Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The Board of COPL had a DUTY to inform the market as soon as issues material to the Company had changed. Investors who invested after 6 October for example, had a right to expect $500,000 per month to be invested in NGL for October and November. Similarly, mr Cowan's remarks about ' at least double' on Nov 15th. As and when material things changed, the market should have been informed. Based on the WOGCC figures, it appears that a huge amount changed culminating in December with the multiple impact of shocking RNSs. Why didn't the Board comment much sooner? Was it not it's duty to do so? If it had, investors may have made very different decisions.
Thank you for your reply WB.
I disagree. The Company told us on 6 October 2023 that it 'plans to spend over $500,000 on NGL injectant in each of October and November to increase the density of NGL's in the gas injection'.
Based on the reference information available (WOGCC), it did not do that and was nowhere close to doing so. The Company has not amended what it said on 6 October 2023 and we have no future production guidance or plans for 2024 as referred to in RNS 15 Nov 2023. John Cowan said in the 6 October RNS that his 'entire focus be on delivering increased production at field site through increasing Q4 NGL injectant'. He was CEO at the time, he did not do that and now he has gone. What was his motive and why didn't the Company updated the market about these critical issues as soon as it was aware of them? These were material issues for an EOR field dependent on MF.
Without Prejudice.
This short summary is based on data available from the WOGCC website. In the absence of data made available by COPL directly, reference to the WOGCC has been made in good faith in preparing this summary which has reached its conclusions on a ‘best endeavours’ basis and using the data available from the WOGCC website. As such, the findings shown here are not guaranteed.
July and August are examples of a productive year at BFSU in 2022. 236, 398 Mcf was injected in July and August production was 62, 415 BBLS.
Forward to 2023, August injection was 99,534 Mcf. September was 109,961 Mcf, October 124565 Mcf, November 108,822 Mcf and December 78,394 Mcf. Oil production for the last 4 months of 2023 was 34,438 BBLS, 33,903 BBLS, 31,978 BLLS and 33,143 BBLS respectively.
It can be seen from the above that, AT NO STAGE DURING Q4 2023, did injection or production get anywhere close to the levels achieved in 2022 even though the 2022 production relied on plastic infrastructure not fit for purpose and, by Q4 2023, BFSU benefitted from brand new and fit for purpose updated equipment.
Consideration has been given to ‘perceived top-up’ i.e. the difference between produced and flared gas v injected gas. Produced and flared is what is coming out of the ground, injected is what is going in.
We were told via RNS on 15 November 2023 that ‘COPL was able to use working capital to increase NGL injection at the BFSU at double the rate compared to previous periods’. This remark does not make sense based on the WOGCC data for the period in question as referred to above.
We were told via the RNS dated 6 October 2023 that ‘ the Company plans to spend over $500,000 on NGL injectant in ach of October and November to increase the density of NGL’s in the gas injection.
Based on pure butane at $ 2.5/mscf, we estimate top up in October and November of around 60Mmscf so about $ 150,000 in total. Far short of the $1 million referred to in the RNS. Based on this, what happened to the $850,000?
In summary, there is no surprise that Q4 production go nowhere close to that achieved in 2022. BFSU is an EOR field dependent on injectant to drive production. Injectant in Q4 was WAY short of the figures from 2022. What happened to injection in October and November 2023 and where is the estimated $850,000 that should have been invested in NGL?
Tom Richardson was appointed Chairman of COPL on 6 September 2023 which was the same day that John Cowan was appointed CEO. As key executives of COPL during Q4 2023, what do they have to say about the above?
"The takeover of Lekoil Cayman by Metallon largely accounts for the raging storm, after
Metallon bought the Lekoil Cayman shares on margin and having faced a margin call, was forced to sell.
Metallon, the majority shareholder of Lekoil Cayman, sold off its stake in London-listed Lekoil Ltd, driving down the value of the company’s shares 41 percent at £0.90 pence a few weeks ago.
Besides, Lekoil Cayman is yet to reveal the identity of the new buyers, the Board of Directors of Lekoil Cayman is also yet to be dissolved since August 30 when the news of the sale broke.
A group of concerned Lekoil shareholders have already protested the transaction, as the AIM rules stipulate that such volume of shares should be offered to the investing public.
The group is demanding full disclosure from Lekoil (Cayman) Ltd, as well as certain documents germane to the transaction including, copy of the TR1 filed by the purchaser of the Metallon Corporation shares, explanation as to the position of Metallon Corporation appointees, Thomas Richardson and Alphonso Tindall, copy of the Conditional Fee Agreement and detailed use of proceeds of the £200,000 amongst others.
The continued silence around the buyer of those shares sold by Metallon flouts AIM Rule 11 which by interpretation essentially requires an AIM Company to issue notification of new developments that are not public knowledge, but likely to affect the price of its AIM securities if made public, in the areas concerning its financial position, activities, business performance and expectations of performance.
Tom Richardson was a director of both Metallon and Lekoil (Cayman) AT THE SAME TIME whilst this was happening. There appears to be NO RECORD about WHO bought the shares that Metallon sold. AIM rules stipulate that such volume of shares should be offered to the investing public. Why does such controversy seem to surround the business dealings of Thomas Richardson?
"On 2 September 2021, the Company entered into a Convertible Facility Agreement ("CFA") with Hadron
Master Fund ("Hadron") (a company associated with Marco D'Attanasio), TDR Enterprises Ltd (a
Lekoil Limited 43
Financial statements for the year ended 31 December 2021
Notes to the financial statements
company controlled by Tom Richardson) and a non-related third party (together "the Lenders") to allow
it to access up to £200,000 for working capital purposes. The key terms of the CFA were: (i) Amount:
an amount of up to £200,000 in total, with Hadron providing up to £100,000 and each of TDR Enterprises
Ltd and the third party providing up to £50,000 each; (ii) Use of proceeds: for payment of corporate costs
(regulatory and compliance and legal fees) and for general corporate purposes as approved by the
Board and the Lenders; (iii) Availability: £100,000 available immediately, with £100,000 available after
1 October 2021. (iv) Term: 6 months. (v) Repayment: Principal and interest to be repaid from proceeds
of capital raise and/or monies recovered from CEO Loan. Repayment immediately due on a change of
control of the Company. No conversion before expiry of the Term. (vi) Conversion right: In the event of
non-payment at the expiry of the Term, Lenders have the option to convert the outstanding amounts
into ordinary shares of the Company at the Conversion Price of 0.5 pence. (vii) Interest Rate: 10% per
annum. (viii) Shareholder approval/Security for Repayment: Approval at Company's AGM. In the event
shareholder approval was not obtained, the Lenders would have been be entitled to an assignment by
way of security of the CEO Loan.
Tom Richardson is a non-executive director of the Company, controls TDR Enterprises Ltd and is the
CEO of Metallon Corporation. Metallon was previously the Company's largest shareholder but no longer
owns any of the ordinary shares of the Company. Hadron Master Fund is an affiliate of Hadron Capital,
which owns 4.66% of the ordinary shares of the Company. Marco D'Attansio is a non-executive director
of the Company and the Chief Investment Officer of Hadron Capital. Given that Tom Richardson and
Marco D'Attansio were (at the time of entry into the CFA) non-executive directors of the Company and
given Hadron's shareholding in the Company, the entry into the CFA with these parties was deemed to
be a related party transaction for the purposes of Rule 13 of the AIM Rules for Companies ("AIM Rules").
For the purposes of the AIM Rules, the independent directors of the Company, having consulted with
the Company's Nominated Adviser, SP Angel, considered that the terms of the transaction are fair and
reasonable insofar as its shareholders are concerned."
Please see these extracts from the Lekoil (Cayman) 2021 Accounts:
"On 2nd September 2021, Lekoil Limited announced it entered into a Convertible Facility Agreement
(“CFA”) with Hadron Master Fund, TDR Enterprises Ltd (a company controlled by Tom Richardson) and
a non-related third party (together “the Lenders”) to allow it access GBP200,000 for working capital
purposes for a 6-month period. Hadron will provide GBP100,000 while TDR Enterprises Ltd and the
third party will provide up to GBP50,000 each. The purpose of the facility is for the payment of corporate
costs (regulatory and compliance and legal fees) and for general corporate purposes as approved by
the Board of Directors. There is the option to convert the facility in the event of non-payment and
expiration of term to ordinary shares of the Group at the conservation price of 0.5 pence. Interest rate
as at 10% per annum."
This one is quite interesting. First of all, please be aware that Mr Thomas Richardson is shown on Companies' House as a director of Metallon between 20 April 2020 and 10 October 2022. Mr Richardson is also shown as a director of Lekoil (Cayman) between 8 Jan 2021 and 31 Dec 2021 as per the 2021 Accounts for Cayman company registration CWK- 248859.
An extract from the link below which is well worth reading:
"The takeover of Lekoil Cayman by Metallon largely accounts for the raging storm, after
Metallon bought the Lekoil Cayman shares on margin and having faced a margin call, was forced to sell.
Metallon, the majority shareholder of Lekoil Cayman, sold off its stake in London-listed Lekoil Ltd, driving down the value of the company’s shares 41 percent at £0.90 pence a few weeks ago.
Besides, Lekoil Cayman is yet to reveal the identity of the new buyers, the Board of Directors of Lekoil Cayman is also yet to be dissolved since August 30 when the news of the sale broke.
A group of concerned Lekoil shareholders have already protested the transaction, as the AIM rules stipulate that such volume of shares should be offered to the investing public.
The group is demanding full disclosure from Lekoil (Cayman) Ltd, as well as certain documents germane to the transaction including, copy of the TR1 filed by the purchaser of the Metallon Corporation shares, explanation as to the position of Metallon Corporation appointees, Thomas Richardson and Alphonso Tindall, copy of the Conditional Fee Agreement and detailed use of proceeds of the £200,000 amongst others.
The continued silence around the buyer of those shares sold by Metallon flouts AIM Rule 11 which by interpretation essentially requires an AIM Company to issue notification of new developments that are not public knowledge, but likely to affect the price of its AIM securities if made public, in the areas concerning its financial position, activities, business performance and expectations of performance.
This may explain why Lekoil Nigeria is filing a formal petition to the Alternative Investment Market, AIM, a sub-market of the London Stock Exchange, especially as Lekoil (Cayman) Ltd is seeking to raise a convertible facility agreement (CFA) worth £200,000 from Hadron Master Fund and TDR enterprises to fund its legal battle against Lekoil Nigeria."
https://sweetcrudereports.com/lekoil-nigerias-ceo-sues-lekoil-cayman/
What was Mr Richardson doing when he was a director of both companies simultaneously? Was there a conflict of interest? Also, who bought those shares?
When the appointment of Tom Richardson was announced by COPL via RNS on 20 April 2023, amongst other things, Mr Richardson was referred to as have held ' various CEO roles including Metallon Corporation Limited, a private pan African Natural Resources and infrastructure investment company.' A source suggested that we look at this company more closely. We are doing so at the moment and will continue our enquiries for as long as it is relevant to do so. Due to the severity of one of the references discovered, the information below has been shared with you as soon as possible. Mr Richardson is shown on the Companies' House website to have been a director of Metallon between 20 April 2020 and 10 October 2022. Here is an extract from the link below. The number of deaths at Red Wing reported by civil groups is shocking as are the references to the age of people working there and the conditions they work in. It is well worth reading the report in full.
"MUTARE – Redwing Gold Mine, once touted as a giant gold mining venture capable of transforming the quality of life in the Penhalonga area of Manicaland province and a cash cow for the national economy, has become a sad story of failed investment by British-registered Metallon Corporation.Metallon’s vast Zimbabwe mining portfolio extends to subsidiary firms, Shamva, Mazowe and How Mine.
The gold mine, situated 50 kilometres west of Mutare, had a resource of 2.5 million ounces of gold, according to the Mineral Reserve Statement of December 2016.
In its heyday, the mine played a major role in economic stabilisation and domestic resource mobilisation, producing 1.1 million ounces of gold between 1966 and 2004.
But the story has changed to that of dismay; manifesting in death, massive environmental damage, infrastructural decay, labour rights abuses, crime and sleaze — all in one.
Civil society groups say more than 100 people have died at the mine since 2020, with 26 dying in January this year alone.
The rot does not end there, as there has been flagrant disregard for mining statutes through political patronage, tax evasion, mineral smuggling, and human rights abuse, according to civil society groups closely monitoring the situation'.
https://www.zimlive.com/redwing-a-tale-of-plunder-impunity-chaos-and-death/
It is hard to fathom how Mr Richardson would not have known about these conditions for ordinary people at Redwing. If he did, what did he do about addressing them? More articles coming along very soon. Please comment in meantime.
It's all an unknown to us we. Keep your eyes on the money. Anavio have obtained a large percentage of COPL for peanuts. They will now want to maximise the advantage pertaining to that new position. Think about how they can do that prior to 29 Feb when things shift towards Mr Kravitz and Summit. Dwell on that and please post. None here know what will happen. We just have opinions. Most interested to hear yours.
Interesting to read M. There's much more to this than we know currently. The next few days will likely be exciting. Anavio have to get the pressure off of them somehow. It's not turned out how they'd hoped. As things stand, multiple pressure points exist for them.
Perhaps your opinions are correct. BFSU has significant 2P reserves. Anavio remain a major equity holder and the RS report revealed very valuable assets. Time will tell what happens. We just don't know. What we do know is that Peter Kravitz has an outstanding reputation as a restructuring officer with huge deals under his belt. His appointment to 'tiny' COPL, a company with 'huge debt and few assets' looks most odd on the face of it. The period between now and the end of the month should reveal a bit more.
A source suggested we take a closer look was taken at Atul Gupta and Tom Richardson in the context of Nostrum Oil & Gas and COPL so we've done that.
Mt Richardson was at Nostrum Oil and Gas between 1 September 2016 and 31 Mar 2020. During this period, he served as Chief Financial Officer. Mr Gupta was there at the same time; always as a Director and also as Chairman and, latterly, Executive Chairman. In July 2017, a $725 million five year bond was issued by the Company with a fixed coupon of 8%. The co-manager of this issuance was Mirabaud Securities. This is shown in the 'Deals' section of the Tennyson Securities website. The Mirabaud team (including COPL joint broker, Peter Krens, moved from Mirabaud to form Tennyson in 2021).Bank of England Base Rate in July 2017 was 0.25% so the coupon of 8% was 32 times Base Rate. For the period of time that Messrs Richardson and Gupta worked together at Nostrum, the company's share price fell by 98.09%.
The pair worked together again at COPL between 2 November 2023 and 18 January 2024. For this period, COPL's share price fell by 94.54% so a little less than at Nostrum but over a much shorter period of time.
In the 10 January 2024 RNS in which Mr Richardson's contact details appear as Chairman, it is stated, among other things, that the Company 'was informed by two brokers in London that there was no institutional interest in funding on the same tersm or better than those proposed by Anavio'. WHO WERE THOSE BROKERS? WERE THEY TENNYSON SECURITIES (PETER KRENS) or HANNAM & PARTNERS (ANDREW CHUBB/NEIL PASSMORE)? Also, did Anavio or COPL pay an arrangement fee for the fifth Anavio fee? If so, how much was it and who was it paid to?
Please make any comments you might have. More updates will be shared very soon. Plenty to share.
How do we know they don't based on our knowledge of the RS report as well as the incoming Engineer's report on BFSU? Also, Peter Kravitz is a top grade US restructuring specialist with past successes into the billions of dollars. Don't you think it a little strange that he is now involved with 'tiny' COPL, the little business with 'lots of debt and next to no assets'?
Good evening all,
So much research being done at present. Working as hard as possible to get these out for your consideration this week. A source suggested that we had a look at TR's short resume in the RNS dated 20 April 2023. The annoucement that Mr Richardson had been appointed as Non-Executive Director described him, amongst other things, as 'Chairman of Fenikso Limited, an Oil and Gas company listed in the UK...'. Fenikso is indeed listed on the (small) Aquis market although a review of the Fenikso website reveals not only that the Company is incorporated in the Cayman Islands but also two other points of interest: 1. 'The Company owns one main asset which is a USD 51.9 million loan made to LOGI'. 2. 'The principal business of the Company is to manage and ensure the full recovery of the LOGI loan'.
Ladies and Gentlemen, does that sound like an 'Oil & Gas Company' to you? Or does it sound like a loan company?Would you trust Mr Richardson to know the difference between petrol and diesel if he was filling up your car? Moreover, the 20th April 2023 annoucement said that Mr Richardson had ' over 20 years of experience across banking oil and gas'. Just how many of those years were spent 'at the pumps'? Does Mr Richardson know anything meaningful about oil and gas production? If not, why did he present himself as he did in April 2023? Thereafter, why was he appointed as a key executive at the beginning of September 2023 just as COPL was heading into a critical time for production at the Company? Who made/influenced that decision? Comments please and more to come on various topics this week.
Interesting news RBM and most welcome. Is it now 'Fight or Flight' now for Anavio. The situation has changed. They have had to change too. How can their best protect their liberty, reputation and bank balance in that order?
I don't agree with what you say. There are many reasons why I do not. Among them are the reasons why Anavio worked to push the share price down, their new large holding of equity, what they intend to do with that, how they will manage risk to their business from the FCA, Canadian authorities and private investors. How they can make maximum money from here too ( Do well at the JV negotiating table as a shareholder).