The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
What now?
How will this sit with the Nigerian Govt?
Gross misunderstanding of the situation by the present BoD.
Why did they allowed this turn of events, when it could have been so easily preventable with a bit of decent communication.
Total contempt for shareholders has shot them in the arriss...!
But what now for the Company?
And at what cost to shareholders?
Surely the best way to deal with this threat is to get the shareprice up!
To do this would require a bit of communication and some updates from the BoD as to what the heck has been going on for the past 12 months?
Earn your fat pay checks and deliver something!
The Federal Government yesterday, warned against non-compliance of asset transfer in the petroleum industry, adopted by South African company, Metallon Corporation Limited to takeover LEKOIL Nigeria Limited. The warning was contained in a letter signed by the Honourable Minister of State for Petroleum Resources, Chief Timipre Sylva. Metallon Corporation, a south African company with 15.10 percent shareholder in Lekoil had in November 2020 called for an Extraordinary General Meeting with a proposition to change Lekoil’s chairman and also introduce three new members into the company’s board under the guise of improving management oversight.
The move if left unchallenged could give Metallon control of LEKOIL Nigeria and its strategic oil and gas assets in Nigeria. However, in the Minister in a letter stated that, “We are of the view that such significant change of shareholding can only be carried out in close adherence with the Guidelines and Procedures for obtaining Consent to the Assignment of interest in Oil and Gas Assets dated 11th August 2014, issued pursuant to the Powers of the Honouroble Minister of Petroleum Resources under the Petroleum Act. 3.
“Articles 3 & 4 of the Guidelines of Ministerial Consent sets out the key elements of assignment of ownership and control of interests in Oil and Gas Assets and the requirements for securing Ministerial Consent.
“We cannot over-emphasize the consequences of non-compliance with the Ministerial Guidelines.
An Africa-focused oil exploration and production company with interests in Nigeria, LEKOIL Nigeria has significant interest in a number of strategic Nigerian oil and gas assets which are important to Nigeria’s energy future.
These assets include the Otakikpo marginal field where LEKOIL has 40% interest; Ogo discovery and OPL 310 where LEKOIL has 17.14%; OPL 276 where LEKOIL has 45% and OPL 325 where LEKOIL has 62% interest.
Metallon on the other hand has been considered unfit to handle the management of LEKOIL Nigeria’s assets because it has no pedigree in the oil and gas industry. Also, its murky track record in the countries where it operates, especially in Zimbabwe, has led analysts to conclude that it could reduce LEKOIL’s ability to get funding to finance expansion projects which could adversely affect an industry which is strategic to Nigeria.
Metallon’s poor management in Zimbabwe led to litigations involving the Zimbabwean government, the UK Government and other partners, including labour. The Company’s huge debt profile, estimated at $200 million made it inevitable to give up three out of the four mines it previously operated in Zimbabwe in early 2019.
Metallon suspended operations after a group of workers applied to have business-rescue measures implemented at two of its mines. The workers, through their lawyers, said they were owed more than two years’ wages and benefits by Metallon.
Vanguard News Nigeria
Thanks Zarqhon
Subscription only Mannan.
What does it say?
TIA
20p all day - Once the funding is confirmed.
The assets are huge!
Well that article certainly puts a different spin on things....
Can only be a matter of time before this funding is confirmed, and when it is, it will be a completely different situation!
Any sells will be quickly bought up by Metallon IMHO...
They need to build on their already considerable holding.
This is about to get very interesting!
Is today the last day for an announcement on a new NOMAD?
Resignation of last NOMAD announced on 23rd November, and shares suspended.
Rule states.....
If no new NOMAD announced 'within one month' of that suspension the AIM company
has failed to appoint a replacement nominated adviser, the admission of its AIM
securities will be cancelled.
Will the AIM listing be cancelled tomorrow, and if so, to whom does ownership of the Company pass to?
Surely its the shareholders, not the Board of Directors....???
Their letter is bang on if you ask me!
What have the current BoD and CEO done for shareholders in the past few years.
Everything they turn their hand to, they have royally FUBAR'd
Well we have got the Term sheet that I was expecting.
Of course it cant be a 'Binding' term sheet UNTIL it has been ratified by the committee on the 15th.
If it were binding - what would be the purpose of the committee....
I think you are trying to split hairs and create mischief Antharry
Its back up now, and that more or less covers it.
Milestone day for the company, Environmental and all due diligence complete, still positive between both parties, and final finance committee approval in December.
No more updates other than 6 monthly updates.
2 year forecast issued in September, and any deviance will be updated.
Anyone get chance to listen to that Stockbox interview just uploaded to twitter?
Had to mute it as someone came into my office, and it seems to have been removed now....
Heard the end with AP saying nomore updates on production until quarterly results. All info in forecast, and any material difference will be reported.
Is this a joke?
AP is worse than Ricky Gervais's David Brent from the office.
Classic line...
"The bad news is they are closing the office and you're all being made redundant - the good news is - I'm being transferred and I've got a promotion....!"
I for one would be extremely happy to see AP transform his current share value from £2.5m to £26m...!!
If in doing so he increases the value of my holding by 5X...!!!
AP has had the foresight to recognise the opportunity. Yes, he has exploited shareholders to fund the development of the asset - buy finally he is fully aligned with shareholders.
Bring on the raft of PR, regular positive RNS's and transformation of this business into a world class asset and producer!
I for one will not be selling a single share!
I too cant see how this will end well for shareholders.
Not sure if our BoD are complicit or completely incompetent - either way - there is an aggressive bid to relieve us all of our shares for the absolute minimum , and it would appear our BoD are doing everything they can to help them!
Damage limitation RNS if you ask me.
If there was no news this morning, two weeks after first shipment was promised, then the share price would have tanked.
That would have caused a bit of an issue given that the AP group are expecting to be awarded 2.5 billion shares in VAST today...
So calm the natives with a conclusion on Wednesday RNS.
The only positive is that we are hopefully still producing 24/7, so the next shipment should be ready to follow on in a few days time...