Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
It already is. Nearly 1/200th of its value less than a year ago. what a f***up
Cant disagree with much of that, Shake. I might have put it a bit milder. I doubt MEO will exercise their option. Either they will do nothing, which ensures that Shannon will not be drilled, or they will put a sole risk notice on KEA, to put them to the sword once and for all. Same effect either way - no Shannon for Kea. Kea found an economic oil pool nearly three years ago, in April 2012, have produced something like 50,000 barrels of oil from it since, during a time of record high oil prices, while their share price has dwindled to 1/80 of its value at the time of discovery. Yes it was a whole raft of bad decisions that led to this sorry state, which can all be placed on IRGS's head.
Those clowns need to go
Agreed the BOD have been worse than useless and are not worth any fees at all. What a boneheaded decision to do a consolidation in the pre Christmas sell off period, and with the oil price dropping like a stone. That effectively wiped out 2/3 of the miniscule remaining value in the shares in one idiotic move.
I think it is very unlikely that MEO will exercise its option. They have plenty of problems of their own, even though the Mosman takeover offer looks like a very dead duck. The option was really designed to build on a Puka success, but as we all know, Puka 3 failed. A Shannon well would cost quite a bit more than another Puka well because it is deeper. So the best we might hope for is a renegotiation of the terms of the option to be more favourable to MEO. But dont hold your breath.
What's the point? MSMN offer for MEO is guaranteed to fail at 1 : 10 or even 1:5. MSMN will not be looking at farming in on Shannon or making a takeover offer for KEA. They have their own financial problems
And what, pray, is going ahead? So msmn have revised their offer. That was always necessary. But their new offer is still nowhere near stacking up on a share value ratio. This has a long way to run yet. In the interim, MOE has to decide whether it elects to increase it's holding in the Puka permit by disproportionately funding further drilling there. Let's see how that plays out first.
That's a bit hard. It only makes sense to shut in wells which are losing money at present prices, until conditions improve. Many other companies are facing this same problem right now. When they are reopened, initial production should be better than when shut in too; since the reservoir pressure will have recovered somewhat during shut in. And maybe in the interim they can advance commercialisation of the gas associated with the oil.
MSMN are just trying to raid MEO's cash box. For their own problems. They will fail there. No point in raiding Kea's - oh wait, I think I saw a piece of mouldy cheese in a back corner of it!
Right again, Shake
Bit of gas burn for on site power. Small time stuff. Rest will be flared
Income? At present oil prices their net revenue is zero, if it's not negative. The wells should be shut in, for reasons as previously stated
Agreed, Shake
Sadly you should set yout sights lower. Quite a bit lower
Mosman will fail in their bid for MEO, and would go nowhere in a bid for Kea. They are just trying to access cash boxes in return for Mosman scrip. Their offer to MEO is ludicrous. At present oil prices its doubtful if Kea is making any net revenue from production. They would be better off to shut the wells in. This would have the beneficial effects of ensuring better flush production when they are re-opened at higher oil prices, stop the waste of associated gas, which presumably is presently being flared, as there have been no reports of linking it in to gas market, and stop pressure loss in the reservoir..
As their 1/20 scrip only offer for MEO shows, they are just broke opportunists, making a lunge for MEO's cash box. Oh wait, that sounds familiar........maybe it's a marriage made in heaven
Can't see MEO exercising that option to earn more through funding most of another well. They are at an all time share price low, rent by strife, failed Neon merger, now subject to opportunistic takeover offer by Mosman, who are nothing really. If the Mosman takeover were to proceed, they will be tied up and unable to do anything for six months. No help in that direction.
I think Shake's view is closer to the mark than MSmith's. The consolidation was done on a falling oil price, and during the pre Christmas selloff. The timing could not have been worse, and no surprise that the Market Cap halved. I guess we might see it crawl back towards its pre consolidation figure, but I cant see anything happening here other than a rock bottom takeover offer some time by a small player who has a few million to spare. And there are not many of those. Kea's problem is that it has difficulty continuing as a going concern, let alone fund any drilling. IGRS will not put in any money. He didn't before Puka-3 and he wont now.
Well, I guess we are going to find out. If the roll back does not lead to a big value loss, it will be a first in my experience
In practice it never works like that. Share consolidations always lead to a large drop in value of holdings. Ten shares worth 0.4p each will convert to one share which will have trouble staggering much above 1p. So your holding drops to not much over 1/4 of its pre consolidation value. Sorry, but that is the way it is.