||COMM SHS USD0.001 (DI)
||EPS - Basic
||Market Cap (m)
|Oil & Gas Producers
Real-Time news about Madagascar Oil (London Stock Exchange): 0 recent articles
|carrottop: I sent an email to MOIL expressing my disappointment about how I consider my investment and some shares I had put away for my kids being being taken from me for practically nothing by the Bond holders and to my surprise I got a reply and must admit it is a considerate and thoughtful reply which is unusual in this business. I have reluctantly sold some of my shares but am keeping the rest in certificate form and after absorbing the email I feel there may just be some hope yet. Copy of reply to my email follows:-
Dear Mr Stewart,
Many thanks for your email and getting in touch. As way of introduction Camarco is working with Madagascar Oil and the Board has asked that I come back to you on your email. The team at Madagascar Oil share your frustration and disappointment as to how this situation has worked out.
The management team has, and continues to, work tirelessly to secure a partner and alternative sources of funding for the development of the Tsimiroro field since Jefferies’ appointment in June 2015. We entered into a short term Bridge facility compromising of two tranches, with Outrider Management LLC, BMK Resources Ltd, SEP African Ventures Ltd and the John Paul DejoriaFamily Trust in September 2015 so that we were able to continue operations and our work towards securing a partner. The first tranche of funds were made available in October 2015 and we continued to progress the strategic process.
Unfortunately, and as you will be aware, the current macro-economic conditions and the low oil price environment made it impossible to bring a strategic transaction to a conclusion in that time frame and subsequently our lenders informed us that they were not prepared to provide the full amount available under the second tranche of the above Bridge Facility. However they have indicated that they may provide some further funding, subject to additional conditions which includes a delisting of MOIL’s shares. Importantly this funding will allow the Company to continue its advanced discussions with potential partners for the development of the Tsimiroro field, but there are no guarantees that those will lead to a successful conclusion.
It is important that you understand that the major shareholders / lenders would simply not have funded the Company going forward without an agreement to propose the delisting and that would have meant insolvency.
The Company and the Board are very aware of our responsibilities to all shareholders and the Independent Directors of the Board have worked hard to protect your investment in the event of a delisting and minimise further dilution and certain other possible negative effects the delisting may have in the short term.
We consider this to be of particular importance as the current share price does not reflect the potential value of the business and its assets and the future upside for shareholders should a partner be successfully identified or a strategic transaction completed in the short term.
As a private Company you will still be able to participate in any value accretion from here, although there is no guarantee as to what further dilution shareholders may suffer over time. The Company has secured the following commitmentsfrom in place with the Relevant Lenders to try to protect your investment in the event of future upside in the short term., minimise further dilution and provide you with the ability to continue trading your shares in the event of a delisting. Further detail on these can be found in the Circular under section 3.4. In short these include:
· No conversion of debt before 15 September 2016
· No compulsory purchase before 31 December 2016
· Tag-along and drag-along rights
· Share trading service for 24 months (if practicable)
· Website content for 24 months
We would hope this provides some comfort during this period and re-assures you that the Company has done whatever it can to preserve value and that should a partner be identified you will have the opportunity to share in the potential upside in the near term.
I hope this is helpful but do let me know if you have any further questions.
|rapide35: Euclid5, SEP has no connection with Benchmark (BMK), but was formerly known as Persistency. Andrew Morris is the MOIL board representative of Persistency/SEP, which has the right to appoint one director. BMK has the right to appoint two directors, but its appointees seem to resign within a few months of their appointment and it currently has no board representation as far as I am aware.
Saturn5, I can't quantify the chance of there being a vote against delisting, but at present I can't see any source of funding other than the four controlling shareholders.
Following a vote for delisting the BOD has to take the required steps to delist. It doesn't happen immediately and the timetable should be announced, so you should be able to sell before delisting - provided that there are any buyers by then of course.
On a vote to delist I would expect the share price to fall. On a defeat of a vote to delist I would also expect the price to fall. Can anyone think of any reasons for the price to increase after the SGM, whichever way it goes?
I suppose that you might want to wait to see whether an SGM is actually called because, if it isn't, it means that MOIL must have found a source of funds that satisfies the lenders. An SGM requires 14 days notice.|
|squiresquire: this company was never ramped up, i along with others posted material here recently showing MOILS potential, it was all true, mainly cut and pasted from the company web site, brokers reports and news pieces.
People read the info and realised the company was cheap, they bought and the share price went up a little, but still well short of its potential. Well short.
Then the company made an RNS in effect blaming the rise on blogging sites like this one. They never mentioned the just and natural effect to the share price of investors moving in ahead of good news, ie the imminent Environmental Permit. This permit had been flagged by the company for years as vital and financially empowering.
Today the Permit was granted and THEN the company tells us it may have to go into liquidation or delist from AIM in order to survive. This cannot be legal, the shareholder with 60% is apparently able to put us in this position if i have read correctly.
Anyone any view?|
|theclangers: MOIL's prospect
By StockMarketWire | Thu, 18th February 2016 - 09:46
Madagascar Oil is facing the possibility of having to delist from AIM if it agrees necessary funding with major shareholders who also constitute lenders representing about two thirds of the company's loan value.
Following talks in January and early February, the company's lenders advised they were not prepared to provide the full amount available under the Second Tranche of the Bridge Facility, but some had indicated they may provide some further funding, subject to additional conditions.
At Dec. 31, 2015, the company had about USD2.8m in available cash and USD1.5m trade and other payables due during Q1 2016. It urgently needed to secure additional financing in early 2016 to continue operations and to allow the company to operate as a going concern.
"The terms of any further financing, which may be in the form of equity or further debt, are still being discussed with the Relevant Lenders, but one major condition being imposed by them in the discussions is that the Company agrees to call a Special General Meeting to propose the delisting of the Company from AIM.
"An update with regard to these negotiations and any further funding will be provided in due course.
"Shareholders should note that, should agreement not be reached with the Relevant Lenders and Relevant Lenders do not agree to provide further funding to the Company, or they call an event of default pursuant to the terms of the Bridge Facility, the Company would urgently need to secure additional financing.
"In the absence of alternative funding being made available, the Board believes that it is probable that the Company would become insolvent and would need to seek a winding-up order in the Bermudan Courts in the very near term.
"Should financing be secured from the Relevant Lenders, shareholders in the Company should expect that the Company would call such a Special General Meeting to approve the Delisting. The Delisting would require the approval of at least 75% of the votes cast in the Special General Meeting.
"Relevant Lenders who have insisted on the calling of this Special General Meeting, as a condition to any financing, currently represent approximately 60.5% of the existing common shares in the Company."
The Company is also pleased to announce the granting of the Environmental Permit for the Tsimiroro Block 3104 Phase 1a Exploitation by the Office Nationale de l'Environnement ("O.N.E.") of Madagascar and the signing of the Environmental Management Programme ("PGE"). This is the first Environmental Permit issued for an oil exploitation project in Madagascar. At 9:46am: (LON:MOIL) Madagascar Oil SA share price was -1.25p at 2.25p|
|squiresquire: The company did not slam the brakes on, they certainly tried to but i think that for sure Robert Estill doesnt spend his day watching MOIL share prices,it was the MMs who must have asked for a clarification RNS off the Nomad because as you can see the virtual non-existence of free float shares must make this an absolute toad to manipulate for the MMs when its moving quickly. They wanted time i feel to get more shares.
Just give it until he RNS and i am expecting 20p at least because the Permit will allow any interested companies to finally see capex - opex in the latter part of this year when they will possibly be marketing.|
|squiresquire: MOIL is allergic to being stuck between 4 and 8 p you just watch it move when the news comes in, i have been watching this for years like PANR, but i genuinely think this is the better share price potential, not least because it has this ridiculous Market Cap.|
|cacher01: With an information memorandum now finalised and a technical data-room opened, the company notes "steady progress... with interest being expressed by a number of credible parties. A clear timetable has been established and the process is currently expected to run through to the end of 2015, with the target of finalizing any transaction by the end of Q1 2016".However, it also reports that a $5 million working capital facility announced a few months ago "has been fully drawn down and is scheduled to become repayable, including accrued interest, on 6 October 2015". This sees the company now seeking "appropriate intermediate financing in the near term and... currently considering alternative funding options, including the proposals from certain of our existing major shareholders".In an industry climate which the announcement describes as both "adverse" and "difficult" , such a funding position is not the place to be right now and the share price falling to a current 5.25p-5.5p reflects this.This was not the position we anticipated by this time when re-recommending the shares in October (having banked a pleasing rapid gain previously) and though the company continues to emphasise positive credentials - "the size of our resource base in Madagascar, the recent approval of our Development Plan for the Tsimiroro Block and the long term nature of the Tsimiroro licence (at least 25 years from April 2015)" the reported funding position in the present industry environment really concerns. We apologise, but take the hit and sell.|
|protean: "Andrew Monk of VSA Capital declares that Madagascar Oil (MOIL), affectionately referred to as Mad Oil, is the cheapest oil stock he has encountered this last thirty years. He might be right in so judging – I do not know. What is certain is that we may be on the cusp of the great oil juniors share price fightback. If so, it would be mad not to be oil involved."
|aaainvestment: Someone the other day mentioned that it will be a while before we get any catalyst for a significant share price movement, I've been giving that some thought and would suggest the more savvy players in the sector will not need to wait for the DoC before deciding it for themselves.
Whatever MOIL think, it will be down to some very rich player to commit to the multi-billion pound investment necessary to develop the field so MOIL's submission needs to be very sound even if the government would love to just rubber stamp it to get the oil flowing, the Madagascar government are probably not the ultimate targets for acceptance of the Full Field Development plan, MOIL can't do it on placing, Chevron, Total or the like will need to be impressed!
I have been looking for examples of other Steam Floor Pilot results to compare flow rates but as a novice can't determine if the flow rates are on a par.
I recall reading that in the mature US fields they drill hundreds of wells and have relatively low flows rates. It's the huge scale and efficiency that makes the numbers stack up. I'm sure industry insiders will be able to hazard a very good guess and If it's deemed commercial IMO we could we may already have the catalyst for a steady rise in share price
Any major buyers(there doesn't appear to be any currently) will accumulate steadily and patiently, there's no point mopping up the few shares in the open market as the big shareholders will block any sizable stake being build up - I fully expect the share price to show strength in the coming weeks, nice and steady will do fine.|
|christianf12: You think he will still be posting here if MOIL share price goes up?
He will have another username by then.|
Madagascar Oil share price data is direct from the London Stock Exchange