Member Info for Urraca

Quite right defender. The July tanker RNS was perfectly clear, "net" proceeds of $8.4m, not gross proceeds. I'm anticipating net income around the same with this tanker, which means "net" income of around $17m in the last 4 months from Arcticnef alone. Production at Petrosakh is roughly equivalent, but should generate a better income as they don't have to pay to store it long term until a tanker load is ready for despatch.

The big problem for the Board is how to reverse out of the situation they have created with minimal egg on face and hanging on to their jobs.

On 10 October the Board said this: "The Board are of the opinion that if the Loan is not repaid, or alternative financing is not secured, by the end of the month then the Board will have to take steps to protect the interests of the Group's creditors." They reiterated this on 15 Oct.

Some posters on a d v f n seem to have been expecting the company to be going into admin today.

Okay, I accept that the RNS of 23rd kicked the can down the road, and the steps the Board were going to take was to appoint some accountants. But it does suggest that they have been panic mongering to put pressure on Kononov, and they overdid it.

I'm pitching for four months, Verbier will be done by end Feb next year.

Depends on which weather forecast you use I guess. The one I see says max 38mph, but much calmer from 7am tomorrow, through to late Saturday.

Kononov unilaterally decided to prioritise Petrosakh (where he is Pres) over Arctikneft. That's what it boils down to. If they get back the loan to the employee and scrap the div, they should be okay. Actually if they postpone the plans for the fracking fleet for a year they should be fine. They might need to revise their group structure though, to resolve tensions about prioritising investment in different areas.

It seems completely obvious to me. Relentless big sells. 100k sell Friday, 100k sell yesterday, 117k sell today. It was going on through the summer too. A rerun of last summer. I don't know who, I don't know why, and I don't know how many they have left. But surely, at some point, they must be done with the selling. Until then, it honestly looks like the market is struggling to absorb all the selling.

Reread the half year results announcement just a month ago, particularly the Chairman's statement. Highlights for me are: "Our term debt position remains comfortable; The acquisition of a shareholding in the most important port on Sakhalin Island is part of the strategy. The objective for this investment is to secure the future of our refinery at Petrosak, improving throughput and margins, which we expect to see over the coming months.; We have initiated a plan that could allow us to acquire our own fracking fleet for Articneft and continue to investigate partnerships to develop our Komi reserves and resources."

They can afford a fracking fleet out of working cap? But are now contemplating going under because of a $3m unauthorised spent which is consistent with their strategic aims for Sakhalin Port? Come on.

I couldn't agree more Chavi, a placing would be ridiculous. But, the Board seem determined to suicide the company over this. I don't know the rules for a placing. Would they need to get shareholder approval? If so, they haven't got a cats chance in hell I'd have thought.

On the tanker, I haven't been watching the dock. The last RNS said they expected it to arrive yesterday. Knowing which tanker it is would make it easier to track.

That is right. It presumably explains how they now have 5 put of 7 of the directors on the Port Board, and thus effective control. It was not fraud or theft, it was a strategic move in the long term interests of the Company. Our holding has gone down now. Incidentally, there is a discrepancy between what was paid for the 19.9%, and the 11.9%. They company never announced what they paid for the 23%, but having scanned the accounts, it looks to be broadly in line with what was paid for the 19.9%. If I have identifed the right cost item, its not made explicit.

They need to call the AGM soon. I wonder if this manouvering is to pave the way for a placing to try and dilute the Kononov's control. Maybe one that would cost them $3m to maintain their percentage share of the company? Just speculating, I still think this is an internal struggle between the Board and Adler, which has spilled out into public to exert pressure.

On a happier note, the tanker should be at Kolguyev island for loading now. Winds are forecast to be moderate this week. I see some on a d v f n have been suggesting that wind will frustrate loading, to add to our pain. Looks like they're wrong.

Every time I post, someone seems to sell. I think its 4kandles. Lets see if it happens this time. :-)

Basically, yes, it's a game. JSC Petrosakh is worth $30m.

The 15/10 RNS also said: "Mr Kononov ...has recognised that the transactions described above must be reversed" so I don't fully understand why the Board decided to up their threats on the 23rd. Maybe because Kononov thinks they're bluffing, and is calling their bluff?

Hope the price is struck on the days following the American mid-term elections on Nov 6. Kinda have a feeling the oil price might go up a bit again once thats out of the way.

Going bust over $3m, which just happens to be the exact amount Kononov spent off his own bat is clearly bullsh*t. This is a game of poker between the Board and Adler. Who will blink first. And who is bluffing.

It's not a scam, as some are suggesting. Kononov didn't nick the money to pay for a car/villa/mistress. It went to the Port, to secure control of it. Which is actually in the long term interests of the Company. The Board have got the hump that he did it on his own authority, and I can see that having $3m subtracted from working cap without warning is out of order. But for a company with UENs assets and production it should not be insurmountable. It depends if the Biard want to suicide the company on a point of principle.

Unless there is an evil plan for someone to buy the company out of admin for sod all. Apart from that, I can't see who could benefit from putting the company into admin.

Good find bullson, thanks

The Shareholder Q&A bit of UENs website has been updated and says this:

Please clarify the total amount of money loaned for purchase of shares in Kholmsk Port and loans to the Port itself.

A: To the knowledge of the Board, the total of loans is the equivalent of approximately US $3 million, of which US$ 1.5 million has been lent to the Port and 1.5 million for share acquisition by third parties. The Company itself owns 23.1 % of the shares of the Port. As announced, an independent audit is to be undertaken of all such payments, as part of a working capital review.

Don't honestly see where the dividend was going to come from. The big risk here is that the Board and Adler are working in concert to put the company into admin so that its assets can be seized fir nowt. If, on the other hand, its a struggle for control between the Board and Adler, then there is considerable upside. Its a gamble. But there were far more buys than sells on 10 Oct, and by and large since then, so Adler could be slowly building tiwards 50%.

The ball is firmly in their court. Its up to them how this unfolds now. Interesting, although nerve-wracking, to see.

At the current share price Adler could buy enough shares to take it over the 50% threshold for £215,171. It could then call an EGM, vote out the Board, and end this farce. Cheaper than stumping up the $1.5m the Board are lobbying for.

Their claims in the RNS today don't really add up, given their intention only a month ago to pay a divi. They are destroying value. Schvets must be around £2.5m (sterling) this month alone, and down over £5m since Feb. It must stir him into action soon.

Sounds like playing hardball to me. I wonder if they are trying to force Schvets to buy the company. He's got more UEN shares than me. A lot more.

As Petrosakh was where the problems occurred, and where Kononov rules, that might be the bit they might try and force to the wall.

Not in the interests of any shareholders, this is a boardroom battle. If Schvets calls for a board takeover I think I'd throw my lot in with him.

It looks to me (and I'm not watching obsessively) as if the seller who was selling through the summer is still selling. This is one to accumulate and put in the bottom drawer rather than a quick trade. It is wildly undervalued, and at some point the market will catch up. Not today though, and probably not this year.

Good point itsagame. Net proceeds from the last tanker were around $8.6m, after taxes duties and sundry other costs. So repaying the loan to pay the taxes does not come out of the $8.6m. Oil price futures has gone up a bit since then too, although of course the price is only set after its been loaded.

Iranian oil sanctions come into full force on 4 November. If Trump takes measures against Saudi over the Kashoggi murder they may retaliate by choking off oil supplies briefly. We may just hit a spike in the oil price when we load the tanker in a couple of weeks time. But even if not, UEN will be getting a big cheque through the door. I expect an RNS next week, possibly the week after, putting this spat to bed ahead of that. They need to issue a notice of the AGM, and will need to update on this situation in that.