Global Energy Development Share Discussion Threads

[1birddog] 18/8/2016 23:26

If they can achieve that next year, with 15 to 20% organic growth thrown in also this will look very cheap.

[hezza123] 18/8/2016 16:28

Nice buying volume today, which is a rare thing of late. :-)

[neo26] 18/8/2016 10:15

Did they hold this before the loan?

[hugepants] 18/8/2016 07:45

Yes Everest Hill have taken the loan. They hold 9.3 million shares in GED.

[neo26] 18/8/2016 01:21

Ged has lent the money out so how is the loan secured against their own shares?

Surely it must be secured with the company who has taken the loan...

[hugepants] 18/8/2016 00:00

The loan is secured on 9.3 million GED shares. So there would be 27 million GED shares in issue if these were cancelled. That's a reduction from 36 million. It's not clear if there is additional security. I don't much like the loan either but its paying a stonking 12% rate of interest and is due mid September. Let's see what transpires.

[anangf] 17/8/2016 19:09

It will rank like any other senior unsecured creditor and receive recovery value. I am assuming the loan is unsecured.

[opodio] 17/8/2016 18:40

if harken go bust, how will ged get its money back

[neo26] 16/8/2016 15:23

When are these going to get hold of an asset in which they can explore for oil.Shareholders must be frustrated.

[anangf] 15/8/2016 19:12

The loan stank, lending money to a related party. How can that be better for shareholders than returning the cash to us. I think this stock is just going to bleed cash and shareholders will never see a penny. At least I have learnt a lesson re AIM and a lesson re energy stocks. Oh, and add Shares magazine to that list. Avoid.

[hugepants] 31/7/2016 21:26

I believe $500K of the CEO's salary last year was a one-off bonus due from the (well timed!) disposal. I think total directors' salaries this year will be around $500K in total.

And GED will rake in a $1M this year from interest on the loan. Loan due to be repaid on september 15 which is around when they issue the interims.

[value hound] 30/7/2016 10:09

It's impossible to see how the shares aren't valued at least twice where they now are IMO - and even that would be fairly conservative.

BUT ... isn't there some kind of trust / overall propriety type issue here IIRC? I seem to remember Simon Thompson calling a sell on them for some lack of propriety type reason a couple of years ago - or am I thinking of some other outfit?

Also, they've never given a penny back to shareholders in any way - when it would seem an obvious thing to do for those of us seeking value. This, in turn, suggests they're more interested in their positions / salaries / globetrotting to do deals etc etc. like so many other companies.

This isn't surprising as the CEO pulled down $764k last year, not a bad screw for a company going nowhere and seemingly not doing very much - and equivalent to over 1.6 p per share in itself.

It's still a sitting duck though and you would imagine HKN & Lyford would be happy enough to see the back of it at, say, 35-40p, or am I being naive?

[spob] 29/7/2016 08:28

yes agreed

[hugepants] 28/7/2016 20:33

Its notable the share price hasn't adjusted here for the strong dollar. Even allowing for some ongoing admin costs this mutt should still have 50p of cash and net working capital of over 60p. And if the $8M loan is repaid on schedule in september there will be well over 60p net cash. Current share price only 24p. Burn rate about 5p per annum?

[hugepants] 18/4/2016 09:00

Well its possible the loan is a share buyback in disguise. We'll know in 5 months. $10M for 9.4M shares. Or about $8.5M after fee and interest payments. That's roughly paying NAV (cash) for the shares. Acquire the O&G assets free. Would GED also get HKN shares? Also no concert party with 63% just a single shareholder with 45%. Its a bit of a guessing game but I'd still bet on the loan being repaid.

[dlku] 18/4/2016 07:54

loan will be extended given oil price plunge. Doubt GED will ever see the money again

[hugepants] 14/4/2016 21:40

There's a bit more detail on the HKN website;



FOR RELEASE: September 15, 2015

HKN Announces Bridge Loan made to Everest Hill Group, Inc.

Dallas, Texas - September 15, 2015 - HKN, Inc. (OTCQB: HKNI) ("HKN" or the "Company") announced that the Company along with its affiliate Global Energy Development PLC ("Global") had extended a $10 million short-term secured loan to Everest Hill Group, Inc. ("Everest Hill"), the Company's controlling stockholder. The Company loaned $2 million of the total loan amount, and Global loaned the remaining $8 million. The principal amount of the loan is payable in full on March 15, 2016, and the loan bears interest which is payable monthly at the annual rate of 12%. The loan is secured by the pledge of 264,323 shares of the Company's common stock and 9,378,638 ordinary shares of Global owned by subsidiaries of Everest Hill.

The Company currently owns approximately 35% of Global's outstanding ordinary shares.

HKN, Inc. is an independent energy company engaged in the development of a well-balanced portfolio of assets in the energy industry and in the active management of its energy-based investments. Additional information may be found at the HKN Web site, www.hkninc.com. Please e-mail all investor inquiries to [e-mail].

[hugepants] 14/4/2016 21:00

The loan is to Everest. Its a bridging loan paying 12%, secured and repayable in Sept.

"The Amended Note Receivable continues to be secured by all of Everest's and its subsidiaries' holdings of Global and HKN securities ("Collateral"). As at 29 February 2016, being the closing date of the amendment, the Company considers the Collateral value to be adequate in support of the principal amount of the Amended Note Receivable"

[opodio] 14/4/2016 20:28

if harken go bust, how will ged get its money back

[hugepants] 14/4/2016 20:00

Yes agreed. And its probably an advantage to have controlling shareholder in an O&G stock. Otherwise the directors are like kids in a sweet shop throwing money at mediocre assets. Bowleven and TRAP come to mind but most of the AIM O&G stocks are the same.

[fuiseog] 12/4/2016 13:22

I like the loan shark comment LOL.

They've always proved better at managing capital and cash flow than producing oil, so I'm more confident of future gains while they've got a cash pile to look after that's 50% discounted in the share price Any movement up in oil price will have a big impact on the bottom line. I don't mind waiting.

[hugepants] 12/4/2016 12:03

Yes they are producing. 35 barrels per day.
Can't believe how cheap these are again. If oil gets back above $60, which is possible before the end of the year, the 24MM barrels proved+probable onshore Columbia will have to be assigned some value again. Meanwhile valued at less than half of net cash (including secured loan), low cash burn and no commitments. Picked up some more below mid price.

[linton5] 22/3/2016 13:49

Gonna join you soon hezza