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One of the main criticisms of Ocado is that it's not profit generating.

With yesterday's reveal I believe this will change in due course.

GLA

https://www.thisismoney.co.uk/money/markets/article-10381647/Now-Asos-targeted-short-sellers-bet-1bn-tech-titans.html

Keep your wits about you. Don't sell or maybe even top up if your research concludes SP should be much higher.

GLA

I stick to my words, if S2 fails get out.

I just sold everything at a big loss, but at least I won't be checking this failure of a company every day.

Annual report to be published soon and it doesn't take a genius to work out that it's going to be blood bath.

I serious think there is a strong possibility that the auditors won't sign off the company as a going concern (for those unfamiliar to the term, going concern is a good thing in financial statements despite the word "concern", it means that the auditors reasonably think that the company will continue to operate for the next 12 months from the signing date).

SP will definitely take a hammering once the annual report is out.

Good luck to everyone else - you will need it!

Where can this company go moving forward? With S2 results like this, no funders will touch CEG with a barge pole.

$3m to get 81 bopd...S3 isn't happening!

The only way out I can see is if they sort out the LC and start extracting that oil successfully then maybe just maybe someone will give them a chance to drill S3.

Or are we going to start banging on about Suriname being the next big project?

Morning Starchild,

I just want to understand your mentality on CEG.

Is there something you're seeing or hearing that the majority of others aren't?

I do like your posts, it's full of positivity and it's nice to read them.

Lately you mentioned you've been averaging down via quite a few trades. Last week Friday you bought some at 1.7655p, then on Thursday you bought more again at 1.625p then again yesterday 400k shares probably around the 1.6p mark.

Does it not worry you at all that as soon as you purchase some shares, there is a new record low the next day?

This isn't called averaging down if the goal post is forever moving.

I'm still in and I'm not going to sell despite a massive loss. I also had the intention of averaging down over the last couple of months but decided against it when the bonus shares RNS came out followed by silence from the company on the term sheet and S2 results which to me is many times more important than some potential "farm out".

When they announced the OO / placing offer at 3.5p I really wanted to buy but I didn't.

When the price dropped to 3p I really wanted to buy but I didn't.

When the price dropped to 2.5p I really wanted to buy but I didn't.

When the price dropped to 2p I really wanted to buy but I didn't.

Now will the price drop to 1.5p (currently buy price at 1.57p)? Million dollar question - should I buy at this "bargain" price?

Fool me once shame on you, fool me twice shame on me.

If someone invested only a month ago at 2p which I'm sure at the time a lot of rampers were shouting bargain, they would be 20% down today.

I've never seen a share like this before - so much hatred from investors and even with good news like "expected" S2 production results based on S1 knowledge, farm-ins / outs etc. The market just doesn't care and SP continues to decline.

As Starchild has always mentioned, the market has valued a lot of CEG's "asset and potential" at zero rightly or wrongly and it doesn't seem to be changing anytime soon.

The only thing that will cause the SP to head north rapidly is news based on fact, not speculation or potential because nobody is cutting CEG any slack.

Brutal

PS whoever this individual / group / company / institute / that keeps buying 2 blocks of 500,000 shares at the end of the day.

I'm liking you!

Agreed - CEG likes to drip feed news for some reason.

We got the P1 update yesterday - we won't be hearing anything else for the rest of this week.

Who knows, the mandatory annual report release might beat the S2 production update at this rate.

CEG could have easily posted 2 RNS's today but with nothing on S2 still, the cynic in me can't help but think they are trying to divert attention away from the results.

The only positive parts of the RNS this morning.

1. The legal proceedings dropped - one less thing to care about.

2. Farm out - talks about due diligence and data room but again I think this is just noise because only a month ago the CEO himself said the Bahamas only plays a small part of the company portfolio.

Personally the RNS this morning wouldn't attract me to invest further.

Morning Starchild,

Can I just step in?

"Perhaps you can explain what you would have done differently if you were the CEG BoD"

Umm perhaps more communication? Literally the most basic method of keeping your shareholders invested and to attract new shareholders.

Companies can have the best product and ideas but if the only communication I have with them is the initial product pitch, then you can count me out (if I had only known this!)

Questions:

1. Term sheet with Arena, what happened to it?
2. Bahamas license any updates?
3. P1 autopsy?
4. Financials for the company (Stena debt? What's our cash position?), CEG can't slither out of this one - annual report due next month and all will be revealed.
5. Best till last - S2 testing. Not even sure what's going on anymore, are they still testing? Which section? For the sections they completed what are the results? If still ongoing how much longer?

All questions that the BOD will know the answer to but choosing to completely ignore shareholders.

I'm a fair person, if S2 fails then that's on me willing to take a chance on this drill.

But if I could have made a more informed decision on my investment had CEG been better with communication about all of the questions I asked above then that's on the BOD.

Lets remove the P1 failure from the equation.

Would you really trust a company which went from 6p down to 1p in 6/7 months?

I said it before and I will say it again - if S2 fails, get out whilst you can.

The image CEG is giving me right now is a sinking ship, the captain and crew isn't telling us anything apart from a memo telling us a "rescue team" is coming two weeks ago.

Not sure if they will come, not sure when they will come, and when they eventually arrive - how many people can they save?

Another day of no news = another day of SP slipping down.

Investors will judge whether this merger was an act of genius or just kicking the bankruptcy can down the road.

I want to believe S2 will be a success but with 2 weeks of no news on multiple fronts - it's looking bleaker by the day.

We might break the current record low by the end of the week if we don't receive a positive RNS soon.

If communications continues to be this diabolical, investors who took a chance at around 2p will already be down 15% by the end of this week.

DavidBrent - I'm looking forward to it because I'm invested in the company so whether good or bad or meaningless it's in my best interest to know what's going on.

Otherwise why stay invested in a company you don't want to know anything or care about?

I assume you're posting on this board because you still care, whether that's out of love for the company or hatred for the company I will leave that to you.

Thank you Starchild - good points put across.

Again to put forward another perspective.

1. Why should the BOD consider alternatives to self funding S3 to S9? S3 to S9 will only go ahead IF S2 was a success. In the instance S2 delivers, why give away a good thing? Arena has already said they will fund the first tranche of the Saffron field development and the second tranche of money will come in subject to the first tranche being a success.

As an investor the potential to drill 30 wells that are all successful says a lot more to me to stay invested / keep buying into CEG over a farm out where we will see one huge surge in SP then gradually decline again until the next "good idea" comes along.

Like I mentioned in previous posts, CEG drilled 2 Saffron wells now. Their drilling risk will be mitigated by the knowledge and technology they already have. The only risks now such as amount of oil and oil flow etc are outside CEG's control, farm out or not.

If all goes well, the Saffron fields will allow them to consistently generate large amounts of cash to fund further projects i.e. stand on their own two feet.

2. Re the Arena deal. Why are the BOD not providing investors with an update about whether that funding has finalised? The exclusivity deadline was end of July. A simple sentence this morning saying yes it's signed, no we extended it or even we are looking at other options will show investors that CEG is on top of things.

Right now investors can take this 100 ways with the worse being Arena pulled this deal and CEG has no funding to take things furthers.

Going back to the Arena terms, it's simply the case of beggars can't be choosers. Let's not kid ourselves into thinking CEG isn't literally knocking on every funders door asking for money to fund the Saffron project. The only thing keeping this company afloat right now is the fact that the field has potential.

3. You mentioned the point about if P1 was successful, that investors would have kicked off that we didn't farm out and instead spend $60m on taking it one step further. I agree with this but the difference between Percy and Saffron, is that the Saffron fields cost relatively nothing to drill one well compared to Percy.

BOD and investors can drill one well at a time and play it by ear.

Like everyone, looking forward to the next RNS.

GLA.

Thank you Starchild - a good read.

Just a couple of points I'm putting across for others to think about:

1. Does CEG still have $10m sat in the bank as at today? It's been 2 months since they gave us that figure. Would be interesting to know what their cash balance is now and what they used to pay for company cost and S2 costs.

Is that $10m to Stena finalised? If paid in shares, yes the company will hold that cash but be prepared to see some serious dilution because of it.

2. Agree with PoO.

3. Not sure where the idea of a takeover is coming from? Speculative? In which case the market is going to ignore.

4. Add cash? Where from?

5. Tax credits can't really be used as an current asset as an action is required for this to be crystallised. It's like having a safe full of gold bars and you don't have access to the key (yet or ever will).

6. Percentage to use?

7. Agree that it is worth "something" but with the lack of news recently, I doubt unless CEG gives an RNS saying they plan to do something with it (which I doubt will be in the next 1 or 2 years as CEO openly said Bahamas only play a small part in the portfolio and they don't have the cash to do so). The market is going to continue to give this a 0 value.

8. Same as point 3, not sure where this idea comes from.

9. True but I'm not even going to think about what this will do to the SP.

10. Did it succeed? Only 38% of shareholders took the deal. The rest were sold to institutional investors. I think the 38% is the key figure to walk away with. That only slightly over a third of the investors thought this was a "discount".

Conclusion: I agree that if S2 succeeds, then CEG is undervalued. I disagree that the SP will soar because this is only one well and is not enough to turn the company around. It will increase but not soar.

If they continue to drill wells (S3, S4, S5) and they all succeed AND an annual report is released showing CEG can stand on it's own two feet then the SP will soar.

If S2 fails I argue that the company is over valued i.e SP will continue to fall. They will be carrying a lot of debt (especially if they signed the Arena agreement which I will be annoyed at BOD if they don't release an RNS tomorrow to confirm whether they have signed it or extended it or in talks with someone else), have expenses to cover on a daily basis and the only thing they have in their pipeline is the Suriname field which CEO already said is a smaller version of the Saffron fields.

I think talking on behalf of typical investors, after the P1 fail, if S2 also fails, no one will even bat an eyelid at Suriname.

On that note, I'm still in but this is a very high risk play.

GLA

The bid ask spread is crazy - 1.7 sell and 2 buy (nearly 18%)

This spread is determined by MM's due to the share being illiquid and in order to offset the risk they are widening the spread.

Either way, the spreads are telling us that CEG is either going to fly or drop very soon.

Onlybpc - you thinking of averaging down?

Could be that they are playing it safe and taking extreme precautions to ensure the whole process gets to the production stage and hopefully oil into barrels at the expense of time and costs.

Because let's face it, if S2 flops, we can all say goodbye to CEG.