Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Good morning all holders, well this indeed very good news this morning and a bit earlier than expected by myself. I congratulate JOG Management to negotiating this deal, a true milestones that clearly shows the value two large oil and gas companies see in JOG and the assets it holds. Achieving this during challenging times for the oil and gas industry in the UK due to very short sighted tax policies of a desperate government shows skills and gives confidence in our future. Things might not go up like a rocket, i am always cautiously optimistic on very good news, and if the market reacts the same way as shareholders expects it to. This got nothing to do with JOG or our new partners but the trading circumstances and taxation. I think however this will sort itself out and as we still got some time til production taxes might be adjusted downwards when we go into production or possible a buy out from a 3rd player could come along....who knows everything is possible from here on in. Well done team JOG. Held here since the first oil discovery in Verbier so am very please although it took some time.
I believe that lots of people have that FPSO in my for Neo to take over for the GBA development after refurbishment etc which would make perfect sense. Question is would our potential 2nd farm in partner come from the same corner ie Dana etc?
We will have to be patient, wait and see but it is not completely crazy that certain people talking to each other...
Haven't been on the board for a bit but just saw the RNS and the sale of UBS. They took that position only recently and already sold last week. The position was around 5% (north of 1.5 million shares) and they sold several hundred thousand shares maybe more but definitely enough getting under the threshold to be reported. That is a huge amount of shares for a small company on the AIM market and explains the extended fall of the share price to me. It is dissapointing seeing traders and investors chasing fast profits like that affecting the share price of small companies in such way and also tainting the RNS after the successful farm out.
I expect it will take a bit of time to settle but then a long-term trend upwards should kick in. The farm out RNS and the deal reached was a huge derisk for JOG and move towards becoming a recognised oil and gas producer along some major players in the industry. Hopefully we will get some political support with a new sunset clause or similar to keep this trend going. Good luck all holders!
A great RNS and a good farmout deal for JOG given the economic and political circumstances in the UK for oil and gas companies. As many highlighted a smart move by NEO due to the ending tax year with more to come by other oil companies I am sure. I took my time to comment as I wanted to hear what the industry experts are saying and how they value it as their experience is better than mine. Everything I read adds up for me and highlights that this was only the beginning in creating value for shareholders. The deal although only 50% at this stage is also what analysts sort of expected. If you compare their evaluations before and after the RNS then you can see that there is not a huge difference meaning what we got is what they expected or even a bit better. The initial fall is unpleasant but also not surprising given the anticipation of a fo deal and what it could mean and also given the rollercoaster we had over the last few days leading up to it. An important factor is also MM's actions in these sort of scenarios as we all know for well, especially in the aim sector. As the IC is stating once investors and the industry sector looks into this deal in more detail they will realise what this means in real term value for the company and shareholders. I will stick with the valuations of the experts between GBP7-9 per share and happy to hold onto my holdings and expect a steady rise. Happy Easter!
I enjoyed listening to the podcast. Thanks for sharing. It is good to hear that serious people in the investment industry are looking at the situation around oil/gas and aim still positive for as long as you buy companies with relevant asset's, good share price value and good management like JOG.
The Friday meeting certainly was a disappointing one, the government can only see the $$$, sorry GBP bills falling from the sky filling their pockets and close holes in their budgets and don't understand that they are running the risk of actually killing of a whole industry and that the relevant industry partners actually closing up shop in UK waters and drill elsewhere. Investment offsets or not if credit lines will tighten due to the 75% tax anyone who can will probably go instead of staying. We know that the likes of Shell, BP, Total, etc. have been seen reducing their assets and already making most of their money in other countries, probably for that exact reason. This leaves us with companies that cannot do that so easily, which are tied down to UK waters and have to make the most of it with the legislation and taxation given. These are the companies that will become relevant to us for a farm out/buy out or whatsoever. How many of these companies are left and if they rethink their investment now with no immediate changes to WFT is hard to predict and remains to be seen. We can only hope, keep our fingers crossed, and trust in the skills of Management and former Ithaca Team to make it somehow work. Good luck all holders!
Thanks for sharing. This is such an important paragraph and is literally written for JOG as an investment for other oil amd gas companies. Given the circumstances we couldn't hoped for a better outcome of this budget tbh. Good luck all holders we should now be on the final leg of the FO and sales process.
That is a good point Abatt. Does anyone know what the law is in regards to this? If an oil company made decisions and investments based on the laws that currently still apply then surely they have to be honoured otherwise how could any company make an investment decision?
It must be a major nightmare for any oil and gas companies to make decisions at the moment based on this political rollercoaster nightmare. I am surprised they are not pulling out of the UK more than some of them already did in the past 2 years by selling their assets. I guess if the investment option remains in the law than it is the best possible outcome for us as it is one of the only ways for them to avoid getting taxed at a higher rate and instead make sensible investments like into JOG and the likes. So fingers crossed they leave that ontouched in the budget.
Maybe like many other investors here I have been reading the latest RNS over and over again, trying to figure out how many interested parties there might be to better evaluate what that means to us and how it affects our chances for a successful sale/farm out. One term that has been used by Management was 'a majority' of interested parties would complete their due diligence by October. Realistically this means to me it must be already more than 3 parties to justify the term majority. In return this means that the same amount of fairly large companies that could stem a project of that size are considering us for a farm in otherwise they wouldn't spend their time and money on a fairly expensive analysis how much we and our asset's are worth or to check out how well the numbers given from JOG and consulting firms are stacking up. A fairly calming thought I think. Any opinions on that?
The other matter is Ithaca, their planned IPO plus timing of it, and former bosses of Ithaca miraculously joining JOG Management and Board in the middle of the farm out process. I mean that just doesn't sound like a coinsidence now does it?
Again just a thought and any opinions appreciated to at least kill off the waiting time...good luck all holders!
Not being funny here but it is perfectly fine that a share goes up from 230 to 340 within 18 days which is over 40% but when it falls 10 or 15% alarm bells go off? For those critics may I suggest to consider that this is the oil and gas business and aim on top of that. We are in a highly volatile state where news are expected that can catapult the share either way depending on the outcome of the farm out process. Every investor should know that there is no guarantees and in fact the company made that clear in the last rns as per the rules which was absolutely correct. Fingers crossed for all holders!
Thank you everyone for your feedback and opinions. I appreciate all the points made and it actually helps staying focused by listening to different angles and backgrounds and how you make sense of the situation. JamesSimon thanks for the podcast, it was quite interesting to listen to and again helped me to get my head around the situation. As stated in my comment my criticism is about communication not about salaries or how the money raised is spent and I stand by that. Even if things move slower, become difficult or even stall for a certain period for as long as you communicate that to your partners and shareholders (within the rules) things are fine but the trust and faith goes when you start ignoring them as people and institutions become suspicious. I held at one point 0.89% of the company but since dilutions took place and more shares were released and I sold some shares it got reduced. Investing that amount of money as a private person is not a joke and shows that I gave the company and management a huge backing and shows how much I believed in JOGs setup and development. I can afford to loose money and being invested in oil and gas for a long time i know the risks and the ups and downs. I keep my fingers crossed that our investment was a clever one for sure and the next few months will proof that. Good luck all holders!
I think things take much longer than anticipated and the change in business environment (very much for the better) plus the new Team around Ithaca explains all of this and I don't have an issue with it for as long as it is communicated to share holders and that's not happening in my opinion. I have been a shareholder for 4.5 years, and you can check my posts are pretty level headed and balanced over that time, but I have to admit that there is a significant difference between due diligence that the Management states and no communication at all. I personally started selling down recently for that reason, not a huge amount and I will keep holding a large amount of shares but if no further updates on the farm out / sales process is provided within the rules of due diligence and aim/stock information then I will have to keep selling as I loose confidence in the company and if that is the case selling down is to me the only way. I hope they find soon a better way of keeping their shareholders informed so they can gain back that confidence as the shareholders are the once who funded the company as well and paying for salaries and development plans etc. Please do your own research, this is no recommendation at all purely my personal opinion.
Haven't been looking at the board for a while since I usually only react to a RNS. After 4 1/2 years invested in JOG the ups and downs can make an investor very vary about moves. But everything seems to keep falling into place as it has been doing in the last 6-8 months or so. The new legislation and oil demand are like cement under management plans and vision, now we only need the final step of a farm out deal or maybe even a sale, who knows. I am hoping for a very positive RNS in the next 4-6 weeks but wait for it to actually happen before I pop the champagne.
Good luck all holders.
Great find Dick, this letter is so reassuring and water on our mills (old german saying). Things align and I am looking forward to see the development of the next few weeks and months and what they will come up with. More than 4 1/2 years since I started investing in JOG, which only happened because someone mentioned it on the Petrofac Chat back then, funny how things sometimes are linked. Good luck all holders.
Nice summary Dick!
Been quiet for a while observed from the sidelines. Things are in motion and the environment we trade in couldn't be more promising as they aligned up within the last 3-6 months. In Feb/Mar 2021 RNS stated that the farm out/sales process should be finished by end of 2021 but I can only assume things got delayed or take longer than usual and with the new board and management forming a new and fresh approach probably ate up some time too. However with the last IC article I feel assured that we are on the right track with a highly qualified and experienced team leading the way. Fingers crossed positive news will break soon. Good luck!
Hello all, I been a holder for over 4 years now and I can understand the frustration and how people feel, I am in the same boat. I think it is perfectly fine to vent this here and everyone got the right to say his/her opinion on here.
While I agree with quite a lot of points made I also would like to consider others angles and views. In the RNS earlier this year it was stated that the farm out or sales process would take until end of 2021. After the leak in March they clamped down massively on information, and rightly so. Does it make me feel at ease not knowing what is going on behind closed doors? Obviously not, but did I expected it and there was information available albeit more broadly spread with different opportunities that are followed up. A change of certain members in Management is always a big thing and sometimes brings up questions or why or why now etc and that is fine with me. I also think that the company has transferred itself within the last 12 months and lots of things changed and needed a different, more suitable leadership. I don't know if we will have a sale and for how much, nor if we have a farm out and for how much or if we have investors to do it ourselves and under what conditions but nobody else except Management has. So the question is why did these high calibre people join? It's not their annual salary I believe as it is not enough to attract them. It's the options in my opinion and maybe the challenge in doing an 'Ithaca' again!? They also put their names on the line here don't they, if it fails then their names are on the list of an oil and gas failure. But if it is a success then halleluja! So it's as always: Oil and Gas Business and nothing else. Everyone has to decide for themselves what to do and how to invest.
One other thing, I believe that the OGA and British Government are massively supportive toeards the GBA project for the obvious reasons and wouldn't be surprised if certain mechanisms are rattling along connecting the right people and companies to make it happen the one or the other way, meaning under JOGs name or another. Good luck all holders!
Well said, thanks for sharing Dick. I am in the same boat, for 4 years now almost to the day. Hard facts and Research help underpinning an investors choice and a good chunk of intuition too, but that's just my opinion. A few years back when Imagination Technology lost Apple as their single biggest customer it was clear what's going to happen and the share price tumbled. My thinking was however that all that knowledge and experience won't be lost because it was too valuable so I started investing in the hope that a certain region would buy up the infrastructure. I had no idea if it would work, but the Chinese made a move and swallowed up the whole thing. Now this wasn't oil but it's about principle for me. If you have an asset or several in fact, then most likely it won't go to waste and the same potential I saw in JOG from the 1st day of investing, backed by a heavily invested Management because they are not just employees, they own the company with us and other shareholders which is what I like. I was also furios when the information leaked, and therefore expected a very tight lipped approach when it comes to the farm out/sales process. I guess 'trust' comes to mind and albeit sometimes stressful it's still a very valuable asset too. No guarantees, dyor, good luck all holders!
Great find afish and indeed very good high profile coverage...i could only read first paragraphs but it sounds very good. Will see reactions this week. Also great marketing for the sale/farm oit process although one thinks that this will mainly go through channels, networks and deal brokers we haven't got a clue about.