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The rumpy pumpy is getting more anaemic by the day. Each time people are drawn in, each time the share price falls. I remember the good doctor pumping these at 3p for a ten bagger; remember the days of the short squeeze. Halcyon days. I would liken it to the present toilet paper shortage. Everyone is holding but we all know it is going down the pan. No news of the legal proceedings yet. 7 days to go. Next cash raise is going to make the eyes water. Nobody wants to buy placing shares when the bottom is falling out of the market. Unless Mr Parsons takes legal action. Those Aussies will be quaking in their boots. On a bright note I am downsizing the house extension and have a spare plug for that electric fire in downtown Southport.

Mr Parsons star has really fallen. At Ascent Resources, where Mr Parsons arrived on his white charger, the share price is now 25% of what it was the day before his first appearance. Today he announces his cash raise there, which was £800,000(gross) has shrivelled to £700,000 then £500,000 and at the moment is £485,000. And now be is taking legal action to force a reluctant follower to hand over £200,000 of promised investment. At the placing price of 5p rather than the current 2.25p. Another wheel off the chuck wagon. I wonder if the threat of legal action will gird the loins of investors at RGM in the next cash raise?

Shareholders must pray daily for the arrival of Mr Parsons at Ascent.
He and his team have come in and raised £800,000(gross) at 5p.
Or is that £700,000?
Or is that £500,000?
Or is that £485,000?
Plus a legal case. And it might have been lower if Andrew Dennan had not coughed up for 1,900,000 shares. Andrew is a shareholder at C4 Energy where Mr Parsons is a director and shareholder, as well as their relationship at Coro. A friend in need and all that.

So where to for Ascent?
Slovenia is dead in the water. I expect the asset will go to "partners".
Is it Central Eastern Europe?
Is it the United Kingdom?
Is it the Carribean?

I suspect it is the latter. Mr Parsons will be putting on his Raybans, getting his Speedos ironed and flying off to the sunny Carribean sea. All at shareholder expense. He deserves it. The share price, after years of decimation, is one quarter of what it was the day before his arrival was announced.

Interesting RNS from Zenith today. The shares of Zenith have fallen dramatically in recent months from just under 2p in Dec 2019 to 0.425p today. Zenith rather than pay for part of the Aaog asset aquisisition in shares have renegotiated an all cash deal. They were frightened about issuing oodles of shares and crashing the share price. The value of the share deal was about £500,000.

Mug punters might remember the deal Coro negotiated with Zenith when it sold its Italian assets:

" The initial £0.4 million consideration for the Disposal, payable by Zenith to the Group on Completion, will be settled through the issue of 6.7 million new Zenith Shares at an effective issue price of 6.0 pence per Zenith Share. Subject to the Italian Portfolio being disposed of achieving average daily production of 100,000 scm over a period of four successive months, a deferred consideration payment of £3.5 million will be made by Zenith to the Group through the issue of new Zenith Shares at an effective issue price equal to a 40% premium to the then prevailing Zenith share price at the time of issue".

That cash consideration might be worth about £45,000 if the shares could be sold. 6p, when were Zenith shares worth 6p? Will Zenith renegotiate the £3,5000,000 referred consideration? Not on your nelly. They have control of production. Oil and gas prices have plummeted. The consideration is a long, long way from being paid for obvious reasons. Zenith are not worried about issuing shares to Coro. If the management look after cash as poorly as they look after shareholder interests then Coro are in trouble. A cash raise by September has already been signalled by the management. No Duyung deal signed yet. Bonuses anyone? Incentives? Pay rises all around?

I'm surprised Coro hasn't issued some sort of update. Oil and gas prices low, no Duyung signature yet, no business being done due to coronavirus and a need for a cash raise by September 2020. Would be nice to hear that all work has stopped and cash is being conserved along with salary cuts. Probably get option handouts and performance bonus news instead.

Slovenia is next to Italy and so is probably not open to businesses six months. The world has changed.

I think the "oil production war" could go on for a considerable time. And I think the oil price could drop to $10 a barrel. I remember that was what the price fell to in the 1980's. This time around is different to other spats. The coronavirus adds a different aspect. The downturn in world economies means the demand for oil has plummeted. Storage capacity will be at 100%. The excess production will not be needed or used up and I think the downturn will last as long as the coronavirus and well beyond as economies will take time to get back to normal. How long? Who knows? One thing for sure is that the oil price for profitable production for Saudi Arabia and Russia will be sorely tested.

Spitfire Oil is an example of a shell company a few months ahead of Nuog in the process. This is what the chairman stated at the interim stage, dated 17th March 2020 :

"It has been a long and tortuous journey for the directors, management and shareholders of Spitfire. The dearth of projects and/or companies capable of being acquired, joint ventured or developed over the past decade has been frightening, not least for their lack of quality, resources or integrity of certain vendors. It has led to the inescapable conclusion that the Company should be suspended, delisted and liquidated and surplus funds returned to shareholders so that you may be able to deploy the capital in a more successful manner. I hope so in this particularly difficult world economic environment."

4th May looms for Nuog shareholders. Reality will kick in. Read the statement. Understand the statement. Learn from the statement.

https://www.lse.co.uk/rns/SRO/interim-statement-6-months-ended-31-december-2019-6xdawel6ix6wb8b.html

End of the month looms. Didn't the company promise an update : " the Company expects to conclude these discussions during the course of Q1 2020 ". Poor market conditions for poor news so don't expect news. Doesn't the lock in end at the end of March? Those large shareholders must be fuming. Propping up a failed model. Cash is going to be hard to raise for Mr Parsons. He had to get his C4 Energy shareholder, Andrew Dennan, to help him out for the failed (£800,000) cash raise at Ascent Resources. 1,900,000 (£95,000) shares to save his masters blushes. Be warned. Your cash is desperately needed.

That's a good point. People might be struggling to pay their bills soon. Would you rather they keep their money in their pockets or get it locked up in Nuog shares as a result of a pump and dump? Be warned. The company is getting desperate.

Clocks ticking. Two cash raises for £920,000 in total since October. Market cap half that amount. The company need to get something on the board before May 4th. Not a done deal but at least an indication. A cash raise again so the management have some cash to pay the high salaries whilst they twiddle their thumbs for six months. Desperate times. Suspension looms.

https://www.investegate.co.uk/batm-advanced-comm--bvc-/rns/novamed-partnership-for-covid-19-diagnostics-kit/202003190700067085G/

Not a good RNS. I expect there are few oil and gas companies that could issue one at the moment of will be able to do so in the next 6-12 months. The oil price situation is being grossly underestimated with the lack of demand through coronavirus and recession in the US and elsewhere. The internal Kazak oil price is a blessing but the resolve to hold it might be put to the test in coming months.

The failed fundraising that has so far raised £500,000 of the hoped for £800,000 ( now cut to £700,000), must have struggled even more than first thought. Of the 10,000,000 shares raised at 5p it would appear that Mr Andrew Denham took up 1,900,000 of them ( or £95,000 worth). Andrew is a shareholder in C4 Energy where Mr Parsons is a director. He is also CFO at Coro where Mr Parsons is chairman. He was also parachuted into Nuog where C4 Energy took on the debt together with another C4 Energy shareholder. So an intimate business relationship between Mr Parsons and Andrew. The share purchase shows how difficult it is for Mr Parsons to cash raise. Another wheel has fallen off the chuck wagon.

You're supposed to get all excited and empty your bank account and buy AST shares. If the share price is 5p or above, the placees can sell their shares. Then they will get all excited and put the money in their bank account. The same old story. Twitters will be writing the story now. A ballad of Andrew Dennans 5% will be sung in the shires. Everyone is happy. Happy but poorer.

Andrew Dennan. Isn't he one of the two C4 Energy people parachuted in here? He has just purchased 5% of the shares in Ascent Resources. The model is broken. This incestuous gang are buying shares in each other's companies to prop up their respective share price. How many shares has he bought in Nuog? Perhaps AST is a better investment in his eyes Take it as a warning. There is no cash around for the games played by these people. Another wheel off the wagon. Be careful.

Ha! Andrew Dennan is the CFO at Coro. It is one of Mr Parsons companies. Is he chairman there? Mr Parsons is a director of C4 Energy, where Andrew Dennan is a shareholder. When C4 Energy moved into Nuog, Andrew Dennan was one of two C4 Energy people parachuted in. Incestuous or what? The model of Mr Parsons is broken. So much so that they are starting to buy shares in each other's companies. Nobody else wants them. Mr Parsons could only raise £500,000 here and £25,000 was from Andrew Dennan. This purchase by Mr Dennan is a warning to shareholders. There is no value here. The share price is being propped up. The share price of Coro has fallen. The share price of Nuog has fallen. Be careful.

Was it because I pointed out that the management has taken 4 months to decide they want out of oil and gas?
Was it because I mentioned their high salaries which will still be paid to them on suspension? You though will not be able to sell suspended shares.
Was it because I mentioned that they said in the RNS that they were in " discussions with several potential targets" so are nowhere near doing a deal with anyone in particular?
Was it because I mentioned that they are jumping on the government bandwagon of the budget, going green, a policy only outlined lastweek?
Was it because I described them as fickle always conveniently changing their mind?

There is always a problem when a company needs to raise the share price and subsequently raise cash. Especially in the present climate. The model of a month ago is not going to work anymore. Companies needing to raise cash now have to be very quick before investors realise how bad things are, how much the world is changing. Be careful not to be dragged in.

I think you're assumptions are incorrect. What is happening at the moment is unique in its unpredictability. Who would have thunk there would ever be a rush on toilet paper. You misunderstand the oil situation. The US in the driving seat. So much so that it has brought the Saudis and Russia to a price war. The US shale industry has been bankrupt since it started. It is primed to shut down and await higher prices as and when. It is not a problem for them as has been shown before. The Saudis and Russians will fight the price/production war until the coronavirus has come and gone. They may as well, there is little demand at present. Yesterday BP envisaged a negative demand for oil next year. Production will still be high. Caspian has micro problems in comparison. Yet it appears a lifestyle company for a small minority. Look at the share price trend. There is no interest from institutional investors. They know the score. The future for small shareholders is much of the same that has dragged the share price to these levels and probably lower. Be careful.

Interesting RNS at Echo this morning. Low oil price, falling revenues and the company being put into lockdown. Echo and Coro have the legacy of Mr Parsons fund raising and high interest rates for its "cornerstone investors". Administration costs killing both companies. High salaries, plenty of options, no results. Coro could be the next zombie company. Be warned. The wheels have come off.