Member Info for dkw26

H,
If it's the crown selling Hansource shares that dropped in their lap it is no reflection on how an investors see Wres. simply HMG realising an asset because that is the Law governing this matter. We also know [roughly] how much pain we have got to get through.
However, if it is not Hansource, by definition it is a big holder or lots of them co-incidentally dropping millions into the market over a long period of time and seemingly having had a pretty dramatic change of heart insofar as Wres goes. In this case, we do not know how long the sells may last.
It may not alter anything but I know which I prefer

Geng,

I agree it matters not who is selling them but I have more than a passing interest in why. In truth I am less bothered about the crown following their protocol but a bit nervous about another holder[s?] persistently droppng millions of shares into the market most days for months on end and that is why I would like to resolve it one way or another. You saw them, or something I agree looks mighty like them, May this year. Therefore, it cannot be Hansource Investments Ltd as they were dissolved on the 28th June 2016 [Companies House] albeit K3 has established Bona Vacantia deny any knowledge of Hansource.

My best guess and I accept it is just that, is that the Government Legal Department instructed a Broker around May of this year. I have no idea why Bona Vacantia do not know about this.

In the absence of hard facts, it seems to me if it waddles like a duck and it quacks like a duck, it's usually a duck. The only question is how much of the 333m duck have we munched through to date? For those not partial to duck, I am very open to other theories.

I think several posts have noted that Hansource do not appear on the Unclaimed Assets Listing published by the Bona Vacantia Department and & therefore the crown could not be flogging off the 333m shares. It turns out to be a bit more convoluted than that. I wrote to the Legal Department and asked if they published a list of the assets of dissolved companies deemed bona vacantia held by the crown. The reply today:

"We do not publish a list of dissolved companies’ non-cash assets. Our primary goal, on being informed that a company has been dissolved while still owning an asset or assets, is to either sell (if an asset has a realisable value) or disclaim. We do not aim to hold on to assets for any length of time and have no available list of what we do hold from time to time."

Clearly, this is not proof-positive that it is the crown behind the sells but equally we certainly cannot rule it out. As to the TR1, as nothing materialised on dissolution of Hansource and transfer to the crown I am not surprised we are not seeing one as the holding is possibly sold down.

Facts are a bit thiln on the ground insofar as Hansouce Investments Ltd are concerned but there are a few things we do know.
1 Hansource were dissolved in June 2016.
2 Relevant assets would then be declared bona vacantia and vested with the crown, No TR1 declaration reflected this, probably because the crown is exempt from lots of things that trouble us peasants.

3. Given no TR1 when the crown acquired the shares I cannot see why there would be one when they are disposed of, albeit I am not sure we can be defibitive that the shares are or are not the ones in question.

I know it's a bit sad but I like all of the to and fro and never mind if it all gets bit a bit frothy from time to time BUT ...….will the Real Romford White Knight please stand up. Is it tungder today Wres@ 15.38 or is it daytrader13 today Wlfe @ 15.37. To be fair & lots of other times. Of course, for all I know Romford may be a hot-bed for White Knights. At the risk of being a bit John Lennon, I would like to think that both Wres & Wlfe will be successful.

The cynics amongst us might agree that the BoD simply mentioning delisting would crash the SP and allow a favoured partner a distressed price to hoover-up shares. Some might even think that if it was not that difficult to cover the loan by selling assets did the BoD wait until it was too late; a good bit of "we are all doomed", AIM Rule 15 & Chapter 11 thrown in and unsurprisingly the SP goes into freefall. It seems to me that WED are key to all of these machinations and clearly shelling out $0.5m for wells is not a stretch for them. In short, I suspect Mr E is right; current PI's get shafted and Magnolia II [or at least the BoD and WED] go hand in hand into the sunset, largely at current shareholder's expense.

At this stage I see no choice but to agree to the Fire-Sale. However, if we knock out some of the family silver at $1.5m under duress, it seems particularly inept that we could not secure an asset backed loan way before the crisis. I also note the BoD like to have a "be afraid" disclaimer in just about every RNS. Why bother?

Smids, if this was the BoD building their holdings it looks pretty convoluted to me. The two recent Holdings announcements exceeded 3% by definition but let's not lose sight of the fact that at these prices the overall outlay is still pretty modest. The one thing I do think is that it is difficult to see how delisting would get their support. Bakoven made a good point the other day that MAGP is looking like a good Reverse Takeover Target. Getting back to your question, I assume you have tracked Mr Bentham via Companies House. I then usually look at fellow Directors but even that is not in the least sinister.

So, could be a pal of the BoD but I am thinking not. Perhaps we might see another Requisition for a General Meeting before long suggesting the current BoD really should be toast. I have my doubts Rita will enjoy the same support as last time.

I note the BoD are very careful not to mention how many Holders actually voted but I guess we can safely assume it was not everyone. Despite that, let's give a hugely generous benefit of the doubt and assume everybody did and therefore the net effect would be that BoD effectively claim control of about 18 million shares. So they need another 9 million to underwrite their dastardly plan. The problem they have as I see it is that most holders are so disillusioned by the mushroom-management we have been subjected to that they simply are not going to sell at these prices. To paraphrase Mr English, why would they? That looks like stalemate as opposed to checkmate and there is no way trading to-date gives anything like the wildly optimistic umbers the BoD require. My plan, such as it is, is to tough it out. OK, my capital has gone west but I'd rather go down swinging and give these charlatans as much grief as I can. Of course, should the BoD have a relapse and give us the truth, the whole truth and nothing but the truth I may reconsider..... but I doubt it! Select Stiletto, insert to the hilt & twist.

Today's RNS, another gem. 1. No mention of WED; not a word, count them. 2. BoD eager to sell the family silver and praise be, the market is liquid. {get on with then}. But, to put the wind up PI's, if it all goes a bit wrong and Chapter 11 beckons shareholders will get nothing. 3. BoD mention in passing we will not be cash-shell but as part of being scary to us dimwit PI's, it might happen so be afraid. . So, am I convinced by the BoD? No. And they can shove Delisting Mark II. Long shot? White Knight rides in and slays the BoD. I suspect most PI's have written their capital off, so this scenario may get a bit more support than some might think. After all, trying to scare someone who values their investment at nil is a fool's game.

Just to underline what a biblical mess Rita & Co have made of this we should remember that a little over a year NTOG acquired 10.9% of the Company. It cost them �125k and that was at a juicy discount to the prevailing market price thanks to Mr Snead. At Mid-price today we have a Market Cap of ............you guessed it �122k!!!! To add insult to injury, POO [WTI] May 2017 about $50 barrel; now about $70 barrel. You could not make it up.

We do not know what is in the Contract but as Rita was fending of NTOG [with some of us supporting her!] I think this extract says most of it "The CMA provides for a minimum capital commitment to be provided by WED of US$10,000,000 by 1 January 2020 and includes customary warranties and protections (including a cash indemnity based on the Magnolia share price in the event that WED fails to meet the minimum capital commitment by this date). The term of the CMA is for five years and contains standard termination clauses including mutual consent, change of control, insolvency or material breach. In the event of a change of control of the Company, WED has the right to terminate the Agreement without deployment of further funds for management by the Company." You can read it any way you want but I suspect WED have wriggle-room by the bucket. That said, from their perspective MAGP going under relieves them of any liability. Make of that what you will.

More questions than answers for me. 1 Asset Fire-Sale to pay-off the Bank but then Debt free? 2. 62 Producing Wells... what value is placed on them? 3. What are WED's intentions in this debacle? 4. Having gutted the Company can we be assured that Corporate Overheads will follow suit? 5. The Directors have failed [miserably] in their stated aim. They lack credible support and are clearly very selective in their sporadic communications with the long-suffering owners of this shambles. Are they going to do the decent thing and just go? In truth, our money has evaporated under the control of the lady who once allegedly boasted "give me a dollar & I will give you two back!" Right now two cents if you junp quick.

NM, if more than 75% of votes cast approve the Resolution the Directors have stated they will de-list from AIM. This does not change your ownership of the shares but means you will find it really difficult to sell or buy shares. Of course, the price of shares will collapse [even further] and as such your investment has gone. The BoD have offered a vague possibility of an exchange but it is hard to see who is going to want Magnolia Shares. In short, as I see most PI's are voting NO because they feel Rita and her cronies have betrayed the very people who stood beside her to fend off NTOG. I don't think many see much possibility of salvaging their capital but do not want to give the BoD an easy ride by way of delisting. It would be nice to think we find a friendly Bank, ditch the BoD and all live happily ever-after... but I would not hold your breath!

I agree there must be more to this than meets the eye. The BoD have small holdings and it is not obvious WED would be rushing to support. The overwhelming PI sentiment has been negative and even with voter apathy getting over 75% of votes cast to Approve is a very big hurdle. Rita may well be lots of things but dopey is not one them so I watch with interest.

Morning Robsky, Interact.ive Investor have told me this morning they are aware of the notice from Magnolia and will post a Corporate Action on relevant accounts "in a few days". Tick Tock. I just don't want the BoD to get away with an approved Special Resolution simply because holders did not vote. As a few have noted 75%, is a big hurdle but only if holders register their dismay at the disgraceful way Rita and cronies have conducted themselves after they enjoyed crucial support, from the very people they are now out to shaft, in fending off NTOG. All part of my expensive education on AIM I suppose. I think it was Liz Hurley who said "I never make the same mistake twice; I always do it two or three times to make really sure!"

No meaningful communication from the BoD. In short, the people who own Magnolia have been betrayed by the people who are meant to running the Company on their behalf with a good bit of contempt thrown in for good measure. Brutally, I suspect we have had it either way but if the choice is Delist [and go quietly into the night] or stick two fingers up to Rita and her cronies I am all for full-on crash and burn in the hope that a few sparks go the way of the BoD. I have not seen any Corporate actions either or a Form of Proxy on the Magnolia Website. I assume that is by design as clearly they need 75% of Votes cast and if we don't cast our votes they might slither away with an approved Special Resolution by default. I am voting NO with "go forth" in brackets.

Rita would have been fully aware that simply proposing Cancellation would radically destroy value. She must also be gambling that, as she needs 75% of Votes Cast for the Special Resolution to pass, most Shareholders will be so disillusioned they will simply not bother to vote. To underline this, the Directors hold very little and it is only WED who have a good chunk and they got those in exchange for not a lot. As to saving �100k pa very laudable, but maybe a cut in other overhead, notably people costs. gets my vote right now. Call me a cynic, but this looks like a way, by accident or design, of making the acquisition of Magnolia assets way below true value. Time will tell.

So, we now own a lot more of a company that has just announced a substantial reserve increase. With thanks to Dunkelmann, worth about £8.1m. What does the market think? In short. as the price drops not a lot but as has been said a bit was priced in last week so I will remain positive about Keras prospects.