Member Info for rickmeister

I nearly bailed out yesterday, glad I didn't

Not necessarily, we'll have to wait and see.

Well the Swedes have mucked up battery manufacturing and sold their premier car builder to China. Perhaps it will dawn on them that they should stick to simple things like extracting proven, high grade iron ore from the ground.

I'd be delighted if the SP of the consolidated shares is 400 times the current SP. My experience is that it falls below the consolidation ratio. My holding is worth so very little its not worth selling and buying back in-another AIM co for the bottom draw.

As they are out of contract with their sole buyer, GAIL, how they are arranging sales and a what price no one knows-certainly it is at a much reduced level. Relatively large level of share transactions today and apparently mostly sales. The spread is unusually narrow as well. Might be a prelude to news next week, good or bad who knows.

Thanks, but I'm not sure it answers my question. Who owns who. Copied below is an extract setting out the respective businesses of Indus and Focus-apologies for the length.

Gas Production

Indus has been one of the very few companies in India, which has been able to commence gas production so early in its license holding period. Indus commenced its gas production from its first discovery (SGL), even while it has been simultaneously continuing with exploration/appraisal of other discoveries in the same block. This feat is all the more remarkable as the SGL discovery is located in the remote area with no access to cross country pipeline network or a ready infrastructure. Indus was granted SGL Field Development approval on an early production basis in March 2009 for which Indus has been granted a mining lease covering an area of 176 km2.

Within a short period of one year a large infrastructure development consisting of a dedicated 6" gas pipeline of ca. 90 km (owned by GAIL) connecting SGL Field with an existing power generation unit, production wells, connecting flow lines, gas gathering station and gas processing facilities were completed and commercial sale of gas commenced in July 2009 with a modest flow of 7 mmcf/d.

As of September 2012, these production facilities has been substantially ramped up for an increased production capacity of up to 65 mmcf/d with Indus commissioning one of the largest CO2 Amine Stripping plant in India and associated infrastructure along with drilling and completion of over 12 production wells.

For the sale of gas, Indus has signed a gas sale purchase agreement (GSPA) in August 2009 with GAIL (India) Limited, pursuant to which GAIL has committed gas off-take of around 33.5 mmcf/d (processed gas) under "Take or Pay" terms. GAIL has entered into a back to back gas sale arrangement with a 270 MW Rajasthan State owned power plant located at Ramgarh, which is currently being expanded to 430 MW.

Indus is in advance stage of negotiating further gas supply agreements including with GAIL for monetization of additional reserves.

Condensate Production

Gas production additionally has been generating a modest amount of condensate, which is sold to local parties. Currently, Indus realizes ca. 8% of revenues from condensate sale/production.

Operator

The Block RJ-ON/6 is operated by Focus Energy Ltd, India, which has day to day operation responsibilities. Focus has significant E&P operating experience and currently operates a total of five on-land/offshore oil and gas blocks in India. As an Operator, Focus has in-house expertise in various aspects of oil and gas exploration including drilling, seismic acquisition, mud engineering, cementing, mud logging, drill stem testing, open hole logging, logistics and real time information management. Focus has over 2000 employees in its exploration division and has dedicated access to large number of on-land rigs, 2D/3D seismic equipment, hydro-fracturing equipment and ot

My read is that the consolidation is required to raise money via a placing/rights etc to fund the trials. The sp can't be lower than the nominal value of each share. A fund raise, in the current market, will inevitably hot the sp hard.

Are you sure? Taken from Indus accounts. Suggests the other way round.

CONTROL BY SIGNIFICANT SHAREHOLDER

Gynia Holdings Limited, along with its wholly owned subsidiary Focus oil Inc. own a significant percentage of outstanding shares of the Company. As a significant shareholder, Gynia could exercise significant influence over certain corporate governance matters requiring shareholder approval, including the election of directors and the approval of significant corporate transactions and other transactions requiring a majority vote.

A gas leak?

The article, which I didn't read as they publishers wanted payment, seemed to relate to Focus Oil. Focus are related to Indus but operate separate fields. Are you sure Indus applied for the extension as far back as 2020? There is no RNS back then to say they have and later RNSs referring to the licence merely say the extension has been applied for, no date when, and is expected. They are also re-negotiating the contract with GAIL which expired in September. My own view (and I stress my view) is that GAIL are seeking the best terms from Indus, especially as Modi has been very critical of their performance to date. If you look back through the RNS history outages of the turbines run by GAIL is a regular occurrence.

The announcement made approximately 2 months ago. Further to the Company's announcement on 25 June 2024, the Company understands that extension of the PSC for Block RJ-ON/6 for a period of 10 years is under consideration.

The matter is in the hands of the Indian Gov which has a reputation for being somewhat bureaucratic.

I've commented on the Gynia loan previously. Interest is rolled up, hence the compounding. Gynia debt is subordinate to bank and other bond holders debt. So it only gets paid after all other debts are settled. If the company isn't able to trade then the only money will come form the assets. GT have made the comment that the value of these assets is materially affected by the company's ability to operate the gas fields, the company also has a financial obligation to decommissioning the operation. Whilst I cannot be privy to the various machinations that might be going on, at face value Gynia's loan could be a considerable risk if the company can't continue to operate.

Well that didn't last long. SP movements and spread impossible to gauge. Appears to be totally unrelated to buys/sells. I know the company is not big on news releases but I assume some negotiations must be ongoing.

Yep, interesting. I hope it's a prelude to significant news and not a sucker punch by the MMs.

Wow, 3 buys totaling less than £4. That should shift the sp.

I really can't buy your conspiracy theory. Firstly the sp fall has resulted in 2.3:1 solds v bought so as a strategy to encourage buyers that hasn't worked. PI's tend to buy into a rising sp not a falling one. Who is the regular seller you reference? Can't be a director as they have to announce any transaction in shares. One director holds 80% of the issued shares and another party (not a director) holds 6%. The last meaningful transaction in shares was over 4 years ago. These odd 20,000 shares are peanuts (I hold considerably more and I'm certainly not a big player). Feel free to continue with your 'scam' theory but the falling sp is more likely due to lack of news on the licence renewal and lack of current demand for the gas. Whilst the licence has expired the company can still supply gas out of licence. As the Mcap is only £13m a placing would raise a paltry sum whilst diluting the main holders considerably. This share is not held in any significant amounts by institutions and the like.

Agreed the spread distorts any movement in the SP. It's return to its past form. Sit back and await news-hopefully good.

I assume the major shareholder is loading up today!

This has never been an active share, it was only the massive drop a while back that caught my eye. If it can return to its average annual profit of circa £30m even at a lowly P/E of 6 (ind average double that) this would mean an Mcap of £180m-it's currently less than £14m. I don't think it would require active trading to see a re-rate.

He now owns more of the business than most of the directors. Perhaps he should join the Board.