Global Energy Development Share Discussion Threads

[loobrush] 17/9/2015 20:53

Details of Mr Quasha-seems a pretty important guy and very very rich..

Alan Grant Quasha
Founder, Chief Executive Officer, President, and Chairman, Quadrant Management, Inc.
Age Total Calculated Compensation This person is connected to 6 Board Members in 6 different organizations across 9 different industries.

See Board Relationships
66 --
Background
Dr. Alan Grant Quasha is a Partner of Vanterra Capital LLC. Dr. Quasha is the Founder, Chief Executive Officer, President and Chairman of Quadrant Management, Inc. He served as the Chief Executive Officer of North American Resources Limited from 1988 to 1998. From 1980 to September 1991, he was a Partner in the New York City law firm of Quasha Wessley & Schneider. He served as a Governor of the American Stock Exchange from April 1994 to April 1997. Mr. Quasha has been the Chairman of Harken Energy Corp. since March 31, 2003. He serves as a Co-Chairman of Carret Asset Management, LLC and Chairman of Brean Murray, Carret & Co. He has been the Chairman of HKN, Inc. since March 31, 2003. He serves as a Director at I-Behavior, Inc., Fullbridge, Inc., NAR Management, Inc., and at Richemont, S.A. Mr. Quasha has been a Director of Genius Products, Inc. since February 2009 and HKN since 2003. Mr. Quasha has been a Non-Executive Director of Compagnie Financiere Richemont SA since 2000. He is the Chairman of the American Brain Trauma Foundation. He served as a Director of ARC Group Worldwide, Inc. Mr. Quasha served as the Chairman of Hanover Direct, Inc. since 1991. He served as a Non Executive Director at Asia Energy Logistics Group Limited since January 2005 until February 2008. He served as a Director at Richemont SA, Luxembourg from 1988 to 2000 and American Express Funds since May 2002. Mr. Quasha served as a Director of SIRIT Inc. from October 2002 to October 29, 2003 and Member of Board Of Overseers at Reinet Investments S.C.A. from October 2008 to September 2009. He served as a Director of Sphera Optical Networks, Inc. During his extensive career, Dr. Quasha has invested in hundreds of companies in the U.S. and emerging markets. Many of these investments were restructuring and turnaround situations involving significant hands-on operating experience. He holds a Doctorate of Law from the Harvard Law School, an M.B.A. from Harvard Business School, a Master of Law degree from New York University Law School and a B.A. from Harvard College.

I think he knows what he is doing.

[hugepants] 17/9/2015 16:36

OK I missed this bit. The loan is secured on Everest's GED shares. You are right GED can't lose on this deal.

"...The Bridge Financing is secured by all of Everest's and its subsidiaries' holdings of Global and HKN securities ("Collateral"). As at 15 September 2015, being the closing date, the market value of the Collateral was approximately $15 million. Global is serving as the collateral agent for the Co-Lenders..."

[hugepants] 17/9/2015 16:23

Can you explain how it would be good news for GED shareholders if Everest default on the debt? What assets do Everest have?

[pavey ark] 17/9/2015 14:59

Back in the real world: if Everest defaulted on this debt it would be very good news for all sensible holders.
I have no doubt whatsoever that this management would jump at the chance to buy $8m worth of shares at the current prices but if they tried the share price would simply rise as they bought.
If the company managed to get hold of these shares as a result of Everest defaulting AND the share price fell it would only be as a result of private investors not understanding what is going on and would make an attractive share look even more attractive.

[hiriam007] 17/9/2015 14:57

Wonder what Quasha want the money for.

How much would it cost to buy out the non Quasha shareholding; approx 65% of GED at 50p per share? Buy them out, cancel the loan. Too simplistic?

[hugepants] 17/9/2015 14:46

So what assets do Everest have? Anyone know? Can't find much on cyberspace.
Everest are the shower that had farmed into the Colombian acreage but pulled out at the beginning of the year.

[anangf] 17/9/2015 14:16

I agree Salpara, this behaviour smacks of a privately owned company. It is an utter disgrace.

[salpara111] 17/9/2015 13:09

I think this is the straw that breaks the camels back for me.
I am going to sell and take my substantial loss.
The way the management are behaving means that the business simply should not be listed at all.

[anangf] 17/9/2015 09:30

It is wrong way risk. If they default the value of the collateral, GED shares also falls. Not good.

[pavey ark] 16/9/2015 21:41

I have a comparatively small investment here but I did take the time to read the announcement and do some fairly basic research.(was I alone in doing this ?)

It certainly looks all above board and it should be stressed that HKN also advanced $2m.

The loan is secured against GED shares so I would imagine they would be quite pleased if Everest Hill did not repay the loan.

Bridging finance is never cheap and this looks a good way to turn a dollar, short term.

[dlku] 16/9/2015 12:13

Annualised cash burn based on the last 6 months is 9p per share


What the hell is going on, GED now making US$10 million loans to shareholders.No certainty they will pay it back


Yieks

[loverat] 16/9/2015 12:11

Did someone mention here that the BOD are knocking on a bit and should retire?

Perhaps today's RNS was inspired by this lot.

[loverat] 16/9/2015 11:53

LOL

I wonder if GED would consider giving me a loan to enable me to to look at opportunities elswehere.

I've heard of oil companies becoming gold/resource companies and the other way around. I have also heard of some AIM companies becoming litigation stocks because they spend their shareholders money suing everyone else.

But not heard of oil companies following in the footsteps of Wonga. Quite a novel idea.

[anangf] 16/9/2015 10:02

What the hell is going on, GED now making loans to shareholders. A far better use for the cash would be stock buy back or special div.

[salpara111] 11/9/2015 09:00

Not sure what to do here.
Like most holders I am massively under water and very frustrated that the share price is trading at a minimum 50% discount to cash.
I simply don't trust management to utilise the cash for my benefit.
If I want to invest in another oil company there are dozens of them listed that I can choose from.
On the flip side, I am loath to sell for such a big discount to the cash value.

[pavey ark] 10/9/2015 16:41

I think you guys are ignoring that fact that the "cash burn" was simply using cash to pay current liabilities/tax and the shareholder equity was little changed.
As far as confidence in management is concerned I have no idea if I should or shouldn't have faith in them but I do have complete faith in the concert part shareholders making sure their money isn't wasted.
"Greed is good" as they say.

[hugepants] 10/9/2015 11:32

I make it 56p net cash (including all liabilities). Annualised cash burn based on the last 6 months is 9p per share but they state they are cutting costs further. No idea how much the Bolivian assets are worth. Probably diddly squat at current oil price but at $75 oil??

[anangf] 10/9/2015 11:16

Very bizarre.
This looks good on paper, 63p cash plus maybe another 25p from Bolivar (adjusting for spot brent).
Operating costs will eat through the cash in 24 months.
Don't have confidence in management to do anything strategic.
Best bet would be to trade sale bolivar, and wind the thing up. But turkeys don't vote for Christmas.

[pavey ark] 10/9/2015 08:45

Some cash used to pay down current debt and pay tax but total asset value much the same.
Any investment in distressed assets would still have to be agreed by the concert party group that effectively controls the company.
It is good to know that management are unlikely to get away with buying another oil company just to justify their existence.
This being said there must be bargains to be had and the market is giving no value to this massive lump of cash.
Give the money to shareholders or buy something or perhaps a combination of both.
Edit, shareholder equity of 97p/share with 63p of that cash.
Share price 30/34p

Cut, slice and dice this anyway you like this looks more than a little bizarre.

I can see why the city boys don't want to get involved as the free float is very low and current holders appear to have things sewn up but it must be worth a small punt for private investors.

[geraldton1] 10/9/2015 07:58

Results out - cash is c63p a share

[fuiseog] 06/9/2015 21:54

I think they manage cash flow well. They just haven't shown themselves to be competent at converting oil prospects into production.

[hugepants] 06/9/2015 18:08

Sometimes doing nothing is not the worst strategy. eg. if the TRAP directors had done nothing shareholders would be infinitely better off now.
Results due out this month. I think theres a decent chance they'll announce a tender offer at 50p (or thereabouts).

[anangf] 04/9/2015 12:42

What are management doing here. Really, what do they do every day when they get to the office. It is an utter disgrace (but that could be said of a lot of A I'm stocks). I have learnt my lessons... 1.never put faith in what were clearly bs valuation estimates from independent research houses 2 avoid small cap resource stocks like the plague 3 avoid all but a very few AIM stocks.

[loverat] 25/8/2015 16:27

Someone finally realising this is more a cash shell valued at half cash, than an indebted oil company?