Anglo African Oil & Gas Share Discussion Threads

[aladin1033] 18/5/2018 15:09

This is a shambles, good for new investors or current investors with cash to average dowbn but for people like me with an avg. of 25p i will be lucky to get my money back let alone a profit a 40p share price now means a MC of 65m pounds will never hit that on spud the only way i will make money is if i risk waiting for drill results and with a cos of 25% its not worth it

[euclid5] 18/5/2018 14:58

So will AAOg earn 100% revenue from covering all the 100% costs of TLP-103 well, seems they will not from what I read as SNCP still get 25% of revenues - so has AAOG in directly own 75%?

Think Sister Co, did not want any dilution - recall they have about 20% wi from IPO or 14m shares

Geologically speaking, if there are proven 8mmbls OIP or is it recoverable oil in the R1/R2 sections, why have they still got a CiS 25% of the deeper sections. That's nirmally what you give to an exploration well

But 56mmbls een at 56% wil is a very high NPV, even taking account of the increased share dilution

Zengas makes some good reference points

[supercity] 18/5/2018 12:12

Think long term...all oil companies are a gamble but many do come good (AAZ was 7p a year ago and could easily go past 100p this year)2 years from now it could happen...The Company's dividend policy remains to distribute free cash to Shareholders through regular dividends once production reaches a sustained level of 1,000 bopd and provided that oil prices are not less than US$30/bbl. In such circumstances, the level of the dividend will be at least 50 per cent. of net profits (subject to the availability of distributable reserves).If production reaches 5,000 bopd and provided that oil prices are not less than US$30/bbl, the level of the dividend will be at least 75 per cent. of net profits (subject to the availability of distributable reserves).Should the workovers and drilling programme not be successful, there can be no guarantee that a dividend will ever be paid.

[money4me] 18/5/2018 12:07

keeps the buffoons with a salary for a bit longer though doesnt it. those helping with these placings just creaming the cash of the top. it's all a game of taking money from others to distribute round the city

[bad gateway] 18/5/2018 11:45

Its in the RNS Sunny..(section 8 Placing Agreement))
Miton Asset Management ("Miton") has agreed to subscribe for 13,981,677 Placing Shares as part of the Placing. Miton is a related party of the Company for the purposes of the AIM Rules by virtue of their status as a substantial shareholder of the Company. The Directors consider, having consulted with the Company's nominated adviser, finnCap, that the terms of the Placing with such related party are fair and reasonable insofar as the Company's shareholders are concerned.

They currently have 10m so must see the value. Think they're getting them too cheap myself. Even 10p would be 20% less shares issued and less of a kick in the teeth for pi's.

[theblackbaron] 18/5/2018 11:39

Milton has taken a large stake and its clear aaog moving upwards now with the best geo well this summer on 3 zones with two discovered oil zones.

Its given that this will pass at AGM as 51% will vote yes

[sunnybeachboy] 18/5/2018 11:32

Where can I read Milton has taken another 14m shares ?

[cashandcard] 18/5/2018 11:05

honestmarty,


In all honesty, you are right ;)



Cash

[honestmarty] 18/5/2018 11:04

In my opinion what you should have said was

If not , you opinion is just as invalid as anyone else.

But that is just my opinion.

[cashandcard] 18/5/2018 11:01

honestmarty,


So you were/are involved in the daily operations, and have knowledge of exactly what went on?

If not, your opinion is as valid as anyone else.

All that is expected is to meet the targets set out in the admission doc and spend money for what it was raised for - none of which were met. Nothing personal against DS, but its clear last year was a failure.


Cash

[cashandcard] 18/5/2018 10:40

honestmarty,


"Why no comments on the reason behind the size of the placement? Almost twice what we needed"


Possible new assets - see RNS 03/05/18.


Cash

[honestmarty] 18/5/2018 10:38

The question on deal passing raised by Sisters.

Will this limit forward selling?

Imagine flogging off 30 million shares only for the placing to be abandoned.

Short squeeze from hell.

Why no comments on the reason behind the size of the placement? Almost twice what we needed.

Why didn't they raise half as much at a slightly higher price with less dilution?????

[bad gateway] 18/5/2018 10:32

Interesting that Miton asset management are taking the chance to more than double up on this 8p placing.
They're going from current 10m shares to 24m so they obviously see the longterm value here.
Reckon they're taking advantage myself, what would happen if holders joined with Sister and said no to the placing at this 8p level?
Would Miton and the other insti holders pay more rather than risk the project going down the pan?

[cashandcard] 18/5/2018 10:16

honestmarty,


Re Zengas, I think its a fair critique of management performance here and business outlook. Its always important to scrutinise past success/failure. Unfortunately, for most here, they have witnessed DS reside over little more than failure for the lastyear.

In the last update (03/05/18) they mentioned this;

"Given the vast network of contacts provided by the new CEO and the new board, the Company has been screening new opportunities and has signed the exclusive right to negotiate to acquire two producing fields in a new jurisdiction. It is now completing the due diligence process on these assets"

This is a good strategy. But I am tearing my hair out thinking why did they not go down this route when they became aware of risks with Tilapia workovers and delays with TLP-103 last year when the cash position was much better than current placing price levels? Also, the price of Brent crude is just under $80/bbl now, 50% higher than last year. Now they push ahead with diversification and a potential asset purchase. The last lot were incompetent and have cost shareholders dearly - a new asset helps to mitigate the business, but they have missed a good 'low-cost' buyers window. Better late than never.

Back to Tilapia, you are not wrong, leave aside the past, if they finally go ahead with TLP-103, that drill has the potential to completely change the outlook for the company even with current dilution. In my opinion, the workovers have been and continue to be a distraction, I would rather the new bosses plough on with diversification. The 'all eggs in one basket of Congo' philosophy must end if the company wants to weather any future storms.


Better late than never and they must get this right.


Cash

[soulsauce] 18/5/2018 09:26

honestmarty I don't think Zengas post is bitter and have never known him to be. It is a very well reasoned post if you read it with an open mind and not just from your point of view as a holder.

[honestmarty] 18/5/2018 09:17

The baying mob on here and LSE

I don't know who to fear most.

Will ebola get me or the evil flippers?

[honestmarty] 18/5/2018 09:15

Why so bitter Zengas?

What price did you invest at?

Sensible response is to forget past, accept we are fully funded, and ready to drill.

If successful the poor placing price and even the dilution will not prevent this being a very rewarding investment.

I value your knowledge and opinions but think emotions are interfering with sound judgement.

[zengas] 18/5/2018 09:06

"SNPC's unpaid costs are recoverable from production revenue"

Absolutely no use for the sheer amount of dilution involved and no risk to SNPC.

Needs asked but have SNPC faith in the field ? Also why haven't the terms been better clarified. Surely the company should be getting at least 3X return if successful for carrying SNPC at absolutely no risk and the extent of the dilution to AAOG. At least Sister Co have the courage to not support this as it's far too shoddy.

What happens if the wells a failure, is SNPC going to still pay up at some point ?

Without doubt management have been absolutely squeezed into a corner and this appears very poorly negotiated. Failure to drill would surely have seen them lose the licence. To call Force Majeure on SNPCs failure to honour it's terms would have stalled this for years in legal wrangling imo but would have been the right thing to do unless terms were made better. As a significant shareholder, Sefton didn't answer me before when I raised questions last year and I doubt if he could offer a sensible answer now. The company put itself in a corner and they have no option that I can see other than drill from a position of weakness and the fact that management have been coming and going in such a short space of time looks like they are out of their depth when it comes to negotiations.

[money4me] 18/5/2018 08:48

bunch of useless money grabbing fat cats

[zengas] 18/5/2018 08:45

Kinshasa is about 200 miles from Point Noire. At the worst if it gets out of control, drilling could be delayed but something to be aware of but a countrys wheels still need to turn. Doesn't affect the oil. Trying out a new vaccine so hopefully may stem the spread.

"Cases emerged in a rural area with one now confirmed in the city of Mbandaka.
The city of about one million people is a transport hub on the Congo River, prompting fears that the virus could now spread further, threatening the capital Kinshasa and surrounding countries.

Senior WHO official Peter Salama said the spread to Mbandaka meant there was the potential for an "explosive increase" in cases.

"This is a major development in the outbreak," he told the BBC. "We have urban Ebola, which is a very different animal from rural Ebola. The potential for an explosive increase in cases is now there." (BBC).

As for the placing, nothing short of disappointing and haven't raised the workover production in the entire 14 months of being there. Big dilution for the sake of relatively modest funds and no wonder Sister Co isn't happy at all and not supporting it. 69m - 162m shares. Very poorly managed from day one and has lost much of the risk/reward upside. Lack of licence clarity and not boosting workover production has imo stopped them getting any lending facility. Giving far too much of the company away. If they don't drill they are snookered as they won't have fulfilled their original licence terms and imo why have they allowed this to happen to dilute the company because of the government failure (which is SNPC) to honour the terms. Saying they will get the costs back from production is not compensation in any shape or form for the dilution aspect to shareholders and why again Sister Co is far from happy and wouldn't surprise me to see a legal wrangle develop.

Too much of a one shot wonder now with no risk to SNPC and with the debacle over management from day one with people coming and going it's no longer for me but that's not to say they won't do well from here on. Good luck all holders.

[sep800] 18/5/2018 08:14

At last placing been announced and fully funded and more.
Drilling will start any time now and we know there's oil just need to hit a good flow, with oil prices on the rise what a good time to drill.Placing been brought well so I see share price back to 12-15p any time now then a push back to 20's during the drill. The rig has been confirmed it there to stay and all the way to full production.
Great news