|Restructuring of corporate bonds
Bit brief on detail but can kicked down the road at some cost. Wonder who are the significant bondholders.|
The government has voted to amend the law to ease the hassle for all gas suppliers = Insurance stock reduced from 50% to 10%.
“……№3617 - the obligation of suppliers of natural gas to form an insurance reserve in the underground gas storage operator of the gas transportation system, "Ukrtransgaz" of the company in the amount of 10% of the planned monthly deliveries instead established by the Cabinet of Ministers with January 1, 50% of the planned delivery month……”|
|Perhaps the BOD know already... ;-)|
|The BOD could always try
"..Public companies incorporated in the UK have the legal right to request disclosure of the identity of any person with an interest in their shares26. This right allows the issuer to identify their beneficial owners underlying the nominees registered in CREST. In effect, the issuer (or an agent) sends a cascading set of notices, tracing ownership from the registered position of an intermediary through to the ultimate beneficial owner. Each party in the ownership chain is required to provide the identity of the person on whose behalf they hold their interest in the shares. Disclosure requests can be made at any time, and are subject to penalties for non-compliance ranging from suspension of certain shareholder rights (subject to court order)27 to fines and imprisonment28....."
As it worked so well last time ;-)|
|OK, Sasha didn't back Proxima and now says he's out. But who is in?|
|The recent english version of the wiki also says that Mr Zhukov is out.
LPG and oil prices nudging up.|
|"How much leeway do directors have when things don’t go their way?"
In this case, as much as they can get away with, it seems.|
|Two NEDs also work for Proxima, the other five directors although proposed by Proxima, apparently do not have any link to Proxima. So far the quality and frequency of communication from JKX has been good.
Guessing based on the figures - When the vote was held for the recent two NEDs:
Proxima and others voted in favour
Eclairs and others voted against
Glengary, Neptune and Interneft did not vote.
Compared to guesses for when the other current five members of the board were previously voted in then:
Proxima , Glengary, and Neptune voted in favour
Eclairs , Interneft and others voted against
If the non-voters for the two NEDs had voted in line with their previous voting, then the vote would have been passed.
I’m surprised Mr K hasn’t taken the matter of democratic flexibility to court, perhaps there is not enough time.
How much leeway do directors have when things don’t go their way?
If say 15 people voted a total of 43,401,417 shares for resolution 4)
And 5 people voted a total of 49,470,201 shares against resolution 4)
Then looking at bums on seats, that’s a win 15 to 5.
(Rather than looking at shares voted which would be a lose 49,470,201 to 43,401,417)
Possibly when they phoned around some of the non-voting share holders who held the remaining 80,000,000 shares, the views expressed were for the resolutions?
I doubt the board intends to step down this side of the arbitration result.
How much of the arbitration claim is overpaid tax and how much is damages? Which figure for the arbitration claim is correct $180 million or in excess of $270 million? Is there one main claim for $180 million and secondary case(s) for another $90 million plus?
According to wiki [in russian]
Auto translates as:
“……At the beginning of 2016 Glengary has sold its stake in JKX. Thus, Zhukov came from the shareholders of this company.……..”
I assumed that Mr Zhukov was still the owner of the shares, just that the holding company had changed from Glengary overseas limited to Keyhall holding limited on 30-03-2016.
I would not be surprised to see some tidying of stakes, as JKX for the next few months becomes an increasingly high-risk/high-reward share.|
|Welcome to the JKX board.
"...in April, two new independent Non Executive Directors were appointed.
Alan Bigman and Bernie Sucher both bring extensive knowledge of working at the highest levels in the region combined with directly relevant experience both of which will be of great benefit to the Company. As independent directors, Alan and Bernie have strengthened the corporate governance credentials of the Company which ensures that the interests of all shareholders are protected.
At the Company's AGM on 28 June 2016, the resolutions to accept the appointment of Alan and Bernie were rejected by a small number of shareholders but with enough votes to reject the resolutions. Given the very low turnout of voting shareholders, the fact that the vast majority of voting shareholders were in favour of the appointments and the need for value-adding independent directors, the Board re-appointed both Alan and Bernie at a subsequent Board Meeting..."
OK, let me see if I have this straight. Alan and Bernie were REJECTED in the voting but the board decided it should ignore this because they say it's a FACT that the vast MAJORITY of VOTING shareholders were in favour.
Perhaps I'm confused but didn't the voting majority vote against?
Ah, is it because it was Eclairs who voted against? That's the same Eclairs that Proxima Capital (who seem to make up the current board) wrote to shareholders at the turn of the year opining that it was wrong that JKX should seek to supress the voting of Eclairs, isn't it?
Ok, so run that opening sentence by me again. You say Alan and Bernie are independent? How so?|
|Half year results.
At first glance it is better than I had expected with less cash burn.
The total potential debts which might fall due are still greater than the actual cash in hand to meet them. There are routes to resolve this, but there are significant risks if solutions are not found.
“…There remain risks in respect of the $27.6 million bond payment which may become due in February 2017 ..”
Though that may be mitigated by.
“.. restructuring or refinancing options, which are currently being assessed. …”
If oil and gas prices remain low it would be unlikely for there to be much upside to the cash figure of $18.6 million via operating profit alone. But if prices or volume improve then cash flow could easily briskly climb up from the current break-even zone. The cost cutting effort would look better if the directors led by example with their own remuneration.
Though the Supreme Court choosing not to consider the first appeal attempt is not good, let’s see how the second appeal goes.
“……;The Company's Ukrainian subsidiary, Poltava Petroleum Company ('PPC') has recognised a provision of $10.5 million and has a contingent liability of approximately $24 million in relation to court proceedings over the amount of production taxes ('Rental Fees') paid in Ukraine for certain periods since 2010. …… The Board believes that these claims are without merit under Ukrainian law and will continue to contest them vigorously. ……..R21;
I had hoped that there might be a settlement between the company and the government before the final arbitration hearing. Maybe a mutually beneficial outcome will occur after the tribunal's decision.
“..The main arbitration case, which relates to the overpayment of approximately $180 million in Rental Fees plus damages to the business, was heard in London in early July and we expect the tribunal's decision by the end of 2016. ..”
Aim to drill two exploration wells in Slovakia in 2016, and if cash can be found maybe some replacement production drilling in Ukraine. An ongoing strategic review of the Russian assets. Seeking farm-in partner for Hungarian production licences.
From an operating viewpoint it remains solid, it’s just the small matter of everything else not having quite such a harmonious alignment at the moment.|
|JKX's Half yearly report is due maybe tomorrow?
Edited - Some time remains before Arbitration decision announcement for those who might want to jump in or out.
Some brutally binary events to get through in the next year. Very high risks, some possibility of high reward - black holes and bright stars.|
Hi dice1950, JKX is Main market not Aim so it might not be suitable for some of your doppels ;-)
Anyway good luck with your pay per click or SEO spamming or whatever it is you’re up to.
Below is an opinion from trader-mick on lse boards:
“I cannot stress enough the importance to ignore any reference from DT directors talk, the LSE remove every username to spam their rubbish and are removing 1/2 names a day because simply they are a fraud website. Can nobody remember OUT Outsourcery and the made up rubbish from DT there about 25p bids etc etc, they are now suspended and shareholders lost everything.
Once again I'm neither positive or negative on AST this is purely a warning to ignore anything to do with DT.
In my opinion the website should be removed given what they have said over the years about stocks before they have crashed. Their paid spammer on advfn posts as dice1950 and he is desperate to post here that somehow
he sets up new accounts daily and has them removed daily.
The tradermick@aim_trade is a imposter and the DT spammer. He has a string of twitter accounts many which impersonate other posters from here and advfn. If you were to check these accounts you would see they spam the exact same links from DT all day long to each other even though there is just one person behind them.
@fundfemale, @smallcappick, @lennyhall24, @humble_bynature, @topinfoadvfn, @entropick
There's plenty more he uses this is tip of the iceberg the amount of accounts he has to spam DT links “|
|JKX Oil & Gas says police investigation continues into Ukrainian firm over funds
Tom Reed, CEO of JKX Oil & Gas Plc was one of the participants at the meeting of the "round table" on "The Government's plan to escalating gas production by 2020 - myth or reality?".
With various Government ministries’ advisors and other production companies.
Suggested shifting from production tax to profit tax - Lowering of rent to 12% .
Increasing gas production before 2020 by + 35 %
Interview with Daniel Valk the new General Director of Poltava Petroleum Company.
Possibility of following Cadogan’s lead into the services sector.|
|Glavey, Looks like you got your wish. Eclairs Group, (controlled by Ukrainian billionaire Igor Kolomoisky) today voted to block most of the AGM resolutions.|
|So the new board want holders to vote through the same remuneration policy put in place by the old guard which saw them well rewarded whilst the share price collapsed and holders lost 95% of the value of their investment.
And those 'independent directors' seem rather close...
What next? A sheaf of nil-cost options perhaps?
Plus ça change, plus c'est la même chose.|
|Hi Stonefold, hard one this very illiquid now, with very few shares changing hands. At first glance you would say this is an incredible bargain with the assets they have. However, the Russian assets are only producing gas, and that can only be sold domesticly for peanuts (until the market opens up), and the Ukraine assets are all under threat due to the country being on its knees.
As you say it could all change very quickly, and JKX would be a huge benefactor if it does. Tax levels have been halved but I still don't think they are drilling due to cash transfer restrictions, but as you say that is changing.|
|In the next month or two.
As the AGM is due soon = 28th June, and the $180 M arbitration hearing is expected to occur in July, and there was mention of talks between JKX and Ukraine Gov to attempt to resolve matters I thought I would have a wild guess at possible outcomes.
After adjusting for current cash, including possible early repayment Feb 2017 of the bonds, assuming that any increase in CapEx is met by the slight (but IMHO expected) increase in oil and gas prices over the next year. Then approx. £9.5M of the current market cap of £36.85 M is IMO due to the expectation that the Ukraine Gov will pay £9.5M to settle all the tax issues.
That is to say that if all the court cases and arbitration case were to reach their conclusions, it would result in a net payment to JKX of approx £9.5M. But that this payment is already factored into the current share price of 21p.
It would be quicker and avoid legal costs if an out of court settlement were reached and payment were made by a tax credit or tax bond.
If the worst case occurs then JKX lose all court and arbitration cases and would be forced to sell up everything to try to cover the debts giving a share price of zero.
In the best case, then replace the net payment to JKX of £9.5M with one of £126.7M to give (eventually) a Market cap of £154M, which results in the share price of 87p. Plus possibly some additional amount if damages or interest are awarded.
The economic conditions in Ukraine are steady and improving for instance ForEx controls are being lifted, including soon the lifting of restictions to transfer funds from Ukrainian to UK banks.|
|Update on the 9 wells + kit.
Kharkov Economic Court of Appeal on April 5, 2016 notes that.
Jkx (lost the appeal) / (or presumed they would lose) so on 29-03-2016 signed an agreement to voluntarily return the property to Ukrgasdobycha.
Link to story in english for a change.
Perhaps JKX will have better luck with the Arbitration hearing in July.|
|Goodness me, they have been bribing courts you say. Tut, tut, whatever next!|