Well well well, all those financial sections in the papers, Moneyweek etc etc trumpeting the death but-to-let. It your put your cash in a nasty little flat somewhere instead of Caza, you could still eithe
In the past this company seemed to attract an unhealthy number of pumper dumpers (or whatever their motivation was) so to genuine investors (which includes trend traders and the like) only, I say that it is a pity about your loss. I sold at a manageable but unwelcome loss a few years back having fallen for some director spin and I accept I should have known better which I now do.
I've got one ex-AIM gem that predates my Caza experience which is languishing in private company hell and is in a permanent state of 'about to be resurrected' so I know what it is like. Caza at least made a kind of exciting albeit reckless sense as a speculative gamble for those who really could afford it. With hindsight "my" one seems more like a Ponzi scheme but I don't get that feeling with this one. I wouldn't mind so much if I could book it as a good old fashioned loss. One lives and learns and for most of the once (or twice) bitten that includes avoiding AIM like the plague. It'll sting the majority of players sooner or later and generally sooner.
Maybe a sub-exchange for the shrewd with specialised knowledge/experience and cat like reflexes?
Caza Oil and Gas Inc - Your holding of 6,071 Shares
Share Consolidation & Delisting - Important information that requires your attention
What is happening?
We write to you as a holder of Caza Oil and Gas Inc Shares within your Vantage Stocks & Shares ISA. The Board of the Company has proposed a consolidation of its Share Capital. Under the terms of the consolidation every 560,000,000 Shares in issue will be consolidated and replaced by one new Share. At present approximately 95% of the Caza Oil and Gas Shares in issue are owned by Talara Opportunities V LP (Talara). The Consolidation will result in Talara becoming the only registered holder of Caza Oil and Gas Shares, although a number of those Shares will be held on behalf of certain Management of Caza Oil and Gas.
As a result of the Share Consolidation you will cease to be a Shareholder in Caza Oil and Gas.
Will I receive any consideration for my Shares?
Under the terms of the Consolidation Shareholders will receive the following in place of each existing Caza Oil and Gas Share cancelled due to the Consolidation:
US$0.00481 in cash in place of each Caza Oil & Gas Share held
Please note that any cash proceeds received will be initially paid in US Dollars and will then be converted into Sterling based on the prevailing exchange rate at the time of payment, subject to our standard currency service fees.
When will the Consolidation become effective?
It is expected that the Share Consolidation will be effected on or after 10 May 2016. In advance of the Consolidation completing the Company is also proposing to delist Caza Oil and Gas Shares from the Alternative Investment Market (AIM) with effect from 7.00am on 10 May 2016. If you wish to sell your Shares in the market before the Consolidation and Delisting takes place you must do so before close of business on 9 May 2016. Please note that although Hargreaves Lansdown will endeavour to sell your Shares it may not be possible to sell all, or even any, of your Shares if a market for the Shares no longer exists.
Both the Consolidation and Delisting require Shareholder Approval. Talara owns approximately 95% of the Caza Oil and Gas Shares in issue and has notified the Company it will vote in favour of both proposals, which will be sufficient to approve both.
Should you have any queries regarding this matter please do not hesitate to contact us on 0117 900 9000. Please note we can provide factual assistance but cannot provide advice about any action you should take.
AIM provide the framework and loose rules. Perhaps I should have been clearer that although AIM didn't run this company, or any others, they do by their very nature attract a less desirable and professional element. Lesson learned I will stay away from AIM as prospects are generally better in the grown up markets.
"HOUSTON, TEXAS (Marketwire - March 4, 2016) - Caza Oil & Gas, Inc. ("Caza" or the "Company") (TSX: CAZ) (AIM: CAZA) has noted the rise in the Company's share price and is not aware of any reason for such movement. "
I've just skim read a few posts before other distractions get me. It's been a wildly good time for many a resources share of late, see Lonmin for example which was also as good as written off not so long ago. Not sure about oilies but I keep an eye on the share price here out of curiosity. If in Caza's case there was something of substance to that would be uplifting as much as it would be novel for AIM.
I would rather not answer your question in a crystal clear way but I think you know me well enough to surmise which button I would be pushing right now (probably before now truth be told). I might hold some back and if that added up to quite a lot I would be trying to speak to at least two people in the company early next week and that despite the limitations on what they can say. I would simply want to listen to what they can say.
To be frank, I just don't get the rise given the info in the public domain to date but that's the stock market for you. Hopefully not just momentum but then it should be in the public domain already.
I struggle to see any reason for a rise - even with news. Good luck to anybody who bought around the lows though.
The issues, to me anyway, are twofold.
1. The financiers hold approx 98% of the rather enlarged equity. The debt for equity swap saw to that. Thus it needs mammoth improvements in prospects to have any real significant fundamental impact.
2. There is an intended delisting. This will suitably lock in any remaining holders for ever. Though there appears to be no news on that either way and it should have been done when the refinancing completed.
First of all, a long overdue hello to my friend, Indy, AKA Steve the younger.
I've been out of Caza, but watching closely from the sidelines, as I find it strangely compelling, as do many others. I've not commented, as I've had nothing to add to all that Indolent, Charleee and others have stated, usually following careful thought and assessment.
Yes, we have the perennial debt problem, cash burn realities, oil price crash, oil overproduction, East versus West politics, in addition to Eurozone worries, and now Chinese negative factors.
Nevertheless, the one thing that really impressed me, was the manner in which Ford and the board took the brave step of going defensive and entering virtual lockdown.
It is true that, had they failed to do so, the SP may well have done exactly what it did, although perhaps at a later date. It may have been worse!
At least they were proactive, and this demonstrates a certain prudence.
There is little doubt in my mind that, should the price of oil really recover, despite all the negative forces I've alluded to, in addition to many more that I haven't, Caza, at these levels, has got to be ideally positioned to lead a minor oilies style recovery. It must, surely, be at least a punt for the future. As always, WTFDIK, but good luck, everyone.
Even when this share was plummeting, along with the oil price, I felt that the management team were behaving appropriately and reasonably, bearing in mind the circumstances. They stopped prospecting, in an attempt to survive.
I don't know what the future holds, but I have seen nothing over recent weeks to change my view on this eclectic little minor oilie!
Hi Pabio2. Sorry, as I understand it, there are the terms of agreement of the loan which is set to run for X years (5 I think) They can't simply call in the loan unless there defaults on repayment (i.e. the agreement), or they are commercially unable to maintain the loan to CAZA. I can't see how they do not have to buy out shareholders, they can offer to buy them out, but that is optional. If they do not sell, then they would still own their shares. There are things that they can do as majority share holders which may conspire though their voting strength to dilute the shares further, but they would only be diluting their own shares at the same time. It does not seem right that Talara would want to end up as an oil company. My feeling is, that in time, Talara will dump shares from time to time, when it is advantageous for them to do so. Acutally the SP for CAZA has rocketed by 18.6% and has been going up for two days. I wonder if an RNS is coming out on Monday
and for what I would have if cashed is not worth a night out, so I will see where we end up, so its all a bonus having written it off long ago.
"Company confirms that it is its current intention to seek a delisting from AIM in due course in accordance with AIM rules, and to initiate the relevant proceedings to effect the delisting shortly following Closing. "
<<(CAZA) has announced that it has secured a $100 million resource-based lending facility from JP Morgan, with an initial draw of $15 million. Terms seem pretty tight at 200-300 basis points over Libor and it will be used to develop the Bone Spring play in New Mexico.
It is a shame that the company had to give away so much of the equity in its last refinancing, as this play remains one of the best in the US and Caza has a strong position there.>>
Caza Oil & Gas, Inc. announced its wholly owned subsidiary, Caza Petroleum, Inc. ("Caza Petroleum"), has entered into a credit agreement for a five-year, senior secured, reserve-based, revolving credit facility with JPMorgan Chase Bank, N.A., as Lender and Administrative Agent, with J.P. Morgan Securities LLC, acting as sole lead arranger and sole bookrunner of the Credit Facility.
Pursuant to the credit agreement, the Credit Facility commitment is a maximum $100.0 million, governed by an initial borrowing base of US$15.0 million, including a sub-facility for the issuance of letters of credit up to a maximum aggregate face amount of 10% of the borrowing base in effect. Interest on loans under the Credit Facility may be elected by Caza Petroleum to be based on LIBOR or a base rate (determined as the greatest of the prime rate, federal funds rate + 0.50% and adjusted LIBOR + 1%) from time to time, plus a margin determined based upon utilization of the borrowing base ranging from 2% to 3% for LIBOR loans and ranging from 1% to 2% for base rate loans.
The Credit Facility also requires Caza Petroleum to pay a commitment fee equal to 0.50% per annum based on the average daily unused portion of the borrowing base. Additionally, upfront fees will be paid to JPMorgan at closing in an amount equal to 0.50% of the initial borrowing base.
The borrowing base is the loan value to be assigned to the proved reserves attributable to the Company's proved oil and gas properties, as evaluated in the most recent reserve report(s) and delivered pursuant to the credit agreement. As of the closing date, the borrowing base was set at $15 million until the next scheduled redetermination or as the borrowing base is otherwise adjusted or redetermined.
Redeterminations based on updated reserve reports are scheduled semi-annually, and each of Caza Petroleum and JPMorgan have the ability to request one interim redetermination in each 6 month period between scheduled redeterminations. The initial borrowing base redetermination will occur on July 1, 2016, unless the borrowing base is adjusted or redetermined before such date in accordance with the terms of the Credit Facility.
The Credit Facility is guaranteed by Caza Petroleum's wholly owned subsidiary, Caza Operating, LLC ("Caza Operating"), and the collateral provided to secure the Credit Facility (and any hedges or cash management obligations owing to JPMorgan) consists of substantially all of Caza Petroleum's and Caza Operating's respective now owned or hereafter acquired personal property, as well as at least 80% of the PV-9 of their oil and gas properties.
The Credit Facility includes financial covenants tested on a quarterly basis, including a maximum funded debt to EBITDAX ratio of 4.0x and a minimum current assets to current liabilities ratio of 1.0x, each tested on a consolidated basis for Caza Petroleum and its subsidiaries. The Credit Facility also includes representations, warranties, affirmative and negative covenants, events of default, remedial provisions and other terms that are usual and customary for secured reserve-based credit facilities.
Subject to the borrowing base in effect, the Credit Facility is available on a revolving basis during the period commencing on the closing date and ending on the fifth anniversary of the closing date, which is January 21, 2021.
Caza Petroleum and Caza Operating will use the proceeds of the loans for (i) the payment of transaction fees and expenses in connection with the closing of the Credit Facility; and (ii) funding the working capital, capital expenditures and other general corporate purposes of Caza Petroleum and Caza Operating.
Caza is engaged in the acquisition, exploration, development and production of hydrocarbons in the following regions of the United States of America through its subsidiary, Caza Petroleum, Inc.: Permian Basin (Southeast New Mexico and West Texas) and Texas and Louisiana Gulf Coast (on-shore).
The Opec oil cartel has issued its strongest plea to date for a pact with Russia and rival producers to cut crude output and halt the collapse in prices, warning that the deepening investment slump is storing up serious trouble for the future.
He accused the cartel of incompetence. When Opec launched the price war, they expected US companies to go under very quickly. They discovered that 50pc of the US production was hedged, he said. Mr Fedun said these contracts acted as a subsidy worth $150m a day for the industry though the course of 2015. The hedges are now expiring fast, and will cover just 11pc of output this year.
Claudio Descalzi, head of Italys oil group Eni, said Opec has stopped playing the role of regulator for crude, leaving markets in the grip of financial forces trading paper barrels that outnumber actual barrels of oil by a ratio of 80:1. The paradox of the current slump is that global spare capacity is at wafer-thin levels of 2pc as Saudi Arabia pumps at will, leaving the market acutely vulnerable to any future supply-shock. In the 1980s it was around 30pc; 10 years ago it was 8pc, said Mr Descalzi.
Barclays said the capitulation over recent weeks is much like the mood in early 1999, the last time leading analysts said the world was drowning in oil. It proved to be exact bottom of the cycle. Prices jumped 50pc over the next twenty days, the start of a 12-year bull market.
Mr Norrish said excess output peaked in the last quarter of 2015 at 2.1m b/d. The over-supply will narrow to 1.2m b/d in the first quarter as of this year as a string of Opec and non-Opec reach pain points, despite the return of Iranian crude after the lifting of sanctions.
Mr Norrish said the oil market faces powerful headwinds. US shale has emerged as a swing producer and will crank up output quite quickly once prices rebound.
Saleh Al-Sada, Qatar's energy minister, told Chatham House that it is still too early to call the bottom of the market. "We will go through one more downturn cycle, but we will recover. Today's oil price is not sustainable whatsoever," he said.
still have a tiny holding here from the early days, yep should of sold in the 20s, PoO looks like its gonna be bumping around the bottom till late 2017. If that is so, it ain't arf gonna close down a few companies.
Doesn't seem that long ago when I sold some of my holding for 20p. Bet we all wish we sold all of it! Down to 2p and then down to 0.2p. That a 100 fold drop- basically now worthless. I even bought some more at 2p. Ah well! Spilt milk and all that. That will go onto my learning curve along with Afren and RRL
"With a mkt cap of 1 million GBP And debt of > $50 mln dollars that would imply new shares of something like 7 billion to clear the debt via equity. That is, as they said, significant dilution."
Well I was only 2.5 billion out.
Converting the debt for equity should (in theory if not in practice) add the value of the debt to the market cap - roughly. This would suggest that it should affect the share price too much, especially given that they got it away at a modest premium (how, they were not holding any cards).
But the problem is that, in effect, existing equity amounts to approx 2.75% approximately of the enlarged equity.
A complete turn around in the oil price and prospects is unlikely to have a significant impact on the share price. The prospects for any sort of significant recovery are now very slim indeed.
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