Afren Share Discussion Threads

[hpcg] 15/7/2015 12:08

Shareholders are irrelevant here and have been since Afren first defaulted. The secured assets did not belong to the shareholders from that point on. That some existing and some new shareholders could not understand that when they can easily grasp the concept with a house or a car is beyond me. The only hope for shareholders was that in a liquidation situation the assets might be worth more than the debt, though with the traded debt sitting at 40% that hope has always been hopeless.

[dangersimpson2] 15/7/2015 11:34

But what is that bargaining chip? My reading of the Suplementary Prospectus is that the introduction of Afren Assets Limited (AAL) in the Security Re-organisation is intended to give security over the assets to Noteholders without the issuing company becoming an intermediate holding company of the Group or otherwise acquire any assets from the Company as part of the Security Reorganisation and theefore invoking the change of ownership clauses. Since this happens before either the Restructuring or Alternative Restructuring I'm not sure there is any chip left?

[centurionsid] 15/7/2015 11:25

Afren has requested this suspension, it is NOT an FCA imposed one.

(FYI;

Suspension does not mean administration/liquidation.
Administration/liquidation is the result of a company being unable to meet its obligations.

We have not been told that is the case and there are further funds available under the existing funding arrangements, which counters the NPI issue.

The NO vote looms heavily in the minds of the BHs and BOD as unacceptable.

If an improved revised offer were now to be put to the shareholders that offered lower dilution, for instance by allowing the Open Offer to go ahead under different terms, and raise further funds, that may enable shareholders to move from a NO vote to an acceptable YES vote. The shares could then be unsuspended, so long as the company has not entered administration, however administration is something BH's would wish to avoid, almost at any cost.

Plan A (or a revised version) works for reconstruction. It is becoming more widely accepted now that Plan B does not work for any of the parties.

No doubt many would have loved suspension when the share price was at 10p or higher to stop it from falling further or being manipulated or shorted, although there would have been the same fears.

There is no way yet of knowing when the suspension will be lifted or at what price it will open.

However, there is now a real opportunity for this mess to be sorted on a more equitable basis. Once the recapitalisation is properly agreed and under way the shares should be traded again and the share price will not be affected by all the uncertainty. That is a positive thing.

BR

Sid

[centurionsid] 15/7/2015 11:24

SUSPENSION

Afren has requested this suspension, it is NOT an FCA imposed one.

(FYI; hxxp://www.investopedia.com/terms/s/suspended_trading.asp)

Suspension does not mean administration/liquidation.
Administration/liquidation is the result of a company being unable to meet its obligations.

We have not been told that is the case and there are further funds available under the existing funding arrangements, which counters the NPI issue.

The NO vote looms heavily in the minds of the BHs and BOD as unacceptable.

If an improved revised offer were now to be put to the shareholders that offered lower dilution, for instance by allowing the Open Offer to go ahead under different terms, and raise further funds, that may enable shareholders to move from a NO vote to an acceptable YES vote. The shares could then be unsuspended, so long as the company has not entered administration, however administration is something BH's would wish to avoid, almost at any cost.

Plan A (or a revised version) works for reconstruction. It is becoming more widely accepted now that Plan B does not work for any of the parties.

No doubt many would have loved suspension when the share price was at 10p or higher to stop it from falling further or being manipulated or shorted, although there would have been the same fears.

There is no way yet of knowing when the suspension will be lifted or at what price it will open.

However, there is now a real opportunity for this mess to be sorted on a more equitable basis. Once the recapitalisation is properly agreed and under way the shares should be traded again and the share price will not be affected by all the uncertainty. That is a positive thing.

BR

Sid

[horndean eagle] 15/7/2015 11:14

I don't actually see today's news as being particularly negative for shareholders. AFR shareholders have only been kept alive to dodge the change of control clauses on some of their assets. The fact things are a lot worse that first envisaged means its bondholders who are going to be taking the hit. AFR shareholders still have the same bargaining chip as they had before today's news. Can't see how the value of that is particularly affected

[h1tman] 15/7/2015 11:13

Alliance News

Xtract Says New Discovery At Chepica Could Double Contained Gold
Wed, 15th Jul 2015 10:45

LONDON (Alliance News) - Xtract Resources PLC Wednesday said it has intersected a new reef system which is open along strike and depth at the Colin mining area of the Chepica gold and copper mine in Chile.

The company has been conducting work on the Colin mining area, and said it has discovered a previously unknown reef system which grades at 4.2 grammes per tonne over a 3.5 metre width. The reef remains open along strike and at depth.

The new intersected reef system requires no additional off reef development and potentially will "significantly reduce" the company's mining cost in the area, it said.

It could potentially double the previous in-house company estimates of in-house contained gold estimates in the area and, as a result, could also increase the life of mine.

On June 18, Xtract said it thought the Colin mining area could contain around 100,000 ounces of gold.

"Whilst we continue to drive development to the main reef system in the Colin mining area, we will now drive two additional prospect development ends on the newly discovered reef system. This will impact positively on not only the grade but also the tonnage profile of the mine," said Chief executive Jan Nelson.

Xtract shares were up 3.7% to 0.280 pence per share on Wednesday morning.

By Joshua Warner; [e-mail]; @JoshAlliance

Copyright 2015 Alliance News Limited. All Rights Reserved.

[gsx r1000] 15/7/2015 11:00

Chaps

XTR just double their finding volume gone ballistic

TIDMXTR

RNS Number : 1142T

Xtract Resources plc

15 July 2015

15 July 2015

Xtract Resources Plc

("Xtract" or "the Company")

New high grade reef system discovered at Chepica Mine

Xtract Resources (AIM:XTR) has intersected a new reef system which is open along strike and depth at the Colin Mining Area ('Colin') of the Chepica Gold and Copper Mine ('Chepica') in Chile. In mid June development at the Colin Mining area got underway to access a reef system 45m below surface previously intersected by surface boreholes. On 18 June 2015 the Company announced that it estimated this area could contain approximately 100,000oz of gold (estimated from surface to a depth of 150m below surface over a 1km strike-length) and could significantly increase the Life of Mine ('LOM'). The development being undertaken to this area has intersected a previously unknown reef system:

-- The reef system grades 4.2g/t over a 3.5m width (the reef system is open along strike and depth)

-- On reef development along the new reef system is already underway
-- The new intersected reef system requires no additional off reef development and potentially will significantly reduce the Company's mining cost in the area

-- Both the newly discovered reef system and the known reef system will only require one decline system for access

-- The new reef system could potentially double the previous in-house company estimates of contained gold in the area and, as a result, could also increase the LOM

-- The new reef system will increase mining flexibility at Chepica
Jan Nelson, CEO of Xtract, said: "Whilst we continue to drive development to the main reef system in the Colin mining area, we will now drive two additional prospect development ends on the newly discovered reef system. This will impact positively on not only the grade but also the tonnage profile of the mine. We will also increase the amount of underground drilling planned to prospect for more reef systems in the area. These results once again demonstrate that the Chepica mine continues to show potential to develop into a significant gold project.

[bb_police] 15/7/2015 10:49

Hand them all over to Boko Haram - jail is too good for the previous and current board.

[mrwhits1] 15/7/2015 10:49

@rotrader,

as a shareholder long you were doomed either way.

a no vote wiped you out.

a yes vote wiped you out.

learn from it and move on, find out why it happened, look for the signs of distress, understand it, and never let it happen again.

regards

[batman9] 15/7/2015 10:21

This was a FTSE250 company that required debt restructuring. The management failed to go to its shareholders and instead went to its greedy bondholders. Enough said.

[cashandcard] 15/7/2015 10:10

mrwhits1,

That's harsh but a certain reality with so many smallcaps. Its the risk/reward you take with smallcaps - but why anyone would put more than a couple of grand in Nigerian outfit is beyond me. Its OK when times are good, but when they turn for the worst, the money just seems to evaporate.


Cash

[mrwhits1] 15/7/2015 10:02

@batman,

why?

there in it to make money, not to prop up private speculators.

they should do a d4e swap and get back what they can selling off the assets.

sorry to say this but share holders will get nothing, such is life.

as much as I don't like seeing anyone lose money, afr is a dog, and has been for some time now.

all the signs of destruction were there, and anyone caught in it should take the time to understand what has happened and learn from it.

it was this type of scenario in Marconi for my self that started me on the right path investing when they went bust several (investing) eons ago, before that time I was mug punting.

loosing 100% of my wad at the time was the best (investing) thing to happen to me as it made me angry and motivated to find out what had happened and then decide on how I should change when buying/selling stocks.

regards

[lukeisbackontrack] 15/7/2015 09:57

WishFool thinking dumpman

[batman9] 15/7/2015 09:54

Now is the time for the bondholders to step in and support the company. Writing off substantially more of the debt and sharing the pain felt by shareholders.

[cashandcard] 15/7/2015 09:41

Saw this on lse:

---------------------------------------------------------->>

change of control clauses on assets



“It arguably [is] not in the interest of shareholders, nor bondholders nor even a potential buyer for the company to be put in administration and the equity to be wiped out entirely,” said Mr Foucaud.
He added: “Should the company be in default and put into administration, we understand that there are change of control clauses on key assets that could imply that Afren could lose assets.”

------------------------------------------------------------->>


Cash

[mrwhits1] 15/7/2015 09:21

what a bummer......cant close my short.....yet.....

[cashandcard] 15/7/2015 08:53

molatovkid,

I know, the enormity of some of the losses here will be horrendous.
Yes, a small loss for me 8-9yrs ago - but lesson learned. That's as much as I dabbled with Nigerian oil co's back then.

Its the way it all suddenly came to an abrupt end.


Cash

[dangersimpson2] 15/7/2015 08:45

I guess that makes it clear what a no vote means then. I'm not sure how anyone can still think that a no vote means anything other than insolvency. The real question is whether the Yes vote recap is still acceptable to Noteholders without more dilution or higher rates on the remaining debt.

[cashandcard] 15/7/2015 08:41

Wow, what a sad tale - a once promising company has been brought down by a perfect storm of falling oil price, corruption, greed, incompetence and vultures. A book will be written about this.

The moral, never invest in Nigeria. I kept a distance after incurring a 1k loss years ago on Equator Exploration 'EEL'.

This is Equator Mark 2. - but its a damn sight worse imo.

If your a shareholder, you may want to contact that legalaction group - suspension of trading and before you know it, what little remaining hope and value well suddenly disappear rendering your impounded paper worthless.

Kulvinder, I agree - this could get really really ugly for shareholders now.


Cash

[kulvinder] 15/7/2015 08:40

It is obvious that most votes already processed have been a No vote, so the dirty tricks are starting again as they want this vote to go through as a Yes.....