of internal controls didn’t immediately bring the SP below 30p. Manage to absolutely correct to inform the market as they did (they were obliged to in any case) . My guess is that internal controls were in place but bribes or threats were made to override them. 30p or below is a fair punt.
The difference i expect is that Petrosak has used most of its rolling $5m credit facility with siberbank. Confirmation of an extension to this facility which is up for renewal January is what needs to be sorted out. This is why they are doing the audit on the petrosakh Subsidiary. Once the accountants have signed everything off they will hopefully be able to go to siberbank and get confirmation of renewal (and maybe up it?) It also depends on wether siberbank see petrosakh using this facility for personal loans as suitable use for the facility, this may have been against the facilities t&cs. They have always made lots of cash from UEN so I can’t see why they wouldn’t renew it, they have more assets to secure it against now.
& Negative net working capital position on 30 June 2018 of US$3.5 million (2017: negative US$1.8 million)
What has changed since September Half Year Results to cause all these problems ? If anything it looks like we are better off as all the unauthorized transfers have been absorbed.
Amidst all the doom and gloom, the Company managed to pay down $8m debt back in August. With this clear evidence of revenue generation and a willingness to repay loans, a long term funding arrangement should be relatively easy to secure. An announcement that the company is now the fuel supplier to the Sakhalin port will help too.
Itisagame - thanks for taking the time out to respond. I will have a read up now.
Finances might be tight but they didn't need to threaten insolvency ! Looks like they have totally back tracked and kicked any month end threats into the long grass as they have enough money to throw at an Audit which will take a few months when they could have carried it out internally without crashing the share price. How much was a fracking fleet going to cost FFS !
Want my Divi back on the table GLA