Member Info for itisagame

I spend to much time thinking about AAOG lately, i was looking at zens lists of 100% owned assets and subsidiaries and just thought near term they wont be doing something with every single one.

Doesnt have to be a Zen asset but potential is out there, a simple asset to retain the listing, a new asset could be taken on with close to no upfront cost and only cash being spent on development at later stages down the line (eg Angus and the gas project that cost £1 + cover decommissioning costs in years to come, by which time i would expect the subsidiary for Angus to have ceased trading or be sold off but thats a different story.)

So as it stands as a £1.5m mcap company, I have been thinking about the deal here and where AAOG currently stands, and have taken the opinion that it could work out, the deal was needed because the companies cash pot was empty, and i can understand the limited financing available given the license expiry date and that is it AAOGs single asset, and the high amount needed, i expect it will be better once the license is renewed or on any well news.

Looking at it with refreshed eyes realistically AAOG were potentially short about $4.5-$5m for the quarter, the deal removed nearly all of the following liabilities which were potentially due very shortly, plus the £500k to cover other things.

SMP = $650k / 20% = $130k / 80% = $520k.
License renewal = $2m / 20% = now covered
The next stage of work on the well = say ~$1-2m / 20% = now covered
(+Longer term another $3/4m on well costs.)

I think the potential $650k + legal costs next month and the $2m was the main motive for the board to take this path, with no financing available insolvency / administration / liquidation could have been a real possibility, and with no clear path forward what option did they have, if Align had proof of the potential bond it could have been different but that doesn't matter anymore.

Short term the deal means AAOG no longer potentially need to find the additional >$5m and is free carried to the point of well completion, there are still problems but this has removed or at least deadly most of the short term issues.

Be nice if the well hits >2001 bpd so atleast the future of the 11.2% is AAOGs (and no doubt the new boards) decision to make next year.

I’d say whoever he lent the shares to is probably using them for shorting. Wasn’t many shares and will blow over.

“ On January 14, 2020, Mr. Cattaneo pledged a total of 6,666,667 Common Shares of no par value in the capital of the Company as third-party guarantor in support of the Company for a non-convertible financial instrument.”

If the 11.2% was bringing in $200k a month to AAOG why sell it?
It would be down to AAOG to execute the option, £2.5m in one lump or keep it and recoup that in 18 months. And the. it’s free income for a long time afterwards.
If anything keeping the asset on a success would make more sense as it could cover running costs elsewhere maybe.
Or could be used as security against a loan of more than £2.5m against.
All hypothetical obviously until we see results.

Looks like AC has been propping up the 14day vwap off the lows so AAOGs probably going to get <25m Zen shares before end of month.

fair enough, it was only a thought, as always we will have to wait and see what happens with fingers crossed then.

Well AAOG have said they spent ~£650k on looking in to it and didn’t go for it in the end. So I’m sure there would be a few contract signed by the all parties before any introductions? copies of invoices? purchase orders? sale orders? banking records? Minutes of meetings ? if it was done all above board and properly on both sides.

So isn’t it as simple as just look at the initial contracts?

And what exactly do they want? Is someone just ****ed off because they have missed out on a cheque and is it just for monetary gain or have any laws been broken?

if it was*

Yep, look forward to any positive new once the deal is done.

I suppose you could say i will soon indirectly hold ~£5k in Zen so i do wish you well. :)

"Is ATOG The property of AAOG."
no it is was AAOG would be in a different position completly, AAOG paid for the due diligence in to the asset, Sefton and Berwick said they couldn't get AAOG shareholder backing to fund it so Sefton and Berwick set up a new company and took the asset on themselves.

"what if" the AAOG board has a side deal understanding (or we can force them) to buy a controlling interest in one of zens more minor sub projects in one of the many Italy projects for example, that could see AAOG bypass the RTO threat and be a second listing to help finance a project for Zen. i think that might be a good idea for AAOG.

Is scratch my back ill scratch yours the way forward?

Yep, it has the rating (which is why i still hold hope for AAOG rising off the back of any positive news here after completion) so Congo just gives the bondholders another bit of security to leverage or an asset to divest should there be any future problems so should help you sell the bonds.

and it gives SNPC a partner that can actually finance the project for them, removes AAOGs influence on the project (as Alex stated the previous board had different strategies to SNPC to say the least.

Im a bias AAOG shareholder and just hope zen dont have the news before completion of AAOG congo, i want AAOG to have as many shares in ZEN as possible and for them to also enjoy a rise on the bond RNS, i dont currently hold ZEN and really want the best of this horrible and unfortunate situation possible - from the AAOG shareholders perspective anyway.

Actually i did just now think "what if" the AAOG board has a side deal understanding to buy a controlling interest in one of zens more minor sub projects in one of the many Italy projects for example, that could see them bypass their RTO threat and be a second listing to help finance a project for Zen. i think that might be a good idea for AAOG.

"God knows why anyone would want to invest in Africa "
Zen was given this by Milton / Riverfort and it wont cost you a penny, only shares, and is going to help secure your bond for your longer term plan. Its underpinned by the $4.25m due to Zen by SNPC.

and if it works 40% of the $5.5m workplan will be billed to SNPC as per the JOA and eventually repaid through production or debt repayments, so the work is actually going to cost you $3.3m + $2m for 25 year licence renewal

It was a gift because the financiers want to make money from Zen, this is how they force the result they want.

If it was Milton and from the 5p placing they lost £270k on that batch, they will make some back through Riverfort / Zen.

Other then that a Quiet day trading today.

That’s a big sell, someone wants out (Milton?) or Riverfort forward selling.

That was over £1m worth of stock at the peak last year.

I voted with nearly 3m shares in the end but as I said before, my proxy was returned twice (didn’t actually give me the reason the first time, just said couldn’t find my holding, second time I put a letter with it asking them to call me if any problems) then Halifax wouldn’t accept it as to late, was annoying.
Yes I know now what I should have done now (stayed out and avoided the company completely lol)

Thing is It did say to fill In the proxy and return it to the shareholders registrars, it didn’t say to get your broker to do it, that was my fault, I accept that.

I think one problem was that it wasn’t put forward as a special resolution, if it was I believe everyone would have actually been notified by their broker for a “corporate action “ And had a much higher response. But they didn’t want that.

By the by now, god willing onwards and upwards.

Thanks.

Wow that was a total wipeout. Everyone over the 75% and under 200m of total shares issued had voted

Has anyone found these yet? I’ve been watching and looking but Can’t find or see them on the website

“ The results of the votes will shortly be available on the Company's website ”

I think it will stay listed, for atleast the time it takes Riverfort to sell / convert / sell the CLN shares in to the market.

0.7 on deal completion.

1p+ on any of the following positive news
-licence renewal
-well reentry
- a SNPC payment

Potential for ~2p / £10m Mcap on good drill results based on ~525m shares when including the share dilution from CLN.

With Dips along the way on claim updates.

0.2 / £1m Mcap on bad drill results, leaving a cash shell.

That’s my guess but I’ve been wrong so far :)

We all said it was a bargain at 28p before Xmas :)

Not - note the removal by a body,*

This is for Ltd companies but I’d have thought most is the same, not the removal by a body, “ Using money or assets belonging to the company for personal benefit or gain.” They were all in on it.

https://www.google.co.uk/amp/s/www.rapidformations.co.uk/blog/can-i-remove-a-director-from-my-company/amp/

“ Director disqualification by an authorised body

Directors can be disqualified if they fail to maintain their legal responsibilities and their conduct is deemed ‘unfit’ (incompetent, in other words) by any of the following bodies:

The Insolvency Service
The Courts
Companies House
The Competition and Markets Authority (CMA)
A company insolvency partner
The Insolvency Service offers the following examples of unfit behaviour that often result in director disqualification:

Continuing to trade to the detriment of creditors at a time when the company was unable to pay its debts.
Failing to keep proper accounting records.
Failing to prepare and file annual accounts or annual returns for Companies House.

Using money or assets belonging to the company for personal benefit or gain.

Failing to co-operate with the Official Receiver or Insolvency Practitioner.
Failing to submit tax returns or pay over to the Crown tax or other money due.”