The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
I can guarantee that there is an "auto-exercise function" in this agreement which has not been disclosed. With the Call Option the deal would only "auto-exercise" when the share price reached a certain level for so many days and on specific volume. Without these conditions being met it was just a figure on paper.
There is no way that EXT will let this Put Option go through at that price without some conditions also and exactly what these are we do not know.
I think that most people can work out that with TO-14 being a no-flow disaster, and with TO-13 being in the same field and probably also very unlikely to flow, then the share price certainly isn't going to be rising in the near future. Besides, I expect that TO-13 will take the customary 2 months to flow test so the share price will drift on no news as it usually does.
The previous Put Option was worded that EXT had the option to purchase the shares from R Jennings. It also contained a caveat as copied below which appears to state that EXT would only have to make the purchase if the share price reached a certain level for so many days and at a specified volume.
"Under the terms of this agreement, EXT has the right from 1 March 2024 until 1 June 2024, to purchase up to 99,000,000 ordinary shares of the Company from RJ, representing 5.58% of the ordinary shares currently in issue, at a price of £0.012 per share. This price represents a 37% premium to the most recent closing price of the Company's shares.
The Option contains an auto-exercise function, such that it will be deemed to have been exercised if the shares trade over £0.015 as measured on a VWAP basis for five consecutive trading days and in an aggregate minimum volume of 20,000,000 shares."
Today's RNS appears to state that R Jennings has the option to sell the 99 million shares to EXT with no terms attached. Obviously, if this is the case, then Jennings would sell them immediately. But are there any terms attached which have not been outlined in today's RNS? Is this more deceit and trickery by the desperate management?
I see that the only other share that Edgein has posted about is COPL. Oh dear, that is a very bad sign.
I expect that he will be telling us that they are off to Brazil next to acquire some more (possibly worthless) assets.
Buys galore piling in with this latest 'con' RNS.
Unfortunately, the Put Option is as good as worthless while the share price is 3 times lower than the option price. And maybe Jennings might be wise to sell these shares anyway to get some profit from them as by the time TO-13 fails to flow the share price might be down to 0.10p!!!
AJMHO
16 April 2024
Corcel PLC
Put Agreement
16 April 2024
Corcel Plc (London AIM: CRCL), the Angolan-focused exploration and production company, announces that it has been notified that Extractions Premium & Mining Ltd. ("EXT"), which currently holds a 21.26% interest in Corcel, has entered into a Put Option Agreement (the "Option") with Richard Jennings ("RJ") and has cancelled the Call Option Agreement previously announced on 29 February 2024.
Under the terms of this agreement, RJ has the right from 16 April 2024 until 1 September 2024, to sell up to 99,000,000 ordinary shares of the Company to EXT, representing 4.87% of the ordinary shares currently in issue, at a price of £0.0075 per share. This price represents approximately a 142% premium to the most recent closing price of the Company's shares.
That's it, move the posts. What a complete bunch of idiots. Why dangle this carrot in front of R Jennings? Are EXT so worried about Jennings selling these shares? and if so then why? If EXT just wanted more shares they can buy them at about 0.30p - and that is about 60% less than this silly Put Option price.
Is this just another desperate attempt to bolster the ailing share price? If so then I don't think that it is going to work. And yes, the market did see through this rather ludicrous premium-priced placing and instead of getting the share price up to 0.5p it has fallen to half that.
Blimey, some bloody unicorn!!
What is going to be the difference at TO-13? If TO-14 is only flowing water with traces of oil then you can more or less guarantee that is the state of the whole field. After all, TO-14 was the 'stand out' well from the whole field flowing so we were led to believe as nearly 10 times more than the other 6 producing wells. This is just not going to happen.
I see that the market has seen through this ludicrous, dodgy premium placing already as the share price is down by 10.96%.
There is a time and a place for premium placings and it is not when they announced a failed flow test.
Funnily enough, I haven't lost money on this as I was in right at the beginning of the Angola operations. I have just checked and my first buy was on 25th August 2023 at 0.247p.
I might appear to be a bit p*ssed off because I was just expecting a good result and the share price to go to 2p or 3p or even 10p for a massive multi-bagger and a huge pay-day but that just hasn't happened (so far at least. Bring on KON-16!)
Yeah, another 6 months down the line and they will probably still "remain buoyant regarding the ongoing potential of our Angolan interests in the Kwanza Basin" even still with nothing to show for it except daft premium-priced placings.
Dodgy placing at a premium largely by dodgy EXT (which is half-owned by Karam). Over half of the sum is coming from the directors.
A clear case of attempting to cover up the bad news with a light covering of jam.
So the original field flowed at a maximum of 17,250 bopd, of which TO-14 - which now appears to be officially empty of flowing oil - constituted up to 12,500, which leaves the other 6 wells flowing at less than 1000bopd each. I won't be expecting much from CRCL's 18% working interest, if it flows oil at all.
Operations have been ongoing now in Angola since the beginning of September 2023. That's over 7 months and this was always going to be a massive operation with no expenses spared by the state-owned oil corporation. I tell you now, CRCL will be facing a massive bill for all of this drilling and testing and one thing is certain and that is that the longer this has dragged on, the bigger the costs and the bigger the bill net to Corcel.
Here's my comment: production was halted in the 1990s when the oil ran out as the well filled with water. Nothing much has changed since then - though there was one theory floating around that the field was going to mysteriously refill itself with oil right to the brim and then reflow in tens of thousands of bopd - but it looks like that was just a theory.
KON-11 well T0-14 appears to be dead -and that was always the hottest of the original 7/9 wells so that in itself is not a very promising sign.
Plus the cost of all of this drilling and testing has to come into the equation at some stage. According to the latest presentation, each well is costing $2M net to CRCL, so there is already an outstanding bill of probably around £6M that will have to be paid at some stage. How are the finances?
Besides who takes 2 months to flow test a well? The answer is no one. Sonangol haven't got a clue. Testing takes a week or two.
I'm just thinking that MAYBE one or more Institutional Investors from the USA got involved in this at an early stage when the subscription price was very cheap and the number of shares quite high and now that the company has been listed on the London market they might have decided this is not what they wanted and are quickly selling out, albeit at a very good profit nonetheless.
If so, as soon as they are gone then the rise can begin.
Maybe next week. 20p/30p is very doable and far more pre-spud.
Ignoring the current status of other Helium explorers, particularly HE1 and Noble Helium, which are both a bit stuck in the Tanzanian wilderness where they have got bogged down with rig problems and endless placings as the costs have escalated out of all proportion dragging down their valuations with it, this is a breath of fresh air in a respects.
Fully funded, drill-ready and drilling an appraisal well rather than an exploration/discovery well.
I think it is just a matter of time before this takes off.