Member Info for Castaway

As I see it: The £80k is not the problem and by the sounds of it the default to Dominion is not a major issue. The problem is the £750k owed to Athol - until this is resolved AM does not want to put up the 80k and then lose it as Athol could get SLME shares suspended for non-payment. As Pablo says he is negotiating with Athol - to defer payment of loan until production is established. With the revenues from production coming in it will be possible to place more shares or refinance the co. - I think thats why production is the key.

Thanks for the info Pablo Terry - as far as we are aware (excluding hearsay) we are short of £80k and will owe Dominion for the workover. The loan to Athol is due to be paid in July - £750k AM needs to do a deal with Athol to get time to pay down this loan. I can understand he and others do not wan't to lose good money after bad so he needs a deal to defer loan payments until production is sorted. Personally I can't see Athol insisting on payment of the loan on time - as far as I am aware it is unsecured and they would lose the lot - they will want something out of this but I am fairly positive (as you can be in this poor situation). This assumes we have been given all the facts (which we probably havn't). The overiding problem all along has been no production - this is the key even if finances are sorted we need "full "production ASAP - if we have another few more months of delays this is stuffed either way! Cheers Cast

I have considered all the options Sell at a huge loss - loss on most of my investment- I will lose plenty Stick and hold - could lose all - could possibly make on the investment You could get back in if it is resolved but it would be at a much higher price. Personally I would rather lose all than to miss out if finances resolved - (as I am down so far already) I think you have to decide if you believe the CEO can save the co. - if you think he can't I would sell.

I know these are trying times for SLME shareholders (well the ones who bought before the last financial news). On the upside the directors have fairly substantial holdings and have been paid fees in shares and warrants - i.e. they have plenty to lose. Frank Moxon (chairman) is also founder of Hoyt Moxon Limited "provides corporate finance advice and solutions for growing natural resources companies and their professional advisers". - so they should know what they are doing (should!). With all these resources available and the largest proportion of shs in directors/large private investors and one institututional investor you would think that this will not be allowed to fail. I have held shs in a few co's on the edge and one of my concerns is if the asset the co. holds can be plundered by a large II or if there are large secured loans that can be called in to strip the assets from the co. I don't think this is the case here - we have hope. Personally I did see this as s slightly safer investment (for AIM) - the oil is there all we have to do is get it out - how wrong can you be! Anyway we will know soon GLA Cheers Cast

Smasher - agree great potential even now especially at 2.5p - I think we will get news next week AM has had 3 weeks to sort finances and we are 5 weeks into the workover on the I-1 well - the RNS re the workover says it is "simple workover" and started 1 April so we could also get news on progress. Glad we didn't here late last week - usually bad news on a Friday! - if we get two lots of good news this will fly - if not I will be kissing goodbye to some serious cash... GLA

Yep totally agree AIM is risky but cash shells more so - you only need one good one though - I had a look at RLH last year but was already in several other shells I will have another look Cheers Cast

Trouble with cash shells is they are cash shells - not a lot to research you can do! I didn't get into this becauses big investor did but why not use it as an indicator?

not looked at others myself but there was a poster on another board that said only a few added value FAST looked good I nearly got in just after suspension at about 12p but didnt it went up after that - there may be a chance to top up here and hopefully the current holders will get a nice profit when shares come out of suspension. In the current climate I hope the deal is good.

sorry my last post should have included you - I suppose this will take a couple of months then we will be out of suspension

I wish I had that many! only have a few bought in and out a few times - oh well maybe missed the boat on this one. I'm in KENV, PIRI and LDP more heavily

never invested in a co during an RTO should be interesting the BRDY share value will hopefully increase not much point otherwise. I suppose at the end of the day its how the market views the value of the co when it comes our of suspension and not the NAV which will decide.

bid and ask have both dropped from this morning now buy at 2.2p sell at 1.76p thats for 20k - personallt don't think any sells today as zoom says MM's sometimes drop the bid before news to get some volume - news will be next week but bare in mind it may not be good! - I hope we do get some good news it would be the 1st this year!

and only 3 per day Tue & Wed - all waiting for news

Anyway let's hope Mr Morrison pulls a rabbit out of the hat and we get funding until production - with the revenue expected loans should be paid off quickly and this will bring value to the co. then new wells etc. etc. The business model is good unfortunately things have not gone to plan..... That's AIM High risk High rewards or loss

I have made my choice - averaged down a bit and will hold. Like terry I am not prepared to walk away at the sort of loss I would have to take to sell now - its all or bust for me. But lets look at facts - we are in default to Dominion and could lose our share of the wells - this would lead to the co. going bust! Plus it would appear we have more debt than has been disclosed previously this co is in trouble - I think I am being realistic about the current position. If my average was 2.5p I would be happy but its not! I am not prepared to risk putting any more funds into this until we get further information. I think there is a possible upside though as I have said previously if AM sorts funding then this could still be a good investment but not the 20p plus s/p that was possible in the short termbrfore all the delays accidents and whatever else is going on that we don't know about I would say GLA but this co has none

terry - my feelings exactly - this had fantastic potential now I will be very happy to get out without a loss - and if I do I think it will be quite some time in the future! If I wasn't in already though I would have a punt - upside from here could still be good!

Its difficult to know how much dilution may occur - we don't know total debt and we don't know how funds are to be secured. Suspension is not good but may not be the end The end will be liquidation However the upside is excellent if SLME can get funding until full producction from I-1 well only 35 mil shsin issue even with 100% dilution once full production is achieved the s/p should be much higher than now

I would imagine that there is some hard bargaining going on lots to lose and gain here

Yes agree I think AM was hoping to get production going before another placing to pay Dominion - it was a gamble that may have come off but I think the s/holders should have been made aware of the full position re cashflow at the time and not 2 weeks ago! Anyway he won't issue an RNS until this is sorted or we are suspended - he may be good to talk to but he won't/can't give any price sensitive info away so no point in calling him

Sinatra I personally think you look at the facts available not the opinions of other posters - the shareprice is reflecting the facts SLME is in a bad position, it is possibly recoverable (I sincerely hope it is as I have serious money in this - for me) Obviously the only reason you or I read this board is to get otheres opinions so I will add mine - I havn't read the advfn thread but I doubt if SLME is in this position due to the loss of £80 grand for non-payment of money owed for shares - the placing in January should have covered running costs and surely a co. with a then MV of £1.8 mil would have access to 80 grand. I'm concerned but have added a few to average down, Cheers Cast