The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
me neither - big coincidence - the SP has fallen quite a bit with minimal volume in last week, maybe it is a sale - maybe we will get a dreaded 1 sell code - it did seem to me over last couple of days there was a big sell in the system
Interesting, the 588,236 trade has been amended to 588,235
This looks more like a rollover like Spikey first mentioned
you must of put it on well before you disclosed on here then - you mentioned it on here at c2.05 SP, so must of been doing ok
good luck with short - i think you may get down to 1.5p when the raise comes but i can't see it been much lower than that
1p here would be really cheap (well under what even a pessimist could value their ownership in AJE at) especially considering we have just bought additional %age and the PetroNor / Panoro price they agreed
Hi Robert , unless you are putting in a ton of cash as a short, its only down a little from where you put your short on so sounds a very risky short, i do think it will drop further upon placing announcement but when they do that is anyone's guess
If its Peter Francis sell, I'm not too concerned, he's not part of the company anymore and he left and without us knowing the personal circumstances are which made him leave then we can only speculate on the sell - he might just want a new car
Hi Spikey - yeah it would, but the problem as we all know shares don't really work well with hindsight.
I would say top up now at this price but we are expecting a placing so a further drop - but I am also expecting news from Panoro / PetroNor by end of month (long stop was only extended by a month) which should provide some comfort on the long term prospects of AJE - if you can get comfortable with this part of the company and development plans - then early next year could see some real movement in SP - the hardest part is judging where the bottom will be ( I am just going to hold and see - most of my money is now in funds which are safe, steady and boring) the AIM is certainly volatile
My Chat History
24th March RNS for Directors Purchases
10th June there was 2 trades of identical number of shares - 1,176,471 which looked like it was a transfer
we have had no confirmation of that
It could potentially of been 2 sells as both OSA and Peter Francis received that number of shares in the March placing
But no TR1 document to confirm either way which is really poor
I first thought that but the amount of shares is different
588235 + 588236 = 1,176,471
this is exactly the amount Peter Francis / Osa got on 24th March
I also think this the amount that was transferred earlier on if memory serves - will have to look back at notes
I think its probably Peter Francis - since he has left for Personal reasons
Ouch - that is a big sell
nothing delusional at all - your theory of losing Barracuda is all because of Zenith's RNS
When you read the two RNS's, you can see that ZENITH isn't taking the contract from ADME but actually looking at supplementing the development - i am more concerned over the finance arrangements moving forward, if i am wrong - i will apologise but just remember to apologise if you are wrong
we are all here to have a healthy discussion
we haven't lost Barracuda as it was mentioned - you would be insinuating that the BOD have said a complete lie, which honestly wouldn't happen with a decent Nomad - i still believe this ours and Zenith's contract is for a seperate part of the deal
That been said - we are responsible for the costs so where these come from is a major issue still, as is ADME General Admin Expenditure and lack of funds as this needs to be addressed very soon, as we have said - a placing must be due and the more they wait I think the lower it will be as people are waiting / selling / trading around the knowledge that this is due (it is an anchor on the SP which won't go away anytime soon)
Still nothing on Panoro / PetroNor on AJE - in respect of this been the smallest part of ADME, i think some people need to look at the numbers on AJE for the long term
it would be good to know what the project debt is but as its under an audit - the point is - they don't know as there are discrepancies
jam tomorrow as always
placing will unfortunately be needed sooner rather than later
In Full Year Results -
o Breakeven cost of production reduced to US$28 per barrel, comfortably below the prevailing crude oil price - ensuring Aje remained profitable at a project level
Spikey - there is an audit on the project debt - from how i read the full accounts on website, i think YINKWA have potentially put through operational costs as CAPEX to increase project debt
The Company has also recognised a Contingent Liability as per note 22 of the Annual Report and Accounts published today, this is to reflect an ongoing audit at project level on OML 113. ADM expects the audit findings in the second half of 2021 which will give the Company clarity going forward on project level debt.
Hopefully when the audit concludes this year, we might see some actual revenue from this (albeit by then hopefully phase 2 will have started)
It all goes on project debt and not into bank but c$1m off ADME's Project Debt liability
c20,000 barrels at $50 profit a barrell ($80 - $28) - its only rough calculations based on the figures we know but it highlights the potential - this looks to be 5-6 months of production so looks like the daily bopd at AJE is stable at well over 1000bopd
Well i am holding long term but its obviously news driven
The first bit of news is the AJE completion by PetroNor / Panoro - this is the delay in the Development Plan for Phase 2 which albeit it will mean increased project debt, it will mean that there will be a large increase in turnover at AJE and that PetroNor will become the operator serving as the Technical Service Company - its good to look at there corporate presentation from 11th March (pages 29 & 30) that give a clearer potential of the AJE field and the increase in the bopd (25,000 bopd in Phase 3 / 15,000 bopd in phase 2) - with our ownership its clear to see that the revenue based on 1500bopd nett to ADME is going to be over $100,000 a day at $70 a barrel)
https://petronorep.com/media/1834/20210311_pnor_company-presentation.pdf
The truth about Barracuda is we are still involved
I personally (like when we discussed Barracuda on the board when we realised that 4 wells had already failed) think that the CPR report might not be what they hoped and it is more likely thats its no where near as good as the BOD made out initially
If we had lost Barracuda (if your interpretation is that Zenith have been offered what ADME had purchased) and that the BOD lied (as the Annual Accounts and Trading update last week both mentioned Barracuda as an ongoing project) what remedies are there legally if any to recover your losses?
In short term this will go down, next news is likely a placement to cover expenses
then hopefully something to say that PetroNor and Panoro have concluded and that phase 2 Development Plan can start
But delay after delay hurts SP and confidence
you will probably do well in the next few weeks on your short
its not a major factor to increase costs on AJE as long as it goes to the project debt
as spikey has said, its more concerning the Admin expenses internally at £200k per month which are increasing as we add to the team
The issue is, we have not seen any positive steps that couldn't have been done without all the extra appointments
We have to hope that Barracuda / AJE updates are imminent else its going to be another bad long year here without actual cash revenue to ADME
$82 oil is great but at the minute but it is just paying back project debt - which with the current issue and audit happening, no funds from this will come to ADME until next year at the earliest
How is it FACT????
its your opinion based on an RNS from Zenith
I'm expecting a placing (as Spikey stated and was correct on) our cash is pretty much zero - so this will be done soon, i am hoping it starts with a 2p (BOD have always been decent at getting placing's done at a good price with warrants) - but this is the next news we are expecting - there will be a drop in SP due to this hence why they never raised before accounts seems strange
Hi Spikey
Barracuda drilling is a bigger problem than AJE - our contract on Barracuda is that we (ADME) have the lions share of the expenditure (also the biggest slice of the revenue)
In terms of AJE, this is going to be a lot less in funds if anything fro ADME - obviously the costs are to be covered by the operators (we are not one) so any reliance of investment from us as an equity partner will be minimal, we have to remember again though that the 'project debt' is repaid first so our actual revenue won't start for a good 2 years