Member Info for Sageman

Tollesbury does the surname Fell mean anything to you?

Tollesbury , The size of a portfolio is not relevant. A millionaire can have fun at the races the same as a person on benefits it’s just that the size of the bets are different. I am lucky. I have good health and a fantastic wife and children. The money is a welcome bonus that comes a distant third place behind health and family.

I wish Willow! UKOG really attracted me. Very high risk but with what is going on with Angus it is clear that there is oil and potentially lots of it. Also I initially liked the poor financial accounting since that undermined the share value. My expectation was that as oil flowed money would be spent on cashflow forecasts and the SP would soar. What has been a shock has been the excessive dilution. Thus a share that I initially felt might go to 30p has had the upside reduced. It is now a more boring play where at circa 1.5p I would expect to start reducing holdings.

Honestly ...yes. Actually it is more than that. The vast bulk of it is in deathly boring stuff albeit that that I have been heavily into equity trackers this quarter ( emerging markets, U.K. mid cap, Europe and India). Reason USA China trade deal and need for a U.K. re- rate now hard Brexit is off the table. I always though like to have 5% in some spicy AIM stocks - play money. Stocks that can shoot the lights out. The gain on the portfolio from trackers in the 1st quarter means that if all my AIM stocks fell to zero I would still have made money. Last year was dire though , just broke even.

Hi Wizard, the 14m to 20m is that the 20 includes my wife's! I am not overexposed here as I never let an Aim stock be over 2% of my portfolio. I have traded this a lot, hence my relatively low B/E. The issue is the constant destruction of shareholder value via dilution such that my B/E of 1.35 would now be a mini spike! I suspect that many others here are similarly impacted. But enough, I have made my point and hopefully whether by my direct emails or via this board SS will be aware of my views. I look forward to the CPR, a successful drill and perhaps 5p.

The issue is that when your shares are at a bargain basement price and worth only a fraction of their potential you would only add value if the assets purchased are at least as deeply discounted. If SS Were to get our horizontals in to production our Sp would increase. Yes adjacent land would go up but not to the same extent as proven producing land that we have. With a proper business plan he could borrow to fund the purchases. The point is that what he is doing currently is destroying shareholder value and potential uplift in the Sp. Rampers can say what they like but the Sp does not lie. I hold 20m stock and still expect a decent outcome but that is being paired by his dilution. Say HH is really successful and we get 3000 BOPD great that adds x amount of value. Double the shares in issued it is 0.5 x ,X double it again and it is 0.25 x X and so on. The more he dilutes the lower the impact success at HH will have on the Sp because the market cap is spread over more shares. Also until he stop diluting and driving down the Sp there is little point in buying because the longer you wait the cheaper it gets. With every Sp uplift you expect dilution therefore you sell. The destruction of shareholder value here is ridiculous. He needs to stop dilution immediately, drill and get some decent production, drive up the Sp , get some decent cashflow that lenders will lend against and then fund from loans.

Essentially in the example below the dilution solely makes sense if the assets are also bought at a 90% discount to NAV. Anything less may increase the size of the company but would reduce shareholder value. The issue here is that SS needs to optimise shareholder value PRIOR to doing these deals. The fact that he does not understand this shows that he is financially not fit for purpose.

Ocelot, I know why you are saying what you are but consider this . If your current assets are undervalued by 90% and you buy assets at a 10% discount how many shares do you need to issue in order to buy them? You think that you are buying at a 10% discount. Consider if the true values of core assets were £9 but valued at £1. You then buy £1 of assets resulting in a doubling of the shares in issue. When your core assets go back to their NAV the result is that the Sp goes not to £9 but to £4.50 due to dilution. Sadly this is precisely the mistake that SS is making here . He is building a large company but is oblivious to the financial impact of his actions on the poor bastards funding it.

Hi Bridge, no there is upside her so don’t sell. What we all need to do is to send SS an email and let him know he is financially incontinent. Tell him to stop diluting away our future value and to employ an FD who he listens to or move aside from his position of CEO. He is fine in terms of growing the company but it must not be at the expense of shareholder value. Dilution is a given but the excessive dilution here is financial illiteracy in the extreme. I could seriously slap the guy he is literally that rubbish when it comes to money. I have complete respect for him as a geologist but when it comes to building shareholder value a goldfish displays greater levels of competency. Literally everything this deluded clown does drives down the Sp.

No one is talking about 10 p or 15 p today. The issue is excessive dilution destroying long term Sp potential. Even if he built a FTSE250 company guess what ? with this level of Dilution we would have an Sp of 10p. That is how destructive this mans egotistical land grab has been. He has single handedly destroyed the Sp upside here such that it is a fraction of what it could have been.

Heid, we are all adults here. That is not the issue. No one wishes to sell at a loss just because of the financial mismanagement of SS. The issue is that this should have been a £1 party. But the “party” is more likely to be the 10p party due to dilution even if this is mega successful due to ill conceived and poorly timed dilution where the sp is on its knees. I gave him the benefit of the doubt on the £3.5m raise expecting a big purchase followed by a mega CPR , I am still waiting. If that transpires in the next few days then SS my apology but for now I just see financial incontinence.

Mirasol , actually yes. I hold GFM and have contacted the FD probably a dozen times over the last 13 years. He has always been gracious enough to reply. In contrast even though I hold circa 20m of these our Demi god SS believes that PI’s are beneath him and does not even get his ‘ underlings’ to reply. I am fortunate that my B/e is only 1.35p but this incompetent illiterate fool could lead even me to a loss. The issue is he is not driven by creating shareholder value just growing the company whilst oblivious to the financial impact on the Sp.

Our financially illiterate CEO thinks that issuing shares is a free ride. Actually it is an expensive ride on our backs and he needs to be taken to task for the resultant destruction in shareholder value. Not one of his strategic purchases has resulted in an increase in shareholder value. He is lucky that he only answers to some disorganised PI’s because professional institutional investors would make him squirm like a maggot on the end of a hook. A person with any financial noise would do a financial business plan, get the wells flowing and then make purchases. If shareholder value was the driver rather than ego subsequent purchases would be via loans. Question would you rather be a £1bn company with 100m shares or a £2bn company with 10bn shares? The problem is that our egotistical CEO wants the latter. He actually deserves the sack for gross financial mismanagement and destruction of shareholder value.

Heid, I am CEO of my company and not too busy to contact him! There is an old saying , if you want a job doing ask a busy man. I have much respect for your “uncle” SS as a geologist but he has been promoted to his level of incompetence. His is employed by the owners ( you and me) to increase shareholder value. By his incompetence financially he is doing the opposite. I am willing to believe that UKOG will come good and that the land he has purchased is valuable. But his method of purchase and timing display a level of financial illiteracy that few can match. He simply does not understand that dilution is not a free lunch. On this scale it is financial vandalism destroying the upside that this opportunity could have given in terms of SP upside. His ego is his greatest downfall. He just wants to build a big company but he forgets that his employers ( us) require him to build shareholder value.

I have asked repeatedly that the company issue a proper detailed business plan with cashflow forecasts etc that financial professionals can analyse. We have nothing of the kind and the Sp reflects this. In contrast SXX produces nothing but has a proper business plan and is in the FTSE250 whilst we are now an oil producer with massive potential and a market cap of £70m. SS should be head of mining not CEO as he is financially illiterate. I have written to him direct and he does not answer. When you do not reply to business owners you are just plain rude!

Ripley the problem is that SS is financially illiterate and buying at the expense of decimating shareholder value. If he were to add £60m of value now it would make a circa 1p difference to the Sp. He is selling shares at a ridiculous price . If we were to have waited to get the horizontals flowing and the Sp was then say 5p even if the land cost double what it is now he would only need to issue quarter of the shares to buy them. Thus it is not just the cost of the land itself when we are giving away shares in lieu. He sees it as getting land for free but he is destroying the potential here by issuing shares at the wrong time. Sadly we have a geologist with no head for finance.

Totally clueless raising more cash at this Sp when he has already done a placing for acquisitions. I have written to him in strong terms. I hold 20m shares and am disgusted by the financial mismanagement currently in operation. You don’t just buy land at any price. The job is to build the company and build shareholder value not simply build the company whilst destroying the value for its owners. I am sorry but SS is financially illiterate albeit that UKOG is still a fantastic opportunity.

I wondered if anyone went to the AGM and if they did do they have any feed back? Specifically did anyone ask SS why he did the £3.5m placing at such a low price and what was his reply?

SS has an awful lot of explaining to do especially why he did the latest placing. If I were in London tomorrow I would definitely go to the AGM. I believe in the project long term and have invested accordingly but we now need financial projections, proper detail as to when the drilling will start and last and by no means least what on earth was he playing at doing a placing at such a depressed sp level? It needs to be the knock down purchase of the century to justify the placing. I have to believe that he is acting on what he knows as opposed to what is currently public knowledge.

I sold out of SXX and SLA yesterday but I use the share centre for trading. If I sell all my shares the trading history is hard to find, If I leave just one share on the account all past deals are readily listed and it is easy to click back on the share to buy more. I have left one share in each. I intend to buy again. But clearly if I decide against at some stage I may end up cleaning up the account and sell just the 1 share. All I am saying is that there can be good reason for sales of 1 share.