Member Info for Spikeyj

well, goldman called it pretty well really, tho’ unclear still how
much further to go. ... oilies not spared despite earlier falls.

... a few.

tin hats all round.

“... a few hundred cases world wide ...”

nuri, you may be a bit behind the times.
... rather more cases than that, already?

“this is a marketing communication.”
“ this document is not independent.”

caveat emptor.

it does contain some interesting snippets about
the back-story, and some recent twists and turns
re proposed field development, so worth a look,
but imo should be read as part of the company’s
current attempts to pump up sentiment in order
to get a large equity placing away. looks like the
usual AIM story, tour studios for soft-soap paid
for interviews, & release paid for research puff.

substantive question yet to come; will OO persuade
Trafigura to cough up chunky debt funding at a decent
interest rate, or will the burden fall on equity, per usual?

[wmsjames, I’ve been asked your question before and i
have replied before. no, i am not a holder here, & i watch
and post here as i find it entertaining and educational.]

gl honest folks.

JLG has been pretty tasty to date.

blackrock reportedly thinking of
putting chunks of cask into UK
infrastructure now boris has full
control of no. 11. - time for more?

lol, hard to see the prudential board being keen on that
bit about “eliminate duplicative ‘group head office’ costs”!

but in some ways, Loeb may be pushing at a door that
is at least 1/4 open already? interesting posts, thank you.

what we need now is mr buffet to take an interest in jackson,
quality US business on the cheap. (well, a boy can dream!)

just suppose ADME had offered EER three different deals,
as below - which one would have been the best for EER?

1) $1m cash, + taking on $1.5m debt, + 22m ADME shares priced at 4p.
2) $1m cash, + taking on $1.5m debt, + 22m ADME shares priced at 7p.
3) $1m cash, + taking on $1.5m debt, + 22m ADME shares priced at 14p?

yup, that’s right, it’s a trick question, all three deals worth exactly
the same. it doesn’t matter what price they used to price the deal
at, as EER still ends up with the same amount of cash & ADME shares
in all three scenarios. the difference between them is simply one of
optics; i.e. in scenarios 2 and 3, some people could try to claim that
a deal has been done which ADME shares at a premium, and that in
turn could be used by some to try to pump up the shares. (i see that
some folks on twitter have already claimed it shows a 55% premium...)

(what would genuinely matter would be if Trafigura agreed
to fund the $1 million at a reasonable interest rate, for debt.)

i have seen it before, but agree, it’s certainly not
common. potentially interesting and fun, but of
course the limit they will be very aware of re
shareholder engagement is not to inadvertently put
out something that should go via nomad to RNS.

prescient, lol.

if they manage to get a placing away for that
$1m with a similar level of fees at a price level
of around 4.0p to the placees, that would be
a dilution of another 22 million shares or so.

[me, not convinced there will be sufficient appetite
at 4p, but let’s see, maybe someone will pay up?]

although a raise of that quantity would only
bring in enough to cover the $1m payment,
but with nothing included for those ongoing
‘admin’/ BoD costs, any new aje well costs etc.

(perhaps by announcing a ‘7p’ notional value for
the 22m shares EER are getting they are hoping
that might make placees think it’s worth paying up?)

ah, thanks dan, good point re additional shares likely being issued
in order to cover arrangement / admin / introduction/ commission
fees. sadly they don’t spell out such costs, but agree likely 10-15%.

slowlyslowly it doesn’t really matter to EER what notional price is
being assigned to the ADME shares they are being given as part of
the deal. —> basically they are giving up that percentage of aje, in
exchange for $1m cash, passing on debt of $1.5m “plus applicable
interest”, and receiving 2 million shares in ADME. —-> but the total
value of that deal to EER doesn’t change whether they assign a notional
value of 2p, 7p, 70p or 700p to those 2m ADME shares (as they are simply
worth whatever EER can sell ‘em for, subject to lock-in conditions etc.)

? isn’t it more like 22,000,000 new shares,
if using circa 1.3 exchange rate $/£, at
7p per share to raise that $2,000,000?

also note, the potential extra debt being
taken on is $1.5m, “plus applicable interest.”
they’ve not spelt out the accrued amount.

[admenergyadmin, please feel free to clarify.]

dan, why do you think anyone is going to subscribe
for shares to raise that $1m at a premium? i can see
why adme would hope for that, but unless they come
with loads of sweetener warrants etc, why pay up?

“As to funding, a mature plan is already afoot...”

yes, i‘m sure it is.

ah. OO’s first deal is to buy a bigger share in aje,
by paying cash & shares to another company
where OO is also a director, which is failing to
keep up with the required cash-calls for aje.
no doubt the cash will come in handy for that
other company of OO’s? - slightly unfortunate
timing, given the outlook for oil & gas prices
& the world economy, given coronavirus etc.

and in taking on the debt of those unmet
cash-calls, this pushes back even further the
(increasingly notional) date by which adme
might hope to be receiving cash from its
oil sales, rather than those disappearing
into the gaping maw of project level debt.
(+ note the cost share percentage for adme.)

more pressingly, however, where is the cash
meant to come to pay for this? - going from
previous accounts etc. from the company, they
were going to run out of cash circa Easter, but
now of course they also need to stump up the
1/4 million $ deposit then balance of that $1m
for this deal. which will be on top of the month
to month cash burn for ‘admin’ including BoD
costs (already very high for this little company),
and on top of any cash needed to drill new wells
to replace the existing two as they decline...

—> clock is ticking very loudly for next placement.

jmo.

https://www.thetimes.co.uk/article/more-giant-funds-cut-fees-after-assessing-their-value-zc52f8rz6?shareToken=d6f07bd5bc60ab1a623619a9befeec9a

nigeria drops march crude prices.https://oilprice.com/Energy/Energy-General/Oil-Prices-Fall-As-OPEC-Refuses-To-Act.html

accounts due by saturday 29th feb.

dip, schmip.

goldman suggesting high chance of 10%+ market correction soon,
as folks begin to twig the serious impact of coronavirus on supply
chains ... if they are right on that, would the oilies follow down /fall
even worse, or has oily pricing already been more forward-looking?

meanwhile, shotguns, baked beans & antibiotics tend to hold value well.