Member Info for pied_piper

Thanks Mitriti. I now get your differentiation on all the agreements, shareholdings etc. I think I was maybe jumping ahead in the sense of working out what was the likely outcome/way forward and what the position would be assuming Conrad and Eme settle amicably and they returned to the status quo. I also think a protracted legal battle is unlikely.

The likelihood then is that eme get offered the same pro rate deal for a free carry as Conrad have - in which case they end up with 2.125%.

Should they want to retain their 8.5% (which they would be entitled to do) they need to come up with $30m - or a rich fairy godmother, as the CLN debt is still lurking.

I suspect we'll hear more this week.

Thanks for the reply Mitri,

Putting everything else to one side for a second, are you suggesting that eme can keep 8.5% AND get a free carry?

Your point is Blakie? Can't I wish everyone luck and be a shareholder at the same time? I just say it the way I see it.

You're misquoting what I said, Mitri.

I said the best case scenario is they kiss and make up tomorrow. Eme pays their dues, Conrad have them back as a partner. No legal battle. They both RNS tomorrow saying its all a misunderstanding and its all sorted as per the original agreement. Everyone goes Hip hip hooray.

What percentage do Eme then hold in the value of WNEL (once the deal is consummated)?

Nation will have 75%

Conrad have 22.875% (being 91.5% of the remaining 25%)

Eme have 2.125% (being 8.5% of the remaining 25%)

The latter two have a free carry.

The value of eme's holding does not cover the debt and justify the current debt laden market cap, as demonstrated by the deal Nation have just done.

I see the optimistic head in the sand merchants are still in charge of the asylum - concentrating on the legal side rather than the actual value for eme. Best case outcome is that eme pay the $800k and they come in on the deal. Clean and easy - back to the JV as envisaged.

So what happens next? Eme have a new 2.125% of the whole project and a free carry for the next two and a half years to first gas - after Nations have had $80m back from the initial sales.

So eme have approx $13m in debt, the majority of which is due back to the lenders once the deal is agreed and no other projects or income.

At current s/p they need to sell this Mako asset for circa $17m to justify the price. The read across from Conrad tells you that there is no chance of someone popping up and offering that sort of money for a tiny minority interest. Nation haven't offered any money "up front" - just capex money.

The only way out I can see is if the eme CLN holders take a huge haircut or do a deal direct with Nation and effectively call in their eme loan.

Good luck to you all!

"Zero value for anything else" because they haven't got anything else! Apart from three clueless muppets trying to hold the show together.

Denby. A lot of those described as "bought", are in fact sells. It's about to pop down again anyway.

Winterflood still offering it down and sitting on the price.

If they do, or need to raise £1m, it'll be lower than tonights close and will require at least 3 billion shares. That would be a horrific dilution.

Billyboy.

A huge number of trades marked as "buys" were in fact "sells" so the numbers are not as they seems. The spread was very tight for a lot of the day but the support seemed to disappear in the last half hour or so - capped by a close at the lows of 0.045p ( and more offered there in the auction).

A placing looks more likely now.

Mr H.

If eme had been part of the deal, they would have ended up with 2% and a free carry to first gas plus about $1.5m paid in dribs and drabs plus, maybe, a bit of back costs. BUT, they would still owe the loan note holders and have other debt to a total of about $12m.

It doesn't add up for them. Imo

That's the way I see it and I'm happy to agree to disagree.

Btw, I think Winterfloods are working a placing!

Ahem OTP...

From the original RNS December 2021

"The Convertible Note bears interest at a rate of 10% per annum and is secured by a senior first ranking charge over the Company, including it's 8.5% interest in the Duyung PSC and Mako Gas Field."

From the most recent accounts

The Convertible Note is secured by a senior first ranking charge over the Company, including its 8.5% interest in the Duyung PSC and

Mako Gas Field.

So Mr H. How much cash is the buyer paying up front to Conrad?

On the question of the loan note holders, I'm sure you're aware that they have a charge against ALL the assets of the company. So any last drop of cash goes to them as well.

Mr H. Where is this money coming from that eme are going to be paid? Which party?

Nobody has suggested that the debt changes the value of the 8.5% MrH. That is obviously silly. But, to use your figures , if eme get $8m and their debt is $12m, why does that not present eme with a problem (and the loan note holders!)?

The legal side is a sideshow.

Even if eme had been a fully paid up partner and had agreed this deal, it is not valuable enough to justify a market cap of about $5 AND survive a debt position of about $12m. The deal is not worth $17m to eme, let alone the fanciful $20 or $30m that has been mentioned.

"Conrad used the same tactic & Coro was awarded 87m,"

People muddling up Italy arbitration and Indonesia again, I assume. At least they begin with the same letter!

Laura. You ask "what next"?

Don't rule out the loan note holders calling in their loan to eme and thus having the ability to take control of the 8.5%.

The deal Conrad has done doesn't cover the outstanding loan and eme debt so why not call it in, pay of the arrears and sell to Conrad at a level that at least gets their original capital back?

I'm not saying it's deffo going to happen but after the last couple of days I think its a possibility.

Whatever the legal side, the numbers are horrible for eme. I've said for ages that the numbers would be "disappointing" ( all the clues were already out there a long time ago) and very disappointing it is. I'm sorry for those sucked in by the professional rampers who will now move on to the next target.

Good luck to those who rescue some capital.

Gazza. WNEL are, effectively Conrad. It's a subsidiary of Conrad and WNEL owns 100% of the Duyung project - in which eme holds 8.5%.

Magpie.

I love the way you conveniently keep forgetting about eme's debt when you make sweeping statements like "many times market cap". You do realise eme's liabilities are somewhere in the region of $15m - depending on the Mako sales price they actually achieve?