Member Info for deltavegatheta

“ Can you share where the 12 m sits on PPP ledger or the link to the PPP texas license as collateral please.”

Here are my sources:

Page 62 of the 2019 PPP Annual Report states that the money borrowed by PPP from RB11 was “secured against certain petroleum leases owned by the Group”

That’s the loan from PPP to RB11.

RB11 2019 accounts (filed 28 May 2020) note 4 on page 8 states:

“Corporate Bonds were issued against a portfolio of leasehold mineral issues in Texas”

Note 4 is against creditors of £11,669,769, so these are the bonds issued by RB11 and sold to Newscape which I think were £10m plus interest @ 8%. So the leases were repledged to RB11’s bond holders, i.e Newscape.

https://find-and-update.company-information.service.gov.uk/company/10328847/filing-history

Newscape fund factsheet (see page 2) showing it held “PENNPETRO EAST 8.00 17-19 20/12Q”. Note that RB11 was formerly called PENNPETRO EAST CAMERON II BONDS LIMITED

https://digil.ink/s/917df0ba-f3cc-4859-b4bf-51c4edf39293

(I’m not sure how long this link will work, so if interested I recommend downloading & saving the document)

Newscape Fund’s petition to wind-up RB11:

https://caseboard.io/cases/806bfd68-79ac-4db2-8522-888745e841fa

To be clear I am note saying that Newscape is owed money by PPP, but it does look like Newscape has a claim on the leases through its purchase of bonds from RB11 which needs clearing up.

“why say he wants to investigate former directors if he is also in the wrong”

He might of had no choice as the liquidators raised something or the auditors spotted stuff?

It is difficult to work out exactly went down here, why didn’t they sell the 4m odd shares and use the money to at least partly pay-back Newscape?

As you also noticed, transferring assets from a company just prior to it being liquidated is extremely questionable.

The fund fact sheet I have shows Newscape still held the RB11 bonds in June 2021, that’s a year after PPP supposedly settled with RB11.

There does seem to be an ongoing liquidation, so liquidation reports will be published via Companies House at some stage which will shed more light. Definitely a few questions for the AGM here!

I’ve been tracking this for while, note the following.

Resource Bonds 11 ended up issuing £10m worth of bonds “issued against a portfolio of leasehold mineral assets in Texas”, i.e. using the collateral pledged to it by PPP. I know that Newscape Funds bought some (maybe all) of the RB11 bonds (I have a copy of the fund fact sheet). It was Newscape that started Liquidation proceedings against RB11.

The number of shares issued to repay the PPP loan was 4,118,404, these ended up in RB Equity Nominees and most were subsequently lent out as part of the 48.7 million share loans in 2023. Ownership of RB Equity Nominees and the shares are not necessarily the same. Lunn declared he owned 1,404 shares, note the last three digits!

It looks like Newscape is pursuing RB11 for its Money back and/or the collateral, but we don’t yet have the Liquidators report so I can’t tell for sure. Lunn’s last RNS mentioned “the leases assigned under the Globalvision agreement are secured by historic corporate loans provided to the Pennpetro group”, that’s loans plural, so it’s not just the Petroquest loan.

There’s also something interesting if you if take a look at Tom’s follow directors of CFGH Management Limited, you’ll find someone special!

https://find-and-update.company-information.service.gov.uk/company/07619932/officers

This is my last Christmas post ;-) Happy Christmas all!

Just helping to clear things up, some dodgy business has gone here

PPP bought the leases in May 2017 through the acquisition of Nobel Petroleum UK Limited

The director in charge of Nobel Petroleum UK Limited at the time was a certain Stephen Gary Lunn

https://find-and-update.company-information.service.gov.uk/company/10268085/officers

Petroquest lent PPP over $4m secured against the 2,000 odd acres of leases in Texas.

PPP can't sell the leases to GV without negotiating with Petroquest who understandably won't just waive its right to the collateral.

That was always the case and should of been highlighted by Tom in the July RNS.

Of course this is all made even uglier by Lunn being CEO/Chairman of PPP and the majority owner of Petroquest.

The Winding-up Petition was August this year

https://caseboard.io/cases/c364b5aa-6587-4db2-83ef-f7688239f707

"This liability remained unaddressed causing the Company to face an immediate winding up order. The present board have entered into negotiations for settlement and are looking at a satisfactory outcome."

The RNS is accurate, it WAS facing a Winding-up order but it was withdrawn pending negotiations.

BTW I'm not advocating for Lunn here, SPs are right to be worried about him, he clearly has a huge conflict of interest. It's also clear that Tom's well dodgy, for a start that £500k creditor should of been declared.

It is extremely likely that Tom’s & Lunn’s RNSs were both true, they wouldn’t be stupid enough to lie so blatantly in an RNS. So how can it be that both of these, seemingly contradictory statements, can be true?

According to Tom’s RNS:

“Pennpetro Energy PLC is pleased to advise that it has executed the Sale and Purchase Agreement ("SPA"), with Globalvision International U. LDA ("Globalvision") yesterday for the sale of Pennpetro's subsidiary in Texas, Nobel Petroleum USA Inc ("Nobel")”

According to Lunn’s RNS:

“The transaction announced in July 2024 with Globalvision has yet to be completed due to a number of issues arising in Texas.”

It comes down to an SPA being something different to what people are assuming it is.

What Is a Sales and Purchase Agreement (SPA)?

A sales and purchase agreement (SPA) is a binding legal contract between two parties that obligates a transaction to occur between a buyer and seller. SPAs are typically used for real estate transactions, but they are found in other areas of business. The agreement finalizes the terms and conditions of the sale, and it is the culmination of negotiations between the buyer and the seller.

- A sales and purchase agreement (SPA) is a binding legal contract that obligates a buyer to buy and a seller to sell a product or service.

- SPAs are often used in real estate deals or when two parties are transacting a large item or a large number of items.

- A SPA details important information including the asset, sales price, and payment terms of the sale.

- A SPA also outlines due diligence periods, conditions that must be met before the sale, and what remediation is available if the product is damaged before the sale.

- A SPA may include language around confidentiality, contingent sales, and broker commissions.

https://www.investopedia.com/terms/s/salesandpurchase.asp

An SPA is a precursor to the actual sale taking place, not the actual sale!

The SPA is signed, but GV have not yet actually bought the assets.

Signing a Sales & Purchase Agreement is a pre-cursor to actually selling/buying the asset, it does not transfer ownership itself.

The wells that PPP own haven’t produced any oil since April (just check the Texas RRC website)

All of Nobel’s paperwork with the RRC is ‘delinquent’ and still in Tom’s name, no work can be done on the wells until that is sorted.

An AGM requires the accounts to be published in advance, so if there’s no accounts, there can be no AGM.

PPP is not bankrupt yet, but the RNS states ”The Company is therefore taking advice to ensure it is staying within its solvency parameters”, so it’s on the cards.

At the end of January, as PPP will have been suspended 6-months, PPP will have to make its case to the FCA as why it should not be delisted.

Correct, it seems the leases were dodgy from the start. Lunn ran the company that sold the leases to PPP. There are no good guys here.

If this comes down to shareholders vs creditors, the creditors have a habit of winning.

Note that the Petroquest loan is “secured against certain petroleum leases owned by the Group.”

Crescent Energy bought lease acreage, PPP now owns zero acres of leases (but does have a 12.5% profit share of 2,036 acres).

The often quoted 250,000 acres is the Area of Mutual Interest with Millennium Petroleum, not ESGY, which isn’t even mentioned in the GlobalVision RNS, so I’m guessing that JV is no more (the annual report might shed light on that)

The Millenium and ESGY JVs are both detailed in this RNS:

https://www.lse.co.uk/rns/PPP/operational-update-btxop1c8fxckret.html (note the ‘existing operator’ was subsequently named as Millennium)

If PPP does resume trading this month, note that its interim results are due by December 31st. If they aren’t published on time PPP would be re-suspended.

This is not a deramp or prediction, just information you should all be aware of.

Which will sit around for a decade with nothing happening to it, just like the one in Loxely

(and the UKOG Christmas party and annual bonuses are now fully funded!)

“The workover rig demobilized from site on 22 October.”

https://www.lse.co.uk/rns/PPP/first-oil-production-from-well-in-texas-ts44bnxildnl4py.html

Nowhere did I say “these shares will be issued on resumption”, I do not know when they will be issued.

Affrm didn't believe me about impending suspension either (until PPP got suspended)

Tom was just one of a group of lenders, see the RNS of April 19th 2023. York Energy, International Immobiliare and RB Equity Nominees (a whole other saga!) also loaned shares. There must of been others as well to make up the total.