Conder Environmental Share Discussion Threads

[andy] 06/6/2006 08:22

Hard work,

Thanks.

[hard work] 06/6/2006 08:14

...and credit to you Andy for sorting ot out.

Thanks

[andy] 06/6/2006 08:10

Curry,

That is the new one.

It is vastly different to the old one, and again I think Unquoted.com deserve credit for taking the criticism onboard, and editing their article.

If you email [e-mail], i'll send you the original.

[currypasty] 06/6/2006 07:58

is this the old version, or the new one ?

Concorde Placing Farce

Concorde Oil & Gas has hit a brick wall with its intended £25 million fundraising. The company has been making headlines recently with its planned acquisition of Pechora Energy for £13.3 million and step up to AIM - a move flagged first on May 10th. Within three weeks it became clear that it was having problems raising the cash and would delay the acquisition by one week. Concorde has already announced a six week extension on the Pechora deal, as a result of adverse market conditions.

After hours on Friday we learnt that Concorde has raised£450,000 at just 2.25p, a 380% discount to the closing market price of 8.5p on the day. This cash is for working capital. The larger fundraising is - we are assured - ongoing. Unfortunately for Concorde, the bad news did not go unnoticed, and the shares plunged 2.75p in today's trading session to 5.75p. The market capitalisation is now £7.6 million. Given the current volatility of Concorde and the obvious problems with its fundraising: sell.



andy, which bit will they change ?

[andy] 06/6/2006 07:48

I have just spoken to unquoted.com, and explained where I think the article is wrong, and they are going to edit, and re-publish it later.

I think they deserve enormous credit for that, and we await the updated version with interest!

[andy] 06/6/2006 07:22

hard work,

l have spoken to unquoted, and they say they are going to make changes to that article, see post below.

I explained where I thought the article was wrong, and they said they will edit it.

[wassapper] 06/6/2006 07:05

Judgement - you are very naive to think that you will get an answer on way or another. You are turning into something of a pain. Why don't you complete all your reserach and the start posting instead of gettng others to run around for you?

[hard work] 06/6/2006 07:04

our favorite analysts have now stuck the boot in with a report full of innaccuracies

[andy] 06/6/2006 00:37

Judgement,

That's a fair question, but only CDE can answer it.

[judgement] 06/6/2006 00:37

Andy, it wasn't the company details I was talking about - that's simple. I was repeating my request for Johnma to the other contact info I requested several days ago (contacts in the "city" who were aware of the current status of the book building), and he refused for no obvious reason.

[judgement] 06/6/2006 00:33

Andy,

I'm happy that Miller and Lents actually performed the study on behalf of Pechora Energy Company LLC. I just find it strange that Concorde have spent the best part of £1m on having their own competent person's report produced, yet they are providing details from a report dated 2004.

[andy] 06/6/2006 00:29

Judgement,

It's not a secret, they are easy to find on the OFEX website.

Head Office
Reveley
Wheelers Lane
Smallfield
Surrey RH6 9PT
England

t 01342 842 104

Email : [e-mail]

[judgement] 06/6/2006 00:27

Johnma,

Could you please provide me the contact details I have now requested on more than one occasion, and I shall make use of them.

[andy] 06/6/2006 00:25

Judgement,

In December, CDE issued this RNS, the pertinent piece, with regards to your question, being in the last paragraph;




Concorde Oil and Gas plc - MOU regarding the acquisition of Pechora Energy

Wednesday 7th December 2005

Concorde Oil and Gas plc
("Concorde" or "the Company")


Concorde signs MOU regarding the acquisition of Pechora Energy

Concorde Oil and Gas, a recently incorporated company seeking to invest in or
acquire operational oil and gas assets in the Russian Federation, announces
that it has signed a Memorandum of Understanding ("MOU"), including a period of
exclusivity, with Pechora Energy Company, which may lead to it acquiring 100%
of Pechora Energy.

PROPOSED ACQUISITION

Pechora Energy, a private Russian company, owns the Luzskoye Field situated in
the Timan-Pechora Basin in the north-east of the Russian Federation. The field
has been evaluated by a well known firm of independent oil industry consultant
engineers.

[johnma] 06/6/2006 00:16

Judgement

Your not very investor Savie - pick up the phone like most ordinary shareholders and ask the question the worst they can say is NO.

[judgement] 06/6/2006 00:07

sranmal, you're right I've just found the document you're referring to - it took a bit of finding!!

Unusual the figures weren't released on OFEX, since that's where the company is listed. Only published as a condition of listing on AIM.

Anyhow, nothing untoward with the distribution. For what might normally be regarded as 21.7 mmbbl of 2P reserves, $25m would seems a reasonable price, given the development funding required and punative Russian taxes.

One other point I notice that seems strange. The reserves statement is dated June 2004. On 11/01/06 they raised £1m and stated:-

"The placing consisted of the issue of 44,444,444 new ordinary shares being placed with Institutions at a price of 2.25p (GBP 3m market capitalisation), raising GBP 1m before expenses.
The majority of the funds raised will be used to complete due diligence and
gain a competent person's report regarding the acquisition of Pechora Energy,
as announced on 7 December 2005..."

... so why are they providing a reserves assessment from the vendor? What happenned to the best part of £1m they spend on dd?

[sranmal] 05/6/2006 23:05

Judgement - the 1P/2P/3P has already been announced in the RNSs!!!!

1P = 10.06 mmbbls
2P = 11.66 mmbbls
3P = 11.25 mmbbls

At about $1/bbl for PRODUCING total 1P/2P, IMO that's a bloody good deal, and includes the strategic rail terminal too.

[wassapper] 05/6/2006 22:25

leeson - I am not expecting a big response, but on Friday you would have thought that our combined posters could have bougth the company three times over. It's called bluff something ...

[jackohelp] 05/6/2006 22:03

Judgement> something i was interested in back in march also...

jackohelp - 23 Mar'06 - 12:34 - 718 of 1244 edit

how much is 3p? does anyone know?

johnyee7 - 23 Mar'06 - 12:55 - 719 of 1244

Yes,it's the profit you made from shares last year.

jackohelp - 23 Mar'06 - 14:08 - 720 of 1244 edit

lol.. i take it you dont know then? how much is proven, how much is p+p and how much is all the p's?

Glad i stayed on the sidelines. Mind you had my kickings elsewhere instead!!

[judgement] 05/6/2006 21:37

Andy,

The main gist of my post is to look for alternative views on the valuation of the company, or at least give others the opportunity yo pick holes. That's not something I could get any meaningful input from management on - at least I'd be concerned if I did.

Management could of course clarify the reserves issue, but again I'd be concerned if they were to divulge such price sensitive information on an individual basis, instead of to the market as a whole. Presumably nobody is going to stump up a large portion of the £25m without knowing the important details, so why hide these basic facts from the company's current owners?

Your point about current and near term prospective production. Yes, that's a positive when comparing with non-producing assets, but its value is already taken into account in the portion of reserves in the P1 category. You can only value them once. Remember it's not a secret from the people selling the asset, or from other potential buyers of the asset. Obviously if there was a realistic possibility of near term 15k bopd, you might modify your valuation per barrel of reserves figures because the NPV discount term would be much different.

[leesonlookalike] 05/6/2006 21:01

wassapper - i'll just stick with my initial investment mate...

[andy] 05/6/2006 20:57

Judgement,

Why don't you email them and ask the managemement, rather than BB posters?

After all, they are better equipped to know the answers.

And did you allow for the current production?
And for some rapid workovers of current non producing wells?

[judgement] 05/6/2006 20:52

Isn't the key to understanding the price of the floatation to think - if I didn't already hold the stock, what price would I bid for newly issued shares?

They intend to raise £25m in new equity. Those new funds are to purchase ($25m), and develop Pechora, and I assume for working capital. At $1 per bbl of Russian 3P, it is certainly doesn't seem a stunning deal. I have seen this 3P figure mentioned previously as "reserves" - this is not the case.

Why don't Concorde state clearly how much oil is exists in each category - aren't you curious? How else do you valuse the company? Why the secrecy?

Say they manage to raise the £25m (gross) they desire. What should the company be worth. Perhaps £25m - 5% costs + £0.45m + something for intangibles = £24.2m + something. So how much for intangibles such as management? It's obviously highly dependent upon market sentiment, but perhaps £5m would be a reasonable figure?? That would make a market cap of £29.2m.

For a relatively unproven company with total assets of around 25 mmbbl 3P largely undeveloped Russian assets and remaining cash of £15m, that sort of market cap sounds reasonable.

Such market cap would imply a fair value for the current equity of 2p per share. Personally, I think that's actually quite a generous scenario.

Any thoughts?

[wassapper] 05/6/2006 20:51

Leeson - we will have one of your whoooosshheess here one day, but I fear it may be a while. What we do know is that management will be reviewing all options at present to minimise the effect on all. WE are only just below my average. I will add if all the circumstances appear to be right

Following on from some of the pointless drivel on Friday, if you could offer to help and buy stock at, say, 5p, how much could we pull together? Management may be interested and I know we can get the message through. Mail to [e-mail] and I will pass on if we come up with anything significant. Please remember to state your ADVFN user name; amount you can invest and approximate time to get at funds. You know we have to get to at least £200k. Please don't bother if you are not serious.