Member Info for TeelaBrown

The acquisition of Livingbridge is flagged in the RNS as being “materially earnings enhancing”.
Liberum Capital has forecasts for 2019
Revenue £164m
Pre tax profit £4.95m
EPS 20.4p.
If we add the Livingbridge figures of revenue £9.1m and pre tax £5m then Gresham 2019 becomes
Revenue £25.5m, pre tax £9.95m and EPS 35p (based on 28.4m shares)
On top of this, Livingbridge will make one months contribution to 2018 and raise the revenue and pre tax figures (although EPS may be lower due to the increase in shares)
It looks very good to me.

What might happen if GSPC gets $3m and the remaining money required by the court from another company then sells part of their holding to this second company?

Oilex would still be a minority holder and have to deal with GSPC, now also a minority holder, and the partner of GSPCs choice

So, we're buying 5 more wells and the target production rate for Mayan is 300-500bopd.

Surely this was the target before the 5 new wells? We've been led to believe the target has been achievable and forever just around the corner.

Now we've got new wells and an unchanged target. Did this mean that there's a tacit admission that the wells Mayan have been working on aren't going to produce?

That's another interesting spot. I don't generally read foreign papers but took the time to read this link. The reporter mentions 1000 bopd by the end of 2018 and 2000 bopd by the end of 2019. Both are significant increases but somewhat slower than previous guidance.

A couple of weeks ago Donald Trump signed "Right to Try" legislation in the US. Wikipedia summarises this as: Right-to-try laws are U.S. state and Federal laws that were created to let terminally ill patients try experimental therapies (drugs, biologics, devices) that have completed Phase I testing but have not been approved by the Food and Drug Administration (FDA). Might it not be time now for VAL to promote the use of 401 in the states before the final approvals are in place?

I've had a go at valuing Mayan's holding in Deloro. On 16/11/17 Mayan announced a cash and shares investment in Deloro of US$1,505,000. This investment had given Mayan 17.3% of Deloros holding of 6 million Petroteq shares and 6 million Petroteq warrants. Deloro can now invest a further US$2.4m of which Mayan's part will be US$415,000 in order for Deloro to get a further 4 m shares and 4m warrants. In total Mayan will have paid US$1,929,200 (equivalentt to ��1.43m at 1.33) for 17.3m Petroteq shares and the same number of warrants. I've used an online Black Scholes calculator to try and value the warrants. Using volatility of 25%, 50%, 75% and 100% I get theoretical values between 33c and 75c. If I use a mid range value of 50c for the warrants and as that to the CAD$1.14 share price then 1.73m gives a value of �1.649m, already 14% of the payment Mayan has made.

I don't think it's such a good deal. Deloro have given up the prospects of an income stream from production at Ashphalt Ridge. This has been replaced by a direct equity stake in Petroteq. Mayan doesn't hold this stake directly and may have trouble trying to realise it should the need arise. The absence of the income, in my view, increases the likelihood of a capital raise being retired at some point. Mayan paid US$1505000 for its initial share of Deloro. They will need to pay a further US$415,000 for the second tranche of the Petroteq holding. This will give Mayan the equipment of 1.73m Petroteq shares and 1.73m Petroteq warrants for an overall cost of �1,443,760. If Petroteq gets to US$4.00 (about CAD$5.00) it might look clever. If it does get to this level how many BOPD will Ashphalt Ridge be producing?

Simon Thompson, the small companies analyst in Investors Chronicle has reviewed an earlier tip of GHE and raised his target price from 460p to 500p. He quotes some figures from Liberum Capital: 2018 pre tax profit �2.58m 2019 pre tax profit �4.95m Cash and liquid assets at year end to be 161p. Cash adjusted PE for 2018 13, falling sharply in 2019. He's very positive about the acquisition of FIM Services. He also points out the additional cash the company will get when the LMS warrants get converted shortly.

So, Align appear to have withdrawn the request for an EGM. I'm hoping that this is because the installation of to be directors, raising funds at a premium and the string back of Messers Trew and Billingham improve the prospects of an early resolution. I don't think any of this would have happened without the intervention of Align and Richieboy666. There was certainly no mention in the rebuttal issued by the board. Teela

That's an interesting fund raise! They are intending to raise $500,000 by issuing 125milllion shares at $0.004 which is .04 cents each. With the exchange rate at 1.37 that's equivalent to 0.29 pence, a significant premium to today's mid price of 0.23p. I hope for to things: I've done the sums properly That the extra funds are raised at a premium.

************* have reported earlier this evening that Anglo African Capital have made an offer to subscribe for �200k shares at 1p if Sir Henry and Nick Trew walk. Is it possible that Anglo African are the funders that Align Research have touted as being ready to inject fresh money into the company or are they new to this situation? I don't know, perhaps someone else here has some knowledge of this?

As things stand, I shall be voting for the Align recommendations at the EGM: The current directors have had several years to resolve the licence ownership issue and have failed. They have secured a favourable judgement from the British z High Court but this has not yet been ratified in Mozambique. The current directors have been paid high salaries for for: I could fail to the same extent for half the current money! As we shareholders we currently own 100% of nothing. Likewise General Veloso hills 100% of v something that he can't build on, sell or use. There surely must be a compromise where we get control of our licences and the General gets some remuneration. I'm sure this compromise won't be a 100% return to us. Perhaps the time has come to accept a lower share and move on? Messer's Bellingham and Trew have tried and failed. Despite their best efforts, Messer's Bellingham and Trew now appear to be impediments to access resolution. What more do we have to lose by installing a fresh board?

RNS out this morning giving details of another acquisition. They've spent $3.1m on 550 wells from NGO Corporation (this lot look like some sort of energy cooperative that orbed 600 wells). The new wells produce 220 bopd. In effect DGOC have paid $38.60 for each barrel they'll produce in the first year. As the RNS states the acquisition will be immediately accretive to earnings. This should also increase the dividend payout of they stick to their guidance of distributing 40% of free cash flow. I wonder how many similar acquisitions are being assessed? Teela

The RNS shows that Sand Grove Capital Management have acquired a further 6.26% interest in the company by means of a CFD in respect of 9,091,000 shares. This looks like a smart move. Rather than paying £6m+ for the shares, the CFD gives them exposure at an annual payment of 2%/3%. With the annual dividend likely to be around 7.7% the effect is that Sand Grove will receive around 5% annually, £300,000 in round figures whilst being exposure to any upside (or down). If be quite surprised if there aren't any other large CFD positions slightly below the reporting threshold (5%). I've not used CFD's previously but I can certainly see merit in the action Sand Grove has taken. Teela

Apologies, I'm not doing this very well: The Beaufort recommendation I outlined was initially made in February 2017 long before acquisition of the Titan assets. At this time production costs were $9.5 boe (I think it's more below $6); Wells are spaced at 140 acres composed to 20-60 elsewhere giving considerable room to increase production. Teela

I remember having read some blurb from Beaufort a while back and have finally managed to track it down from their daily update on 16/6/17. They point out a full year dividend of 7.7% for full year 2018 and concludes: DGO remain far too cheap on both peer group and DCF assessments for both income and growth investors. Beaufort reiterate its Speculative Buy rating on the Share with a price target of 95p per share. Teela

Hi Hallmark I've enjoyed looking at the comparisons you've posted regarding other has and oil producers. I am, however, a little confused regarding the various units that production is reported in. Following the acquisition of the Titan assets, DGOC will be producing: Gas 17,367 boepd Oil 930 bopd Overall 18,300 boe Reserves 60.5mmboe When you report the other companies production in "bopd" are you simply overlooking an "e" or are these their actual oil production figures? Like yourself, I to think that DGOC is substantially undervalued. High dividend, cheap production, stable jurisdiction, good growth prospects. What's not to like? Teela