The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Ibiza28,
I have to disagree with you. Everyone I sure is mindful of the loss of life in Morocco and wish to extend their condolences. However the reality of life is that people still have to eat. Therefore bakeries across Morocco will be conducting business, according to specific circumstances, and it stands to reason everyone else not involved in the rescue efforts or associated tasks, will be getting on with their lives as best as their prevailing circumstances allow. I see no reason why PRD, which is at the opposite side of the country, should not be doing the same.
AGD62
Hello All,
On the discussion of shareholder dilution, I wish to add my tuppence worth.
To me it has always been obvious that at various stages the company would and will need to raise funding or issue shares to meet its option and warrant obligations and now the loans to Paul and Lonny. On this basis I use 500 Million shares as a n estimate of how many shares may ultimately be in circulation. I know there are other here are using the same or similar estimates. Currently we are less than that number, but it is only an estimate so if the final number is sightly more I'm still not going to lose any sleep.
On the presentation on 18 May, Paul was very assertive, and in my opinion rightly so, in that he would no apologies to anyone for the debt finance that had previously been taken on by the company. It was necessary at that time and was repaid at the earliest opportunity. Paul and Lonny, clearly, and rightly, prefer the option of raising the necessary funding via the issue of shares. The temporary lending of their shares to the company to achieve this, is keeping the lending internal, the importance of which two fold (a) crucially there is no external party pulling strings for repayment of the loan at the most opportune moment for them, which is inevitable the worst possible moment for shareholders, and (b) is a statement of their confidence in the company. I'm fully supportive of their approach to fund raising.
Now here is a thought I've been mulling over for some time, in the introduction of 18 May presentation Paul said " ... and make so much money collectively for our true and loyal shareholders..." which made me thing about how could you differentiate between any shareholder and a true and loyal shareholder? Could it be that once inward cash flow starts happening, there may be within the mix of allocation of those funds, between funding operational activities and distributions to all sharerholders, hopefully from my perspective as special dividends (return on capital), could there also be a partial buyback of shares, which are held in treasury as a reserve stock, or to be cancelled. A sharebuy back should result i increase in value of those shares held by the the T&L shareholders as well as increasing their share of future distributions. Just a thought, which is open to discussion.
Best wishes to all
AGD62
Bodazapher,
If you were, are invested in Sound Energy, you would know that Sound has a very good asset, hence the continued interest the company and the Moroccan authorities have in bringing it into production. The drilling of that asset was badly handled and that is what completely ruined the investment prospects of the then shareholder based. Also you will know that that there was a lot of debt financing. I will say no more in case it could be libelous.
But you know or should know all this. So you being here can only be to try to unsettle those shareholders her who are nervous into selling their shares. That being the case then the shame is all on you, which I know that right now means nothing to you, but which in time will come back to eat at you.
I will not converse further with you.
AGD62
Hello AndrecolsB,
In response to your post of 09:31. Jersey does not have either Capital Gains Tax or Inheritance Tax. Therefore in respect of the sale of shares and subsequent reissue at a discounted price there will be no tax charge.
The one proviso I have heard of, and it is in Guernsey and in respect of real estate, is that if an individual is a frequent buyer and seller of an otherwise tax exempt asset class, then the tax authorities may inform inform the individual that if they persist in that pattern of behaviour that they will treat the activity as trading and as such it would become, from that point onwards, subject to income tax.
The tax regimes of both Jersey and the Bailiwick of Guernsey (that is all the other Channel Islands) although having separate tax laws, they are very similar.
I live in Guersey, hence my interest in this area.
I hope this is helpful.
Best wishes
AGD62
Hello All,
After yesterday's (Tuesday) RNS I had a fantastic day with the family and a friend.
Since I started investing in PRD I have spent a considerable amount of spare time reviewing this board, poring over all available information and frequently asked myself the question, "What have I missed that would indicate that this investment would be anything but successful?". Yesterday that was answered, "Nothing".
Now the question becomes "How big will this prove to be?", the answer to which I will comfortably sit back and watch unfold.
Regarding today's RNS, I have read it several times and see it to be nothing but unequivocal. How it could take up so much time and energy is misdefying.
Finally, regarding the carrying of a sedan chair, I will rule myself out on the grounds that were I to attempt it, it may need to be converted into a stretcher for me.
Good luck all
AGD62
Hello All,
I have not posted for a while, although I have been reading the board daily.
Last night I got a sense that certain individuals were very relaxed and I struggled to sleep in anticipation. When I saw the RNS this morning a sense of relief came over me, but I was obliged to go into work to complete a task. As soon as that was done I took the rest of the day off.
After so many year of being invested not only here but in another company not more than 120 Km south (which didn't deliver), there is absolutely no way I'm not going to enjoy today to its fullest and I want to remember it.
I'm going for a celebratory drink this evening with family and friends who are also invested.
Praises to Paul, Lonny and there team for getting us here, albeit a check in point along the path.
Thanks to all who have contributed positively to this excellent board and especially to those who have shared so much relevant knowledge and experience. At times I felt that I had enrolled on a three year course on the basics of geology.
Thanks all and enjoy this day.
Best wishes
AGD 62
I feel li
Hello Shagged,
Well that is a concern. The question is was it at GRH's request or has someone else instigated this. I see you can still scroll back through posts to find his, but as you said the poster link is down.
AGD62
When on a tiger hunt, the one key thing to success, is to know what a tiger looks like.
Paul and Lonny know their tiger. The hunt is just about over and they just need to bring home the rewards.
Mem, thanks for your post and I'm glad if it was of benefit to you. Regard your comment on the Paul's communication skills, well I can live with it.
Best of luck to all,
AGD62
OilyFred,
There is some absolute nonsense is being spouted on here by certain posters!
If you listen to the podcast at 20:40 and 20:45 Paul clearly says "say for example" 40 BCF at $16 they are "estimating" $150 - $200 Million with a 10% discounted NPV.
How anyone can conclude from "say for" , "example" and "estimated" that this is the agreement he is/has structured is beyond my comprehension. I suggest that this needs to be relistened to.
AGD62
Hello All,
I'm glad to see that there is confusion on the board and it's not just me loosing my marbles.
My take regarding Morroco, looking at everything that has been discussed to date and culminating in today's podcast, which I would like to run passed you is as follows;
"Look we,ve got this licence area which we believe from our 2D data to have huge volumes (TCF) of gas and there is also oil. From that 2D based data we have correctly identified and proved a small 30km square area with a commercial amount of gas which is ahead of the existing CPS reports and therein gives great credibility to all the 2D data we have over the rest of the licence area and we are currently having /arranging for a revised CPS report covering all our interests. But as a small operation without the resources to exploit the full potential of this whole licence area or within the available licence term, we now is the time to sell to the big guns in the industry.
In the forthcoming negotiations they need to be aware that (a) We have chosen as our proving up area a location close to the road network, so we can start selling CNG immediately, thereby eliminating any future cash concerns, so time is on our side to some extent. (b) We have proven our 2D data is accurate, if the eventual buyers want to carry out 3D data that is the prerogative, but its not likely to add or detract significantly from what is already showing in the 2D.
Now we expect to prove up with MOU 1 & 3 approximately 40BCF which should translate into US$ 150-200 million, for which we want to be paid upfront. We may also drill a new well, MOU4 and complete MOU3 which should add to this volume and pay-out. For the untested part of the licence, we should look to accept a 10% royalty on what the buyer(s) in their turn prove up. "
So my take is that we should in the next few months expect a payout based upon 40 BCF+ with future royalties over time of the proven extractable balance of a possible 19-20TCF. If that is the case then the question remains when could shareholders reasonably expect royalty payments to start be generated?
Well that's my take. If it is considered incorrect, please would you pull this constructively, to shreds and reassemble.
AGD62
Hello GRH,
I applaud your stated intention regarding your grandson's endeavour and as asked I have made a small donation, which I also consider a small token of appreciation for everything you have so freely shared on the board.
AGD62
Hello Jonmo91,
Thanks for the reply and clarification and perhaps I should have addressed my post to Porters. Regarding the Sunday Brunch presentation, I think PG was simply laying out the next part of the drill programme. He had earlier on referenced, getting the appropriate mud in not only for MOU2 but for a subsequent 1 or 2 drills. As for laying out financing plans, I wouldn't have expected him to do so on that forum, but I got the sense that he has this covered.
Looking forward to developments
ATB
AGD62
AGD