Member Info for Edgein

Tiburn,

Yeah that's what makes this latest fiasco the most frustrating. It looked like he had gotten past the February calamity and was finally getting things back on track. Then he tries to slip this through unnoticed in Canada, strangely no LSE RNS on something that significant, perhaps he would prefer a low volume vote. There looks to be a clear path now to upgrade the GGS and get production back on track again, also on the right deal a potential JV could carry or fund most of the cost of the initial Frontier drilling. There was no need to come up with this latest scheme to consolidate. Make the company successful and then attract investors. Not consolidate and then try to clear the SL and convertible bonds through fund raises.

Regards,
Ed.

"As no one knows which is the correct way to vote as yet."

No not strictly true, there's a lot of people that yesterday voted for the no to consolidation post. Some of us have been here from the time of Essar and the 0.045p fiasco when we were diluted up to 16.5bn, heck we're almost back there again! What he is looking to do is consolidate to get the share price up and share count down to bring in institutions. Well no matter what angle you take on it that's to the cost of current holders. Also these US investors and US listing isn't what that special meeting document says either, its to fund raise. Also does he think that US investors only care about the share price at the time and won't look at the company's recent history? That like Und said today is the reason we're at 5.5p per share.

He recently raised almost $15m through more budget convertible bonds (as a result of Feb's news), that should be more than enough to get the GGS upgrade done. The current massive discount on our reserves and NPV10 should be more than enough incentive to get these "sophisticated" US investors in. Art has got us to this special offer price and is looking to reverse that the easy way.

No thanks Art, make the company successful the normal way grow production and reserves through operational progress. The assets here are super, does he not have faith in those hitting his targets?

Regards,
Ed.

I should have said during drilling.

Regards,
Ed.

Agreed guys, a very good move from the company, that treated this like a lot of traders do, sell a portion after they make a profit after drilling and before results. They're still in the game with 30% too and after they complete the placing with Mr Karam they'll likely be more than 50% in cash too. A sensible move to derisk now too as they've other things to contend with as well, like sale of Mambare and completing Canegrass.

My favourite part of the RNS was JP's comments:

I am delighted to announce this partial de-risking of our Mt Weld asset ahead of drilling results at the project. The Company will now focus on its first transaction following its recent pivot to oil and gas".

Focus is now moving to Brazil from the sounds of it, exciting times.

Regards,
Ed.

Jiddy,

Yeah I don't buy the whole JV doesn't exist theory either. Its a large discovery, one of many in the PRB, its not as if its alone. There were wells flowing at 1000bopd+ close to our northern boundary. Some of the majors and large oil producers are doing very well in Wyoming, so it would be natural that they'd want to bring their expertise and modern drilling to our assets. That I don't question.

Some of the other decisions on the other hand......

Regards,
Ed.

Is the registered office in Canada still - YES

Are the operations in Canada - NO

Are they overseas i.e. USA & Nigeria - NO

USA and Canada great lakes but no seas. :)

Nigeria option on OPL 226 Expired, will it ever be renewed?

Change of direction, hardly apparently we're still waiting for a JV on these large assets, new name likely to reflect that.

Regards,
Ed.

Jiddy,

I can understand the name change, like others discussed on that point, the assets are no longer overseas for a Canadian based company and not Canadian assets either so a rebrand I can understand. A fresh start is one thing, at the cost of current shareholders is something else.

Regards,
Ed.

Confounded,

They sure are cheap at the moment given the assets. You're in below the recent cornerstone investor as you suggest and also an even bigger discount to the 0.4p shares that the Chinese investors took. Good to see the share price reaction over in Oz to the commencement of drilling by Riversgold, yet AIM remain asleep to us having the same entitlement (and we're carried for the costs too). But lets see what happens if they encounter some commercial REEs in those magnetic anomalies. :)

One possible option is that they dual list on the ASX if they hit on Mt Weld, its one way for CRCL to see a proper valuation. Canegrass and Mt Weld could eventually be very interesting to Australian investors, fingers crossed.

Regards,
Ed.

1509,

Similar to you I rarely vote on any resolution in any of my holdings as they usually make little difference. This time is very different though, its vitally important to vote at this special meeting. We've seen what has transpired over the last 12 months plus (especially around Feb 2023). So I'm not giving him the option this time, we probably aren't savvy enough to understand what a 1000-1 consolidation prior to fund raise means! Well hang on a second some of us have been investing for quite a few years now and do! Its like playing Russian Roulette with your holding now, I'm not prepared to sit across that table from Art with one empty chamber. I'm all on for him getting the BFU to full steam ahead and going for it on the CCU and BFFDU, then once that's done, by all means list wherever he wants. But giving the authority to perhaps consolidate up to 1000-1 isn't something that I'm prepared to do,

Regards,
Ed.

Interesting reply as the JV and the consolidation are two entirely separate issues that he's deflected onto. Take I3E for example which has attracted institutional investors and not had one consolidation with about 1.2bn shares in issue now. Reserves and production shooting up since acquisitions.

Art on the other hand did a 100-1 consolidation and didn't attract institutional support hence the lack of TR-1s. So another consolidation is the solution? Really? Its rather strange that he didn't say the best way to bring in institutional interest is to get that JV done and develop this large discovery. I think really the most telling sign is that the share price when it came out of suspension hit 60p and its now 5.5p after the previous consolidation and apparently finding one of he largest oil discoveries onshore USA in decades. Consolidation didn't work, we've now far bigger assets and a similar market cap prior to buying Atomic. Its all unsophisticated pi fault though, its probably all our fault for the lack of progress and institutions too, shame on us.

Savvy investors know that oil and gas companies that make progress and develop their assets attract institutional investors, ii's don't sit about looking for companies that have consolidated. Perhaps he should concentrate on that rather than keep blaming his shareholders for his woes. I'm still hoping that on the 30th of May he has something to complain about. Then perhaps he can get on with completing the JV/RBL and getting some operational progress at long last.

I'll give Art some advice for free too, all those promises from last year get on with getting some of those done and get your share price to reflect your assets not sit at a huge discount to your reserves. There's not another company with this level of reserves sitting at under £20m. In fact there's lots of companies with a fraction of these reserves trading at multiples.

P.S. I hope PIs tell you where to stick your consolidation resolution.

Right I think I've made my point I'll try to behave for the rest of the day. :)

Regards,
Ed.

Bob,

Its not a case of if there'll be dilution after the proposed consolidation its a case of when. The purpose of the consolidation according to that document released in Canada is to fund raise in the future. Also there's still circa $30m in convertible bonds hanging around too. The assets here are still fantastic, potentially up to 50mmbbls recoverable from the BFU (recent gas flaring hearing) and potentially hundreds of millions recoverable from the CCU and BFFDU, but it would be nice not to be obliterated before then though.

He're recently gained about $15m from the issue of more bonds and the GGS requires circa $4.5m to allow the increase in MF back up to 8.5mmcfd. He's got enough in the kitty now for the CCU completions and with rising production likely 1-2 short lateral production wells. So this new consolidation seems to be at odds with recent events. As it hasn't been RNS'd perhaps he's hoping it just slips through on the day from the vote in the room.

Regards,
Ed.

1 share = 1 vote

Regards,
Ed.

O2B,

Well I have slightly differing views on that. I'd prefer Art to stay at least until after the JV completes and GGS upgrades, but beyond that perhaps he'll step down after the past year's operational performance. So I'll be voting for all resolutions except for the consolidation which I will be against. But I can understand those that will be against more than that one. But the latest move looks like a cynical attempt to remove current shareholder influence while it still exists as those large bond holders currently hold bonds not votes.

Regards,
Ed.

JARV,

He's already had his 100-1 and there are lots of successful oil companies out there with far more shares in issue than 347m and lots with over 1bn in issue and that doesn't stop them increasing production and reserves year on year. It was fine last time as there were 16.5bn shares in issue last time. This time its starting to look like a desperate attempt to get the share price above 6p. He took it down there through weak operational performance, reversing that with strong operational performance would be the best course of action. Consolidation doesn't favour current shareholders.

Regards,
Ed.

BB,

I can't recall of any major or recognised company coming into a JV and insisting on an equity position in the tiddler. But if they did, can't see any obstacles to for example a 100m placing at a premium. Doesn't need a consolidation for that. Actually given the assets here I could see a large company paying us rather than COPL paying them. We're the one with 85-100% of a very large discovery, some of which already has reserves. I don't see the advantage of consolidating first then placing shares to another company or fund raise for WC. Get the production/profit up and reserves up and the share price will follow. Longer term if they want less shares in issue, stop doing convertible bonds and do share buybacks like other successful companies do.

Regards,
Ed.

Freshman,

I'm tending to side with your opinion. Option to consolidate at some point in the future seems rather questionable at the moment especially after recent events (Feb 23). The best thing for long term holders here is to grow the company organically, we've got the assets for that. Let them get the GGS upgraded and hit this 5000bopd target and get the JV done for the Frontier development. Shouldn't be any need for consolidation in the above scenario. Share price will then take care of itself as we're main listed. Dual list on one of the smaller US markets (delist from CSE) once the production and reserves are going up.

Art said in one of those interviews after securing Atomic production and profits would rise per Q, do that and then think about listing in the US. Art has to build confidence since they almost ran out of money, and to think they only needed $4.5m for the GGS upgrades makes some wonder why this wasn't done as a placing after securing Cuda.

Regards,
Ed.

Nige,

As it stands now with the large Ni assets at Mambare and Wowo gap we should be several times where we are. In addition with Dempster, Canegrass, Mt Weld and possible O&G acquisition I see fair value currently around 1p, that's why I've been buying at a fraction of that. Clearly commercial grades at Mt Weld, completion of the Ni JV or acquisition of oil and gas production and reserves changes that somewhat. Re-rate could be pretty immediate on a potential reverse takeover of production.

Regards,
Ed.

Nige,

2p would be a very good start! Who knows at what stage the rebrand is currently. I do know that oil and gas acquisitions can take some time from the effective date to their completion date, we've yet to hear initial terms for the first oil and gas acquisition that they're hinting at. So I guess we just have to wait and see what happens on that front. At least we now have action on Mt Weld and close to completion on the Canegrass option. I'd expect another RNS on Canegrass very soon.

Regards,
Ed.

DC,

You're welcome. We got a little bit more info from today's release from Riversgold, if they see carbonatite in the holes they'll expand the drill programme so that's likely to be the first possible indication. Fingers crossed that it all goes well as we're still only capped around £3m.

Regards,
Ed.

DC,

We'll find out the results through Riversgold who are operator of the Mt Weld asset. They couldn't inform people in advance of the exact date as they were waiting for permission from the ozzie authorities for drilling. RNS was out first thing after the bank holiday. Clearly premission been given and rig contract signed for the 2000m. Interestingly today that can be extended. Fingers crossed that they encounter some high grade REEs down there, find out in a couple of weeks what these magnetic anomalies beside Lynas' Mt Weld contain.

"Contractor appointed to undertake initial seven-hole, 2,000m reverse circulation drilling programme expected to take several weeks with the option to expand meterage"

"Following the Farm Out Agreement with Riversgold earlier this year, the RGL team now has the drill bit turning, which in the coming weeks will provide initial exploration results at the property."

Initial exploration results will be known in the coming weeks I guess from the cores taken. The final assays will likely take a bit longer though. Be interesting to see what they come up with from these mag targets.

As for the chap asking whether he should or shouldn't top up this a bias place to ask, its a risk reward, no guarantees that they will hit at Mt Weld or Canegrass or that the Brazilian oil and gas acquisition(s) will progress or complete, its also unknown what will happen to their large Ni discoveries and the JV etc. The new cornerstone investor with all his links to finance etc suggest there's something going on to finance a new asset. But at the end of the day you pays your money and you take your chances. I hold a position here similar to that of SK, so I'm certainly hoping for a positive outcome from more than one of the current activities. As with all of my investments I take a 3-5 year outcome. As for 100 bagger we'd need Mt Weld to come in big and high grade for that.

Regards,
Ed.