Been a few hints recently “ lot going on in the background - ramping up preparation for TLP-103CST1 “ etc -Did follow up today by email asking about when we might expect a RNS progress update -.no reply so far !
AAOG fantastic opportunity to become commercially viable /profitable , if they do achieve those 2000-5000 bopd Djeno production targets ( breakeven approx. 1000 bopd @ $30 )
Perhaps not the most exciting info below but ROC have presented some oil numbers in their budget for 2020 .
“PM @ClementMouamba took note of the recommendations of parliamentarians, made at the end of the 2020-2022 Budget Policy Debate (DOB). This commitment was made during the two plenary sessions on Monday, August 12, 2019 at the Palais des Congrès.
“4) At the level of the oil sector
The parameters used for the assessment of oil revenues are as follows:
Production:140 million barrels in 2020 compared to 132 million barrels in 2019;
Price of a barrel of Brent: $59.0 in 2020 compared to $58.2 in 2019;
Decote (discount ) applied to Congolese oil: $2.7 in 2020 compared to $2.5 in 2019;
Congolese crude oil prices: $56.3 in 2020 compared to 55.2 in 2019;
Exchange rate: $1 - 555.2 CFA francs in 2020 compared to 560 CFA francs in 2019.”
Good point evenstevens on “already incurred “ re - outstanding SNPC debt dues .
RNS 28th June :
“This is the fourth and largest such consecutive monthly payment received from SNPC and will be applied towards the Company's ongoing working capital requirements. SNPC has confirmed that it will continue to make payments on a monthly basis. SNPC's debt to the Company now stands at $5.1m."
FYI " 19.08.19
ELEMENT ASA: GENERAL MEETING HELD
An extraordinary general meeting in Element ASA was held today to discuss a proposal from Alpha Blue Ocean Inc. regarding amendments to the composition of the Board of Directors. The general meeting rejected the proposal to make amendments to the Board of Directors. "
Good morning everyone : Message boards are public forums , attracts all types , some apparently use different alias , some have different agendas , some use the filter -your choice !
Not really the individual poster that matters , more whether info provided is relevant to AAOG ?
DS does seem to get involved in different business entities , whether this new possible appointment (still to be ratified ) will have any bearing on AAOG operation is a moot point ( Apart from the obvious distraction & possible conflict of interest )
“ Element “ not exactly cash rich !
“At 31st March 2019, cash and cash equivalents amounted to USD 1.8 million (USD 1.9 million).
Total assets at the end of the quarter equals USD 18.3 million (19.6m). The activities In Philippines continue to be accounted for as assets held for sale with a total asset value of USD 5.8 million (5.7m) at the end of the quarter.
Total equity at the end of quarter Is USD 13.5 million (16.5) with an equity ratio of 74%.”
Yes makes more sense : DS not yet ratified for new position and AAOG directors did not approve EHGOS funding proposal so unlikely to be AAOG as a candidate
“One of such entities which could be considered as a reverse merger candidate for Element is a company affiliated with David Sefton.” ?
ANGLO TUNISIAN OIL & GAS LIMITED
FYI : In case you missed it !
“Alpha Blue Ocean Advisors Inc. (Alpha Blue Ocean), an alternative investment firm specialising in providing innovative financial solutions for publicly listed entities, has announced that it will be proposing a new Chairman for the board of the Norwegian firm Element ASA (Element) ahead of an extraordinary general meeting (EGM) of shareholders scheduled for August 19th. Alpha Blue Ocean is investment manager of the European High Growth Opportunities Securitization Fund (EHGO), an entity holding shares in Element.
David Sefton is currently Executive Chairman of Anglo African Oil & Gas plc, an independent AIM-listed oil and gas developer, and a Partner at Linton Capital, a private equity fund manager. A second candidate will also be proposed for the board. The two new directors will replace current board members Thomas Christensen and Kris Gram.”
Of course someone has to buy ISA shares .
Monthly figure more like 7.99M if at 5.2p your statement bit misleading “The coming monthly sales of over a 100 million shares will do nothing for the sp.” ?
Also certain restrictions in place “With a view to limiting the impact the Investors might have on the market price of the Ordinary Shares in any given month, the ISA contains certain restrictions on the number of Ordinary Shares that the Investors can trade. In particular, the Investors have covenanted with the Company not to trade such number of Ordinary Shares as is the greater of (i) 19.99% of the daily traded volume of the Ordinary Shares; or (ii) 227,772 Ordinary Shares (being 1/20 of the Minimum Monthly Shares).
ISA normal daily amount sold be approx. 400k or If low SP or liquidity in play then only 227,222 not a massive daily amount !
Daily totals for last month mostly higher than ( 227,222 – 400K levels )
Also not really sure why you think AAOG would renew SMP-102 drill & incur additional costs
Equipment problematic - “It had maintained extensive, contemporaneous technical records of the failures of the Rig and the losses and delays that were caused;”
AAOG “withheld payment of SMP's final invoice of approximately $650,000;” so no other payments for that drill .
Hi Truthfactory Interesting suggestion ” I wonder whether the director buying will start when the ISA shares start to roll? Would make sense?”
Yes if management bought now no monies would go to AAOG as just a normal trade transaction ( but would become AAOG shareholders )
If AAOG management buy ISA shares from the investors then technically - % management £buys returned by investors go direct into AAOG coffers .
Of course if management had just bought some placing shares then same result does seem a rather complicated scenario this ISA subscription process .
Read the ISA definition a few times ( might be mistaken so happy to be corrected ) seems the investors - (Riverfort /YA II ) been given 109,331,011 Ordinary Shares ; Does not appear to be any SP sell limit price set ? -- albeit AAOG will at the very least always get 75% of whatever monthly sale proceeds obtained ( "Equally, the Investors have covenanted that each Monthly Settlement shall be an amount equal to at least 75% of the value received by the Investors from the sale of the Ordinary Shares it undertakes in the month prior to the Monthly Settlement.. “ )
Actually quite a cheap way of getting funding ( exclude dilution impact ) - Placement & ISA shares already issued so hopefully dilution already priced into current market cap . ------Obviously not good for existing AAOG investors if SP falls lower !!
To be fair not the scenario AAOG management expect ( assume Miton- Riverfort /YA II concur ) that the best is still to come !
“The structure itself is designed to remove any incentive on the Investors to lower the price per Ordinary Share. Essentially, the Investors are "long" of the Ordinary Shares and sell them in order to return the proceeds to the Company while making a return through the fact that the benchmark price is above the Issue Price.
Firstly, the ISA offers certainty as to the dilutive effect of the instrument since the number of Ordinary Shares to be issued to the Investors is established upon execution of the instrument. the Non-Executive Directors believe that the current market price per Ordinary Share significantly undervalues the Company particularly in light of the successful drilling of the TLP-103C well.”
Just have to wait & see what transpires , fingers crossed SP gets above 5.2p then passes 5.8p and continues upward trajectory . That is the plan - good luck AAOG team !
Hi TT : Yes good points “ Tilapia Licence includes a coastal strip and shallow water area, offshore Republic of the Congo"
"Ability to drill from on-shore: Tilapia is near offshore, being only 1.8 kilometres from the coastline. This gives PK the considerable advantage of being able to drill from onshore using deviated wells, at a considerably reduced cost compared to offshore drilling;”
Share dividends - Appreciate perhaps bit premature to be discussing share dividends as to begin with any net profit will be retained and used to fund future operations etc .
My previous attempt at working out possible dividend amounts wrongly assumed 100% did not take this very important factor into account - only ( - 50% - 75% ) return to shareholders based on bopd production . Sorry my mistake !
Brent crude currently approx. $58.6 per barrel
“12. DIVIDEND POLICY Following Admission and Initial Completion, the Company’s dividend policy will be to distribute free cash to Shareholders through regular dividends once production reaches a sustained level of 1,000 bopd and provided that oil prices are not less than US$30. In such circumstances, the level of the dividend will be at least 50 per cent. of net profits (subject to the availability of distributable reserves).
If production reaches 5,000 bopd and also provided that oil prices are not less than US$30, the level of the dividend will be at least 75 per cent. of net profits (subject to the availability of distributable reserves).
Should the workovers and drilling programme not be successful, there can be no guarantee that a dividend will ever be paid."
Yes TT , lot going on in the background , site seems to have been cleared ready for new drill ( thanks skittish for sharing those screen shots and no bad thing drilling quite near shoreline )
Did get a reply from DS so back in communication !
ISA first tranche of shares can officially only be sold from September apparently when AAOG should be properly scaling up to the re-entry . So would expect positive RNS news flow to excite the market and get the SP up & above 5.2p before then !
Meantime added a few more today , still in paper loss -33.65% @ SP 6.9328p average - fingers crossed TLP-103CST1 is a tremendous success !
“Sidetrack will re-enter TLP-103C well (site pictured) Plenty of space it seems to set up new drill !!!!
Might be of interest ECO update - OK not exactly like for like comparison with AAOG but huge disparity in current market cap values .
Looking forward to AAOG re-entry , good luck AAOG management /operational team !
(Anyway still very positive , did add a few more AAOG shares : SP average now 7.1393p paper loss 30.67%) Next step breakeven then whoosh !!!!!!
AAOG stake 56% & onshore costs for drilling look very attractive in comparison
~$30m net well cost” for Tullow