Niche Group Share Discussion Threads

[peckhamrye1] 11/11/2013 16:13

Thanks West for letting me know..

[westmoreland lad] 11/11/2013 15:56

pecks --------

Martin Lampshire
Head of Corporate Broking

Daniel Stewart & Company Plc
Becket House, 36 Old Jewry
London, EC2R 8DD

Telephone: [phone]
Direct Dial: 020 7776 6574
Fax: [phone]
email: [e-mail]

[peckhamrye1] 11/11/2013 15:25

west.. where is that release from please?

thx

[susdit] 11/11/2013 12:38

Many thanks for sharing W-lad

[westmoreland lad] 11/11/2013 12:08

$150k a month gross revenue. Think I'll leave it in the 'written off' draw.

Numb Nuts doing the same -- ( just rang him )

[currypasty] 11/11/2013 11:50

what do you think westy?

[westmoreland lad] 11/11/2013 11:32

Sorry no link -- released an hour ago --------------

Currently an investing company with three investments:
– 5.0% interest in ARAR, a Turkish vertically integrated oil and gas company and one of
the largest petroleum licence holders in Turkey, 95% owned by S. Fatih Alpay ("SFA")
– 5.0% interest in Alpay Enerji AS, a Turkish oil and gas company formed by SFA which
now holds 100% of the participating interest in seven petroleum licences in Turkey
(the "Seven licences" - three in the "Hatay" area of the Iskendrun Basin (Blocks 4394,
4395 and 4396), three in the "Adana" sub-basin (Blocks 5098, 5101 and 5102) and
one in the "Konya" area of the Tuz Golu Basin (Block 4077)
– A non-performing £18.6M loan note in Oman Resources, an Irish incorporated
mining and exploration company.
Purchase of 75% of AE for
– Cash consideration of $4mm
– SL commitment to fund existing license work programme and any future
licenses held by AE.
– Free carry on all costs in current and future work programmes to SFA
– 9 additional licenses to be transferred into AE from ARAR
– Refund of up to $2mm cash by SFA if all license transfers not completed
within 6 months
– 20% net production royalty to SFA capped at £85mm for lifetime of existing
and transferred licenses.
SL estimate
– Increase in production from current 250mcfd and 60 BOPD to 10 mmcfd and
100 BOPD by end Q1 2014
– Generating monthly revenues of approx. $3mm
– Upside of 440bcf on proven, probable, possible and contingent resource
from existing licences.
• Initial (at least) work programme(s) financed
• Revenue generation estimated by SL from end Q1 2014
• Valuation of AE assets underpinned
• All at no dilution for shareholders
• We are offered:
• Exercise of our tag along rights
• Maintain existing shareholding position, with associated costs
• Granted to Niche at time of acquisition of Niche initial acquisition of
5% shareholding in AE,
• Commercial terms must at least mirror those for SFA with the result
that
– We sell 79% of our 5% shareholding in AE to San Leon to result in
a 1.05% shareholding
– Cash consideration received of $210,667
– Free carry in all costs, to include current and future work
programmes for AE licenses
– 1.05% of gross revenues (less taxes) paid monthly in arrears.
• Niche will be responsible to pay 5% of all costs, to include current and
future work programme costs to maintain shareholding percentage in
licenses
– Based on SL estimates*, current programme costs to Niche
estimated at between $925k and $1.25m for next 18 months, with
additional Niche working capital requirements.
– No cash consideration
– 5% of gross revenues (less taxes) paid monthly in arrears.
• For current work programme.
• At 5% retained interest (and assuming a contribution to capex of
$925,000 ):
– Cash flow of $150k pm / $1.8mm pa (gross of taxes etc)
– At 10% discount rate, NPV over 11.9 years = $11.80M
– At 5% discount rate, NPV over 11.9 years = $15.17M
• At 1.05% retained interest (and assuming a free carry on capex):
– Cash flow of $31.5k pm / $378k pa (gross of taxes etc)
– At 10% discount rate, NPV over 11.9 years = $2.66M
– At 5% discount rate, NPV over 11.9 years =$ 3.37M
(*Assumes flat total production revenues of $3mm/month as per San Leon estimates through life of
wells.)
• IF can raise say £1.25m
– Maintain existing 5% position in AE licenses, with monthly
revenues (gross of taxes) of $150K from end Q1 2014 based on
San Leon estimates
– Seek reversal candidates as clean shell
– Intention to relist reversed business, target end Q1 2014
• IF cannot raise financing
– Will be forced to accept San Leon offer and reduced
circumstances
– Less attractive shell candidate.
• £1.25m at 1p per share, valuing Niche post money at £8.475m
• Attaching warrants at 1p on a 1 for 1 basis with 3 year life
• Contrast with current work programme revenues (based on SL
estimate) to Niche with NPV of $15.17m (say £ 9.36m)
• Funds company through to reversal relisting, targeted for end Q1
2014
• Upside of other AE licenses, both held and future granted

[welsh2] 09/11/2013 09:24

Reading it if they keep 5% it appears they are legally obliged to pay 5% of investment costs towards the investment in Alpay Energi

[peckhamrye1] 09/11/2013 09:15

Niche haven't told us what happens after they get the 2mil.

Are they going to relist...

If niche don't get the 2 mil what's it matter how can they be forced to sell.

Why don't sle incorporate or take over NGp in a share swap, at least w would all get something....

Imo

[welsh2] 09/11/2013 08:30

I see on San Leon website they are going in for wells somewhere in Morocco as a small partner with a larger company Cairn Energy - see 28th October news article

[peckhamrye1] 08/11/2013 20:44

I just read it.... Be a right pain in the backside to sle having us lot stay there, but, they have to get the 2m together, Maybe John mckeon will put his hand in his pocket and hElp us all out.

Imo

[welsh2] 08/11/2013 17:17

Update on website

[solarno lopez] 30/10/2013 11:20

Your posting makes sense Vata

[vatacarma] 23/10/2013 14:50

As we have not received an update for some considerable time we must assume that the Board has failed in its endeavours to raise funds for the company.

Which leaves shareholders in a very unfortunate position

[welsh2] 20/10/2013 10:14

read in the report about a legal term called tag along rights and NGP has them. Any thoughts?

[t-raider] 18/10/2013 22:49

I see San Leon got approval for their second placing... that's £30 million in total for the 75%... wonder why they could get funding for a deal we couldn't !?!Will them now moving ahead with the deal help us or be the final kick in the nuts ?"T"

[hermana3] 17/10/2013 16:38

The_Many thanks.

[the_curmudgeon] 17/10/2013 16:23

hermana3 17 Oct'13 - 14:29 - 6121 of 6123 0 0

Anybody know where san leon EGM is being held tomorrow?

======

It's tomorrow. Friday 18 October 2013 at 11.00am in the Herbert Park Hotel, Ballsbridge, Dublin 4, Ireland.

[peckhamrye1] 17/10/2013 14:41

v. thought provoking posts..the chain of events is quite astounding....i hope sle's investors read all that...

is the timing of this doc coincidental to the sle egm??

also, am I right in reading there were legal agreements, andf that the asset hasnt been proven up to the value ngp needed to get finance, in which case how did sle prove it up to get funding... have sle even got funding.. wouldnt a doc like this raise questions?

or did i just read that wrong...

all my own opinion... etc.

[bones30] 17/10/2013 14:31

herm, I agree, am amongst those burnt fortunately for not too much.