Member Info for JimPrice

More downward pressure, i wonder who is selling. Are placees really that impatient? They buy a stock at all time lows following a huge discount and then bail as soon as shares hit the market, doesn't make sense to me. One would hope nothing more sinister is happening

We have a 1 bn share overhang at 0.1p folks. In my view the majority of the stock will be flippers as it was a typical cornhill raise. Would love to see the hard bounce but struggling to see how any significant move will materialise in the share price in the absence of material company changing news.

Unfortunately the nature of the CLN dictates that any spike will be sold into which is what we are seeing this morning. The lenders will use any liquidity to convert their loan. They have a long way to go with only £20k out of the way to date. The more they convert the more shares come into circulation thereby raising the current market cap. It's a death spiral funding arrangement which has a punitive effect on the share price

Unfortunately we can't get rid of him as the major shareholders don't seem to be that way inclined. If Align wanted to crank up the pressure they would but MX is hardly a big holding for them and to be honest there is very little they can do. Sentiment is in the gutters and that isn't likely to change. MX have invested a stupid amount of money into this project for their measly 165bopd and need to cough up many millions more to increase production. Prospects have changed drastically since the Chinese stopped supporting the company. We have had 2 big discounted placings this year and this one was vile. There is likely a trade for people coming in at these levels but be under no illusion the majority of the placing will be flipped and the overhang will keep us depressed until the next share issue. I am weighing up my options but have a firm view to sell the remainder of my holding over the coming months

also Align research's previous forecasts assumed a £10m raise at 1.25p which has now been downgraded to 0.25p. That is a serious amount of dilution IF they get it away at that price which I highly doubt they will. They went to the city via Cornhill for £1m at a silly discount, no one will cough up £10m at a premium. Stefan is running this company to satisfy his own pocket and that is clear for all and sundry to see. Until he is not pushed out and replaced by a proper oil and gas man there will be no shareholder alignment. They cash drain here is immense and last two financial reports don't lie. So much promise at the turn of the year and now we have this.

I agree the mcap is very low for the company at present but the concerns around cash which Diamond raises are very real. I have tried my best to communicate with the company regarding our creditor balance to the AJE project as it is the massive operational expenditure which keeps hitting the financials each time we get an update. I was under the impression we'd be churning out FCF at current oil price by now but the interims threw out more questions than answers. Whilst this has been going on the company took a c. £1m debt from somewhere, put £200k into an investment leaving us with pennies by the end of Q2. Why are they investing when our current liabilities are going through the roof? Salaries continue to rise despite the cash flow issues and are now at a ridiculous level. The chinese have 'allowed' themselves to be diluted massively, why? What happened to all the premium raises we had for £millions? I am still invested here but currently feel that this is a traders share until project finance is sorted. For us ailing LTHs we need the BoD to deliver and I'm not sure they will before issuing another bout of confetti.

If that were the case I wonder why the Chinese did not take the placing and opted to buy open market instead, doesn't make sense

Worst case scenario for the share price here is if Chinese are cheesed off that they were diluted to oblivion and are starting to offload. The placement was brokered by cornhill and city boys took it. That would be a disaster and the overhang relentless.

We need to call an EGM and vote him out..if Chinese were to back the vote he'd be out of the door in a flash. I've tried my best to get hold of the Chinese but no luck so far. Align research may be another route, they haven't given an updated research note following the raise so I wonder if they are still supportive

I wouldn't hold my breath after what has happened today. The market held him ransom for the £1m raise, getting project finance isn't going to be straight forward if Stefan's track record is anything to go by

How the Chinese tolerated this level of dilution is beyond me. So much for all the premium placings and cash they've been coughing up, 1 billion shares issued in a flash. Now that's value destruction

Holdings RNS, looks like EhGOSF have forward sold the borrowed stock expecting to buy back at lower conversion price. If the finance deal is not voted through they'll be buying back much higher, we'll have a proper short squeeze, risky move imo.

Stefan Olivier is the man to blame for the share price. He doesn't work to protect value for shareholders and is merely occupying a position which he is thoroughly unfit for. He is only being propped up by the Chinese for reasons unknown to us. The Chinese have been buying all the way up to 1.5p, today the SP is at a fraction of a penny. Just ten months ago Zhang Hao went up to a 300m share holding with a 0.8p placement. He must be hurting. All is a mystery to me right now and I'm not very pleased about the way things are transpiring

Photo Stefan's salary at year end 2016 was £185k, at year end 2017 it was £235k, it's anyone's guess what he is on right now. Simply ludicrous. Perhaps Align research have something to say about this given their support of the company

Stefan doesn't give a monkeys about the shareholders, that we have ascertained by now. It's a real shame as we have a quality asset and revenue incoming, only caveat is a selfish board who have no shareholder alignment. He needs to be pushed and only the Chinese can do that but why they don't I have no idea!

Looks like BMD is right looking at the SP. If he raises £1m at this price we have 33% of the share float diluted. That is madness

I think I have a pic of him lying around mate if you're interested. Placing is likely to happen imv as BMD rarely calls them wrong and cash end of H1 was £94k. We know the revenue generated is going towards repayment of creditors at AJE. I don't know how much they have left but H1 costs were very high and i have a hunch stefan's salary this tax year will rise again

No more buying from me until we have some concrete guidance regarding production and a rig booked. Have enough of an exposure here for now

New offices seem to be a cost saving exercise: From their website it is £229 per month for hire:

"Invented by Servcorp over thirty years ago, a Virtual Office allows small and medium businesses to benefit from all the advantages of a prestigious address, landline phone numbers and team support without committing to dedicated office space.

Office expenses are minimised while the business retains the impression of a traditional high cost office and infrastructure. Professionals can work from home, or their clients, or suburban offices, and still have the reputation that only a city centre address can bring. Research shows that customers expect to see an address on marketing materials, and a home or post office address just doesn't cut it."

The company is clearing creditors, all AJE costs, and now with the rising oil price this is happening at a much quicker rate. The £900k did not appear on the cash flow statement as this is also part of those costs. I don't know how much is outstanding now but Align will have a better insight having collaborated with the BoD in the research note. MXO will be cash flow positive at some point in 2019 and I heard that directly from the board.

MX have taken a loan as the interims showed I presume for WC and I also assume it is from the Chinese. They did something similar last year which was paid back via equity last december. I guess this is why the current liabilities are much higher than normal.

We need another lifting and I think one could be on its way before year end at a juicy oil price of $80+