Member Info for GKahn

Petro China has operations in very close proximity to Heron 1 but apparently have had no problems with local politicians and herdsman. Given the timing, it makes me wonder whether the Chinese might have stirred things up?

Bonum
You are absolutely spot on. However, they will will never grow up. Best to ignore, apply filters or leave the board.
GKhan

No need to apologise WildOne. There could be a number of considerations, the fact is we just do not know
GKhan

One has to wonder what is causing the delay for the Block XX drilling contract. There must surely be more to this than rig contract negotiations which were expected to be finalised by end July. Could there be permitting issues or perhaps there is a link to a block XX farmin agreement, in which event that would require government approval. i am inclined to think that the reasons for the delay are not negative except that it is now getting very late to conclude two wells before winter closes in.
GKhan

Buying into shares of PM would be a corporate deal and not the way that farm-ins generally work
GKhan

A great deal has been posted on the flippers being responsible for the selling and share price weakness. This makes little sense to me. Why would institutional investors, who were positive on PM’s prospects at 10p, become significant dumpers of shares at a loss within a matter of days/weeks. Is it not more likely that traders, who bought in the timeframe between the two placings in the expectation of a significant increase in the share price leading up to first spud, became disappointed because of the impact of the placing; but nevertheless are selling at a profit.

I do not accept the argument that it was wrong of management to proceed with the second placing because the company was fully funded for four wells. To have done so would be catering solely to the short term traders to the potential detriment of PM's long term interests, particularly bearing in mind that any fundraising after drilling has started would be subject to frequent if not continuing close periods. Irrespective of the 2018 drilling results, to have ended this drilling season with little cash and the need to raise significant new funds for 2019 exploration, would have been unacceptably risky. With the second placing the company has bought time, flexibility and operational synergies.

GKhan

Ojay
Many thanks for your kind words. In my view the current board and CEO are taking the right approach by ensuring that the company is adequately funded at all stages and I was pleased to see the second placing as fund raising later this year could be problematic.
For me, one of the best decisions that have been taken since Mike Buck joined is the return to Block XX. While the initial targets in XX are modest compared to those in IV and V, success in Block XX with the prospect of relatively short period to production and cash flow would have a very significant impact on funding future exploration with much less dilution than otherwise.
GKhan

Florida
Jest of course, no problem, thanks. Did you see my post on Sun mid afternoon?
GKhan

Ojay
Like you I bought quite a few in mid 2016 which brought the average way down. It was a extraordinary opportunity to buy sub 2p.
GKhan

Florida
Thank you for your kind advice. Actually I have enough with a holding of over 4 million shares some of which I have held since the very first day of AIM trading more than 10 years ago and I have never sold any. I have been patient and pay no heed to the rampers and derampers on this board
GKhan

Florida
But the Titanic sank!!

Florida
But the Titanic sank!!

As many posters on this board are traders it is little wonder that we have seen so many very negative comments following the most recent placing which clearly came as a surprise to many and a significant setback to those looking for a run up in the SP ahead of the first spud.

I believe that there is a consideration in management’s thinking that perhaps has been overlooked. Once the drilling gets underway management could be in near continuous close period through November while in possession of unpublished price sensitive information. Moreover, management would not want to risk having to go to the market late this year or early next to fund the 2019 exploration.

Also, there may be many good operational reasons and synergies sin securing the rig for a early start to next year’s drilling campaign.

I am not surprised that the management decided on a second placing that I believe was prudent and well thought through. Moreover, there is a general rule in corporate broking and fund raising for the smaller resources companies: when the money is on offer, take it.

Well done Mike and advisors

GKhan

Can someone please provide specific examples of where the company has not been Open or Fair? If valid, have any of the issues bring brought to management's attention, and, if so, how? GKhan

The performance of the current management so far has been excellent and unquestionable imo. There has been much improvement in the communication and the key decisions taken have been well considered and sound. The fact is the company needs funding for its exploration and Mike Buck and his credibility in the City have successfully raised funds to take the company forward, whereas the previous CEO was not able to – instead we got Bergen, and another of Mike Buck’s achievements was to get shot of Bergen in short order. However, perhaps the best decision that Mike has made may prove to be the return to block XX, Regrettably there are a number of posters on this board who rubbish the company and its management. In my view they do so to manipulate the share price. If these people genuinely believed the negative unsubstantiated rubbish why don’t they just sell and move on? GKhan

Our interests are firmly aligned with the Petrovis group and management. To suggest otherwise is utter nonsense imo. In fact it is of considerable benefit for individual shareholders to co-travel with an influential Mongolian shareholder and with the support of government and regulatory authorities. Surely, everyone wants the drilling to get underway and be successful. GKhan

If the share price had risen appreciably after the recent placing, we would have seen a lot of complaints on this board. The current price and trading activity demonstrates that the company did very well to get the placing completed imo. Well done Mike. If any of the initial wells are successful there will be very substantial dilution in the future by fundraising or farm-out or a combination of both. I will not be surprised to see another substantial placing this year to fund a multi-well programme for 2019. It is particularly encouraging that the 2019 programme can get off to a much early start with the funding secured for the first two 2019 wells. Without adequate funding in place the rigs would probably have returned to China towards the end of this year rather than be winterised in Mongolia. I am inclined to agree with those that are not expecting much of an increase in the SP ahead of the first spud and that it may be three months before we see significant news of the drilling results. Cautious optimism and continued patience hopefully will be amply rewarded. GKhan

Many thanks 2010PM and Rampark for the clarifications

Colonel Drake does raise an interesting point. From admission Petrovis and its concert party had more than 50% of the issued shares and had no obligation to make an offer at any time since. However, now that the aggregate holding of the Petrovis Group is below 30%, it raises the question of whether an obligation would arise if the holding were to increase above the 30% threshold?

Spainish Indeed it does, many thanks