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Actually for a company half-owned by the Executive Chairman to publically announce that they are going to purchase some outstanding very cheap warrants once exercised (as they are now) for a very bumped-up sum is about as dodgy as it gets. Shame on them!!

I'll repeat this post:

Yes and maybe the exact figure to be paid by EXT to Jennings for these shares should be kept private. Maybe they should leave it that they have taken ownership of the 100 million shares for an undisclosed sum.

That is because EXT has not as yet purchased these now-exercised warrants for a bumped-up sum. As of yesterday's RNS, Corcel has received £210,000 for 5.58% of the shares in issue, which actually represents a rather large dilution to existing shareholders, so yes, the share price should have gone down.

No doubt if it goes down too much then EXT will step in to bump it back up.

My point is that I would rather see the flow test results and the less dubious goings-on in the meantime the better.

Yes and maybe the exact figure to be paid by EXT to Jennings for these shares should be kept private. Maybe they should leave it that they have taken ownership of the 100 million shares for an undisclosed sum.

All EXT are doing is creating a 'false market' by bumping up the share price. CRCL or their shareholders are not directly benefitting from this 'dubious' announcement though no doubt EXT, as holders of 25% or whatever of the total shares in issue, will seem to benefit.

At the exercise price, which is all that CORCEL have received in monetary terms for these warrants, the m/cap was £3.93M. That was in fact rather harsh dilution, now being covered up by the 'dubious' goings-on of the Executive Chairman.

In fact it all seems to be aimed at protecting or bumping up the share price at a time when the flow test results should be doing just that.

The only figures that count are that Corcel got £210,000 for 100 million new shares.

The fact that Jennings is due to make between £1.2 and £1.5Million for this outlay of £210,000 is not of the slightest difference to CRCL or their shareholders nor is the information that EXT, who already own a huge part of CRCL, no doubt acquired equally cheaply, are going to acquire even more. EXT also have a very large Loan Note in operation, which would see them acquire even more of the company, possibly at the expense of shareholders and even Institutional Investors getting a 'fair' chunk.

In my opinion, there have been a lot of very poor posts on here recently regarding these cheap warrants that appear to be by posters who are getting a little too desperate to see the share price bumped up by whatever means possible.

Personally, I would hope/expect the share price to rise on good flow test results or other similar positive news and not because the management here has offered to buy some very, very cheap warrants for a bumped-up price.

As it said in the RNS's, these 100 million share warrants when exercised represented 5.58% of the total shares in issues and with an exercise price of 0.21p raised £210,000 for the company (at I might add a m/cap valuation of £3.75M, a figure that has been left behind and exceeded many times by the progress made in Angola).

A company half owned by the Executive Chairman, A. Karam, which already owns quite enough shares in CRCL, then publicly announces that it is going to buy these 100 million shares for a price of between 6 and 7.5 times the price they were exercised at. Apart from the very dubious timing when the management is obviously in a 'closed period', this doesn't make the slightest difference to CRCL or the amount CRCL received for these warrants or even the share price, which actually was badly diluted by the large, cheap exercise of the warrants.

Jennings stands to make a lot of money from this sell/purchase but then they would have been easily able to sell this amount on the open market, or even wait for the share price to rise further on progress in Angola.

Why exactly the management further increasing their already large holding or the high profit made by Jennings should make any difference to the share price or be good for the shareholders is quite beyond my comprehension. All CRCL have got from this exercise is £210,000 no matter who owns these 100 million shares and as this represents 5.58% of the total shares in issue the exercise can be seen in the real world to be little more than a rather harsh dilution to shareholders.

AJMHO

Yes, if this transaction goes through before the flow test results then it will be 'insider trading' without doubt.

For a start they will be creating a 'false market', as the purchase price at 1.2p is way over the current market price and a substantial quantity of shares changing hands will influence the share price. That cannot be allowed, especially when the transaction is involving the CRCL management and particularly when there is important news due imminently.

Plus, as Karam is both the Executive Chairman of CRCL and joint owner of EXT, there is no way this transaction can proceed without it being an insider deal full stop. As soon as the flow test results are out in the public domain then that is fine but any transaction before that will be an absolute and clear break of market rules. I'm surprised that the management here are potentially making such a mess of this and even arranging the option agreement during what can only be a 'closed period'.

Plus if the flow test results are not very good they will look big idiots anyway.

No accusations from me either - though I can guarantee that they will not get away with it.

I disagree. It doesn't mean anything. And some posters on here want to do some research and work out who EXT are, as they are not going to be putting in a bid for the company at any time. Maybe Edgein can explain that to the board, as he seems to be very good at explaining what is going on here to the layman.

Yes, I was certainly getting carried away with the potential flow rates - that is they ever appear - with figures such as 12,500bopd and 15,000 and even 20,000 bopd being bandied about but the reality is that they are probably more likely to be around the 2,500/3,000 bopd (with CRCL on just 18% of that). And if the flow rates are higher than the 2,500/3,000 bopd then it will be a bonus and might see the share price rise further.

Corcel Plc (London AIM: CRCL), the Angolan-focused exploration and production company, is pleased to announce that it has received notice of the exercise of 100,000,000 warrants at a price of £0.0021 per share, for gross proceeds of £210,000, which have been credited to the Company's account. Accordingly, the Company has issued 100,000,000 new ordinary shares of £0.0001 each ("Warrant Shares") in the Company.

Stupidly cheap warrants exercised at nearly 5 times less than the current m/cap. A lot of dilution for not a lot of cash. At the current market price 100 million shares would cost over £1 M but all CRCL have got for them is £210,000!

Yeah, and we might finally hear what is going on with Mt Weld and Canegrasse - news of which for both is now months overdue. Very poor communication here, IN MY OPINION.

Well we shall see when we FINALLY get some flow test results out.

I can just imagine that we have been waiting around all this time for flow rates of 2500/3000 bopd. Blimey, drilling here started in early September - that's 6 months ago. How could anybody take so bloody long? And all the time a complete silence from the management.

"Historically Tobias wells produced 2,500-3,000 b/d, Geraldo said."

If the flow rates come out at 2,500-3,000 bopd then this won't be much to get excited about as CRCL only has an 20% interest which means 500-600 bopd net to CRCL.

The bottom appears to have been at about 0.04p last October - which is probably when the farm-out talks got serious. No one who has bought in here today has ended up in profit so far. Is that about to change? It doesn't look like it to me. Maybe if it goes back to yesterday's close at 0.125p we can all try again.

All in all a bit of a damp squib here - unless of course you were holding before today's news.

I suppose the bottom line is that CEG won't get the initial payment until the deal is approved:

" Completion and financial close of the Transaction will be subject to the satisfaction of conditions precedent and customary third-party approvals from the Uruguayan regulatory authorities, which are anticipated to take several months to finalise - the parties have commenced engagement with the regulators." So this will take several months.

Then the 3d seismic is due to be done within the original 4-year exploration period, which finishes in August 2026:

"The proposed farm-out of a 60% participating interest in the AREA OFF-1 licence to Chevron (pending regulatory approvals) aims to facilitate and fund an accelerated 3D seismic acquisition (and associated interpretation work), with the intention being that such 3D seismic acquisition will occur during the initial four-year exploration period."

Then Chevron will decide whether they will drill an initial exploration well: "Following the 3D seismic campaign, should Chevron decide to drill an initial exploration well on the AREA-OFF 1 block...." so that is not even guaranteed.

All in all good news but making real progress is still months and even years away in the future hence the lagging share price.

AJMHO

Great news and a super farm-out but for anyone buying in today this has been a total and utter disaster............. what an absolutely pathetic b*lls-up of good news!!!!

I can't see the sell for that trade but I can see a trade for 2,372,262 at 08.01 at 0.274 for £6,500 that sold at 08.49 at 0.1881 for £4,462 at a loss of over £2K. Crazy!