Member Info for MadChatter

In some instances, yes. Look at bou took the whole 6 months. Nothing even remotely obvious as a target. At least here is seems pretty obvious even before they go to cash shell status. In that respect this is a very advanced prospect for a crazy low price

I'm struggling to see why people are taking profit now, the only downside risk at this point I can see is a delay?

Most of the rto in last 6 months have got to at least £3.5m on cash shell status. Plus this seems extremely close to achieving the goal

@suhail
If there are any long long term holders on ecr minerals they will be able to answer your tax loss questions

Also tax losses can only be transferred to an acquiring company in the same sector. Mining.

Someone check my understanding please!

Am I right in thinking this is 10% of $1.4m attributable (2019 production a big step up on 2018)?

Not exactly huge........ But better than nothing I guess.

I think you're looking at it wrong to be worried why they sold. They sold and lost out big time. Whatever their reason they made the wrong decision.

Why create a new company, or dig up non trading one, purely for the rto to occur? Makes no sense to me. If this is your mystery solved neilin I'm pretty sure you're barking up the wrong tree

That's a good sign. Be interesting to see the delayed trades

The way I'd look at this, if they went down the float production wing option, then after giving some to bond holders to sell to public, they would be left (pure example) 75% of shares. The company would be largely debt free (I think), so it would be a cash cow for dividends back to g3e.

So use their current revenue as an example of a dividend calculation.

Most companies by this point would have 10 times the shares in issue

I am no long term holder, but my basic understanding is that where other companies dilute enormously to get to the point of revenue generating assets, thus company didn't. And its been struggling to keep up with debt payments ever since.

But if you read their plans it could be a huge opportunity to turn things around.

You've all got to admit, this is an exciting one to watch right!

Price holding pretty steady, and very easy to dummy sell. Tells me one thing they are fishing for shares...

16.9 paid up 153%

For that 98p target, post 11th Dec successful conclusion I'd say min 6 months. It sounds very rapid deployment once debts are restructured.

$525m mcap on ipo!? For £9m mcap now... Sweet Jesus some people must be nursing a headache on that one.

They could pay a 98p dividend, but the assets would reduce by an amount, so it's not quite as amazing as that might sound.

The main thing would be managed debts and potential of $25m pa revenue afterwards

From july

VSA Capital Analyst note summary - 98p tgt price8 Jul '19
G3 Exploration#: Refocusing on Core Expertise

Having successfully brought blocks GSS and GCZ into commercial production in 2010 and with gross sales of 5.7BCF delivering net profit of US$10.3m achieved in 2018 G3 Exploration (G3E LN) is now well placed to refocus on its core expertise of CBM development and exploration. G3E previously announced its intention to spin out the producing assets via a dividend in specie pending a trade sale or IPO. Currently held for sale at a value of US$390m we see this as the primary catalyst for the shares as this will enable repayment of outstanding debt as well as providing development capital for the remaining core development blocks.

Accelerated Programme to Near Term Production

G3E’s core asset base after the dividend in specie will be the remaining six blocks which like GSS and GCZ are partnered with CNOOC and PetroChina under long standing and attractive PSCs. The near term focus is likely to be on blocks GGZ and GSN, the latter of which is adjacent to the currently producing blocks. With a recapitalisation achievable through the sale of the producing assets we believe that commercial production could be achieved rapidly and we anticipate peak net production of 5.4BCF and 3.1BCf respectively from these development blocks indicating the potential for significant annual cashflow. G3E applies the LiFaBriC drilling technology, which enables a sustained period of peak production which means that at GGZ we anticipate at least five years of free cash flow in excess of US$25mpa.

Broader CBM Opportunities

Although the strategic rationale for CBM in China remains compelling given import dependency of over 40% for natural gas and an ongoing shift from coal for power generation which will see China’s use of coal for primary energy consumption fall from over 60% in 2012 to less than a third by 2050, we see the potential for CBM opportunities beyond China for G3E.

The company has committed to entering a new geography and we see opportunities in terms of gas to power projects in Africa as well as exploiting uneconomically mineable coal seams in jurisdictions such as the UK as possibilities. G3E’s primary drilling technique involves no injection of chemicals and a minimal surface print meaning a limited environmental impact whilst producing natural gas; the key bridge fuel over the coming decades, in our view.

Recommendation and Target Price

We initiate coverage with a BUY recommendation and target price of 98p

Either way this was 23p 2 weeks ago.... Without a restructuring plan that seems to have creditors on board. Expecting fireworks here!