Angus Energy Share Discussion Threads

[markbarker] 23/2/2021 22:07

Chicken have another tin pal relax ducks in a row pass the port old bean

[jtidsbadly] 23/2/2021 21:48

chickndinner: they can keep having placings as long as people want to take the shares. The recent bullish announcements re Balcombe and Lidsey may be interpreted as attempts to keep the price up: it’s less than a month since the last share placing. They can’t afford to do the proposed work at either place, if they want to bring Poundland into production. I suppose that, if they can't raise the money they need for Poundland, they might put it on ice and ramp up the prospects for the Weald assets again, though I’m not sure investors would fall for that.

If they end up with insufficient resources to carry on as they are, they could opt for the cash shell route, when their attraction, to a buyer, might be their tax losses. Someone who wanted an AIM listing and who had qualifying profits against which he could offset the tax losses in Anguish might be interested in injecting his assets and maintaining the AIM listing. I doubt such a person would want to employ most of the current management and I doubt the latter could take much money out of it, though I don’t know the terms of their employment contracts. Whether there would be abandonment liabilities that a buyer would have to take on, I don’t know. If there were, it wouldn't be an attractive option.

If they couldn’t carry on and no one wanted to inject assets into it, i doubt there would be much left for shareholders. Trading in its shares would presumably be suspended, possibly for ages, while they invited people for talks. Still, all this is pure speculation and I’m not very bright, may be missing something and have relatively little experience of AIM, so please take this with a pinch of salt! I haven’t got shares in this or I’d be peppering them with questions.


I’m watching Challenger, to find out what happens to a cash shell if no one wants to do a deal with it. I hope someone will correct all the above if I’ve got it wrong.

[chickndinner] 23/2/2021 21:13

Basically. What I'm asking is who takes control of Anguish Lethargy if it fails to get the funding to progress?

Is it just a never ending story?

[chickndinner] 23/2/2021 20:59

JT. What would happen if the worst case scenario was they had to shut down shop if they are unable to raise the 12mm?

Can they just keep kicking the can with placings?

Is it a bottomless pit.

Do Angus Energy have an appointed Nomad.

If the company becomes a shell does it become delisted?

If it becomes delisted what happens to the non existent assets?

Do the BOD still walk away with a fat wad of investors cash?

It would be great if someone could list thier views on this and then maybe submit to the next Q&A?

[chickndinner] 23/2/2021 20:51

Guy's. You are all way more intelligent than me and do a lot more due diligence. I know I have been mugged as an investor but I did not realise how bad this company was. I was always suspicious on how they can keep the lights on from reading your posts without dipping into any ring fenced funds? Maybe they havnt and all took a wage cut?

[jtidsbadly] 23/2/2021 19:36

JA51: they said in October 2019 that they were reserving £350,000 for a Lidsey abandonment reserve. There has not been a report and accounts since then, so we don’t know what this has done to the balance sheet, if anything. The next accounts should normally be published early next month but could be as late as end-June. I think they'll be late and there will be no abandonment reserve. I think that’s what this nonsense is all about - though they do seem to have been spending some money on Lidsey!

If they fail to publish the September 2020 accounts next month, I think the market ought to get the wind up again. If they fail to get a proper finance package in place for Poundland by 5 April, will they try another big placing or will it be time to chuck in the towel? Tax loss shell, anyone?

[ja51oiler] 23/2/2021 17:57

Fantastic post by Exploration on the other site. This guy knows his onions. I wish I had taken more notice when he was posting on the Sound BB.....Parsons was a talented snake oil salesman......a bit harder to spot than the amateur bunch we have here!

[jtidsbadly] 23/2/2021 13:32

Wolfofthewoods: yes. That must have been good seismic, it’s supported umpteen successive reassessments and none of them has suggested there’s less oil than the previous one identified.

[wolfofthewoods] 23/2/2021 13:03

Which is very odd as I was told that it would need fracking at lidsey. Its almost as if, someone is lying. Again.

[jtidsbadly] 23/2/2021 12:41

Re the exciting new development at Lidsey, does anyone remember this, from the January 2020 Q&A? —

“You have assigned funds for the new exciting new prospect, as Mr Vonk described it, at Lidsey. Was this not first discovered in 1987 and actually falls outside your licence area? Please could you indicate a cost, timescale and the associated difficulties in accessing this prospect given the area has been relinquished back to the OGA.

Asked on 30 January 2020
We have been looking at prospectivity within and outside the current licence area and we are indeed relying in part on new interpretation of much older seismic data,...”

[ja51oiler] 23/2/2021 10:52

As I said earlier I'm not sure how closely they actually follow them.It would obviously make sense they took that CLN out to make them best in class though wouldn't it??How Mr F (a failed double glazing salesman) managed to get permission to take over from the Russian federation is something of a puzzle though reading those guidelines. .... may-bee he went to Eton??

[jtidsbadly] 23/2/2021 09:49

JA51: well, I’ve read most of the OGA’s 22-page guidelines and I don’t see how Anguish meets the management, cash flow, capital structure or forecast profitability criteria. The proposed debt structure looks like a particular issue in this respect, though I can’t see anything specific about abandonment reserving.

Did they send in a proposal 12 months ago and is the OGA yet to approve it? It seems to me their application is going to need very substantial revision if they get a loan. They refer to an application “round”. What does that mean? Does it imply long delays to a revised application?

Then there’s all the other regulators they're going to have to satisfy, even assuming all the bits arrive within 24 weeks of the loan signing (5 April. - Ho, Ho!). And they haven’t finished the design work yet. The enthusiasts on the other site are still talking about cash flow from gas by the end of Q2! Even with a fair wind, they’re not going to get any gas this year, are they??

[ja51oiler] 23/2/2021 09:03

Sorry try this...2nd down on google "Consolidated Onshore Guidance - Oil and Gas Authority"

hxxps://www.ogauthority.co.uk/media/5003/financial-guidance-august-2018.pdf

[ja51oiler] 23/2/2021 08:51

JT:

I believe it's normally around six months, But I could well be wrong. With regard to The OGA, they still have a field abandonment notice on Saltfleetby the last time I looked.

They also have a guide for financial resilience( see Below).

I'm not sure how closely they follow it however as demonstrated by the transfer of Saltfleety from the Russian Federation to Forum Energy Services Ltd with the grand total of £89,554 showing in the accounts.

I would hope they don't delay the annual accounts as it would surely send the price tumbling but who knows in the Wonderful World of Angus?

hxxps://www.ogauthority.co.uk/media/4903/oilgas-financial-guidance-consultation.pdf

[jtidsbadly] 23/2/2021 08:10

JA51: thanks for this. How long does the OGA take?? Is this the point at which the OGA will want firm data on Anguish’s abandonment reserving?

Do you think they will release the report and accounts next month or do you think, in the current circumstances, that they'll take advantage of the extra 3 month allowance and release them in June? I’m not sure they’ve got time for an AGM and I’m not sure they’ll want people like us predicting the timing of future placings on the basis of the figures in the balance sheet.

[ja51oiler] 23/2/2021 07:58

Just to add.

It's also one of the reasons offering the site as collateral against any loan is so ridiculous. Any lender would end up with a field that isn't profitable without the said tax loss and £12 million-odd De-commission costs if Saltfleetby Energy's last accounts are to be believed.

JT the FDP went into the OGA this month last year I believe,

[ja51oiler] 23/2/2021 07:47

JT/Chick

The Tax-loss is the only thing that makes the project viable in the first place when you read the CPR. The company yearly accounts are due at the end of next week which will probably be showing that the £18 Million loss has now grown to something in the region of £21/22/23 million (something those on the other site will see as good news no doubt). I have little doubt that Mr. Forrest/Forum Energy Services/Saltfleetby Energy is planning on using the Tax-loss over at AAOG for the same reason and they are due to De-list shortly.

We also have the Budget to consider. Mr.Sunak will be looking for every penny he can get his hands on. It,s worth considering if you were thinking of sinking a few million into the wonderful world of Angus isn't it.

Perhaps the "investors" would be wise to wait and see for a couple of weeks/months and see the outcome of the above?.... If anyone is mad enough to lend them any money of course?

[jtidsbadly] 23/2/2021 00:55

chickndinner: the tax losses are within Angus Weald Basin No.3, the operational entity within the Angus group. They can only be offset against qualifying profits earned within this entity. In other words, if Anguish ever makes a profit from producing and selling oil and gas, they won’t need to pay tax on them until these profits have exceeded these past qualifying losses. The “tax losses” can’t be used in other ways and are probably not transferable to other corporate entities, as I understand it, and certainly not to shareholders! The trick for Anguish, which they haven’t mastered, is to make a profit in the first place.

[chickndinner] 23/2/2021 00:36

Also. Does Angus Energy solely have any tax losses and if so can the private investors claim this back individually?

[chickndinner] 23/2/2021 00:34

There are a lot of references to offsetting tax losses. Who exactly pays for these tax losses? Is it the Great British taxpayers?

If the tax losses are offset does this go back to the private shareholders?

Can someone please explain how these tax losses work?

[jtidsbadly] 23/2/2021 00:25

I think his Lordship is making it up as he goes along. The big bank they’ve signed this mandate with doesn’t appear to be planning to lend its own money and possibly not that of its clients. It’s signed up to use its best efforts to arrange a syndicated loan of £8-9million, contingent on Aleph arranging the balance. And it’s conditional on a whole lot of things being done between now and 5 April, including OGA approval of their Field Development Plan (how long does that take?). They’ve got a lot of work to do.

[chickndinner] 23/2/2021 00:13

Not saying it is a lifestyle scam but if it is then it is run by some very shrewd people!

[chickndinner] 23/2/2021 00:07

Did anyone ever ask on the Q&A why PV had a £300k golden handshake. Will this be available in the accounts?

Can we see the the accounts who gets paid what and where all of these placings and money goes?

Obviously the company is not making any money so is it a lifestyle scam?