Member Info for itisagame

What would our cash burn drop to with only 20%?
Is the majority of these costs associated to AAOG Congo or AAOG PLC ?

I don’t believe cash burn would drop to reflect the stake to £50k / month.

AAOG are going through £250k a month with one single asset, as zen shareholders not concerned about a potential £2.4m a year standby running cost for the 80% stake?

I’d be concerned if I was a zen shareholder of a £2.4m / yr cost for just retaining their 80% share.

Should ask them for a brake down of planned expenditures, spending £750k in 3 months while no drilling is being done or even being planned is hard to believe.

How the hell does this company use £260k a month while dormant?

Another little secret?
Even before Aligns deal was formed we were told
"The Company has received a number of expressions of interest in this regard"
who else could be out there, the bar is set low enough.

LB that is the only reason why one small part of my brain says what if sefton / eghos is behind the $5m loan.
the warrant conversions could be just like the time at WDC.

But either way, Align still offers a higher share price for shareholders to the alternative options.

they had about £600k when they suspended as CAF, and sp was equivalent to about 30p (currently 14p)

Normal rule 15 terms, 6 months while trading (as CAF), 6 months suspended, they changed from AIM to main listing in the 11th or so month, raised a mil or so in the mean time and had a year extra i think.

they had a different name (CAF prior), renamed the company to PERE, new ticker, new listing, took on mining assets which were purchased from the a creditor that took them over when previous company failed, took a long time to finance, and along time to set up and they actually got the mine up and running again before they relisted. The day to day business of the new asset didnt stop being done on the ground because they were suspended, the company was working on it from day one.

Chaudrey Francis & Douglas LLP?
REDBOX ASSET MANAGEMENT LIMITED?
CFD CORPORATE FINANCE LLP (OC370689)?
RIGHT DIRECTION SEARCH & SELECT LIMITED (06185968)?
plenty of companies listed from that address.

shells can last longer than the 6 months while trading plus 6 months suspended, i just had PERE relist after a long 20 months of waiting. They switched from AIM to main listing in the middle and it gave them more time. cost a lot though.

Why not raise at 0.5p? because they have a much better option on the table.

on the table Align are offering nearly £1m at 1p (the ISA shares purchased and a small capital raise) and £1.8m at 1.5p.
Aligns deal would see around 530m shares in issue.

Align dont want the current board involved, they dont want the voting rights of the ISA shares (that exist but have not been paid for) to be used by the board who have only extracted from the company, they have not purchased any shares themselves. the ISA shares either not have voting rights or should be voted inline with the majority of actual shareholders want.

Realistically the end game is :

If they go ahead with the ZEN deal they loose the license,
If they go ahead with Align and cannot pay back the $5m loan in time they loose the license.

If you are potentially going to loose the license anyway why not sell it for $5m instead of £500k?

Same result in the end apart from who eventually owns the license once AAOG loose their interest.

All the bod are between a rock and a hard place.
Come March the company need to pay 15% of the total of the boards yearly pay in to a their pension fund of their choice in one chunk, and the company doesn’t have that kind of cash on the books at the moment, they all will be thinking :

“oh what to do, what to do ! what deal funds our excessive pay for longer? If we go with zen we might be able to get a seat there, but if we go with align they want to reduce our pay or boot us out and look in to how we spent all the cash. “

ZEN
£500k Cash over 6 months
£500k in Zen shares
20% of a $5.5m Work Program ($1.1m / ~£850k)
Licence Signarure bonus (20% of $2m / £~300k)
Total worth to AAOG : ~£2,150,000

(+ the loss of £10m debt owed to AAOG by AAOG Congo )
(+£1m of the $5.3m SNPC debt)
Access to a £500k Riverfort CLN, with £250k drawn down instantly, possible dilution at a currently unspecified level.
Short Term - AAOG becomes a shell company and will have to raise funds for a RTO.
Mid term - probably have to sell remaining 11.2% stake to fund RTO, and place for the rest, leaving AAOG to probably never see the results of a successful well.

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Align
£100k Placing @ 1p
warrants for £1.8m @ 1.5p
Purchase of ISA shares ~£800k
$5m debt funding secured on AAOG Congo (£3.85m)
Total worth to AAOG : ~£6,550,000

(retain £12.5m loss owed to AAOG by AAOG Congo)
(Retain all $5.3m SNPC debt)
AAOG has to drill the well in order to unlock parts of the $5m debt facility.
Longer term - If well fails and AAOG Congo cant pay back the $5m they loose the AAOG Congo subsidiary and AAOG PLC become a shell company.

Thats pretty much the gist of it.
Either way if the well fails or has yet more unexpected cost overruns AAOG is screwed, as it is a one project company.

ERM - that would not surprise me, the board seem to always find a way around things to their benefit. I bet they could somehow justify another increase if the zen deal does through aswell, when we would only have 20% of the project.

Still amazed they can use the ISA shares voting rights to vote against what seems the majority of actual shareholders want. Surely that’s not ‘right’.

that will do for tonight, cant find much elsewhere so is the answer to :
what the board get on an asset disposal? = nothing?

http://www.aaog.com/content/investors/policy.asp

Anti Bribery policy ....
4. What is not acceptable?
accept payment from a third-party that you know, or suspect, is offered with the expectation that it will obtain a business advantage for them;

ATOG is a 3rd party....... the board have accepted payment from them that gives them a business advantage...........

I am, im actually finding some of these terms entertaining.

EG : Page 311

The Company shall make a payment on behalf of each Executive Director in to a pension fund of each Executive Director’s choice of an amount equal to 15 percent.per annum of the gross annual salary of the Executive Director, such payment to be made in March of each year.

Dont worry im sure the company will make it till then atleast !
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and i wondered if they read this part
"The Bribery Act
The Bribery Act 2010, which prescribes criminal offence sfor businesses engaged or allowing others to engage in bribery or corrupt practices came into force 1 July 2011 and applies to the Company and to the Directors by virtue of the Company being incorporated in the UK"

Page 305
However, in the event that there is proposed a takeover of the Company (whether by way of offer or scheme of arrangement),or a disposal of the entire issued share capital of PK or of the rights under the PSC in respect of Tilapia, or a voluntary winding up of PK, all of the Initial Options will vest and be capable of exercise prior to the occurrence of such event (and so that the holders of the Initial Options shall, to the extent the Initial Options are exercised, have the right as shareholders to vote in respect of such events). To the extent that any Option does not vest, it will forth with lapse. Options which vest will normally be capable of exercise until the date which is ten years less one day from the date of grant.

(Poorly formatted because i cant straight copy and paste from the document)