Member Info for Breq

rxdav, Glad to raise a smile on this somewhat crummy day for the IOG share price.

Can't help but think IOG and RRE should be working together on this. IOG obviously pretty desperately need money and RRE are probably still keen to buy in (unless the falling UK gas price or some possible really horrible clause in the IOG/LOG loan contract is putting them off).

Me I'd offer for the shares and sweeten the deal with some kind of royalty component - if the IOG gas fields are good then IOG shareholders get some of that upside. At the moment they are just being diluted too much as I see it.

Firstly, very sorry for all IOG shareholders. None of us want fellow investors to suffer losses.

Anyway, changing the subject, a few weeks ago I offered a neighbour I'm very fond of ,Col RX Dav, £ 1 m for his house, In Orchard Grove. I'd heard he had a high interest mortgage from a bank which had just gone into administration because it couldn't pay its depositors. The mortgage repayments started in a few months and the Colonel had no obvious income to meet these repayments. He rejected the offer as derisory and when he heard I'd gone to the bank and offered to buy the mortgage off them so some of the depositors' money could be repaid ASAP he retold everyone who would listen I was seeking to take advantage of the depositors.
Today I heard he had agreed to sell half his house for £ 250,000. So half the 'derisory' price I had offered just a few weeks ago. So I went round to talk to him but he wouldn't answer the door. He was obviously watching one of his favourite films The Deer Hunter as I could see through the lace curtains a man holding a pistol to his head and the sound of manic laughter.
Walking away I bumped into his neighbour General A Alamein who had tried to help and guide poor old Colonel Dav in his troubles. Apparently during his military service Colonel Dav was taken captive by the sinister cult Badisgood and whilst in captivity unspeakable advantages were taken both of his body and mind. For example he was stripped, his hands and feet tied behind him, and made to type out on a computer Badisgood Badisgood hundreds and hundreds of times. Whilst in captivity, a crack team including Majors Dunderhead, Workover, UnityTwo, Siberian, Jimmy00 and Denzill bravely managed to reach the Colonel and show him an escape route. He refused, suffering from Stockholm Syndrome, and kept typing Badisgood Badisgood Badisgood.

rxdav,

Ha ha love it. I should think with you sitting round the board table there would be some pretty sweaty AIM company directors. ( Not IOG I emphasise.)

Come to think of it maybe there's something there - 'Improve your corporate governance or we send in the Colonel !'

t35,

The Guardian article was quoting the S&W report not just spouting 'media tittle tattle'. It's S&W who consider suspicious transactions involving connected persons have occurred.

600T,

No one has suggested IOG have acted improperly. It's just they may be at the end of a chain other links of which involve pretty murky financial wrong doing. The problem is, we the investors don't really know how that could affect us or prospective partners. Will prospective partners just decide it's safer to keep their distance until there's more clarity. Any prospective partner would have to be cash rich (like RRE) or with access to good banking arrangements. Maybe their boards will just say 'stay clear until we know what the legal situations are'.

By the way the latest guidance by AA of RRE is RRE will be producing about $ 200m a year in cash flow post Marathon, so buying IOG or it's assets should be doable even allowing for a higher share price offer. And it has something close to $ 100m in unencumbered cash in the bank right now.

I must emphasise IOG have been and must be acting as they think best, but with everything going on with LCF and LOG maybe it's time for PIs to be better informed of all the potential issues so they can make their investment decisions with maximum info ?

Interesting article in the Guardian today covering more grim LCF news.

S&W the (LOG and) LCF Administrators report 'a number of highly suspicious transactions involving a small group of connected people'.

That's why I've yet to buy IOG shares - if ( and we'll only know for sure when everything has gone through the courts) the whole LCF thing was a complete scam what was LOG's role ? There must be concerns as the chairman has been arrested and the majority of money lent by LCF to LOG has gone into situations where the money looks irrecoverable.

How does that effect IOG ? Could S&W take the position that, as this may be a crime situation, all funds should be returned to the administrator ASAP ? Would they do this ? Could they under the IOG/LOG loan contract ? I know S&W appeared supportive of IOG last week but recently they've requested Surge (the marketing company paid by LCF) return the commissions they were paid. Maybe S&W are finding out more as the days go by and getting tougher on third parties.

I'm wary that IOG didn't even want to show cash rich RRE the IOG/LOG loan documentation. Why ? Was there a clause in it which could be a vulnerability ? Who knows, but I think soon the IOG shareholders should be given some clarity. Maybe its time private investors who seem to be the bulk of shareholders ( that's owners) in IOG should be allowed to propose a board observer to IOG's board.

rxdav would you step up to the role ? You've got the military training to hopefully do things properly.

Thanks rxdav re the humour.

Actually this may surprise you but I don't really see myself as fighting the RRE corner even though I do have quite a few shares in them.

I'd like IOG to do well also. I'm just waiting for more clarity on their funding if they stay independent. ( I understand I'll have to almost certainly pay up.)

rxdav, Captain Longside left a few minutes ago. His last words were: I'm just going outside and may be some time.

I don't think you're correct Longside.

LOG have been placed in Administration not Receivership. So the Administrator has time ( 8 weeks I think) to take over management of LOG and come up with a credible plan to maximise recovery for the creditors (LCF). Hence as of today the IOG/LOG CLNs are in the LOG Administrator's possession, and for the time being control, hence why RRE approached the LOG Administrator to buy them.

LOG Administrators were appointed on 19 March so the CLNs will be in their possession and control until around 14 May. I think the whole idea of Administration is to ring fence assets whilst the Administrator works out what best to do.
So LCF can't call their loan in immediately I think and don't in any usual sense of the word 'control' the CLNs as you have stated. Your posts are in contravention of Administration law and your misguided claims should be ignored by all interested readers.

As a general point is it fair for you to mislead so many readers with your gross inaccuracies ?

Thanks rxdav for the background. That's a relief.

Don't worry about my dear mama. She's quite familiar with military matters. In fact her family are the reason we're not all communicating in French.

rxdav it's time to hand back that service revolver you 'forgot' to hand over to the quartermaster on retirement as there's too much danger of you shooting yourself in the foot with your unlikely opinions.

RRE's 7Ps result in a share price up over 130% this last year

IOG's 7Ps result in a share price .... well let's just say the white flag has been flown

Longside are you sure about the CLNs ? On March 25 the RNS stated RRE had approached the LOG Administrator to buy the loans, not the LCF Administrator so just from that, and I would think anyway, the CLNs are still LOG's ( in Administration) possession.

I don't think it works like that Longside. I obviously don't have access to the details but it be would usual for LCF to have those loan agreements as security but not for them to enjoy the warrants/convertibles upside. Just like anyone who has a mortgage lodges the house deeds as security with the building society but the building society only gets its money back, it doesn't enjoy the house price appreciation when sold.
But there may be a change in the above as LOG goes into administration.

Is that actually true rxdav ?

If so, slightly scary that someone apparently as volatile and self aggrieved as yourself has passed the officer filter and been given access to live ammunition. I know several army officers and none come across as you do. If you really were in the army and achieved senior rank, maybe it's time to move on from the humble origins.

But continuing on your theme, no like the vast majority of UK citizens I'm pleased to say I haven't been in a war zone. That is the point of having a professional army of which you claim to have been a member. Do you remember the lecture about representing queen and country ?

PS I, like most citizens, thank all professional soldiers who both put themselves in harm's way, so that we don't have to, and conduct themselves with courage and honour both on and off the field. If you really were such a person I commend you.

600T

Unconvinced. Realistically how can RRE make a formal offer prior to being given access to vital loan documentation. IOG are substantially indebted. In reality as of the last RNSs, IOG don't want RRE to make formal offer otherwise they would have shown them their data room including loan documents. They must have one if they have been in discussions with interested parties this last 9 months. Neither you nor I know why that is. We may like to assume it is because there are other better offers being discussed but we simply don't know.

The £2.2bn is potential gas sales revenue and does not exist as of today. Try paying off this month's VISA bill with future potential earnings.

I wonder to what degree LCF bondholders have had a chance to communicate their immediate cash requirements to the Administrators.

Remember also LCF bond holders don't directly enjoy IOG's possible upside. That cream was reserved for LOG. Now it sounds like LOG have lent tens of millions to unworthy businesses so by default if there is upside to IOG they may receive some of that if that gain is retained in LOG to pay LOG's loan losses to these iffy businesses. But we don't know. LOG could just for example have reserved much of the IOG gains for the LOG team under employment contracts. We don't know.

But it's cash they want. If they wanted to invest in pre development gas fields they would have done so by buying AIM oil and gas shares.

Longside - if you were a LCF bondholder I bet you'd want all the help you could get. RRE is their very best hope as of today.

rxdav - we simply don't know - IOG has to date failed to announce a firm JV or offer - maybe something will come good - maybe it won't - we obviously have to wait.

By the way I liked your Zulu analogy - though you do realise you're poor old Jack Hawkins' Rev Otto Witt.

Woogle - I wouldn't think for a moment I could influence this or any other company's share price. I don't know about RRE digging deeper - they seem to be the only firm offer in town and like any prospective bidder must be wary of the whole IOG/LOG/LCF chain and whether anything is unearthed which could cost them at some stage.

GGTS - we have no idea of AA's nature - though many RRE shareholders would steer towards him verging on the munificent.

RRE like IOG's gas assets. Like the market and most of us they are not impressed by IOG's corporate structure. Significant debt, and substantial equity claims by LOG.

I think RRE just wanted to offer IOG shareholders some of the assets' value rather than as a first choice pursue the assets through possible administration.
Not sure how IOG's reluctance to discuss and share information with RRE has changed that initial strategy.