Afren Share Discussion Threads

[5bag] 05/8/2015 10:40

hpcg, afren arent a major like exxon mobil, the ability to bring onstream 30-40kbopd from these marginal fields in a relatively short timespan at decent netbacks is what drove afrens mcap to its heights, those assets were pretty cash generative. This was their game, or business model, which was somewhat disturbed by acquisitions in Kurdistan. Afren survived low oil prices in the past when they only had the african assets, but the financing used to acquire the kurdi assets scuppered them, it was a huge gamble that didnt pay off in the current climate.

Edit - im very surprised that Darra Comyn survived as long as he did.

[wshak] 05/8/2015 10:02

I am trying to establish interest in a grey market in Afren shares so that those willing to close positions can do so. Minimum sizes are 100,000 shares and the price for closure is 0.05p. This is a nominal price to enable closure (£50 for 100,000 shares) and I am in no way encouraging anyone to sell if they think there may be residual value in the shares.

As most people are aware, I am short of Afren and would like to tidy up my portfolio by closing now rather than wait months for a value of 0p to be declared. Those who are long and who share a similar opinion of the likely value of Afren shares may want to do the same.

Those who want to trade can contact me through [e-mail]

[longfish] 05/8/2015 08:29

Jaknife - how can people be making a small sum if they are long on AFR (which will be considerably more than 0.05) and closing at 0.05?? That's a losing position!
For the people to keep their positions open they would need to pump in loads of money (or close other positions) into their account to be able to keep that trade open.

"at 100% and hence 100% of their loss is currently locked up in margin."

Sorry that doesn't make sense. IG etc are just covering their risk. They don't want you to trade either.

[shaunstar] 04/8/2015 22:39

Similar to WShaks offer. If IG allows, i would be willing to pair with anyone long in order to close my short at a price of 0.05p/share. I have a relatively small position of 179,000
yours sincerely, Shaun (&shauniekent)

[alewis2005] 04/8/2015 18:09

I'll offer the same as Wshak, but my position is only £741/pt.

[longfish] 04/8/2015 17:01

Ok, tell me how you would allow your account to not be blown completely? by funding it to cover margin requirements. Therefore you are putting money (a lot of money) at risk to try and save money that is at risk.

It just takes 1 tick.

[longfish] 04/8/2015 15:38

The margin requirements in the spread betting is just due to uncertainty so they are protecting their risk. I would hold and not fund, or fund a little and have the 'guaranteed' stop in.

The problem is if you fund the account to cover the margin requirements then it really goes against you loose the lot, and if it goes your way you wont make more as you would have down normally, so it's a gamble and it's got a lot more downside potential.

you either choose to lose a LOT or chose to lose a little.


Also I wouldn't do what 'WShak' suggests, but I'd hope you already know that. He/she is not doing you any favours at all even if it sounds like he/she is.

[hpcg] 04/8/2015 14:30

cash - it is probably the only thing they have which is worth anything.

[cashandcard] 04/8/2015 13:51

hpcg,

Perhaps the marginal assets, but not the OPL310 discoveries. I suspect the stake in that block is the crown jewel in a broken AFR.


Cash

[hpcg] 04/8/2015 13:45

I have no idea why people keep saying the Nigerian fields are good assets. This is from Afren:

"Ebok is an undeveloped oil field located in OML 67, 50 km offshore in 135 ft of water in Nigeria's prolific south eastern producing area. The field was discovered by the ExxonMobil / NNPC JV in 1968 (M-QQ1 (Ebok-1)), and two subsequent appraisal wells were drilled in 1970 (Ebok-2 and Ebok-3)."

This is a field discarded by Exxon, not considered by a mid-tier, and licensed under the marginal fields regime. The clue is in the name. Anything which a major has dropped is not likely to be robust in a low or moderate oil price environment.

[wshak] 04/8/2015 12:23

Anyone who is LONG of Afren through a position at IG Index can contact me through Twitter ( @WShak1 ) if they wish to close out. Minimum clip sizes of £1000/pt please.

I will pay the equivalent of 0.05p/share.

I should add, I'm sorry for anyone who has lost out here. This is not a "gloating" post. Simply offering a mechanism for anyone who wants to release margin at IG, who now require 100% to hold positions open.

I am also a buyer of normal shares in clips of 100K at 0.05p if anyone wants to realize a tax loss. Again, contact me through @WShak1 and let's see what can be done within stock exchange rules.

@WShak1

[5bag] 04/8/2015 10:44

rambo, just popping in. I held these shares for years, i got out before osman et al got fingered in the dubious payaments issue. Ive always thought the timing of that scandal, so close to the start of the current funding crisis, smelled fishy so i put this on my 'do not touch' list. I looked fwd to this co having a fresh start under new mgmt with a view to taking a position again if the situ improved, because the asset quality is good, now they are discounting the kurdi stuff, which i always identified as a financial weak point (bonds n coupons), further proved correct. They just bit off more than they could chew, and with the co so highly geared to the POO it collapsed financially like a house of cards. Its a shame because the nigerian assets are good IMO.

[hpcg] 03/8/2015 21:39

Kulvinder - No, at least not for IG. Shorts go to 100% as well. At some point the determination will come out that the shares are valueless. How long that takes will depend on the admin process. I don't think it can take very long since the op cos need money to keep going. Whilst there is creditor protection that doesn't help when it comes to new spend, nor does it protect from contractual obligations.

Everyone signed up for variable margins so I'm not sure that people can complain. Certainly not longs who will owe 100% anyway. It is a bit of a pain for shorts but a fantastic rate of return so I'm not complaining.

[mrwhits1] 03/8/2015 21:29

@kul,

No, being short, you still have to put up the margin as if you were long, and wait for a definitive event such as delisting, d4e swap, liquidation etc.

So for now, being short, I have to find substantial amounts to just feed the pony!

Here's hoping for a speedy solution soon, as this will be my only short position opened due to funding requirements.

I still have 94% of my portfolio long, but still, the short monkey needs feeding, so all other shorts will have to be closed until something happens, as any more positions will out me at too much risk.

This includes ALM.L, which I have been short from 599p, closed tomorrow prematurely.

Regards

Mrwhits.

[kulvinder] 03/8/2015 17:57

Feel sorry for any of you who had Cfds at higher prices as the margin call for AFR went to 100% with City Index and they did it without warning this morning. As all of these people will have to find the money to cover it if they not have the funds in their account already. Imagine 100,000 cfds @ 50p long, that is 50,000 you have to find. Does that mean all those that were short have now got paid out, is that how it works ?

[solarno lopez] 03/8/2015 16:05

NO NO NO THAT WAS .......TONY as in TONY Hayward

[david brent] 03/8/2015 16:00

TH was the boss at BP.

[davius] 03/8/2015 15:49

Scant consolation for those of us that lost small fortunes here, but on the plus side the greedy thieving bond holders will have been royally shafted too. Bon trading was suspended a while ago so doubt any of them were able to exit recently.

[htrocka2] 03/8/2015 08:18

taken from the srsp thread..

...Interesting piece in the Sunday Times regarding Toby Hayward and his time at Afren......


......'they were suspended, then fired, leaving the company to be run by stand-in Chief Executive Toby Hayward, a board director and former investment banker with little experience of the oil industry'.....


This is where the mistake was made...they should have pulled a 'pro' oil man in.

[khitchen] 03/8/2015 07:56

All Afren Directors should be strung up by the Balls, What has happened to all the oil produced in the last 6 months & the money they sold it for

[joecase] 01/8/2015 19:11

Jugmana . 250. AIM. Plus The need for legal action remains. Rgds