Circle Oil Share Discussion Threads

[gerry hatrick] 21/12/2015 11:04

Hi folks,
Just an update on my recent e-mail to Mitch Flegg.
First of all how good it is for him to reply, and I now know that he, or someone with his ear, reads this forum, because he was upset that I cut and pasted his last reply to me on here, which I have respected in this post.
On my specific point about Mahdia, he re-iterated what was said in the RNS, so nothing new to give the share price a lift.
On my, ad nauseum mantra of director purchase, no response.
I will not be emailing him again as I now know that he is aware of the comments on this forum.

[coxsmn] 20/12/2015 16:32

If would be VERY helpful if Circle BOD had given an indication of how much the "small" shortfall would likely be, are we talking less than a few million or 100% of the mkt cap.

[gerry hatrick] 19/12/2015 15:59

Jotoha2,

Just toying with your idea and figures and wondering if this happens, what is the significance or objection for the Libya holdings and Kaupthing bank,both of whom are unable to subscribe for more shares?
Their respective holdings would be diluted to roughly say 7% and 3.75% respectively.
Interesting way of getting them even more nullified?

[steelwatch] 19/12/2015 12:57

Gerry - it could be argued that both the EMD-1 and Shisr-1 wells were necessary to meet minimum work requirements to retain the respective licences which had already both been extended to the max. Ideally, they should have been farmed out by the previous encumbant who must carry all the responsibility for dawdling through his tenure and the previous Chairman should and could have got on top of the situation, but didn't and left in a somewhat frustrated manner. Had Jenkins exerted any ability he may have had in his first few months tenure to stop these operations, licences would have been lost by default. As it is, we still have one.

You may also recall the protracted seismic survey over the shallow Block 52 area.

All this work was in train before Jenkins' arrival:

[jotoha2] 19/12/2015 12:47

Net assets are worth nothing if they are unable to make a profit , then there is debt , it is going to get bigger unless they make some money , how will that debt be serviced , either start making some money , most unlikely in this low oil price period , or will have to issue more shares , at less then 2p it will mean at least 800/900 million , not good for current holders.

[gerry hatrick] 19/12/2015 11:24

We all know that oil price is a big problem for all small oilies, but we were led to believe that COP's cost of extraction which were one of the lowest globally, and that, coupled with our gas sales at a protected price, enabled us to remain profitable.
Yes Green (and Jenkins)allowed our finances to be depleted by reckless go it alone stategies, that were duds which has left us with a "small" shortfall in funding (according to the latest RNS)so again I ask( and have e-mailed Mitch) where are we on the "game changing" Mahdia permit, which should release funding ?
Mkt Cap £10m net assets worth ? and Mahdia value ?
I cannot believe nobody sees this as a bargain buy at the current valuation, but are there other things we do not know about ?

[jotoha2] 19/12/2015 10:19

All companies in this sector have not lost 95% of their share price , it's all about the quality of the management and how they have handled the situation , and this lot have made a right bodge of it , hence the share price , the mm are no fools , they have priced this for massive dilution , or wipe out.
Duxy you say you are not invested here ,but are considering adding here , so which is it ?

[duxy786] 19/12/2015 08:43

Its the cost if extraction vs the cost of a barrel of oil on the market people!!!Absolutely f'all to do with the bod and the running of this company. Am not invested here but if you look accross the market, and markets (asiapac, us etc) you will see the same for all junior oilys. Oil expected to go lower, opec countries at war with each other andthe destabilisation of the oil price is to continue. No point selling now for most holders. Wait and see. Some will no doubt add at these low levels on a gamble that if the company survives the market pressure, then this will be worth many many folds from these low levels. May wait until the oil market little stable before adding here. Watching and waiting....All the best,Duxy786

[gerry hatrick] 18/12/2015 11:14

Mass panic at the moment!!
I can't believe that market cap of COP is only £10m. Surely the net assets must be worth more than that ? What about Mahdia has that got no value ?
We need some assuring words from the chairman or CEO to stop this bonfire.

[steelwatch] 18/12/2015 09:31

jotoha - the RBL was wrought by the former departed exec team prior to the arrival of the current Chairman, CFO and CEO who now are left to sort out the mess.



Current Chair appointment announced 14 Jan 2014; CFO 8 Jan 2015; CEO 29 May 2015

[bengal1] 17/12/2015 21:09

$65m net debt. Production 6mscuffs/day gas; plus 3600 boepd.. All Net...margins are down.. but typical across industry due to halving of oil price!!.Cpr and reserves valuation likely to result in a small base redetermination deficit, hence the latest RNS from the Company in advising the market accordingly in a v professional way...no rush or panic with an outline schedule end Q1.

[jotoha2] 17/12/2015 20:31

Turnover down by 50% in next 6 months at lower margins , massive debt , so dilution on the cards , wipe out certainly for current holders.

[coxsmn] 17/12/2015 20:13

So is COP a bargain or are shareholders more likely to be wiped out?

[bengal1] 17/12/2015 19:14

Caza was producing less than 600 boepd, with $45m debt.

[coxsmn] 17/12/2015 18:23

The market hates uncertainty, its plentiful here, will there be a rights order and will it wipe out shareholders? Until we get some positive news, shareholders are assuming COP will be another CAZA which is a possibility. No assurances given by COP management.

[playthebull] 17/12/2015 16:15

What a Horlicks of a company / share.

Glad I only put a small amount in this (which is now pocket change).

[steelwatch] 16/12/2015 23:11

Above link's provenance dubious to say the least

[troajan] 16/12/2015 21:07

Prospex Oil (PXOG) to Acquire Boujdour Blocks in Morocco
Posted by admin
Prospex Oil (PXOG) has signed a memorandum of understanding (MoU) for the acquisition of a significant working interest in five shallow offshore exploration permits off the coast of Morocco. Prospex Oil (PXOG) is a company formed for the purpose of acquiring
hxxp://microcapicks.com/prospex-oil-pxog-to-acquire-boujdour-blocks-in-morocco/

[gerry hatrick] 15/12/2015 11:25

So glad I'm not invested in CAZA and hope that COP can survive and hopefully get a farm out of Mahdia which could change the picture somewhat.
Not holding my breath though.
Mitch and co not feeling our pain - no skin in the game.
Merry Xmas all :)

[sleveen] 15/12/2015 10:25

A question most AIM investors ask. CAZA investors particularly this am. Ouch!

[coxsmn] 14/12/2015 18:54

NOW we know why the Directors didn't buy at the low share price. Mitch gave a very up-beat interview with Malcy on Circle Oil recently and within weeks shareholders are delivered this little nugget of bad news.

The company has had months to do an equity raise so why instead do they wait until the share price is on its knees.

[sleveen] 14/12/2015 15:27

Crikey, I can't believe COP have fallen to this level.