Member Info for saintnick

Shouston - not just why, but when?

I'll keep it generic given our ongoing situation but direct quotes are useful for context.

John Cowan Oct 6th 2023:

"I am delighted to have closed this financing that now allows my entire focus to be on delivering increased production at field site through increasing Q4 NGL injectant..."

https://www.lse.co.uk/rns/equity-financing-and-further-financial-agreements-s0m7ai6a2oiouak.html

If the NGL injectant was successful there would be no need to keep increasing company debt, whilst simultaneously diluting the shareholder base, via financing from Anavio (or rather the closed investors with the fund). I'll say no more as we're in good hands.

One for TIA1 though. Connect the dots in this link

https://aum13f.com/fund/anavio-equity-capital-markets-master-fund-limited

It will may surprise you, unless you believe in coincidence, i tend not to.

Thanks Un_Known.

Lloydy - I'd imagine the CAG are well ahead of me in finding these links, I also don't consider any of it evidence of wrongdoing but perhaps some of it might be pieces of the jigsaw and help point the discovery subpoena's in the right direction.

The bigger picture is definitely more than an inability to watch the pennies.

Un_Known - just to confirm, when you say Juno Energy you mean Juno Energy Management III LLC?

Recently registered in Casper Wyoming but actually HQ'd in Plano, Texas.

https://www.bizapedia.com/wy/juno-energy-management-iii-llc.html

CEO is Charles Gibson, a CO2 and oil production specialist, ex-Denbury employee also HQ'd in Plano, Texas.

https://www.linkedin.com/in/charles-e-gibson-7897324a?original_referer=https%3A%2F%2Fwww.google.com%2F

So Summit have effectively just brought in Exxon, our JVP in waiting who pulled the plug in Dec 23 after 18 months due diligence on our assets, via an arms length contractor. That looks a bit cloak and dagger to me.

Interesting what happened to Denbury just before Exxon bought them up, they went to court and had their debts removed just before the sale. Sounds very, very, familiar. Almost like there's a repeatable pattern of racking up debts then having them legally cleared via the Courts before the assets are then sold on and the insiders trouser the benefits.

https://www.ft.com/content/c9982cae-6790-4722-a2ab-ed1fc7f290de

If I had to guess, Denbury/Exxon are now going to use our site to test CO2 EOR, hence the GGS infrastructure upgrades we paid for, using Juno as contractor. Registered in Casper, Aug 24, to make permitting applications via the WOGCC much easier. If successful, they'll link it up to the Greencore CO2 pipeline that runs north via Salt Creek and then massively improve the recoverability rates at the CCU. Ryder Scott stated OIP 993mbbls, conservative estimate.

https://americancarbonalliance.org/map-of-us-pipelines/

Just a guess, could be miles off. If it turns out to be correct, they may want to have any legal challenges put to bed early doors.

That was my initial thought, but why is it so wide?

From memory they were just replacing plastic pipes with steel, that shouldn't require that amount of land to be cleared. I'd have thought it involved excavating the exiting structure and burying the replacement.

If it's the GGS then so be it, just thought Un_Known might know if it's something else maybe related to Juno.

BullorBears - yes, it looked odd so I zoomed in and checked the scale. Much wider than the existing roads, huge in some parts. It also runs up to a creek, covering both sides, which suggests a bridge might be planned.

https://maps.app.goo.gl/WDW44LB6syDL7qZE9

Zoom out to see the full earthworks, doesn't cover the whole BFSU, just the central wells

Thanks Un_Known, so does that mean there are no old Atomic heads currently involved?

I get the feeling SWP being spared the fate of the other 10 COPL companies has more to it and might be key to explaining some of the goings on. It also crossed my mind that SWP could have been charging COPLA via intercompany recharges for ops services, which might explain the massive cash drain. Their separate accounts filings will be interesting if they can be sourced.

One last thing, if you could, Google maps has updated images of the BFSU with 50ft wide earthworks running adjacent to some of the existing roads for several miles. Do you know what that is and when that work started and finished? The whole site looks very busy.

Thanks again for your insights, they are appreciated.

Un_Known - do you know how SWP Corp managed to have themselves taken out of the Court proceedings? They have a knack for survival based on their previous 2 owners troubles.

Furthermore, who is currently running SWP Corp and what are their links to the old management at Atomic, besides still occupying the same office space?

We cleared Atomic's $50m debts to be rewarded with this mess so if you know, that might be quite helpful.

Poppy - not sure if you've come across this previously but I found the affidavit from the Senior MD at Bridge Finance Inc re the Cuda saga (pdf download).

https://content.next.westlaw.com/Link/Document/Blob/Ic96ed137522211ec9f24ec7b211d8087.pdf?targetType=PLC-multimedia&originationContext=document&transitionType=DocumentImage&uniqueId=b1538e5e-d102-43d8-b17b-fb3548b40c16&ppcid=e385d4594fee4f529ca304ec81e5c1e1&contextData=(sc.DocLink)

Hightlights include SWP's role, possible motive to then take down COPL, and actual debts owed to BFI and Tallinn ($70m+). Also, KES 7 Capital, an interesting outfit. Website is just contact details and an image of London, odd given they operate mainly in Calgary and Denver. Found more than one of their investments based in, you guessed it, 5th Avenue Calgary.

Regarding Cuda, SWP (COPL) had a lein on the BFSU as they operated it via a JIB agreement. Cuda owed them just $2m so they sued in July 21. Tallinn gave $4m to clear the lein but a "delay" in payment meant the lein wasn't removed.

As a result, Cuda went to the wall and the assets were sold to COPL for $19m plus the JIB money. If we take it a face value, BFI and Tallinn lost probably $60m+ after fees etc were taken.

Motive enough to go after COPL?

My main take from the read is you could sub BFI with Summit, Tallinn with Anavio and everyone would think the affidavit was describing COPL.

Interesting read on the "workout playbook"

https://opmwire.com/third-eye-capital-erikson-national-energy/

The similarities cannot be just coincidental to our own situation, this scenario appears to have been played out across multiple oilers over the years

"By August 2018, the receiver had initiated steps towards a sale and investment solicitation process (“SISP”) for the Ranch assets acquired from Predator Oil. TEC submitted a credit bid and was selected as the successful bidder of Ranch assets, after no other bids were considered “qualified bids” during the last phase of the SISP (i.e. no one else seemed to want the assets)".

Or maybe they were blocked so the instigator of the company's downfall could collect the assets through a legitimate court proceeding.

Poppy - good digging on Cuda, further back comes Junex and Lone Pine (Forest Oil). LP's 5th Avenue Calgary address didnt escape me.

On BFI... "Bridging Finance charged higher interest rates to lend to riskier parties, but nearly half of their loan portfolio in all loans to McCoshen’s companies did not pay cash interest. Instead, interest was deferred until loan maturity, sometimes referred to as an extend and pretend strategy. The Sharpes were able to continue to charge high management fees despite the underlying company’s increasingly dwindling prospects of repayment"

https://www.financialpipeline.com/how-bridging-finance-stole-millions-financial-scams/

Re Cuda ...."Consider the case of Cuda Oil and Gas. Bridging initially lent Cuda $35 million in 2018 at 10.5% due June 2019. Cuda couldn’t repay the loan in June 2019, but instead of forcing the issue Bridging just extended the maturity by a year. Bridging also supported Cuda with an additional $8 million short-term loan, due December 2019, then extended to March 2020, then May, then July. The extension process reached its conclusion when Cuda defaulted on the loan in mid-2020. Bridging has since been subordinated to a $9 million loan by another lender and the company is in workout.

At what point was Bridging’s loan to Cuda impaired? Even though the loan’s maturity was extended in 2019 and Bridging provided additional funding, Cuda continued to pay interest. So in a sense it was performing. But shouldn’t a company that can’t meet its loan maturities and requires additional funding from the same lender be considered impaired?

So long as Bridging can extend and pretend, so long as they can keep zombie borrowers like Cuda alive, there is nothing forcing the issue."

https://chaptertwelve.substack.com/p/bridging-finance-brazen-wrongdoing

Most striking phrase in all this "extend and pretend". Enter Anavio, difference being they were shorting a company they were the primary shareholder in whilst covering any potential short squeeze with the mass of warrants they held. A win win for them, but was it all legal?

Given what we now know about Cuda, death spiral financing and money made from fees, it seems building succesful companies might not be everyone's priority in this game.

FastJezza - thanks, this does help alot.

It can probably be assumed Kravitz would have put the insurers on notice of an impending claims by shareholders as he referenced the $10m cover being likely insufficient in a court filing. My interpretation being he knew the mess that had been caused and likely successful claim coming down the tracks.

On that basis, blocking strike off wouldn't prevent the policy covering their shenanigans so that probably wasn't the reason.

Un_Known - any clues yet? Or if not on this subject, could you shed some light on Southwestern Prod Corp suing Cuda O&G, Bridge Financing and Tallin in July 21?

This was pre Cuda acquisition by COPL July 22, but given the circumstances it looks very odd paying $20m+ for something previously valued at $2.7m the year earlier, Sept 21. Based on our own experience with Kravitz and KSV, $20m probably covered fees and not much else.

COPL, AM and RB should've known of Cuda's involvement with Bridging Finance Inc. through the SWP case. I get the feeling COPL's subsequent demise might be linked somehow, possibly relating to investors in Bridge Finance Inc. who got none of the $43m they lent to Cuda back, or the other investor which lent $9m, both came behind SWP with regards to the BFSU.

Crippling COPL 2 years later frees up those assets, Summit have them but where will they end up.

FastJezza - working on the basis that the policy has not yet been triggered, does COPL need to be active for a claim to be made against the policy or is there a period after dissolution that a policy usually covers?

My assumption is you can't make a claim directly against a company that no longer exists legally, but if you can, then that may not be the reason they blocked the striking off.

FastJezza - good to know, thanks.

Can I ask, if a claim has not been submitted (I'm not aware of the specifics of where MC has got to) then, is it the case that the company would still need to be active in order for the policy to be used or can such a policy be used to cover the term served of said Directors even if the company has been struck off prior to a claim be submitted?

In short, if they hadn't blocked the striking off order would they still be able to claim on the policy if MC submitted a claim several months after the company was dissolved.

Un_Known - apologies for re-raising this old thread but I had a thought on the internal objection to being struck off here in the UK. Its not likely to be for the benefit of shareholders as I had hoped previously, so...

Is it due to the D&O liability policy taken out through the company?

If they shut the company down then the policy would most like be terminated and the individuals then become liable for all potential compensation.

Quite literally a cut and paste job, sub Cuda for COPL and away they went....

"New Cuda will be participating with the vendor of the Wyoming Assets to jointly develop, construct, own and operate an oil sales pipeline connecting to regional infrastructure and a high pressure natural gas system to facilitate gas volumes required to implement the miscible gas flood into the Shannon field (the “Midstream Facilities”). The Midstream Facilities will be owned 331/3% by New Cuda and 662/3% by the vendor, and will be operated by an affiliate of the vendor. New Cuda will contribute US$5 million for the construction and development of this project."

They built/finished midstream facilities with COPL cash. It also answers the question, why develop the BFSU whilst not delineating CCU? (It was always the plan, it started pre-copl).

They even used the same investor hook, or should I say Arthur did....

"In addition to the Shannon formation, New Cuda has identified bypassed pay in four additional deeper zones. Two of those deeper zones (Frontier and Muddy) have already proven productive with historical vertical wells having recovered over 100 mbbl of light oil each. Several large industry operators are actively developing these deeper zones offsetting the lands to be acquired. Based on recent positive horizontal drilling results (where IP-30's have consistently exceeded 1,000 bbl/d light oil), have licensed over 5,000 horizontal drilling locations within the Sand Dunes mega project area. While New Cuda's initial capital program will focus on the Shannon formation, New Cuda will target the potential in the deeper zones and plan to drill a deep strat test to prove up additional conventional and unconventional reserves before year end 2018."

I'm sure Stas20 has the transcripts of Arthur churning out pretty much the same above teasers to get COPL investors on side. All water under the bridge now but like everything these days, if you say or print it.... it can be found.

Poppy - you mention Guylaine Saucier, take a look at another of Cuda's directors, Tim Bushell. He's been involved in many O&G UK listed companies.

Junex/Cuda/COPL looks like a game of pass the parcel, does any of this sound familiar...

https://www.finansavisen.no/forum/thread/6163/view/90465/0?zephr_sso_ott=5mf4sU

Tim's background, some of it anyway...

https://find-and-update.company-information.service.gov.uk/officers/EaVFpYHnHQN9nO64k1QTOEZJ8Fs/appointments

Rockhopper, Desire, Genel, Falkland O&G, Junex/Cuda, Petro Matad

Does Tim know something we probably should about the Wyoming Assets?

Does Tim know Arthur given his track record in UK listed O&G Co's?

I'd lean on the side of Yes to both questions. Everyone in this from the Judges to the Oil Service Co's talked about in Mar/April (Balanced Energy/XDI) work in or on 5th Avenue, Calgary.

It was a 6 min walk from COPL HQ to Cuda Energy Inc.

Cuda Energy Inc. 2200, 444 - 5 Avenue SW, Calgary, Alberta T2P 2T8

COPL 715 5 Ave SW, Calgary, AB T2P 2X6

An awful lot happens on one road in Canada.

Enki - anything is possible, and in our case probable.

Other movememts around that time include the entrance of Nigel Little and the exit of Viscount Astor. Quite possible the Viscount saw what was happening and decided he wanted no part of it.

I really do think this failed acquisition by an unknown entity in Sept 21 and our subsequent purchase 10 months later might have merit as a line of investigation.

Poppy - interesting find. Makes you wonder why something worth CAD 2.7M in Sept 21 was then suddenly worth $20m+ (US) 10 months later in July 22 when COPL bought it.

https://www.lse.co.uk/rns/COPL/copl-completes-acquisition-of-cuda-energy-a77z3zrtntpqn0x.html

Also makes me wonder what due diligence was done by Mccarthy Tetrault and in particular Robert Brant who was both a Managing Partner (London office) at McCarthy Tetrault and our Company Secretary until Feb 24, having been in position since 2011.

https://find-and-update.company-information.service.gov.uk/officers/Hbih7CltyCn2V1w2Y4uHABkIXkc/appointments

https://www.mccarthy.ca/en/work/cases/canadian-overseas-petroleum-signs-earn-agreement

You'd have thought at least an eyebrow may have been raised and as the Cuda Energy acquistion, and bond deal with Anavio, was the spark that burned our house down. Maybe the history of that deal needs to be unpicked in detail.

Not to memtion the mythical RBL, that's a whole other episode! Someone jokingly mentioned a Netflix series out of this scandal, I think they could be on to something

https://www.lse.co.uk/rns/COPL/copl-signs-financing-to-close-cuda-acquisition-eg2po0hh2dtg4lh.html

Poppy - Singapore link didnt work for me, try this

https://links.sgx.com/1.0.0/corporate-announcements/8WGMZQ3NB8Y3VYUT/362967_QPR_Linc%20Energy_Wyoming_06302015_Executive%20Summary.pdf

Un_Known - thanks for the clarification.