Member Info for MarketGunslinger

It's not that they will not make any money out of it - I am sure that they will by selling the PPE to western countries. Even after the peak of this crisis has passed there will still be a massively increased demand for PPE.

However, the thing to remember is that Zenith is an oil company not a PPE manufacturing company. They have not suddenly pivoted to a completely different industry even if the initial statement when they announced that they were moving into PPE manufacturing did cause some confusion.

The access to cheap PPE will allow Zenith to keep their own oil business going in lockdown. It will allow them to be able to deliver potentially important supplies to the people and the governments of the countries in which they are working and it will allow them to have a USP that is something other than money to offer when negotiation with said governments. The PPE and hand sanitiser will also probably make ZEN money but this is almost beside the point - as long as it makes enough to cover its cost then the tangential benefits are enormous to almost every aspect of ZEN's business.

" especially if they want the permit renewed and the 5 mil repaid..."

I can't help coming back to this again and again in my mind when I think of the PPE strategy. Firstly, What better way to show the Congo govt that ZEN are completely different from the incompetents and chancers that ran Tilapia under AAOG than to actually do something to benefit the community up-front?

Secondly, when you are manufacturing something that is in high demand with a customers competing to purchase from you then it gives you a lot of leverage in other aspects of negotiation.

The more I think of it the better a move it looks like being and it appears that it could deliver massive benefits for a very small outlay of money.

investverysmart - I think that the money made from the PPE side of the business would come from selling PPE in the UK or to other western govts. The stuff "sold" in Africa would probably be more given away in exchange for favours or as pawn says to ensure that ZENs projects are able to continue under lockdown conditions.

I agree that it will definitely save them money though - in terms of

a) stuff that they do not have to buy from China
b) (more importantly) making sure that they do not have work stoppages and cost overruns due to PPE shortages.
c) (the intangible) goodwill that can be bought from local and national politicians for providing PPE to the communities.

Where is the RNS that says Cope has quit?

pawnsacrifice - I hadn't thought of that but I completely agree. Nice spot.

The handgel side of things being manufactured in Pointe-Noire in the Congo and that is more a hearts and minds thing to get the community onside so I don't think it will make any money but it will be good advertising that ZEN cares as well as (hopefully) currying favour with the politicians. It's the same as any business, if you can make yourself important to the community that you work in then they want you to stay and they want to help you achieve your aims.

I have always felt that an important part of ZENs decision to locate the hand gel manufacturing in the Congo when it could just as easily have been located in the UK and then had the product shipped in is to be part of things there. The Covid pandemic does not seem to have affected Africa in the same way as it has the rest of the world and that is pretty surprising, especially because in the UK and the US black people seem to suffer from the illness disproportionately higher to their makeup of the population. This may be for a number of reasons, including that there are less old people in Africa but I think that it is also highly likely that there is just less testing and therefore the virus may well be spreading undetected. The UN health agency said last month that they thought that Africa coronavirus cases could hit 10 million in 6 months and if this is the case then being a manufacturer of hand gel (even on a small scale) will make ZEN a useful company to have in the Congo for healthcare as well as oil.

When you add in the fact that PPE could also be delivered to the Congo once it has been manufactured in the UK then at the back of my mind I cannot help thinking that with ZEN supplying critical goods for a competitive price (China has been massively price gouging in the cost of products that they are selling) could have a significant influence on persuading the SNPC to start paying out the $5.3 million that they admitted they owed AAOG and now owe ZEN.

£200k cash was transferred to AAOG last week. Tilapia now belongs to ZEN lock stock and barrel.

No, the Tilapia acquisition is already bought and paid for so no placing coming there.

I just want to get it finished and double checked before publishing.

It is very positive. I have been working on this for a few days now. Hopefully I should have something fairly substantial to post on this tomorrow.

I was joking...

I am not sure what Boris Johnson says is going to have much effect on the production rates from ZEN's Italian assets...

Not 100% certain, but 99.9% certain. Oil and Gas does not shut down and it does not need men there 24-7 to supervise. Even in lockdown we all still need heat and electricity so it will be a key asset with "key workers" in whatever country. Why is it so important?

I'm pretty certain that they have, yes.

Going to come back on this in a bit more detail later, but you can’t forget that they have money due to come in from SNPC in the Congo and they also still have access to the bonds. With the oil price coming back up also, the portfolio that they are putting together with cashflow from production and potential in exploration might be able to access them some sizeable investment (debt possible as well as equity). So in my opinion you are being much too negative and this has a very bright potential future in the short, medium and long term.

BTW - where do you get the hand gel numbers from? The price of bottles and boxes are going to be pennies and clearly that is more about community outreach to get locals (political and workforce) onside than anything else.

Hi Takeyourbets - Are you talking about the projected production in the Tunisian and West Africa assets that we are buying or production in Tilapia in the Congo? These are very different timescales as I am sure you are aware.

6. As a cash shell AAOG is now a listed entity that will either (a) be dissolved (b) be taken private or (c) have completely new assets put into it within 6 months.

Since Forum have just paid approximately £500,000 to gain control of AAOG they are not going to dissolve the company or take it private as that would mean that they have just wasted all their money. They are clearly going to put new assets into AAOG and we are all just waiting to see what these assets are. It will be a lot quicker than 6 months too – that only happens when the company itself divests itself of assets. Forum have been planning this in the background since January and IMO they will show their hand very shortly.

7. The reason there is such excitement about this shell is because of where the price is at the moment. Forum themselves (and very importantly the investors that back them) bought into AAOG at 0.5p per share. In order for them to make any money from this project they have to get the share price up to many multiples of this 0.5p. This means that, for the time being at least, the intentions of both shareholders and management are completely aligned.

What Forum will do next is to put an asset into the AAOG shell. It is important to note that they will have to pay for this asset (most likely by issuing shares to the vendor) which will dilute shareholders but also add value to the company. However, the value added will exceed the dilution and the share price will go up even with the new shares in issue. We know that this will happen because Forum will want their own shareholding (and that of their investors) to go up in value.

GOING FORWARDS

My expectations are that (in the short term) after Forum have vended in whatever assets they have in mind that the market cap here will rise to anything between £12million and £20 million – so we can expect a share price increase of 3 to 5 times from the value that it is at the point of this post. Obviously this is not guaranteed, but you have to remember that Forum only made this investment to make money and for them to do this they have to take the share price up from here.

GLA.

(2 of 2 posts - Finished)

1. The key part is that this is a completely different company to the one it was at the end of last year, so none of the historical data (either charting or fundamental) is in any way useful in trying to work out what will happen next.

2. In March 2017 AAOG listed on AIM as an oil exploration company aiming to purchase and develop the Tilapia asset in the Republic of Congo. The first part of this worked. They purchased Tilapia for £6,801,972 as a mixture of cash and shares.

The second part was not so successful and the management spent in excess of £10 million trying to get the asset to work. However through a mixture of bad luck and incompetence its executives failed to do this and by the end of 2019 ended up in a position where they no longer had the faith of the markets and could not raise any further capital. This is unsurprising when the share price had dropped from a high of 31p on the 27th April 2017 to 0.7p on December 12th.

3. Without the ability to raise capital news went out to those in the know that AAOG was a potential shell and an investor with money came in and started buying up stock. They then would have approached the board of AAOG and told them of their takeover plans while providing proof of funds that they were able to do it – it is actually very difficult to take over a shell company without the cooperation of existing the board of that company.

4. In this instance, the investor with Money was the private company “Forum Energy Services Ltd”. We know this because in the 20th January 2020 RNS AAOG released an RNS saying that they had agreed that they had agreed to the sale of shares held as collateral by a third party (the ISA shares) at 0.5p per share -giving Forum 84,041,011 shares and taking their total holding to 94,041,011 or 23..71% of the company.

Also in the same RNS came the announcement that AAOG had also given Forum the right to nominate three directors to the board of the company with one of the existing directors to leave as soon as the first appointment was made. These numbers are important because they meant that Forum would appoint 3 directors and there would only be 2 old directors left. This means that in any vote at board level Forum would win and effectively gave them control of the company. Forum also started putting cash into AAOG in order to give them sufficient cash to continue trading and at the same time increasing their shareholding.

5. As I mentioned in point 2 AAOG were a company that from IPO onwards had only ever had one asset – the Tilapia oil license in the Republic of Congo. The first significant action that Forum have taken now they are running the company was to get rid of that asset at a massive discount to the price originally paid for it to bring in £200,000 cash and leave the company a cash shell (ie a listed company with no assets other than cash). This happened on the 4th and 5th May.

(1 of 2 posts)

Oxford Energy Ltd is not the “Wrong Oxford” (sic) it is the correct Oxford Energy Ltd., and you sir are telling lies again.

A truthful answer from you would have been to confirm Richard Jenning’s statement from: http://www.alignresearch.co.uk/anglo-african-oil-gas/anglo-african-oil-gas-new-statement-shareholders/ that "Oxford Energy Ltd... is simply a dormant entity at present through which funds would be channelled in the debt facility".

However, you chose not to do that. You chose to claim that Oxford Energy Ltd was the “Wrong Oxford” despite Richard confirming that it was the correct Oxford in his statement and AAOG confirming that they had received a letter from Oxford Energy Ltd - whose sole director was Matt Thompson in their 31st December RNS: https://www.lse.co.uk/rns/AAOG/proposal-from-jub-capital-fbceuz28t8thzvz.html

Matt Thomson is, coincidentally, the same person that Richard Jennings had nominated as a director alongside yourself in his open letter to shareholders of December 30th 2019: http://www.alignresearch.co.uk/anglo-african-oil-gas/open-letter-to-anglo-african-oil-gas-shareholders/ and is also the same person with whom on December 9th 2019 you incorporated another company “Grosvenor Energy Ltd” details of which can be seen here: https://beta.companieshouse.gov.uk/company/12353324/filing-history . He is also the same person who controlled Oxford Energy Ltd as the only director before it was dissolved via compulsory strike-off: https://beta.companieshouse.gov.uk/company/10613965/officers

So either AAOG were lying in their RNS AND Richard Jennings was also lying in in his open letter OR you cannot be telling the truth about it being the “Wrong Oxford”.

Why did you lie about it being the “Wrong Oxford”?

Why will you not answer any of my other questions?

Let's hope it is more successful than Matt Thompson's last venture (Oxford Energy Ltd) that was dissolved by compulsory strike off: https://tinyurl.com/y9rw9sda

It raises another question for you Alex:

Oxford Energy Ltd was the company that was meant to inject $5 million into AAOG. Did it ever have the money? If so, why did it never file any accounts and why was it dissolved via compulsory strike-off?