Member Info for mulledwine

The effect of the Disposal on the Company The Drilling Fluids Business is the primary cash and revenue generating division of the Company's business. On disposal, the Company's business will comprise solely of oil and gas exploration and production. The first production of oil from the Company's 10 % interest in the Athena offshore oil and gas development project (located in the North Sea) ("Athena") is expected in the fourth quarter of 2011. If the Disposal proceeds, the Company will not have a significant source of revenue between the time the Disposal is completed and the revenue stream from Athena begins. However, once Athena comes into production, the Company expects the first year revenue from its share of production to be more than A$60 million compared with the A$20.4 million revenue received from the Drilling Fluids Business in 2009/2010. Initial flow rates are estimated by management to be around 2000 bopd Net to Zeus. The proceeds from disposal of the fluids business in conjunction with the expected revenues from Athena production will enable the Company to explore the potential of its other assets including its 10North Sea exploration and appraisal blocks.

Payment of consideration The maximum consideration payable to Rheochem in respect of the Disposal is A$45 million (subject to adjustment in certain circumstances). The consideration is payable as follows: (1) a single payment of A$23.75 million (approx £14.8 million) on completion of the transaction (adjusted for working capital following completion); and (2) subsequent earn-out payments conditional on EBITDA of the Drilling Fluids Business for the period between 1 March 2011 and 29 February 2012 exceeding agreed levels.

Description of the Drilling Fluids Business The Drilling Fluids Business is carried on by the Drilling Fluids Subsidiaries, which are owned by the Company in the following proportions: Rheochem Ltd (100%), Rheochem Pacific Limited (100%), PT Rheochem Indonesia (95%) and Rheochem India Pvt. Ltd. (70%). The Drilling Fluids Subsidiaries specialise in the provision of drilling fluids and engineering services to the oil and gas exploration industry, including to coal bed methane projects. The Drilling Fluids Subsidiaries also provide these products and services to the geothermal industry, which utilises similar drilling techniques. The major assets that will be sold as part of the Disposal are: · the drilling fluids blending plant and equipment located in Dampier, Western Australia; · corporate offices and warehouse at Henderson, Western Australia; · plant and equipment; and · stock. Profits attributable to the Drilling Fluids Business EBITDA of the Drilling Fluids Businesses for the 2009/2010 and 2008/2009 financial years were A$3.6 million and A$6.1m respectively.

The following are the key terms of the Disposal Agreement. · The Company will dispose of all the shares it owns in the Drilling Fluids Subsidiaries. · The Disposal is conditional on a number of events occurring, including Rheochem shareholders approving the transaction. · The sale price for the Drilling Fluids Business is up to a maximum of A$45 million (approx £28 million). The sale price is subject to adjustment in certain circumstances. Further details of how the consideration will be paid are set out below. · Newpark will acquire the "Rheochem" name. Following the transaction the Company's name is proposed to be changed to Lochard Energy Group Plc. · The Company provides a number of warranties and indemnities to the Purchaser, as is usual for this type of transaction. · Newpark is not a related party of the Company, nor of any of the Company's directors.

http://www.investegate.co.uk/Article.aspx?id=201103040700103344C

http://www.investegate.co.uk/Article.aspx?id=201103040700093210C

Offer to purchase SCOTTY Group Austria GmbH and SCOTTY Tele-transport Corporation of the Americas Inc On 18 May 2010 the Company announced that it had received an expression of interest from a third party which may or may not lead to an offer being made to acquire the entire issued and to be issued share capital of the Company or its significant assets. Since then the Board has been in discussion with several third parties and has received an offer from Invest Equity GmbH ("IE") to purchase the Company's principal operating subsidiary, SCOTTY Group Austria GmbH, and its North American operating subsidiary, SCOTTY Tele-transport Corporation of The Americas Inc, together with the trademarks, patents and other intellectual property necessary for running the SCOTTY business. (the "Sale Proposal"). The Company is not in discussions with any party regarding the acquisition of shares in SCOTTY. The Sale Proposal is subject to, inter alia, contract and to completion of due diligence by IE. As such there is no guarantee that terms will be agreed between IE and the Company. In any event, any agreement to sell will be conditional, in accordance with the AIM Rules, on approval by SCOTTY shareholders in general meeting. The Sale Proposal would constitute a fundamental change in the Company's business pursuant to AIM Rule 15. The proposed purchase price is Euros 4.2 million, payable in cash, out of which approximately Euros 2.0 million would be utilised in offsetting inter-company balances owing to SCOTTY Group Austria GmbH by SCOTTY Group plc and its associated companies, which would leave net cash proceeds of approximately Euros 2.2 million for the Company. If the Sale Proposal goes ahead, the Company will have sold all of SCOTTY's trading business, being the supply of video, audio and data communications solutions to the government, defence and aerospace markets. As a result, the Company would then become an investing company pursuant to AIM Rule 15 and as required by the AIM Rules the Board will determine an appropriate investing policy (the "Investing Policy "), which would be presented to shareholders for approval. The Board is supportive of the Sale Proposal and plans to convene a General Meeting (the "Initial GM") in order to seek a mandate from its shareholders to continue negotiations with IE with a view to agreeing definitive terms, subject to shareholder approval. At that stage, should terms be agreed, the Company will convene a separate General Meeting to seek the approval of shareholders, both to completion of the Sale Proposal and of the Investing Policy. The purpose of convening the Initial GM therefore is to seek the authority of shareholders to continue and seek to conclude negotiations regarding the Sale Proposal and the resolution to be put to the Initial GM will be expressed in those limited terms (the "Initial Resolution").

http://www.halifaxmarketwatch.co.uk/rns.cgi?username=&ac=&action=news&rns=1&view=full&story_id=4087529

http://www.investegate.co.uk/Article.aspx?id=201103040700093218C

I was considering this one - will wait and see now !

Update on Strategic Review On 4 October 2010, the Company announced the appointment of CIBC World Markets plc ("CIBC") to advise the Company in a review of its strategic options, which may include a sale of the Company or the divestment of certain assets. This was to address the combined effect of Legislative Decree no. 128, which amends the Italian Environmental Code (decree no. 152/2006) ('the Decree'), restricting development of oil and gas fields within 5 miles of the Italian shoreline and within 12 miles of natural reserves , and the adverse economic climate which were materially impairing the Company's ability to raise further funds required to develop and progress its exploration, development and producing assets, as well as to meet the Company's future working capital requirements. As part of the strategic review process, the Company and CIBC have been in a number of discussions regarding potential strategic alliances and funding solutions for the Company. As part of these discussions and considering the Company's longer term financing needs, the Company is in dialogue with its bank to extend the maturity of the Company's loan facility which is due for repayment in September 2011. The Company continues to review its operational and exploration activities with the aim of preserving its cash resources and manage its working capital whilst it seeks further finance. Negotiations with potential investors are on-going and the Company is hopeful that one of the current opportunities will resolve the Company's financial position satisfactorily. There can be no certainty that these discussions will result in a satisfactory outcome. Regarding the Decree, there has been no further clarification from the authorities as to whether fields upon which previous exploration has confirmed the existence of commercial hydrocarbon quantities are exempted thereunder. As previously stated, the Company intends to challenge any assessment that the Decree is applicable to Ombrina Mare.

http://www.halifaxmarketwatch.co.uk/rns.cgi?username=&ac=&action=news&rns=1&view=full&story_id=4086989

Hardy remains profitable Date: Thursday 03 Mar 2011 LONDON (ShareCast) - Specialist insurer and reinsurer Hardy Underwriting remained profitable in 2010 even though it was hit by a number of international catastrophes. Hardy is more exposed to these international events than the Lloyd’s of London average. The Chilean earthquake cost around £27.5m and Australian hailstorms are estimated to have cost A$34.6m. Gross written premiums increased from £242m to £279.4m but pre-tax profit has halved from £20.1m to £10m. Marine and aviation and speciality lines both increased their underwriting profit. The property operations slumped into loss. Net tangible assets edged ahead from 266p a share to 270p a share. The dividend has been increased by 10% to 14.6p a share. Hardy has made changes to its portfolio so it is not significantly exposed to the Australian floods. The New Zealand earthquake should cost no more than the previous one last September. Legal & General has cut its stake in Hardy to below 5%.

System C agrees 70p a share bid Date: Thursday 03 Mar 2011 LONDON (ShareCast) - US-based McKesson Corporation is making a recommended offer of 70p a share in cash for healthcare IT provider System C Healthcare. The shares were trading at 46.5p prior to the announcement of bid talks. The bid values AIM-quoted System C at £87m. System C has net cash of £15.7m. Shareholders on the register on 25 February will still receive the interim dividend of 0.25p a share. McKesson already has acceptances totalling 33.3% of the System C share capital. System C joined AIM in June 2005 at a placing price of 54p a share, which valued the company at £47.7m. McKesson is a US IT business that has been involved in the healthcare IT sector in the UK since 1999. It is valued at more than $20bn and has annual revenues of $108.7m. As well as IT it distributes drugs and other healthcare products. The combined business will be able to provide a wide range of software and services to the NHS and private healthcare operations. The release of NHS trusts from central procurement of IT will provide opportunities to for the combined group to gain market share. The development of new software and declining revenues from older products pushed System C into loss into the six months to November 2010. That is why management believes that the longer-term prospects of the business will be enhanced as part of a more financially strong company.

SP does not seem to want to stop heading south just now!

and more New company broker Liberium forecasts 2011 sales of £234m and adjusted profits up from £7.7m to £8.3m. That target looks modest as last year’s acquisitions are expected to add £37m to annualised revenues. Note also the doubled dividend. The shares stand on a prospective PE ratio of seven which is cheap and keeps the shares as a buy. - Investor Chronicles

Staffline booms in hard times Created: 1 March 2011 Written by: Nigel Bolitho - Investor Chronicles Staffline’s interim results to end-December 2010 are splendid - and contrast sharply with recent figures from rival UK recruiters. So why is Staffline booming and rivals not? According to chairman and chief executive, Andy Hogarth, it’s because the company is dealing solely with blue collar workers on temporary contracts - and 60 per cent of turnover is in the food industry. At the moment leading customers from manufacturers to supermarkets don’t want to take on permanent staff so let Staffline, via its Onsite subsidiary, recruit and train temporary staff within their factories. Margins are thin but volumes are high with competition coming mainly from employment scams that pay workers less than the minimum wage. Onsite accounts for almost 90 per cent of Staffline’s revenues and a steady stream of office-based acquisitions are being converted to that format. Other benefits are minimal amounts of working capital and capital expenditure needs while a strong cash flow more than halved year-end net debt even after £4.34m (plus deferred considerations) was paid for acquisitions.

IC - Also - M&S is a recognised name both amongst shoppers and investors and at some point this bond will swing back into favour. With redemption more than eight years away, has plenty of time to do so. Buy on further weakness.

BUY - IC tip Value on offer at M&S Created: 2 March 2011 Written by: Mark Glowrey Many people believe that prices in the bond market rise and fall in unison, driven by the tide of interest rate expectations. However, the situation is somewhat more complex than this, akin to the type of currents one might encounter in a small boat in the Solent. Yes, there may be a general tidal flow, but in certain areas, the current flows in the opposite direction, or indeed two directions at once. So within the sterling-denominated bond universe, the last few weeks have seen a good recovery in the hitherto oversold financials sector, with senior debt rallying by several percentage points. This has been underpinned by a countertrend rally in the underlying gilts with buyers moving back into the asset class as yields approached the 4 per cent mark. Retailers, however, have not been joining the party. Investor sentiment appears to have swung against this industry group in the equity markets, and the same is happening in fixed-income. The Tesco 5.5% Dec 2019 can perhaps be viewed as the benchmark for private investors in this sector – it has slipped eight points from its summer 2010 peak at 114 to a current mid price of roughly 106.

Recovering Rheochem Created: 2 March 2011 Written by: Nigel Bolitho Rheochem has certainly tested investors' patience, but there should be better news ahead. At first glance, the latest half-year results are the usual story of disappointment. But they relate to a period when extensive floods in Queensland and South Australia forced drilling rigs to stop work for several months - so demand for drilling mud dried up. The same problem has occurred in 2011 but it isn't so bad. It’s not so serious this year because the high price of energy is encouraging much more drilling activity, both offshore and for coal-bed methane in Queensland. Indeed chief executive Haydn Gardner says the current half year is looking "very promising" with expected revenues "well in excess" of the interim figure. But the spotlight at Rheochem has now spun back to the North Sea. After a major write-off, the company’s balance sheet only includes one interest (valued at A$27.58m) and that is a 10 per cent net interest in the Athena field in the Outer Moray Firth. The operator, Ithaca Energy, has just completed a water injection well and there is one more well to be drilled. Oil should start to flow late this year with Ithaca expecting a flow rate of 22,500 barrels a day.