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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| G3 Exploration Limited | G3E | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 28.10 | 01:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 28.10 | 28.10 |
| Industry Sector |
|---|
| MINING |
| Top Posts |
|---|
Posted at 25/8/2020 16:30 by city analyst1 Private investors would be wise to note the following:On December 11 2019, and by order of the Grand Court of the Cayman Islands, Alexander Lawson, Christopher Kennedy, and Tiffany Wong were appointed Joint Provisional Liquidators (JPLs). All three are employees of Alvarez & Marsal Ltd. The primary roles of the JPLs are, broadly, to preserve and protect the company's assets and identify any opportunities which may exist to restructure or refinance the company; possibly through a Reserves Based Lending (RBL) facility. The subsidiaries of the company (Greka Gas China Ltd and Green Dragon Gas which holds all of the company's commercially producing assets), on the other hand, are under the control of the Receivers, Borrelli Walsh, who were appointed on September 09 2019. Borrelli Walsh's objective is, primarily, to execute a partial sale of GDG; or a sale of ‘equity for cash’ in GDG to pay off the creditors (Nordic and GIC). The latter option would allow GDG to stay intact but with a new ownership structure (Nordic and GIC owning 30% and G3E owning 70%). Thus, following the hearing on June 23 2020, the Grand Court of the Cayman Islands directed the JPLs to be: • Fully involved in, and lead, the refinancing of the company's debt. • Provide written updates to the bondholders and the directors (Borrelli Walsh acting as directors) of the relevant subsidiaries of the company fortnightly with respect to any material development with respect to the progress of the refinancing. To this end, an announcement from the JPLs is now imminent. I believe Borrelli Walsh would prefer a Reserves Based Lending (RBL) solution over a partial sale of the company’s assets. Either way, it doesn’t really matter as either outcome should see off the creditors and return the company to rude health. That aside, the most important aspect of this entire ‘fiasco’ should not go unnoticed by the private investor: A recent report (by HSBC Zhengzhou Ltd) conducted for the company’s Reserves Based Lending application in October 2019, valued the producing Green Dragon Gas at $1.79 billion (or £1.36 billion); the GCZ block was valued at $485millon (1P) and the GSS block was valued at $1.3 billion (2P). Now, think about that for moment… The company’s current market cap is £17m (11pence per share). However, the company’s assets were valued at £1.36 billion back in October 2019; before the extraordinary rally in natural gas prices. Anyway, less the company’s debt of circa £155m (owed to the bondholders), and allowing for substantive legal fees, administrative costs, and working capital requirements, implies a potential NAV of circa £900m. Howard Stanley Marks, the serial value investor, and founder of the multibillion, wealth management firm Oaktree Capital Management, once opined that: “Buying cheap stocks is great, but buying good companies cheaply is even better. That’s a potent combination.” All IMHO. |
Posted at 04/5/2020 11:54 by marketanalyst1 Private investors would be wise to note the following after today’s developments:• The loss of 150,000 cubic meters of gas per day is a material disruption. • The company’s producing assets in the GSS gas field are operated by its 100% owned subsidiary Greka Energy. • Greka Energy own 60% of the GSS gas field whilst 40% is owned by the largest producer of offshore crude oil and natural gas in China, and one of the largest independent oil and gas exploration and production companies in the world, CNOOC (China National Offshore Oil Corporation). • The GSS gas field provides gas and electricity to the town of Shizhuang in Qinshui County (in China's Shanxi Province). Shanxi has a population of 37.12m and is led by Governor Liu Guozhong. • The Shizhuang Town Government is the local government responsible for Shizhuang. Thus, today’s developments have delivered an expected, but welcomed, change to G3’s case in terms of the following; • By suspending production from the GSS gas field, the Receivers have, unintentionally, drawn-in state actors from Shanxi and CNOOC into the restructuring process; both of whom would not only be spitting feathers, but would be demanding and contributing to a swift resolution to the restructuring. And as a result, we're now in a period of heightened newsflow; all of which is imminent. Stay LONG, stay safe, and remember, it goes against human nature to stand out, to zig when others zag, and to be in the minority for your beliefs and choices. But that’s why contrarian investing is so profitable. If it were easy, everyone would be doing it. IMHO. ATB. |
Posted at 10/2/2020 19:10 by zen12 Don't think investors act on someone's say so lol With regards to CEO, nothing wrong with driving around in RR, most owners do so! Importantly he's leading as chairman and CEO and unlike most other CEOs, owns around 70% of the company! So he very much has a vested interest in making sure the company succeeds. So think again..! |
Posted at 02/1/2020 22:37 by zen12 Well I've done 27years lol...it's not the time but you d actually learn, but agree should make you a smarter investor. We will see, but my research, the private investors holding well over 90%, and their cash rich partners tells me all I need to know... |
Posted at 05/12/2019 16:04 by serialinvestor1 As investors eagerly await the verdict of the Grand Court of the Cayman Islands (GCCI), it seems increasingly likely that the GCCI will approve the appointment of JPL’s over JOL’s as the outcome pretty much delivers – on point – the objectives of both (G3 and bondholder Nordic Trustees) parties.Simply put, the institutional investor-favoured outcome will allow the bondholder to get their cash through a court-sanctioned scheme (the highest available protection in corporate law) whilst the company will be able to continue implementing its restructuring plan. The plan would see the Joint Provisional Liquidators (JPL) re-structure G3’s assets and liabilities in accordance with its previously announced business plan (September 30 2019) which was to employ a £193m (US$250mln) reserve-based loan (RBL) to refinance the company’s balance sheet. In broad terms, the RBL would enable G3 to pay off its inter-company debt and carry out the spin-off of production subsidiary Green Dragon Gas through a dividend in specie. An experienced bank has already been appointed to move the RBL loan forward. It’s worth noting that, following the aforementioned spin-off, the company would be left with an exploration arm, where G3E has expended circa £207m (US$270mln) on its portfolio, and which it estimates has a 2P/mean value of over £625m (US$816mln). That said, the company’s current portfolio in China is vast and provides a solid five-year backlog of projects. The most advanced of these, is the Guizhou exploration block (GGZ) which is expected to commence test gas sales at the backend of 2019. More importantly, however, it’s important for investors to note that the company has invested over £765m (US$1billon) in the development of its China assets. In fact, a recent report, conducted for the RBL in October 2019, valued the producing Green Dragon Gas, GCZ and GSS blocks at £372m ($485millon -1P) and £996m ($1.3 billion (2P) respectively, and giving a total asset valuation of £1.37billion! Given the moderate debt owed – which is more than covered by the company’s staggering assets – and given the company’s current market cap of 27m (19p), G3 is increasingly turning out to be one of the most undervalued resource plays on the main market. Accordingly, the market is rapidly adjusting its risk premium ahead of next week. |
Posted at 03/12/2019 09:18 by srpactive M2Completely agree. Just making investors aware of gdl situation. dyor |
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