Member Info for ShouldveSold

As per TR's comments: all income will be reinvented to grow the business and fund further acquisitions.
It is still classed as generated income. I would still like an confirmation of actual income so I can understand the financials. Since the preacquisition presentation, all I have been able to do is guess work with numbers I don't even know are accurate.

I believe there is a reason Scirocco is choosing to not disclose the actual financial details. What ever reason that is, I think its share price destructive to keep investors and the market in the dark about the financials.

Another month has passed with no financial update.
Scirocco is now two months into this AD deal and no RNS has been released confirming income. I would think first income from the diversified business would be more important than Tanzanian news as it provides company stability.

It's my understanding that Scirocco will net approx £25,000 a month from the AD acquisition. Two months in and I don't know whether to continue to presume Scirocco has now netted £50,000, nor am I able to forecast half & full year numbers without confirmation.

More importantly; if 2020's expenditure matches 2021's, then Scirocco will owe Gneiss circa £425,000. If one breaks that down to income/expenditure. That would mean Scirocco's net income is £25,000 per month and their outgoings to Gneiss alone is £35,000 per month.
I would like Scirocco to provide some clarity and update the market on what is coming in and what is outgoing. As of right now, I really don't know if Scirocco is solvent or not.

Being as no RNS has been released with markset sensitive news. I am presuming operations are still ticking over.
I don't know what the cost would be to perf a portion or all of the Upper Cruse so cannot offer a reply.

If the price of oil continues to fall into the $60s, I hope CEG will now perf the Upper Cruse to mitigate losses.

I am guesstimating the monthly loss is in the $10,000 a month ballpark with oil at $84 a barrel. So oil being in the mid $70s now will affect the bottom line. I am surprised the SP hasn't moved to be honest.
If any finance deal is being negotiated right now, just like with P1, it could throw some tensile steel in the works.

Personally I think that Bahamas data/room is like that suitcase in Pulp Fiction. It's only actually worth $150M to S Potter but to everyone else is just a worthless suitcase.

Not to question your intelligence or education level, but I think any information that is basin data will probably be gobbledegook to anyone who isn't a geologist, petrochem engineer or of that ilk. And being able to interpret it doesn't change the outcome. The oil that was supposed to be there, is not there. *anymore*

You can read the full presentation, informative slides & all on the website. To read the real secret numbers though you will have to pay $150M. Which I think is a little steep.

Unfortunately learning the complete Autopsy will not change the status quo. It may indeed help you make better exploration investments in the future though.
:)

You have refreshed my memory LLL.
I believe the Goudron Sands has become the companies 'Old Faithful".
Whether CEG has permissions for more Wells there or not, I don't know. Didn't L.K purchase 2 drill rigs? Or were they only work over rigs?

If CEG is currently operating at a loss, it means income is below the $200,000 monthly overheads.
When I did the maths it was way of what I presumed the company was generating.
Whatever financial company would be willing to lend would probably be under Pay Day Loans terms or Vanquis card rates lol.

But on a serious note, I would rather seek solutions than complain about how crap a situation is.
Whenever I look at the CEG website & view the Senior Management, I always ask myself " why does the company need any of those personnel? ".
There is further scope for cost cutting there in my opinion. Unless those personnel are actually providing essential services....

Hmmm. I do recall the oil price was around $50 back when NR was drilling a well every 8 weeks of so. My figures might be slightly off. But do recall L.K was not in favour or the rinse & repeat infills.

I don't know whether the inner workings of taxation & royalties have somewhat changed now or whether the Goudron Sands would continue to be productive. But CEG doesn't really have many options. And I would prefer the company do something to survive rather than wait for administration.

Was there any particular reason L.K stopped the company chasing Goudron oil in favour of other assets? It was quite a while ago now & a don't recall if it was deemed uneconomical due to percentage rights &/or the oil price back then or some other reason.
Anyway my point being, if CEG somehow survive into 2022 through whatever restructured means; Scrap THE SWP field development as it clearly doesn't yield enough oil. Also scrap Suriname as that is projected even lower. The company can go back to the tried & tested Goudron infills. That could be the only route which prolongs life support.

Who could of guessed N.R was a better operator than both L.K & CEG combined.....
Come back Neil, all is forgiven.

With T.R's priorities now with EAG & D.R's with Gniess, perhaps any questions should probabaly addressed to Alastair Ferguson.
Maybe that's why it's gone completely silent as there is now no one manning the office.

Fjones are you open to feedback about that question?

I thought the £150,000 was small too. But that's because I was misinformed of the percentage ownership of the Kiliwani License. I thought Scirocco owned 25%, when in fact it only holds 8%.
I have forgotten what the net monthly income was for Scirocco. I'm sure someone here knows the numbers. But there is only so much gas left at KN1 & for that field to keep producing, it requires another Well, possibly in the south.

I agree that there is no harm. If you don't ask you don't get. I hope you get satisfactory answers to what ever questions you submit. Personally I think the relevant questions that will ease or reassure shareholders won't be answered; due to ongoing negotiations or market sensitive data.

On a separate note; Talk is cheap and in my opinion, if the Tanz Gov were actually motivated & committed to this new rhetoric, KN1 remedial works would have been given the green light. As to maximise the shrinking opportunity to benefit from gas sales before any COP26 legislation is passed that affects the Oil & Gas industry on a whole in a push for sustainable renewable energy.
A packaged Ruvuma deal for 2 non producing assets is a hard sell in my opinion.
I find myself asking the question: What company will be motivated to spend. £25+ Million on 2 gas fields that are not producing and have no current permissions to produce gas from?
Maybe a company that is so large it can wait it out & that kind of purchase price is sheckles to them....

My focus is purely on the AD business. I want to know the income & expenditure. I want to know if the plant upgrades have been started or completed.
I have heard the story of " in 3-5 years time so & so will be worth blah blah blah". It's the story that sucked me into investing in the first place lol
Now I have that t-shirt, I require an understanding of the metrics to make investments, not promises.

Fjones I don't want say anything that will dissuade you from doing what you think is important or necessary in receiving answers to questions that you think are relevant.
I fear that the questions that will be put to TR will have historic value rather than seeking answer that are relevant for today & tomorrow.

I'd prefer to know the:
• current cash balance
• current monthly income & expenditure
•options for paying the CH1 cash calls

Everything else is day to to running of Scirocco which I don't feel the board need to run past shareholders. Other investors may disagree.

Understanding that Scirocco is run by just Tom & Doug means they need to outsource everything that they can't do between the two of them.
Seems as though there is a network of small companies which all outsource work to each other to keep the lights on. And if all the directors & senior management, sit on each others boards or provide services to more than one of the companies. It all looks very erm... "mums the word".

The conclusion I have come to is that the directors have all become as frustrated with Scirocco's inability to generate revenue from unmonetisable assets as shareholders are & so have all moved on or have other appointments where they can actually make an income from the sideways trading of Scirocco and further their career whilst Scirocco collects dust.
And I don't blame them.
Recognising the circumstances and understanding nothing you try will have any impact is good self preservation awareness.
Sucks for shareholders though.

Not disclosing monthly outgoings is like telling a new investor who asks the see the books " Sorry mate, can't show you the financials because they are private. But what I can do is show you 2020 year end financial's & if you wait 12 months, I will show you those".
Who would invest under those terms? What current shareholder would be motivated to keep holding if they think the BOD are intentionally withholding financial information?

If the news is dyer & the company is running at a monthly loss. Inform the market.
If the plan has value and scope and will be profitable after certain milestones are achieved or other acquisitions are bolted on, inform the market of that.
In my opinion the market has already priced in news that the Greenan acquisition is cash negative for the business and with no update on first income, speculation is on the downside.
Until Scirocco inform the market that its actually generating income and not robbing Peter to pay Paul, the SP will continue to trade sideway & downward in my opinion.
Probably great for that Spreadex company who now have a steak.

Steve if there is one question I would want answered by a EGM or private phone between Fjones & TR its; are the in-going retainer & additional purchase feea to Gniess, greater than the £25,000 a month generated from the Greenan acquisition.
That being said, there is a reason why Scir has said that a breakdown in fees will not be disclosed to the market. But being as the total would be disclosed in the year end financials it does seem counter productive.
Now uncertainty has set in. How can one invest in Scirocco when one doesn't understand its financials?

Lol very amuirzing

I don't suppose that message will be up for too long before being removed. Read it quick guys lol

I have a theory:
Jon & Doug found a way to manoeuvre Scirocco into an "off the books" subsidiary company through their consultancy firm. Where every deal has to go though them but all the risk remains with Scir & its shareholders.

TR is now a director of EAG, which is a private company & not subject to shareholder scrutiny. Evidently everyone moves on from Scir to butter their bread on both sides, except shareholders who are left holding the bag.

Shareholders can neither buy shares in Gniess or EAG. Yet those companies both have their fingers in every pie.
I don't believe an EGM will provide any response the Board haven't already previously given, going back years. Because the situation in Tanz has remained unchanged. It does feel like there is actually talk of change now, which is promising. But promising is all it has been for the past 10 years. And unfortunately that promising future has just never been realised. It could of had the Tanz gov handled things differently, but they didn't.
Scir is still stuck holding an un-matured asset. I think it will just have to be more of the same until the Tanz gov actually implement change instead of having discussion about what they need to do to change.
Maybe the either a sale would be possible or income from gas sales can happen. Which is of course 2024-2025.