Capricorn Energy Share Discussion Threads

[adg] 16/5/2023 08:27

I thought I was premature selling on 14th feb (240p from memory) as I needed the cash for
25% sipp withdrawal. I thought we would get nearer 300p if patient but took the decision thankfully to release the cash.
This dog of a company has been so badly run recently and the new management seem no better - shambolic, shameful, sad really

Feel sorry for remaining holders with recent turn of events, I was lucky with timing nothing else

[arlington chetwynd talbott] 16/5/2023 08:26

Really? Were you even in here in the first place? Your posting history is a bit of a giveaway.

[blackhorse23] 16/5/2023 08:06

Switched to HARL , excellent growth

[hiddendepths] 11/5/2023 11:43

controlled madness.

No bonus for directors and staff!

Shares in treasury may be useful in due course for a placing. Interesting to know the mechanics of the 115p dividend as regards to the treasury shares though! Will it be paid for those shares? If so, to whom? And will the treasury shares be turned into the new shares?

Just a technicality, I expect, and some legit. jiggery pokery will sort it out!

I bet some shareholders are hopping mad about the compulsory sale of most their shares at 217.6p, because that's what the dividend and share conversion effectively means! But if you buy now, you'll make a rapid few p profit per share on most of your holding.

[controlledmadness] 10/5/2023 07:50

Hi
I just noticed the share purchases are being held in treasury.
Does this mean that the shares are being purchased to give the Directors and staff a huge 25 million bonus or will they be cancelled at the end of the purchases?

[hiddendepths] 09/5/2023 17:15

On the 16th May, if you had 7000 shares beforehand you will now have 3300 and a dividend of 115p/share. You will effectively be selling 3700 shares for 217.6p/share.

I'm guessing there will be a fair amount of confusion about this, especially as the shares will trade xd and ex consolidation on Tuesday 16th, not a Thursday as many will expect.

It's possible that some income funds will start buying, maybe heavily, in order to turn capital into income with the 115p dividend. Some of them are not permitted to distribute capital, only received income, so this situation could prove very handy for them. However, there doesn't seem to be any sign of such buying as yet so maybe they're just not looking in this direction!

[churchill2] 04/5/2023 08:29

Hi controolledmadness
The $1214 is not realistic. The Stock Market values Capricorn at $866 million.The only asset worth anything is Egypt which in my post of 7600 I gave a generous valuation of $323 million the amount we paid for it.
In short we depend heavily on Egypt and sale of assets that have little value.

[churchill2] 03/5/2023 09:01

Hi controlledmadness
Unfortunately I am out today so will have a look tomorrow.
I suspect the answer is the Balance Sheet numbers you are looking at is money spent on assets that are not worth a row of beans now. This was my point that the amount of money wasted is staggering. If those numbers were realistic the share would be far higher.

[controlledmadness] 03/5/2023 08:11

Hi C2: I see Net Cash not Assets wat 597 on Dec 21.
If you download the announcement and search net assets you will see on page 15 and 18 the net assets were 1214.
The $450 will be taken from the $646 million in cash. That means there will be $764 million left in assets of which $196 million will be cash.
However with the exchange of 70 shares for 33 I think that the $1214 million is being reduced as the 37/70ths that the $450 million represents means the 33/70ths are worth less than $450 million.
That is what I do not understand.

[churchill2] 02/5/2023 17:42

Hi controlledmadness
Have you looked at the latest Presentation PDF 314MB page 12. 27th April 2023
Net Assets at Dec31 2022 $597 million
Net Assets at March31 2023 $646 million
Can you refer me to your figure of 1214.

[controlledmadness] 02/5/2023 15:16

C2 - I do not get your starting net asset of $646 million for march.
Balance sheet for end of December 2022 shows 1214 net assets.
Are you claiming that they lost nearly 600 million in the 3 months till end of March.

[dunderheed] 02/5/2023 12:19

Thanks C2. I have no idea of their strategy and it will be interesting to see what they say and what they actually do / can achieve.
However in all honesty they are probably an improvement on the "old BoD" IMHO?

[churchill2] 02/5/2023 12:11

Hi Dunderheed
I have not made a valuation of Egyptian assets. Capricorn wrote down its 2P Resources but was partially offset by an increase in 2C.
The real issue is how much clout they have with the Egyptian authorities because presently the restrictions are extremely stringent. Shell must have seen them coming a long way off but Palliser seemed confident the value is there.

[dunderheed] 02/5/2023 10:59

C2 - didn't they write down some of the Egypt (excellently valued and acquired) "assets" already in last financials? So are you including that impact in your valuation? Maybe wrong as only scan read.

[churchill2] 02/5/2023 10:50

Trying to work out what value there is in Capricorn.On the latest update we know that at the end of March 2023 net assets are $646 million of which will be reduced by $575 million through a combination of returns to shareholders and buyback of shares.

Then over the next couple of years we get a payment of approximately $77 million for years 2023/4/5 based on current forecast production and Brent oil price for Kracken/Catcher.

There is also a payment from Woodside for Sangomar Senegal which is more likely to be $50 million for first oil in 2024 rather than 2023.

The other assets Mauritania/Suriname/Mexico/UK North Sea do not appear to have little value which leaves us with our bag of worms Egypt. How much is it worth? Very difficult to value but I will use the value we paid for it $323 million.

Adding this together 646/77/50/323 totals $1096 million at exchange rate of 1.25$ to the £ by the number of shares equates to 278p.

A couple of points. Claims have been made that the NewMed was a better deal but that is not the case. The amount of money wasted by this Company over the recent period is staggering.

[silverstone1] 28/4/2023 23:03

I'M HAPPY WITH A SPECIAL DIVIDEND OF 115P PER SHARE AND MORE TO COME BECAUSE I BOUGHT A 7 FIGURE SUM AT 125P IN AUGUST 2021!

[xxnjr] 28/4/2023 08:39

Dunders - I only remembered that as CNE was my 1st ever oily investment, bought on the day of Mangala discovery RNS.

Some interesting comments on Egypt in SDX's results today:

"As a result of various geopolitical factors, US dollar transfers by the Central Bank of Egypt have been restricted and the Company is currently unable to expatriate any funds currently in Egypt and there can be no guarantee of timing on when funds will become available. These factors have also impacted the Egyptian pound which has been devalued several times since March 2022 and is currently trading at less than half of its value compared with the USD since that date. Whilst the company's receivables are not impacted by this devaluation, the company's cash balance in country is fully exposed to any additional currency fluctuations."

[dunderheed] 27/4/2023 22:25

xxnr - yes I bought long before R - the you're right saw them go up to around £20 - then back down again and as I say sold them at £2.45!!
frazboy no, not at the moment but may dip in if it get's too low!
Lats I was in I sold in late 160's (actually needed cash "elsewhere" for once!), I seem to remember - coming up from significantly lower and at least 5-6 years ago?

[xxnjr] 27/4/2023 18:09

Well done on 115p. The Q's were asked by Morgan Stanley, Bank of America, Stiffel and Zeus Capital.

[anley] 27/4/2023 17:23

I had a listen in to the presentation and when it came to questions the only people were less than a handful of City scribblers.......terrible and here is a big problem as they must be either no-professional or stupid.

A new board with a huge clear out and collecting the cash and when I said they may sell Egypt - I was wrong and that is what the market is afraid of....making a profit from a bad region.

I like my 115p per share and more to come so I will await May.

Good luck the new team and do not forget to cull most of the non-executive directors - waste of time and save the cash for shareholders.........

[xxnjr] 27/4/2023 16:46

The share price was about £4 before Cairn announced Mangala (Rajasthan) in 2004. share price increased to £5 on that RNS. Finally topping out in the high £20's or low £30's ISTR. Then there was a share consoladation.

[frazboy] 27/4/2023 16:17

Dh - are you holding at the moment?