Lidsey Debacle Under Lucan15 Apr 2021 09:17
Why did Lucan sanction the acquisition of an additional 20% of Lidsey (not forgetting Brockham) from Doriemus for nearly £500,000 and then for the auditors to go ahead and wipe off £600,000 due to "reflecting the estimation uncertainty of future exploration and production in this area."
And they even stated that "there is a risk that the carrying value may need to be reduced further if the production rate or reserves quantity are not in the line with the current estimates of management.”
Are the auditors being told the full picture and investors left out in the dark?
On Page 8
“…on 26 February 2019 the Group agreed to purchase Doriemus' 20% interest in the Lidsey Licence, PL241 (the "Licence") including its 30% direct participating working interest in the Lidsey-X2 production well, for £467,377 of consideration payable in 8,324,024 shares based on a 20 day volume weighted average price (VWAP) at close of business on Friday 22 February 2019 of 5.6148 pence. This transaction was completed on 18 April 2019 as a consequence of which the Company now has an 80% interest in the Licence.”
On Page 55
“An impairment of £0.6 million has been recognised for the Lidsey assets, which has been based on the recent purchase consideration of the additional 20% interest, as well as reflecting the estimation uncertainty of future exploration and production in this area. Subsequent to any future drilling or production at Lidsey, there is a risk that the carrying value may need to be reduced further if the production rate or reserves quantity are not in the line with the current estimates of management.”
https://www.angusenergy.co.uk/wp-content/uploads/2020/03/Angus-Energy-PLC-Annual-Report-2018-2019.pdf
Sign In
Follow the stocks
