Member Info for shareaction

Pharos is one of these few ultra cash-rich company which doesn't even know how to use its around £200m in the bank (approx 30% of total asset value). And on top of this mismanagement of their assets they have the audacity to cut the annual dividends from £18m to £9m! Never mind its shareholders (company owners), the directors' reasoning is that it is better for the growth of the company to invest half of the dividends in more development rather than than paying it in dividends. That logic could have made sense if they hardly had any cash to spare. But the opposite is the case: The £9m dividend cut is only 4.5% of their cash in the bank. If they need to spend £9m more on investment for growth, as they say they do, they wouldn't even notice it if they spent 1/20th of their low-interest, depreciating bank deposits.

Not surprised the share price does not react very much. To kill whatever good news there was in the half year figures, of course they had to publish their periodic director greed awards ("DGA").

Instead of giving share options with a strike price, say, 25% above current share price (to actually make them work effectively) they just give themselves shares for free.

Yes, they are apparently based on some obscure performance conditions, (half based on growth in total shareholder return ("TSR") and the other half on growth in total cash available for distribution per share ("TCAD per Share"). But the admission document SAYS NOTHING that I could find when I looked about what the GROWTH RATE actually has to be for all of these shares to be released, nor what the actual level of CASH AVAILABLE FOR DISTRIBUTION has be.

So we can safely assume that MAXIMUM AWARD will be made to all of the directors whatever the performance above some easy world index, once they have patiently sat and sat and waited for the vesting period.

Sorry of course buy price... early morning still. Yes I sold at a loss. By average was around 0.2p

You mean sell price?

For the record I've sold my remaining 20% just now for 0.1511p and 0.151p. There is no support anywhere as far as I can see.

Yesterday we were informed by Egdon that Humber Oil & Gas defaulted during the year ended 31 July 2019 and that legal proceedings have been taken against them. UJO would have know this when it happened, perhaps around the date 10 June 2019 when UJO announced that Frazer Lang "tendered his resignation, which will take place with immediate effect"? All this time DB was talking in interviews and listing up their financial cost commitments in the coming months, all the time knowing himself that there were substantial additional costs of UJO's pro-rata portions of three separate projects need to be covered, at least potentially need to be covered. But lets face it, Humber is probably bust. I cannot invest in people who treat their owners that way – say one thing and do the complete opposite. Contrary to his stated personal communication policy of "shareholders first", I don't any longer believe Bramhill has been following his shareholder policy which really disappoints me. As a long term shareholder I have been looking forward to future developments, but with regret I sold 80% of my UJO-shares today. The rest probably soon. Long term who knows, it may be a success, I really hope so for all the rest of you long term shareholders.

Directly and indirectly he owns around 63.9m shares.

GreyPanther, how could UJO and, recently, Reabold just have gone out and raised millions in new equity whilst at the same time knowing that one of the JV-partners were defaulting on their JV-liabilities?

In my view, clearly a JV-partner with 20% of Biscathorpe and 16.665% % in West Newton defaulting to the point that the operator has commenced [legal] proceedings is a major price sensitive event which should have been RNS-notified at the time. It seems obvious that the two licence operators, Egdon and Rathlin did not do their homework and credit checked Humber and asked for guarantees if they were not creditworthy. After all Humber Oil & Gas Ltd was only registered as a limited company 23 months ago with £1 share capital. In my finance leasing days, a long time ago, I couldn't even give such a company lease finance on a fax machine.

GreyPanther, ref your comment "Looking on the bright side, it means that UJO may be able pick up an extra 5.5% of Biscathorpe. Any thoughts?"

I'm not sure if this unfortunate situation has any bright side. If/when Humber Oil and Gas default is confirmed the remaining JV-parties will be responsible for the payment of defaulted invoices. Biscathorpe has a very, very long way to go with lots of uncertainty and I doubt very much that UJO would want all this extra cost in spite of added ownership. Cash is hard enough to raise on a good day and JV-partners going bust is hardly a selling point when raising more equity.

4 YEAR old story

luckyman, this looks just like the continuation of a 4 your old story.

https://drillordrop.com/2015/10/30/is-rathlins-new-east-yorkshire-gas-site-on-top-of-a-prehistoric-village/

If an unlisted company (or even an individual person) enters into an agreement/cooperation with a quoted company they MUST agree to be legally bound by the same disclosure rules as the listed company.

Example: If I own a revolutionary, not yet patented, invention and enter into a JV with RR plc to develop a new aircraft engine twice as good as anything else then I cannot discuss development with anybody without RR's permission AND only to release price sensitive information through RR's information system.

Rathlin is in such position – they cannot invite people and discuss price sensitive information without agreement AND such sensitive information through the official RNS channels established by the quoted company/companies.

kayaks,
Re. your last sentence: Surely not "paying 75% more for their fuel than the US" but paying 4 TIMES MORE?

CJO1, instead of just posting a link on its own, it would be much more interesting if you added your comments on WHY you think it is important. This would normally generate more discussion. And then you wouldn't have to apologise for posting either. Just a friendly observation.

VeryHappybunny, as far as I can see Connaught Oil & Gas Ltd has 1 employee and 1 director, Chris Hooper – see below. The company is either very, very small or absolutely hopeless at making themselves visible. If you find any concrete information about Connaught please post it here and I will update myself.
__________________________
Connaught Oil & Gas Ltd was founded in 2009. The company's line of business includes performing geophysical, geological, and other exploration services for oil and gas.
SECTOR
Energy
INDUSTRY
Oil, Gas & Coal
SUB-INDUSTRY
Oil & Gas Services & Equip
FOUNDED
--
ADDRESS
530 8 Ave Sw Suite 1300 Calgary, AB T2P 3S8 Canada
PHONE
--
WEBSITE
--
NO. OF EMPLOYEES
1
Board Members:
Name/Company
Chris Hooper
ACM Ltd/Canada

Mix, you say Rathlin and Reabold are strongly backed.

I agree with the latter (Reabold) but Rathlin has no financial nor any technical backing from Canada anymore. Connaught has just been diluted 90% and are no longer a parent company so they have in effect taken the loss and walked away from it. The canadian group was always just a bunch of private equity people anyway and Connaught as a company have never had any oil expertise or experience (apart from whatever background experience some individual investors in that group of people may have had). The only oil experience they have had was that of Rathlin's, nowhere else that I could find anywhere. Which is ironic as posters here often used to refer to Rathlin's canadian owners' oil experience as a great strength!

Anyway, Rathlin is hopefully soon history as we know it, with Reabold as future majority owner.

Mixter, you say 'Rathlin aren't bust or run out of money'

From an accounting point of view this is correct. However their situation is dire. Rathlin's latest annual report filed in august contains details of the survival struggle they have gone through to deal with the losses, all of which had been capitalised and accumulated on the balance sheet. Rathlin has never had any income.

At end of 2018 the now FORMER Canadian parent company, Connaught Oil & Gas Ltd was owed in total £33,847,760 by Rathlin. In the summer Connaught Oil & Gas had to accept to swap this debt for 3,362.160 newly issued shares at a conversion price of £10.07 (!). In the subsequent placing, other new shareholders (including Reabold I assume) only paid £1 per share (well actually only paid in 84 pence, so still owing the remaining 16p/share to the company). In hard extra cash Rathlin only raised £5m gross before cost which would not last long when having to cover 66.67% of future West Newton development cost.

UJO may well have paid its share of the EWT cost to Rathlin but nowhere can I read that Rathlin has passed on this pre-payment or indeed any of its own 66% share to the providers of the EWT services.

At the moment I suggest we all cross our fingers until Reabold's EGM has passed its resolution and cross our fingers and just be grateful and count ourselves lucky that Reabold has come to our rescue. Of course UJO will not lose ownership of its share of the licence if Reobold fails to get shareholder support but Rathlin has no financial strength whatsoever to take this any further on its own so the project would just stop and eventually the licence would expire in June 2023. My recommendation is that we all sit very quietly without rocking this boat until 28 October 2019.

Fyoz, I'd rather have ¼ of a 16" pizza please, which is twice as much as the other.

½ of 8" pizza = approx. 25 sq in
¼ of 16" pizza = approx. 50 sq in

Jarrovian, CO can could lawfully have participated in the placing fulfilling the conditions in the law below (referred to in the announcement).

REGULATION (EU) 2017/1129 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

....................
...................

II. CLIENTS WHO MAY BE TREATED AS PROFESSIONALS ON REQUEST

II.1. Identification criteria

.......................
......................

In the course of that assessment, as a minimum, two of the following criteria shall be satisfied:

1 the client has carried out transactions, in significant size, on the relevant market at an average frequency of 10 per quarter over the previous four quarters,

2 the size of the client’s financial instrument portfolio, defined as including cash deposits and financial instruments exceeds EUR 500 000,

3 the client works or has worked in the financial sector for at least one year in a professional position, which requires knowledge of the transactions or services envisaged.

CO should easily satisfy at least 1 and 2 of the three conditions.

I have done so myself in the past and my investment activities are tiny compared with CO's.

This was the agreement:

In November 2018, Union Jack
completed a farm-in agreement with
Rathlin Energy (UK) Limited (“Rathlin”),
a subsidiary of Canadian registered
Connaught Oil & Gas Ltd, for a
16.665% licence interest in PEDL183.
Union Jack has acquired the interest in
PEDL183 by paying 25% of the West
Newton A-2 drilling appraisal costs.

Anything after A2 I hope the cost reverts back to pro rata.