Parkmead Share Discussion Threads

[robs12] 30/11/2018 19:48

I just threw this up on the FPM board but should probably put it here too, ref the DNO bid for FPM:


Remember how Graham Stewart (FPM CEO) used to be CFO of Dana, recruited by and working for Tom Cross...Dana taken over at well below what they thought it was worth.

And Tom Cross is now CEO and major shareholder at PMG, who have held ~1.1% of FPM shares for some years (why?).
They appear to be good mates.

And FPM relinquished their stake in GPA area (Perth & Dolphin) and PMG picked it up in February to give PMG 100%. FPM wrote down $6.4m for that.
And "GPA is one of the largest undeveloped oil projects in the North Sea" according to PMG, and they are in commercial discussions with Nexen to use Scott as a tieback to produce with "1st hydrocarbons currently planned for late 2021".

Unrisked GPA value £372m according to Panmure Gordon.

And PMG mkt cap is £56m with approx £24m cash and £6m FPM shares, so just £26m for GPA (and more).

So if a FPM merger or takeover is needed to fend off DNO, and a GPA development deal is closer than we think....

Just sayin'... ;-)

I hold both.

[robs12] 29/11/2018 23:30

Never mind a nice update...
£1.50 before YE. That is all that matters.
There's a bottle of wine at stake here!

[chutes01] 29/11/2018 07:27

nice update before YE

[mallorca 9] 28/11/2018 22:17

Onwards and upwards. PMG do seem to be holding some strong cards with a shrewd operator at the helm.

[robs12] 28/11/2018 22:05

Mallorca - indeed!

Tournesol, ref post 7678 - and one has to wonder why PMG have held that FPM stake for so long.
It is quite unusual (IMHO) for a small AIM O&G to hold a reasonably sized stake in another O&G. It effectively means that they believe the returns will be better than if they use the equivalent cash themselves...unless there is some other motive.

[mallorca 9] 28/11/2018 21:32

Either way - I'm confident TC is doing the best for PMG

[mallorca 9] 28/11/2018 21:30

The RNS did read like a short holding declaration - but I don't have a great understanding of that.

[mallorca 9] 28/11/2018 19:59

Ok thanks for the clarification.

[tournesol] 28/11/2018 17:18

Mallorca

I do not know whether PMG has loaned its FP stock but your question seems to be mixing things up.

Lending stock is absolutely NOT "taking a short position" as you describe it

it is in fact the exact opposite

it is maintaining a long position whilst making a profit out of shorters who are paying to borrow the stock.

T

[mallorca 9] 28/11/2018 16:56

Are you sure that TC hasn't taken a short position in Faroe, ie loaned the shares out ?

[tournesol] 28/11/2018 16:37

If you are wondering about PMG's likely reaction to the Faroe Petroleum bid, you need to be aware of two things.

1) The CEO of Faroe Petroleum, Graham Stewart, used to be the CFO of Dana Petroleum. In that role, he was recruited by and reported to Tom Cross who was the founder and CEO of Dana. The two men had an excellent working relationship and were very close. I think that Dana had a significant holding in FP and that GS was originally nominated to the FP board as a non-exec to represent Dana's interests whilst he was employed by Dana. (Can't readily find substantiation for this, so memory errors and omissions are possible). PMG has been a staunch shareholder of FP for years, so I'd expect the relationship between GS and TC to have been maintained.

2) Dana fell prey to an unsolicited hostile bid from a state oil company - KNOC. Cross fought it tooth and nail. The predators made it clear that they would be generous in his severance package if he surrendered but that if he did not surrender they would treat him without generosity. He carried on fighting. He lost. Dana was taken over against his wishes. Cross was understandably really not happy about it.

Given the above I do not expect Cross to support the Faroe bid. I expect him to support FP and his old comrade and give the predator a black eye.

[bountyhunter] 28/11/2018 16:10

value 3,888,072 * 1.573 = £6.1m

[bountyhunter] 28/11/2018 16:08

yes that's what I assumed

[fhmktg] 28/11/2018 16:05

Just a statement of PMG's holding in Faroes.Once a takeover offer is made, any holder of more than 1% has to publicly announce their holding and any trades they make in shares or options during the takeover period.You can calculate what PMG's stake is in Faroes is worth from the data.

[bountyhunter] 28/11/2018 16:02

lol, I just read the duplicates(?) as well, seems to be just a holding statement?

[mallorca 9] 28/11/2018 15:53

Anyone able to explain that RNS?

[tournesol] 28/11/2018 15:14

PMG is one of the few companies to post external research and comment onto its website. It has recently added three new press cuttings.

16/11/18 - Pro-Active Investors article
Parkmead posts 70% jump in full-year revenue, gross profit more than trebles…

16/11/18 - Insider.co.uk article
Tom Cross's Parkmead 'intensively' looking at acquisition deals

1/11/18 - Press & Journal article
great year for north-east oil & gas entrepreneur

Not a lot of fresh insight and not much in the way of new information but worth reading nevertheless. One snippet is the suggestion that PMG might diversify into some new area of activity outside oil and gas.

See for links to full text of articles.

[fardels bear] 28/11/2018 10:06

I was referring to this:

"Tom just needs to invest the money sooner rather than later as he has had £25m to spend all year and so far come up with nothing."

You sure you aren't an MM?

[francoismyname] 28/11/2018 08:10

Bet you a grand it’s closer to £2 than 1.52p, ie over £1.75

[fardels bear] 28/11/2018 08:01

Finalised nothing, yet. You don't know what's going on behind the scenes.

[francoismyname] 28/11/2018 07:17

Good response from Faroe to DNO rejecting the 152p offer.

That deal will be settled around £2 as it’s only the first offer.

That extra 50p per share x our 4 million shares will add another £2m to the coffers and swell the bank balance by £8m overall.

Tom just needs to invest the money sooner rather than later as he has had £25m to spend all year and so far come up with nothing.

[tournesol] 27/11/2018 08:44

Come on chaps, better to ignore trolls than clutter up the board with rejoinders to his pointless sniping.

[itscominghome] 27/11/2018 08:02

What positive buy recommendation Francois ?

[robs12] 27/11/2018 07:55

The Hurricane Chairman bought his first shares in the company - good.

TC already owns 19% of the shares at Parkmead. The other directors (and former directors of PMG & subsidiaries) own a further 9%.

Current directors: There are two non execs earning £20K pa. They are on 3 year terms and if they fulfill that 3 years will each get 146,341 shares under the deferred share payment scheme.

Percival & Stroulger earn £152K & £89K respectively, so not huge salaries. They have options (approx 450K & 420K respectively) exercise-able at 35p & 41p.

TC has salary of £509K, and approx 10m options. As well as 19% of the shares.

11 employees hold share options.

They are all well motivated in my opinion!