Urals Energy Share Discussion Threads

[lalria] 17/12/2018 11:57

Great news that - the company need to issue a RNS to make the company financial state as being ok

[djmoggy] 17/12/2018 11:56

Press release by Kononov on the 14th December

This certainly makes interesting reading and portrays a somewhat different view on the precarious position of the company that the recent official news releases have portrayed.

From hxxp://www.petrosakh.ru/


To the shareholders of Urals Energy Public Company Limited:



Dear UEPCL shareholders,



I, on behalf of JSC Petrosakh as its President, would like to address a number of misleading accusations made by the UEPCL Board of Directors (the "Board") in various RNS announcements issued on and after 10 October 2018 concerning JSC Petrosakh and its management.



First of all, I would like to remind you that in 2017, JSC Petrosakh replaced Urals Energy LLC (UEPCL RNS №1319D of 24 April 2017) as the Russia-incorporated management company for all of the Group's operations, as a result of which daily operations were streamlined, adherence to relevant Russian legislation was fulfilled and certain tax advantages were achieved.



I, as the General Director of Urals Energy LLC, became the President of JSC Petrosakh with all the responsibilities and duties permitted and prescribed by the existing legislation of the Russian Federation and Articles of Association of JSC Petrosakh.



As you know, from its inception in the early 1990s, JSC Petrosakh has been one of a few independent oil producers on Sakhalin Island, and operates the sole oil refinery, which produces oil products mostly for local consumption. Historically, JSC Petrosakh also exported products via its own sea terminal, which has been underutilized and presently needs to be overhauled for further possible use.



Previously, JSC Petrosakh would produce a steady revenue stream. However, due to mismanagement, legacy issues and a lack of attention from the Board of UEPCL, JSC Petrosakh has been besieged by underperformance, constant drilling problems, lack of strict financial controls and absence of a strategic vision for its future development. Since 2017, my team and I have spent substantial time and effort to cleanse JSC Petrosakh from past legacies and maladministration, by replacing key personnel, strengthening financial and daily reporting control, and attracting new professionals. We also are in the process of finalizing a long-term strategy for JSC Petrosakh, which among other things, includes strengthening its position on the island by taking control over certain elements of the supply chain, specifically – delivery of value-added products to customers on the island, as well as mainland.



Since my appointment as General Director of Urals Energy LLC, and subsequently as President of JSC Petrosakh, I have spent considerable time on Sakhalin, establishing direct contact with local authorities and business leaders, seeking new assets and ensuring changes in the company. As a result, JSC Petrosakh has acquired the South Dagi deposit, which increases its reserve base and fits into its long-term strategy. Unfortunately, none of the present members of the Board of UEPCL have participated in any of these efforts, preferring instead to stay in London to “strategize221;.



I also structured a deal with the Kholmsk Seaport – one of the largest ports on Sakhalin – with all year direct route to mainland Russia ("Port"). Initially, the Board supported making investments in the Port to ensure additional cashflows to JSC Petrosakh (UEPCL RNS 8504W of 6 August, 2018), however, subsequently my assertive stance in ensuring JSC Petrosakh’s influence over the Port’s board of directors was met with unwarranted and startling resistance from the Board of UEPCL.



Since a bankruptcy application was filed in relation to the Port by its creditor and there were several other ongoing legal proceedings initiated by the Port's creditors, our first effort was to have these actions ceased and operations restored, with the aim of allowing the Port to return to normal operations. JSC Petrosakh also had to ensure that our 23% shareholding gave us meaningful influence over the Port's management and that our strategy for the Port received support from the majority of shareholders of the Port. Finally, considering other hostile stakeholders in the Port our actions had to be swift if we were to secure our investment in the Port. The Port's financial situation is publicly available information and UEPCL individual Directors were informed about it and never objected prior to 10 October 2018. Therefore, the Board’s about-face regarding the issue of active participation in the Port's affairs is illogical and unjustified.



I would also like to address the bizarre statements made by the Board of UEPCL regarding certain loans made by JSC Petrosakh. On behalf of JSC Petrosakh I would like to explicitly state that the mentioned loans made to various parties in the course of business are in full compliance with Russian legislation and corporate procedures implemented by the UEPCL Board in the Articles of Association of JSC Petrosakh. All loans have been well documented and have strict terms attached to them, which we are fully prepared to enforce if and when necessary. Also, none of the loans were a secret to the Board of UEPCL.



I resent the fact that the Board rushed to judgement and even wasted company funds to hire an independent auditor to prepare a report. I believe this report can hardly be considered as a complete and unbiased undertaking due to work on it being suspended by the Board.



Finally, I believe that the financial health of JSC Petrosakh has been negatively dramatized by the Board for reasons unknown to me. I firmly believe that if well managed, Urals Energy Group can and should be profitable, and we are committed to maximizing shareholder value for UEPCL.



The Board makes lots of promises. I ask you to judge our actions.



Sergey Kononov

President of JSC Petrosakh

[amargosa] 14/12/2018 09:42

The BoDs issues the RNS releases, Kononov doesn't have access to that communication outlet. So that was the Bods' initial response to the situation.

Fire East had the same problem, so they had to set up a website of their own to form part of the public discourse.

[martyn9] 14/12/2018 08:41

I would have thought the bod would have issued some kind of response to the last runs, fight or put up the white flag??

[amargosa] 13/12/2018 10:03

The RNS. So the Company gets a letter from its largest shareholder, who is also runnung UEN Operations, asking them to call an EGM. So they should check his ID and DoB then call the EGM iaw Cyprus Law. Then issue an RNS with the details of the EGM, location, timing, resolutions, etc. Instead they issue an RNS before they check any of this and within it threaten to delist via the Nomad. More tactics by the Board? Shock and Awe? Scorched earth?

[amargosa] 12/12/2018 16:49

I remember it being Max Mosely; but I could be wrong....or was it Max Wall?

[canny lass] 12/12/2018 15:57

whu0319Do you mean Fire East Corporation? That involved Maxim Barsky who wanted to merge Matra Petroleum and Urals Energy.

[chavitravi2] 12/12/2018 14:33

I do believe the rig did come from China, they put out some good stuff usually from stolen intellectual property and design. I pretty sure Far East Co. Wasnt a Chinese outfit, just a bunch of chancers, quick quid wide boys. Perhaps others who were here then can verify.

[whu0319] 12/12/2018 13:09

Remember where did they ordered the new rig, Chinese . They should know them very well by now. Funding was never a problem, the current BOD is THE problem ! Check my previous post which I predicted back then !

[whu0319] 12/12/2018 13:06

I still consider this is a well planned taking over by Chinese (pervious bid by Far East Group for 250 equivalent but be vote down by the current DOB!). You will at least all agree that the total asset UEN has is much much more than 250p! now it is less than 30p! BUY if you can!

[amargosa] 12/12/2018 12:42

Chav, so far we have heard only from the BoDs about the state of the Company. They know so little about it they say they need to get some financial firm in to determine what's going on. The Board said the Company would be finished by the end of October. They said Shvets is the Big Cheese. Frankly I stopped accepting what I'm told by one side or the other. I will believe ACTIONS not bumping of gums.

[chavitravi2] 12/12/2018 12:28

I agree with what you say for the most Darren in 71987. But can he pay back? Should he? After all the money that went to the port IS part of our investment and asset that I think we should keep as long term I think it's going to be good.
The money he lent to an employee, (the business is no more than a big shed by all accounts) that should be returned and the money loaned from a bank if the employee wishes to keep the shares or desolve the dodgy Co and transfer shares to UEN pet or art. The main thing for me is directors on the job doing the job and capable of informing us and the market in an illuminated concise upbeat way instead of dreadful and at times destructive manner they do. Also get a one off descent loan to get things going forward quickly so we can properly utilise all we have, I.e new drill rig, workovers, bringing new wells online quicker at both sites and get direct sales at the port going. If a great deal can be done quickly the loan an be paid of quick. A loan of 10-15m is a must for me.

[martyn9] 12/12/2018 11:44

Someday darren :))

[darren81] 12/12/2018 11:38

being self sufficient would mean we wouldn't need loans - that's the dream :-)

[martyn9] 12/12/2018 11:33

It may well be darren, but just thinking of UEN being self sufficient long term.

[darren81] 12/12/2018 11:29

5% above libor is a good rate for Russia Martyn

[martyn9] 12/12/2018 11:26

A long term loan would avoid us having to borrow of petraco at every shipment and pay 5% above libor rate,(yes i know it's a short term loan but all adds up)agreed darren konartist should repay back his ill gotten gains.

[djmoggy] 12/12/2018 11:22

Expanding on what Darren wrote yesterday (Re Vladimir Rusinov and Proxima capital and JSX).

Looking at Promixa's website

Who Are We?
Proxima Capital Group (PCG) is an independent investment firm founded in 2013.
PCG carries out investment and advisory projects in Russia and the CIS.

PCG is not affiliated with any financial or industrial group. As such, we are solely focused on developing our own business through professional asset management and provision of value-added advisory services.

Business Strategy

We invest not only money, but also our time and energy, into assets in need of professional management and financial turnaround. We use advanced business models to help our portfolio assets achieve leading positions in their respective markets. In our investment approach, we focus on identifying undervalued assets which other investors might deem to be too risky. Our goal is to increase the valuation of the assets we acquire through professional financial policies and competent management.

PCG invests its own and attracted funds into distressed assets with strong growth potential, and participates in leveraged buyouts

A cynical investor could say that Konanov has engineered the current distressed position that Ural's finds itself in so that Proxima (via Rusinov) can swoop in on the cheap and facilitate a (leveraged) buyout! Something that was tried at JSX but failed after a long battle with a larger shareholder.
Note Proxima sold all their shares in JSX so have funds for their next investment (or target!).

[darren81] 12/12/2018 11:17

When they say working capital is constrained by these loans, I think this was said to try to force Kononov to pay them off.

Costs for Art over the winter months, ie food/supplies etc, were paid form the last shipment. We get paid for oil at Pet year round, so I don't see any cash constraints there.

I really suspect we can keep ticking over even without the loan money - but for sentiment sakes + increased SP, Kononov needs to pay back.

[martyn9] 12/12/2018 11:14

A big hole brought on and self inflicted by adler/konartist themselves!!

[martyn9] 12/12/2018 11:10

Whoever is in charge we still need a large cash injection to keep afloat,i presume adler/konartist are fully aware of the situation and are making plans to plug a very big hole?

[darren81] 12/12/2018 11:04

I suspect RNSs on loan repayments + drilling at SD + favourable news on the port, re selling fuel, would get us past that chavi.

The share price has been decimated due to recent RNSs, if the new BODs prove they can be trusted by paying back the loans on time and provide a string of favourable RNSs, which are written in a positive way for a change, then this could finally achieve a realistic valuation based on assets rather than just sentiment.

[chavitravi2] 12/12/2018 10:17

Yes but it's going to be a hard push to get over the 130p we were at before the criminal rns in March that destroyed the share price. But you never know if things move on fast given the right capital injection to get things done quickly.

[pwilk47490] 12/12/2018 09:38

If the new team commit to the LSE Listing and at least ease our financial woes (maybe even resolve the 'loan' debacle') then this will recover a lot of last few weeks losses quite rapidly I would imagine?