Member Info for MudPump

They did consider it, and rejected it because it is not serious - the $5m either does not exist or is a scam to steal the interest in Tilapia via a forced default, the providers wishing to remain secret. You're lucky you have Ms. Cope asking the right questions. She is trying to salvage something for shareholders from this mess, and a vehicle with some cash, a load of ZEN shares and a carried interest of 11.2 % in Tilapia may have a reasonable value (not least to ZEN!).

CFD Corporate Finance? Sounds impressive, but they only have £100 of net assets, so maybe they've committed all of that to the $5mil. loan facility...

The problem is not that the source of the funding has not been disclosed publicly, the problem is that it has not been disclosed to the board. This can only be because either it doesn't exist, or because the providers want to stay in the shadows so they can use a default to get the interest in Tilapia and then flip it to Maurel & Prom or someone else who know what they're doing in Congo......

Adrian and Tom, thanks for the advice to push off. But you do need to consider what happens if AAOG accept a $5m loan secured against their interest in Tilapia, and are then unable to repay the loan on demand - leading to the loss of their only asset. A lot of posters have been bashing Ms Cope, but this is the point that she has focused on, and rightly so.
It's true that I don't have any shares in AAOG and I don't care which way it goes, I just think it's sad when a lot of shareholders are being misled, as it ultimately undermines faith in the markets generally.

With ZEN AAOG will have 20% of a producing asset, lots of ZEN shares and some cash.
With Align, AAOG will lose their asset for £100,000.

Seriously, are some AAOG shareholders really going to vote for Align so that "Oxford Energy" can take all their interest in Tilapia for £100,000 (most of which they'll get back by shorting into any rise in the stock) when AAOG can't repay the loan. LOL, you couldn't make this up......

http://www.alignresearch.co.uk/anglo-african-oil-gas/open-letter-to-sarah-cope-of-aaog/

Pleading for more time to prove that the $5m exists, lol. I guess they weren't able to finish dumping their shares.......

Lobon, without SNPC on board there is no asset, and nothing to secure the mythical $5m....

https://beta.companieshouse.gov.uk/company/10613965

Not much chance of a $5m loan from them, lol.

Looks like a pump and dump - some gamblers maybe thinking that Jub are bidding 1p for all the shares rather than just a few from Riverfort? I wonder what the terms will be for the $5m. loan, lol! Or if it exists at all. I doubt whether the bigger equity holders and existing debt holders will be very interested.

There are plenty of small oil companies that have interesting assets and management that really understand geology and drilling technology. But they blow up because they run out of money, or can't raise enough in the first place. The difference here is the bond program - AC has spent a lot of effort getting the prospectus organised, the bonds listed and the company rated. If the bonds are marketed by the right people they will be sucked up by high yield funds, giving AC a war chest to take out financially stressed asset rich opportunities. As far as I can tell that is the plan, and the signs are that it can work -if it does, and the oil price holds or strengthens, the returns will be monumental and a few missed dates here and there will be insignificant.

I'm not familiar with the balance sheet of AAOG but from what I see of the situation, while Align are busy getting their pleading message out to other shareholders, it is the debt holders who will ultimately control what happens, and I would guess they would rather go with the promise of full repayment one day from ZEN than pennies in the pound (if that) from Align/AAOG....

That's such the obvious thing to do that not doing it, together with the news blackout, is fuelling speculation of a problem in Azerbaijan. Another way of looking at it is that AC thinks this is the bottom of the cycle and is desperate to accumulate as many cheap options as possible while they are available, and just keep kicking the funding can down the road as much as possible . If the oil price rockets he will look like a genius, but not for widows and orphans.....

USD 13mil. + the USD1mil. for the acquisition + the several million USD for the licence extension + the work programme, + the explo well in Azerbaijan + deepening and perforation plan in Azerbaijan + the Coro licence work programme. That's a lot of plates to keep spinning......

"As at June 30, 2019, the unaudited balance of the intercompany debt owing to the Company by AAOG Congo was approximately GBP12.47 million at the GBP/USD exchange rate on that date. Under the terms agreed for the Acquisition, at completion AAOG will novate 80% of this debt to Zenith and will retain 20% on its balance sheet."

Difficult to see how good news could be released a few days after the CEO awarded himself 8.5 million shares at the all-time low.....

I don't think anybody wants to hear anything about an acquisition. Appiamma is right that the market often looks hard at the CEO comments attached to the results. Here it should say something like "the results show the beginnings of an improvement in financial position, but the next quarterly results will show the the benefits of our increasing production as the first well in our deepening programme more than doubled company production to over 500 bopd. Preparation to commence drilling the second well are well advanced and with a laser focus on getting our substantial reserves out of the ground I am confident that shareholders can look forward to many quarters of increasing production". Instead, by omitting the comment, we got the message "Increasingly frustrated by the complex geology of Azerbaijan and frankly bored by life in Baku the board has consented to me flying around the world looking for duff assets to add to my collection. While I work to repeat my success in Indonesia, shareholders can look forward with confidence to my reports from exotic locations, several more placements in the next quarter and perhaps a listing on a new exchange during 2020".

As well as some sign that they're actually moving the rig to C-30, and confirmation that C-37 is producing as earlier indicated, I'd like to see a twitter photo of them beginning civil works at M-247 - that would at least show that they are serious about constantly drilling back-to-back. If we proceed on the basis that civil works can only begin once the previous drill is over, and the pad pour for the new location can only happen once the rig is half dismantled, as if ZEN really were a one-man show, then it's going to take forever to get the production up meaningfully, while our major investment (the rig ) sits idle most of the time (along with most of the workforce). What is driving some investors to the door, in my opinion, is the total lack of a sense of urgency in Azerbaijan,;meanwhile AC wastes his time in Oslo.

AC is quite excited about Norway generally, here is the score so far:
November 2018 placement was 20.782 mln shrs + 2.857 mln shrs for GBP 760k.
November 2019 placement was 37mln shrs for GBP 1110k.
Norway listing costs I think I saw at GBP 206k (AR2019 has UK and Norway listing costs at CAD 1.16mil.)
If the acquisition goes through another 9.05mln shares will be issued for a "shed".
So nearly 70mln shares issued in Norway for net GBP 1.664mil (plus the shed).
That equates to a dilution of nearly 20% at under 2.4p/share.
If this carries on most investors stakes will certainly be worth peanuts, let us hope that AC can escape the charms of Oslo and head over to Vienna to start selling those bonds door to door.

I don't think anybody questions his faith, it is his focus that appears to be lacking.