We would love to hear your thoughts about our site and services, please take our survey here.
It's a different company that has been dissolved. Beacon Energy Limited, not Beacon Energy plc.
Based on the May 2022 RNS I thought delisting would be about late May not March?
RJ says he will push for the sale of ADME's 4.9% interest in AJE. I thought it was a 9.2% interest. Has he kicked off with getting his facts wrong or does he want to retain a part interest? Some valid points have been made on the board today about Align's past record and how they might be the only winner. Reluctantly stick with the devil we know? A miracle might happen one day.
Very often it can be better to stick with the devil you know. 4p would just about give me breakeven as I have reduced my average considerably. Assuming it could be achieved. On the other hand I would prefer 6p 18 months down the line. Another 50%. Again if it could be achieved. Only wish I had a crystal ball which is what we need!
Nicely summed up Ginksy. Much better than my ramblings. PS I am not Sally but I will forgive you!
I think you may have misunderstood the situation and may be causing yourself unnecessary worry. Asking who owns Barracuda is misleading and barking up the wrong tree. I believe AEGOS has already correctly analysed the position and there is no need for him to write to Zenith. Please reread all his posts on the ADM and Zenith boards since the Zenith RNS and then reread them several times. I did and the penny eventually dropped for me. I must admit it took a while! The key point is that the RSA and RSC are different things. ADM's interest is in the RSA. Zenith's potential interest if it proceeds is in the RSC. This is why ADM said in its email that there is no contradiction. As Dan says ADM and Zenith may end up collaborating. Perhaps Zenith's initiative is something positive. They see some possible potential in Barracuda and so do ADM. If it comes off ADM benefits through its indirect interest in the RSA. Zenith would benefit through its interest in the RSC (less than 50%) if it proceeds.
Having said that, it should be noted that ADM's statement in the March RNS that NHNL is a subsidiary of KOHN was incorrect I believe - see AEGOS's comments re this. I give them the benefit of the doubt that this was an unintentional error, but it ought to have been corrected before now and it is not helpful that someone in their organisation seems still to be confused about this. They seem to have repeated the error in their e-mail to you when they said "we hold an indirect interest in the RSC by way of our interest in NHNL via K.O.N.H UK ltd". They are wrong to refer to the RSC - but go on to say correctly "as per our announcement on 28th April we have a “70% indirect interest in the rights, benefits and obligations under the RSA relating to the Barracuda area of OML 141” I do not know who wrote the e-mail reply - possibly someone who confused themselves? I do hope they will correct it in reply to your email and clarify that NHNL is not in fact a subsidiary of KONH. But the fact that NHNL is not KONH's subsidiary does not mean that ADM does not have an interest in the RSA - it means ADM does not have an interest in the RSC.
I am keeping my fingers crossed that what I have said in this post is correct - it does not help that some of the statements from ADM about NHNL being a subsidiary of KONH are wrong!
As Dan says, Mr Dollar is incorrect in his unreasoned conclusion that the "asset" belongs to Zenith. What is the "asset"?
Please re-read Zenith's RNS.
"Noble Hill-Network Limited ("NHNL"), a private Nigerian oil and gas company, ... holds 100% of the Risk Service Contract ("RSC") for the development of the North-West Corner of OML 141 ("NW OML 141").
Further "Under the terms of the Exclusivity, Zenith has a period of 90 days during which to conduct due diligence and to evaluate the opportunity to participate in the RSC via the potential purchase of an equity stake in NHNL, the sole holder of the RSC."
The word "participate" surely means to take part in with others. If Zenith purchases an equity stake in NHNL, it becomes an investor in NHNL and thus part of the RSC Consortium. But in my view this will be subject to any pre-existing agreements such as KONH's 70% interest in the RSC (which as AGEOS says does seem to be by way of an agreement). Purchasing an equity stake does not in my view exclude or oust existing interests.
I have re-read the RNS's previously issued by ADM. The key points seem to be as follows.
ADM holds a 51% interest in KONH which in turn holds a 70% indirect interest in the rights, benefits and obligations under the RSA relating to the Barracuda area of OML 141
ADM's role is to provide technical and financial support to the investors in NHNL (the "RSA Consortium") in return for favourable accelerated economics and a 15% Net Profit Interest.
It was further stated that following completion of the CPR ADM would appraise whether to seek an equity participation in the Barracuda Field.
The Exclusivity Agreement between NHNL and Zenith would seem to preclude ADM seeking an equity stake in NHNL at this stage, but I believe ADM should retain its interest (through KONH) in the RSC and its role to provide technical and financial support to the Consortium in return for accelerated economics and the 15% Net Profit Interest .
Agreed we need clarification from ADM as to the status and mechanics of the KONH interest in the RSC. Let's hope the e-mails bring a speedy comprehensible and comprehensive reply.
Thanks for your responses AEGEOS and Dan. All valid points.
AGEOS, As you noted in your previous post the ADM RNS of 23.03.2021 says KONH's 70% indirect interest in the Barracuda RSA is held through Noble Hill - Network Limited which is said to be its subsidiary. Although NHNL's website says it is 100% Nigerian owned I wonder if this is out of date. It is possible that KONH has acquired an equity interest in NHNL (not 100% so NHNL is not a wholly owned subsidiary of KONH).
As you rightly say ZEN have an exclusivity agreement to potentially acquire an equity stake in NHNL - which would then be in addition to and not in place of KONH's equity interest (if it exists).
It is important that other posters are not misled by the term "exclusivity agreement". Such an agreement normally gives one party exclusive rights to negotiate with the other party but if those negotiations result in a subsequent agreement, (ie Zen acquires an equity interest in NHNL and thus a right to participate in the RSA) that agreement will not exclude other rights which already exist (ie KONH's equity in NHNL if it exists).
Ultimately it is of course NHNL which has the exclusive rights under the RSA. The bit I am struggling to understand is how KONH can have the 70% interest in the Barracuda RSA unless it is through an equity interest in or some agreement with NHNL - there has to be some mechanism in place for it to be able to participate in the RSA.
(Note - not sure whether this post helps or hinders the debate - sorry.)
My reading of the Zenith RNS is that the exclusivity agreement gives them an option to acquire an equity stake in NHNL rather than acquiring the RSC - not necessarily a 100% stake. NHNL will continue to own 100% of the RSC. ADM has already acquired or provisionally agreed to acquire an interest in NHNL through acquiring a 51% interest in KONH - NHNL is a subsidiary of KONH (ADM RNS 23 March). In summary it seems Zenith would be an additional participant in Barracuda and will not displace ADM. I think! Must admit it all sounds very complicated. Clarification in simple language would be helpful.
I said back in June that it would be August at the earliest before we got the Barracuda CPR. We should not be surprised if everything takes 2 or 3 times longer than it should. That is par for the course.
Thanks Dan
Re your post late Wed, when were those 2 trades? There were 3 late trades on 28/6 but for 3 different amounts, none of which tally with your figures although very close. Also I could not find the director purchase in the March placing. What document is it please? Thanks.
Thanks for the explanation Trek and Dan. Satisfies my curiosity.
OK Why does someone trade 5 shares for 20p? I am just curious to try to understand why. Is it part of a larger trade including other shares? I don't know how the reporting system works. I have just invested in an AIM investment fund.
Thanks Dan. I thought that was probably the case but wasn't sure. A pity I/we don't know what each one means.
Any explanation for why there are sometimes very small trades eg 5 and 6 today and yesterday?
If past timings are anything to go by, it wouldn't surprise me if the CPR is not made public until August at the earliest. If we are lucky.
Thanks for the response. Google does not help. Oh well, just wondered.
Who are Hessia Group and how do they fit into this? The RNS said they own the consideration shares (majority priced at 7p and a few at 5.5p).