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MAGP Magnolia Pet

0.30
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Magnolia Pet LSE:MAGP London Ordinary Share GB00B63QSF76 ORD SHS 0.1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 0.30 0.20 0.40 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Magnolia Pet Share Discussion Threads

Showing 7126 to 7146 of 7225 messages
Chat Pages: 289  288  287  286  285  284  283  282  281  280  279  278  Older
DateSubjectAuthorDiscuss
01/5/2018
13:00
Wonder where the bottom is with MAGP? Zero?
papillon
24/4/2018
16:04
A note on the bank borrowings:

The Going Concern note 2.3 in the 2016 Magnolia Annual Report (worth a read) included the following:

"At the year end the Group was in discussion with Bank SNB, the lenders of the Group’s $6 million revolving credit facility, with regards to agreeing certain waivers of, and amendments to, the Group’s facility due to non-compliance at that date of financial and other covenants. Discussions also included an extension to the facility’s maturity date that was originally due to end on 7 March 2017 but was extended to 8 June 2017 by Bank SNB. At 31 December 2016 the Group’s borrowings under the facility amounted to $2,638,447."

"A request for a longer-term extension to our Facility is currently being processed by the Group’s Bank"
"The borrowing base limit liability of $1,604,565 is due for repayment in full on 8 August 2017 and the decision to extend is at Bank SNB’s discretion.

"The Group’s cash flow forecasts and projections prepared up to 30 June 2018 show that the Group has sufficient funds and facilities to fund its current ongoing operating costs and the scheduled principal repayments plus interest of the borrowings in excess of the borrowing base of $1,604,565.""Aditional funds will be required if Bank SNB require repayment of the borrowing base liability on ON 8 August 2017"

The audit report was more emphatic.

"The company’s ability to continue as a going concern is dependent on continuing support from its lenders and its ability to raise funds on the open market. These conditions, along with the other matters explained in note 2.3 to the Financial Statements, indicate the existence of a material uncertainty which may cast significant doubt on the Group and Company’s ability to continue as a going concern"

ettienne1951
23/4/2018
16:10
I remember, Ettienne1951, back in late 2012, when the MAGP was riding high at circa 5p that the so called "maggots" were looking forward to meeting up for a party when the MAGP share price reached 10p. They expected that target to be reached in a matter of months. However since that circa 5p high it's been downhill ever since for the MAGP share price And the maggots can't put the blame for that solely on the lower price of oil because the MAGP share price had already fallen to 1p by the time of the OPEC meeting (late 2014) that led to the big fall in the price of oil.

Taking into account the recent 100:1 consolidation that 10p party the "maggots" were keen on back in late 2012 has become the 1000p (£10) party! LOL. Since late 2012 the MAGP shares have LOST 99% of their value.

Yet the "maggots" are still living in Cloud Cuckoo Land! They talk of MAGP coming good if the oil price hits US$100 again, conveniently forgetting that the MAGP share price lost 80% of it's value, from late 2012 until late 2014, when the oil price was circa US$100. If MAGP couldn't make money back then why should it ever make money?

RW and family are on a nice little earner courtesy of the "maggots". It's hard to blame RW for taking advantage of these gullible idiots.

papillon
23/4/2018
15:24
Papillon

Perhaps it's to find some solace from the mentality of being closely attached to a share for a long time, possibly having averaged down; a kind of wishful thinking acting as joint encouragement. As for the recommendation today to buy-back shares, it's either delusional or displays a total inability to comprehend the importance of the management of a company's liquidity and spotting the warning signs of existential danger.

This company is playing to the tune of its lender, not the shareholders, and with reason. They need to read the note relating to 'Going Concern' in the last annual accounts. They need to calculate the appallingly low current ratios.

Perhaps they should take off the rose-tinted glasses and take a hard look at the CEO's interview here soon after they listed late 2011. She set out the milestones but just what have they achieved in that time for shareholders?

And the comment at 2.33 is a scream. " We are really conscientious about dilution"
In Jan 2012, there were c560m shares in issue; for comparison, that's the equivalent of 5.6m post-consolidation. In December 2017, they placed 8.6m shares to raise a paltry $300k and increased the total shares in issue to almost 35m - that's more than 6 times what it had been five years earlier, representing a balance sheet which shows there is nothing attributable to shareholders.

Perhaps they'll take note that the share price per this 6-year-old video was 2.5p. The share price today is 2.5p but there's been a 100:.1 consolidation in the meantime. Market value has dropped in that time from $15m to sub $1m.

ettienne1951
23/4/2018
12:59
Unfortunately the 3 "maggots" who have posted on the lse MAGP bb today are very gullible fantasists who can't face up to reality. They must be losing shed loads of money due to their gullibility over the years.

How Guidedog7, Robsky & smidsy can believe that MAGP could instigate a share buy back is beyond belief. I'm sure their lenders, who keep them afloat, would NOT allow that even if MAGP had the available cash. I'm afraid the 3 of them are Walter Mitty's just clutching at straws. Their trusting stupidity is mind blowing.

Some people are so gullible that they should be prevented by law from investing in shares to protect them from their own stupidity.

MAGP is a family (RW and family) run business that depends on gullible suckers (the so called maggots) to provide the funds for the BoD salaries & expenses via endless placings. I don't blame RW; rather I blame those gullible investors who still can't see the wood for the trees after all these years. I find their continuing stupidity simply amazing.

Guidedog7 also suggests that RW & the rest of the BoD should "put their hands into their pockets" and buy MAGP shares. LOL. Unfortunately they wont do that, Guidedgog7, because they are NOT as stupid as you and the other "maggots"! LOL.

papillon
23/4/2018
07:51
I'll defend someone's freedom of speech any day even when I disagree with them. That doesn't mean I have to read someone's invective in print littered with expletives and I'll block them every time.
ettienne1951
23/4/2018
07:14
I noted a regular contributor on LSE has today suggested two options to lift the share price. One of those options was quote: "create a buyback to reduce the number of shares in the marketplace." unquote.

Is this poster serious? Do they know the reason for the decline in the share price? Have they read the annual report? Even the latest operations update gives a clue. It's to do with cash generation and chronic levels of indebtedness both to its lender and its creditors.

The company has never paid a dividend; it's desperate to conserve cash but an investor suggests a way to reverse the share price decline is to drain the company of even more cash and for it buy back some of its shares. Really? One former American Gand Slam tennis player of the 70's and '80's, renown for his dislike for linesmen's dubious ball out calls, might have put it differently.

ettienne1951
22/4/2018
11:32
reallyrich re 1719

Yes, I see reference in the January 2018 reserves report:

Quote: "Change in total net PDP reserves due to:
- The divestment of interests in the 13 Sympson Wells to align portfolio with counties that qualify for investment under the US$18.5m capital management agreement with Western Energy Development LLC (‘WED’) and to pay down debt – as these were increased density wells, all 13 had been included in the January 2017 report
- divestment of a number of non-core and low valued wells" Unquote.

The divestment referred to here was announced to the market in July; that is after H1 2017 which gave the number of producing wells as 159. The July announcement gave the number of wells divested as 19.

As the latest Q1 / 2018 announcement gave a count of 119 producing wells, the status of 21 previously producing wells (159-19-119) is not accounted in the Q1 2018 update.

The update added:
" The full list of well developments occurring are still ongoing and a list will be provided in due course." (Awful syntax!) I presume that statement in the Q1 Ops update means that the management is still working on a list of wells with their status and that they will release that information to the market when it's completed.

It really would be useful to have an idea of the total production from all the producing wells, to know the total weighted average working interest % and the production attributable to that interest, as well as a list of non producing wells and their status - i.e. shut-in, being worked over or uneconomic.

ettienne1951
20/4/2018
13:40
When I have time I will find it for you
reallyrich
19/4/2018
14:44
reallyrich re 1717

I'm not sure of the context of the point you are making. Yes, the company did sell some wells last year. My point was:

The reported count of producing wells at the Interims Sep 2017 was 159.

The only reported divestment of wells was prior to that date in July 2017.

Between September 2017 and March 2018, the producing well count dropped to a reported 119.

As there are no reported divestments between September 2017 and March 2018, the fall-off in the number of producing wells must be due to shut-in, work-over or exhaustion.

ettienne1951
19/4/2018
08:23
We sold a lot of wells last year
reallyrich
17/4/2018
17:52
A company-wide Q1 operations update, one that is not just confined to operations on behalf of WED, has just been released and it contains some clues to what may be expected in the annual accounts 2017. My view is that they have been 'treading water' in the quarter.

A mixed bag of announcements some of which, interestingly, go into some detail about financing.

On cash flow:
"... the Company is producing positive cash flow from its existing operations and this is expected to increase further since revenues lag oil prices by a number of months." This is on the back of the rise of the price of WTI. As I've mentioned in my earlier post, significant positive cash-flow (driven by volume and a higher oiil price) is key as the balance sheet is in a parlous state with incredibly low current ratios including significant debt and negligible equity. So the question is what is the quantum of that cash-flow? All will be revealed in the annual accounts. Of some comfort iis the Nasdaq is reporting WTI crude futures jin the upper $60's by a suspected decline in U.S. crude inventories and by the ongoing risk of global supply disruptions.That's abput 17% above it's low in the first quarter.

They also reported that ... "Working capital continues to be managed carefully in light of future planned participation in wells." It will be interesting to see how that translates on the balance sheet. My guess is that they are holding back on investment to conserve cash.

Of note in that connection is this announcement ... "Debt reduction programme ongoing and the Company is considering further non-core disposals." As I predicted in a previous post, this would be a fund-raising resort in the event that the new equity placing route was blocked by virtue of the low share price and I think there could be a divestment announcement before the 2017 final results are published in June.

Interestingly...

The company has just reported: "119 producing wells in the Company’s portfolio as at end of Q1 2018.." They don't seem to have advanced much since their goal more than 5 years ago was 100 producing wells and but then the balance sheet was in a much healthier shape.

That Q1 well count compares to the last announcement of producing wells in the H1 interims released in September:

" Interests in 159 producing wells in proven US onshore formations (H1 2016: 151)."

If we are comparing like with like, then since the last divestment of wells to raise liquid funds was last July and there have been no further divestment announcements, perhaps the apparent reduction of 40 in the company's producing well portfolio is due to shut-ins or some may be some be at the end of their economic lives or some are non-core and being prepared for disposal. Hopefully, clarification will come from future announcements.

Interestingly, they report that the "Company is in the process of renegotiating its bank loan."

In June 2017 in the annual 2016 accounts, it was reported:

"A request for a longer-term extension to our reserved based lending facility (‘the Facility’) is currently being processed by the Company’s bank. The Bank continues to view the Facility as part of a long-term relationship with Magnolia. In line with this, the Bank has agreed to extend the Facility from 8 June 2017 to 8 August 2017 while it processes the appropriate paperwork, loan documents as well as the relevant financial and reserve report information that has been provided by Magnolia’s management. As a reminder, the current ratio covenant was already waived until further written notice by the Bank."

At that time, the company was reporting borrowings of $2.638m (all repayable in 1-2 years) having repaid $516k in that year. Six months on, at the H1 interims last September, they announced that $77k had been repaid. They then raised $300k at the December placing. and they currently report that a "debt reduction programme" is ongoing, The annual 2017 accounts will make for interesting reading.

They are now reporting that "Since the last extension, the Company’s bank has been sold and negotiations are slower than previously experienced." The question is how 'conservative' will the new bank be compared to the previous lender and will they be as amenable as the old bank to waiving the 'current ratio' which was 0.19 at H1 down from 0.22 at Dec 2016. Will they be looking for guarantees as well as charges over cetain assets such as the reserves.?

I suppose the WED agreement might give them some leaverage.

Finally, on the subject of WED agreement, the company reported ....
"Activity during the quarter has been centred on investing the first US$500,000 of our exclusive US$18.5 million agreement with WED into qualifying leases in Oklahoma"
By the look of it, the activity wasn't completed as they also reported in their forward-looking Outlook statement ...
"Acquire additional leases via the ongoing investment of the first tranche of WED funds."


These are my opinions: DYOR

ettienne1951
04/4/2018
13:20
I can't see the company placing any more shares to raise funds at these levels if it wished. To raise say $300k as last fund-raise at say 2.25p, it would need to issue 13.3m shares, adding to shares in issue by 38% - a massive dilution of equity. Even if raised, it would just cover the cost of bank debt and loan repayment over 6 months. That the share price is now so low is the reason why I believe that fund-raising route is now blocked.

My view is that unless they are able to generate some decent cash flow from operations, the next fund-raise will be by further divestment of wells as long as PDP reserves permit without affecting the bank lending covernant.

The WED tie-up looks to me more like a stop-gap alternative on a drip feed basis than a game-changer. It provides Magnolia with some third-party asset management income and a small stake in WED's sliver of well interests on every $500k of funds managed. It announced that it had acquired leases as part of the $18.5m agreement with WED. That kind of headline might be attention-grabbing and intentionally so but a word of caution: there's been just one pilot and one tranche of $500k managed for WED in the best part of a year. Just how much cash has been generated for Magnolia out of that? 'Value created' isn't the same as cash banked but provides collateral for bank lending!

The more I look at this arrangement, the more it reminds me of a patient on life support!. Its liquidity is in a parlous state, burdened with so much debt and other current net indebtedness (trade and other creditors less debtors). Any recovery is, in my view, going to require either a major increase in the price of WTI or a significant and sustained long-term boost to production otherwise it looks to me like terminal decline.

This was touched on in the last annual report when it was stated under 'Going Concern':

....... "The company’s ability to continue as a going concern is dependent on continuing support from its lenders and its ability to raise funds on the open market. These conditions, along with the other matters explained in note 2.3 to the Financial Statements, indicate the existence of a material uncertainty which may cast significant doubt on the Group and Company’s ability to continue as a going concern......."

For reasons already mentioned, I question whether the company currently has the ability to raise funds in the market and that that plank of support may no longer be available.

... "The Group was non-compliant on all covenants, as a reminder, the Bank has waived the current ratio covenant until further written notice. Funding future growth will however be via the Group’s own generated cash-flow, wherever possible...... " However, at the time, the directors reported that based on projections, they had reasonable expectations that the Company and Group had adequate resources to continue in operational existence through 30 June 2018 as projected."

As the share price collapses, so the value of WED's 7.6m consideration shares in Magnolia shrinks - originally a strategic 29% stake but diluted thanks to the December fundraise. Their value last July, when the deal was struck was c9p a share, now down 65% and they are locked in until July 2019.

Approx 11 weeks to the final accounts when more will be revealed. By then, I expect to see Capital & Reserves turn negative on the balance sheet - not exactly inspiring after more than 6 years since first listing. All they can show sharehlders for their millions invested in that time is a decimated share price and zero dividends. That state of affairs seems to be summed up by their contact address: a PO Box in Broken Arrow.

These are my opinions. DYOR

ettienne1951
21/3/2018
15:16
Yes, I saw a post on there today, that it's been only 5 weeks since the last RNS. It must have escaped that poster's attention that the share price has fallen by 9.5% in 6 working days - currently 3.4p.
ettienne1951
21/3/2018
12:41
I see the Walter Mitty's (the so called "maggots") are still posting their deluded hopes on the lse bb. Fantasists!
papillon
21/3/2018
12:36
Down and down she goes.
papillon
13/3/2018
20:02
The share price has fallen by 15% (to 3.75p at the date of writing) from 4.38p at the time of the December placing, when new shares were issued @ 3.5p net. That placing increased the total shares in issue by a whopping 25% and raised just £300k (say $400k if $1.33 / £1) such is the measure of the company's decline. The company's annual interest cost alone would shallow up about 1/3rd of that and that's not allowing for any repayment to reduce it's $2.5m borrowings or capex.

Its predicament in my view is that unless something substantive is reported to the market, the ability to place further shares to raise funds, if it wished, will have passed for the foreseeable future.

Creditors and bank debt were x5 times equity at the interims.

With a desperate - looking balance sheet and cash generation, the company must improve its oil and gas reserves on which its borrowing depends but time isn't on its side.

So much now depends on improved operational cash generation.

It will be interesting to see how much progress the company makes, especially given the much-vaunted tie-up with WED announced early July 2017 - getting on for 9 months ago.

ettienne1951
03/3/2018
16:16
I miss R G Fletchers rumbustious tirades..Not been heard of for quite a while..the men in white coats must have paid him a visit!!!
grannyboy
03/3/2018
15:46
What a load of waffle. Why waste time and effort on a load of rubbish like this.
lord gnome
23/2/2018
11:02
I also got out long time ago now. Popped back to have a look after years. What a mess.
pretax2
22/2/2018
11:55
No problem, mauricemonkey. Thankfully I got out of MAGP in 2012 at around 4p. I was cursing at the time because the share price continued to rise to 5p (or = to £5 taking into a/c the subsequent 100:1 consolidation). However, with the benefit of hindsight I thank my lucky stars I got out when I did and stayed out!!!!!!!!!!!!!!!!!
papillon
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