The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Well my friends. As per my previous post, it is a risky business to be involved in a drilling program without sufficient cash reserves to cover the unexpected. ADL got caught in the squeeze and the side track put them up against the wall. They had no choice and were taken advantage of by the city spivs. Simon and the board are obviously out of their league and made a rookie mistake and the company and us LT SH have taken it in the chin yet again. I do think that if Coulter doesn’t come in they the company will call in the administrators. Outrageously mismanaged.
Don’t know much about TOE, that was before I joined the ADL chat room family.
The biggest share show might not be the best place for ADL. If Coulter falls flat so will Simon. Might have to give a demonstration of highland dancing or shadow puppets. Simon comes across very well I must admit and I like his style on the podcasts but if he is full of @hit then it will come out. He must be rather nervous now relying on one drill to save his company and then the operator missed the zone and had to do a costly side track. FB
Go to the internet and search BungaMas PSC and do some digging, there are a number of hits. The block was awarded in 2005 for an initial 10 yr period and then extended by 2 yrs. looks like an expiry to me however I may be wrong.
Boom. Don’t think it was the Indo govt this time. From my research the Bunga Mas PSC has actually expired and King Jossi has not fulfilled the work commitment and figured he and Habibi’s son could push their weight around. I have never been to Indonesia but I do know if a lease expires the govt is not sympathetic. Just a thought.
Great song by Meatloaf. Hahaha. Would like to see a bit of Paradise by the Dashboard Light from ADL.
Jace. I can accept that any investment has costs to evaluate etc as a prudent operator has to conduct their own DD but 200k seems exhorbitant to me and then it falls flat. Perhaps they did not do their DD effectively.
Boom. Who is Chris Oil and why do we care?
Hi all. Was wondering how wells get paid for so reached out to a friend who has been in the drilling industry for 30 years. Here is what he said. Wells are funded through a cash call process based on an approved budget and the budget has a contingency. Companies, such as ADL keep funds set aside for the cashcalls. Where difficult comes is when a non budget activity happens, such as the side track in Coulter that can be problematic to companies without a lot of cash He said he has seen companies raise money mid well which is not the best plan. A side track could cost another 2 m which was not budgeted. The question is for ADL is whether they set aside funds for the unexpected.
Jace. Spot on as always but Colter is not a sure thing and if it does not produce good results or has difficulty drilling or delays then they could not ever raise money at any cost. From a risk perspective, I would do it before. IMHO FB
Have been studying the financials and figure they have to do a CR soon as they must be running in fumes. If they have an asset to acquire then I am ok with that as that is how they create value however if not it goes to running costs and the spiral of death. However I do think Simon has something up his sleeve. They have been looking at properties for years and must have an inventory of opportunities. The time is now to bring one out. I may be wrong but I remain positive. FB
Jace. You sound like an expert. Thanks for the post. I am a mathematician and my question is on what grounds could they give each of those criteria such a high score. Mmmm. I will remain suspicious
50% chance of success, I wonder how they calculate that number. Sorry but I am now skeptical about anything that comes out of ADL or its partners. Let’s wait and see what their expert PR squeeze Steffi says about it. Only joking guys. The thought that they will be able to sell Colter immediately is a long way off. There is an equal chance that the well gets delayed by drilling problems then cash strapped ADL would be in serious jeopardy. I thought they had a good thing going in Indonesia, developed a bit of a niche and the frittered it away. Equal chance of bankruptcy as there is a success by the drill bit. Talk about a roll of the dice
Hi all. I reckon that ADL will leave Indonesia and focus on the small crumbs in the North Sea. As much as we liked Simon he just couldn’t deliver and will be blaming Indonesia rather than take the responsibility for the failure. I can’t believe that after a year in discussions in Bunga Mas that they did not see what was coming. From past posts, the felon BMD and his girlfriend were in love with Jossy R, saying he was a real player and oh look, he failed as well. This has the feel of a stitch up to me. Smells funny but then ADL has been smelling funny for years
Hi all. I have calmed down now and have had a thought. Simon has been talking about their project pipeline in Indonesia and I would bet he has other projects that are ready to go. He would understand the risk of relying on only one project. Too risky to rely solely on Coulter and they have Badger. Too risky to rely only in Bunga Mas so I suspect it is time to release a new project or serious project one of the projects we already know about. I would like to see a project update on the Indonesian pipeline. Production and cash flow is what I am looking for and not 3 yrs from now but soon. That would regain investor confidence I think.
Yes I believe Simon wants to transform the company. No doubt in my mind but the real concern is does he have the skills, business acumen and experience to do so. I wanted to play football in the premiere league but I had two feet. Desires and abilities are entirely different things
Yes. Nail on the head. Why would ADL hire this bird as their PR person. She is a twit for sure. Partners in crime with the other known felon. Have been following Trump and his twitter garbage and I see the same thing with this bird ADL deserves what they get by hiring her. She will proabably host another investor conference soon, to pay her Christmas credit card bills no doubt
Thanks Jace. He is a foul mouthed barrow boy isn’t he. His mother must be so proud.
Jace. Did he post something somewhere? Any chance of posting it here? I have followed him many years ago and thought he was a joke back then. Like a cockroach, he never goes away.
Jace. You mentioned Doc... who is that? Not Doc Halliday I hope? Another useless blogger who wouldnt recognize a drilling rig if it was in his back yard. Tell me it’s not that Doc?