Member Info for MudPump

I can't believe that AC will keep his mouth shut during such an event, so I would expect more details of the new acquisition target to emerge over the next few days. He will have to cover any utterance by an RNS.

Sea7 - debt-fuelled asset grabbing is exactly what I want to see! As long as the assets are genuinely good value and can be put to work fairly quickly, within the financial capacity of ZEN.

Sarge - interesting, thanks for that....

The MTN program was supposed to get ZEN away from this AIM-style desperation financing. This is better than a death-spiral convertible, but not a good indication at all of progress in the bond program - more dilution and for uncertain receipts, more shares being dumped into the market every month, it certainly didn't work out too well for AAOG......

If I understand correctly, about $4m in new funds available immediately, plus the proceeds of the placing, with probably more to come. That should get things moving - looks as if they've finally paid for the A100 and it's coming on-site. If the C37 delivers the 100bopd+ promised after intervention everyone will be happier. Not sure what "developing an understanding of the signature bonus" means but that stuff is what AC seems to be good at. Overall a good update. It would be interesting to know why Socar have held up C30, and who is selling, especially since there is an incentive for AAOG to lower the VWAP.

I'm not expecting an update on Az because I don't believe much is happening, BUT we were promised a continuous drilling campaign once the rig had been bought , tested, shipped to Az and upgraded. And this was accepted as a decent strategy by the market following the failure of the previous cheap work-over plan. We were expecting some wells to be a decent success and some to fail but the key point was that it was going to be continuous. Clearly there has been a major interruption to that plan - the market sees that, but there has been no RNS to explain what is obviously a problem executing the stated strategy - has the strategy changed again?, is the rig broken? is there a problem with Socar? - the information vacuum surrounding an obviously major interruption to the stated strategy is absolutely unacceptable, and is what is causing the share price to slide day after day. And as a couple of posters have pointed out re the issue of shares at a VWAP based price, that could have a major negative implication for shareholders.

Actually I can't work it out - are you saying you were dumped because there was a conspiracy to capture the asset? If so, by whom....because ZEN have ended up with it, not any of the players active in AAOG 2 years ago. I assume that you like the asset or you wouldn't be offering to get involved again - so presumably you think ZEN have made a good deal?

Hi Highlander/Alex - I'd be grateful if you could explain why you left AAOG , thanks....

RH, I don't think you are going to get an ops update because I don't think anything is happening - I assume they are waiting for the plug , waiting for some bits and pieces for the rig, waiting for Socar permission, I would guess the A100 is still held at the manufacturer pending payment. Management focus will be on integrating Coro and negotiating with SNPC right now. Hopefully someone with the right connections is trying to place the bonds, which would speed things up,;otherwise it will be slow going, with periodic equity raises. AIMHO

A lot of AAOG PI shareholders seemed to think that some of the large holders might vote against the ZEN deal - in the end it was a walk-over....presumably because AC had already sounded them out. For the same reason I don't see the Congo deal as "up in the air" - I can't see that AC would have pulled the trigger on this without the knowledge that SNPC were with him. And they control the situation entirely.

What would be really interesting would be to see some "investors" in Congo, or even SNPC themselves, participating in the placing....

The RNS states the funds will be used "for business development activities (including the purchase of new components for its drilling equipment), operational matters related to the recent Anglo African Oil & Gas plc transaction and additional working capital". Which implies some modification of the rig in Azer - ie. that Ageos is close to the mark in his musings about increasing the capacity of the rig for a new well, possibly with a horizontal section. It certainly doesn't imply that AC has given up on Azer. It looks more as if Socar are insisting on the new well, which is a contractual commitment, be drilled sooner rather than later. And Zenith, being in technical breach of the terms of the PSA, are in no position to argue. So there is no update on Azer because nothing much has changed - we are presumably still waiting for the plug for the C-37 intervention, and for Socar approval to deepen C-30 which is perhaps dependent upon Zen modifying the rig and planning a new well next.
Obviously some of the funds will also be needed to get Congo moving.
It will be interesting to see if Miton participated in the placing - if they were behind the AAOG deal you would expect them to have taken a large chunk.

Sockman - without the liner problem at c-37 I suppose your clients would have made some good money, but difficult to have foreseen that. The slow speed of progress seems to me more a result of lack of funds than anything else, which the bond issue is intended to fix.
As far as I am aware AC has gifted a few million shares from a holding of over 40mil., so difficult to imagine that having much effect on the share price whatever became of them.

Sea7 - I assume his shares are pledged as security for the loan ZEN needs to take out in order to pay £250k to AAOG on 25 Jan as per the RNS of 6 Jan.

Adrian, how will voting down the one offer AAOG have help you? Jub/Align are bucket shop/puff piece spivs with no backing, they don't have the money, so if you vote down ZEN it will be the end for AAOG, as you have been warned repeatedly by Ms.Cole. It really is incredible how some people are prepared to throw away their investment just to make some kind of point! The ZEN deal gives you upside on Tilapia and some ZEN shares .....if the asset does well AAOG will live to fight another day.

Merlin, certainly I'm not going to argue that AAOG hasn't been badly managed, but I think that was a DS/JB issue. But I don't think Ms Cope has done badly - she inherited a total disaster and has at least salvaged something for shareholders (assuming the bucket shop brigade don't succeed in stopping the ZEN deal, in which case receivership looms). As long as the remaining board members are able to cut costs to minimum, which is what you would expect in a shell (the fact that they themselves refer to it as a shell implies that they understand they will will be cutting out all the costs), it is difficult to see how they can mismanage an 11% carried interest and a portfolio with one holding! They just have to sit there, wait for ZEN to achieve something in Congo, (which ZEN will be motivated to do) , and then let someone reverse some other oil assets into the shell or sell off the Tilapia interest and ZEN shares and distribute the proceeds.

Latino, the amateur bucket-shop spivs won't be back, because their last offer wasn't serious, the only surprise is that anyone believed them. Hopefully they didn't swing enough people with their fantasy offer to derail the ZEN offer, because if that gets voted down it'll be lights out. If the ZEN deal does go through you still have 11% of Tilapia upside and a load of ZEN shares which could be worth a packet, so potentially a route to recoup some losses.

barn, why do you think it is a wipeout if the ZEN deal is accepted? AAOG will have a carry on 11% of Tilapia plus a lot of ZEN shares. Obviously expenses will be cut to a minimum in a shell. With the listing and those assets it could be an attractive shell to reverse in some other energy assets. You are too pessimistic. One thing is sure, AAOG won't exist much longer if the ZEN deal is voted down.

Tom, I doubt whether the market-makers have any opinion on the ZEN deal, the price they make is based on the balance of buy and sell orders they are shown....

"Align meanwhile are marshalling their forces" LOL, on the floor laughing, you've killed me....