Global Energy Development Share Discussion Threads

[family values] 27/8/2016 21:09

While we wait

Have a look at our new assets.

hxxp://www.marinetraffic.com/en/ais/details/ships/shipid:392268/mmsi:338004000/imo:7326271/vessel:CAL_DIVER_I

hxxps://www.marinetraffic.com/en/ais/details/ships/308361000

[family values] 27/8/2016 21:04

So,

What is the connection between HKN Inc and Everest?

I'll show you mine if you show me yours.....

[family values] 27/8/2016 21:00

next bit well worth reading

hxxp://www.huffingtonpost.com/russ-baker/post_1254_b_783289.html

A long read I know, it's the middle bit you should skip to, about Harken, I found it most interesting...

[family values] 27/8/2016 20:56

Move along, nothing to see here

[family values] 27/8/2016 20:56

Although I did come across this


hxxp://www.hkninc.com/midam.html

HKN INc formerly known as Harken

[family values] 27/8/2016 20:49

Still, I'm sure GED learned its lesson and there is nothing to worry about with our current friends?

[family values] 27/8/2016 20:42

Have been inspecting the teeth of this gift horse.

Some interesting characters in its past.

hxxp://www.businesswire.com/news/home/20081215005973/en/Nemazee-Capital-Subsidiary-Investment-Global-Energy-Development

look how this turned out.

[neo26] 26/8/2016 12:58

Finally the spread has tightened, few buys reported.

[neo26] 26/8/2016 11:29

well this year they lent a third out and received $1m profit for doing so.

Maybe they looking at some assets, they will pull their finger out soon.

[bsg] 26/8/2016 10:56

I think it's what they do with the cash, not how much they have.

[neo26] 26/8/2016 10:49

someone must be really frustrated for selling at these levels, this is due a re-rate next month.

[neo26] 25/8/2016 23:20

bwanad

do you know how much everest sold the 2 ships for?

I truly believe ged are waiting for the price of oil to increase to they get going on their asset.

This year has more or less been a lull but nothings been lost and still have healthy bank balance.

[anangf] 25/8/2016 21:51

All very interesting but please board buy back some shares.

[bwanad] 25/8/2016 21:32

This was also mentioned in the 2015 final results.

12. Post reporting date event

On 29 February 2016, the Group and HKN (collectively as "Co-Lenders") amended the Note Receivable (the "Amended Note Receivable") with Everest. Under the Amended Note Receivable, the Group loaned an additional $2.0 million principal amount to Everest and the Co-Lenders extended the maturity date by six months to 15 September 2016 for the total principal amount of $12 million. In addition, under the terms of the Amended Note Receivable, the Co-Lenders were granted right of first refusal to purchase certain offshore oil service vessels owned by Everest and its affiliates. The Amended Note Receivable continues to be subject to an interest charge of 12 per cent per annum, payable monthly in arrears. Everest paid to the Group a 2 per cent transaction fee of $40,000.

[bwanad] 25/8/2016 21:09

hxxp://www.deepcormarine.com/vessels.aspx

They seem to own at at least 2 of the ships.

So maybe Everest Hill will repay the loan.

[bwanad] 25/8/2016 20:58

Everest Hill bought some ships from Cal Dive at auction. I think they subsequently sold at least 2. I'll post a link to the new owner next. They seem like pretty significant ships.


hxxp://www.oilpubs.com/oso/article.asp?v1=16413




Everest Hill acquires quartet of former Cal Dive vessels
Vessel & ROV News // October 7, 2015



Fearnley Offshore Supply says Everest Hill has picked up the vessels Mystic Viking (built 1983), Cal Diver-1 (built 1974), Midnight Star (built 1975) and Rider (built 1996) for approximately US$10 million.

All were formerly owned by Cal Dive, which entered voluntary Chapter 11 proceedings in March 2015.

[anangf] 25/8/2016 20:48

Who knows what will happen to the share price if the loan defaults. I don't and nor do you.

The best use for the cash is to give it back to shareholders. Any loan priced at 12 percent is risky

[neo26] 25/8/2016 20:31

AnangfIf you implying it would fall further below the previous lows of 21p if they don't pay their loan back then that is silly.I will be piling all my money in one basket because of cash alone this is really such a massive discount.Price of oil is steadying at 50 dollars and when it goes above 57 dollars maybe they might start mentioning the colombian assets again in the accounts. Then you can add another $22m to the already $35m in bank. Yet MKT cap 9m.400% discount to NAV at present.. Just invest and put it in the bottom drawer.This one is such a no brainer..

[anangf] 25/8/2016 19:35

The attractiveness of the deal is enhanced because we trade at such a low ptb, blame the board. I have done the maths, it is a bit of an anomaly that if they default and the shares are cancelled the share price COULD go up, but nothing to say price to book wont go even lower.
I don't like related party trades. Give the cash back to shareholders.

[neo26] 25/8/2016 19:04

Anangf

That related party put for collateral their 9.3m shares in ged for lending them $10m. I don't mind this what's so ever, at the current price it is beyond uneconomical for small caps to make profit in oil sales. So this was good short term deal.

On top of that we got $1m interest which covered our expenses for the year until the price of oil recovered.

We should be getting that $10m back in mid sept. Even if they don't give the loan back their 9.3m shares in our company are erased and then ged only has 27m shares in issue, with then roughly £18m in the bank. This scenario will value share for cash value around 68p per share..

Still massively undervalued in this case.

But if the money is returned the share price is still massively undervalued by the cash in bank. Win win both situations.... This scenario will also value the company around 73p per share.

You do the maths.. This deal was not at all bad..

[anangf] 25/8/2016 17:49

But the stock has structurally looked like this for a while now. What will be the trigger for a re rating?
They really should have used the cash to buy back some stock.
Can management really be trusted? Lending money to related parties is never good no matter what the return or security.

[neo26] 25/8/2016 16:57

Crazy, really crazy selling at these levels..Hopefully next month common sense will prevail.

[neo26] 24/8/2016 17:00

Still do not understand why anyone would sell at this level.Bright side the spread is smaller..

[neo26] 24/8/2016 12:09

Once the $10m is returned next month this will double, easy....