Thanks Mitch, makes me wonder what excuse you have for folding the company and wiping out shareholders, the excuse you gave to me last January was that the POO was $28 bbl, well its now double and are you trying to tell us that with the excellent assets COP have the "lenders" would not have come to some amended loan terms? complete BS, you have clearly done some underhanded deal with someone somewhere and I will make it my business to find out who benefits from this wipe out, you have had over a year to sort this out and the POO has been in our favour for a while.
You have let a lot of people down as you have done sweet FA and no doubt been taking a salary for doing so, that you are not ashamed.
People like you ought to serve hard time breaking rocks in a chain gang, no doubt Karma will work its wonders on you as it always does. I bet you were hoping that the POO dropped more or stayed the same, I doubt you were expecting the POO to double and that you conveniently cancelled the shares at year end proves you are a no good skum just like the others out there that have decimated shareholder value despite having superb assets that any major would be pleased to have.
Have a great New Year Mitch and this will come back to bite you on your arris big time.
Have fun and I will make sure I steer clear of any company that is desperate or stupid enough to employ you in the future.
Circle Oil Plcs (LON:COP) debt problem is coming to a head now that lender Circle Link has called for repayment of US$20mln plus interest by November 15.
The Egypt-focussed oil firm, which has US$7.3mln of cash and US$77.5mln of debt, said in a brief stock market statement that it was in talks with Circle Link and the International Finance Corporation, its principal lender.
It wants to identify a way forward that will allow the completion of a strategic review process that got underway more than six months ago.
In March the process was launched to consider options including a debt restructuring, an asset sale or a sale of the whole company.
More recently, in June, the company warned investors that it believed no value will be attributable to equity holders and at that time trading in the AIM quoted share was suspended.
In an interim results statement, released at the end of September, Circle revealed it was in advanced talks with potential buyers for different combinations of the Group's assets and corporate entities.
I wonder when we can buy another £5,000 worth of shares and ensure that the management also have a very happy Christmas. Maybe they could join the staff of Bula Oil for the party - another disaster oil story with Irish involvement...........
2016 The Great Irish Share Valuation Project (Part II):
Company: Circle Oil (COP:LN)
Last TGISVP Post: Here
Market Cap: GBP 3.8 M
Price: GBP 0.68p
After initiating a strategic review in March, management came clean just over a week ago, admitting theres little or no value attributable to shareholders. Regular readers will presume I cracked open a beer to celebrate another investor death-trap biting the dust. Alas, no In my last write-up, I did tag COP as significantly over-valued, but I also highlighted it as one of the few junior resource stocks that could boast revenue, profits, and even free cash flow! So its a crying shame to see it go under
Which prompts the question: Why am I trying to value it?! Simple cos theres a bunch of sprockets out there who still believe the company may be worth well over 5 million bucks!? [Perhaps the same people who reckon Petroceltic (PCI:LN) shareholders are getting 31 cents per share? Er no, see p. 9/10). So its only right I burst their little bubble of hope I should also defend Mitch Flegg, who was appointed CEO just a year ago & is almost entirely blameless here. Circles fate was actually sealed back in 2014, when it began drawing down on a $100 million IFC loan facility (which I specifically flagged as a huge risk) to fund an aggressive ramp-up in exploration & development. While funding such spending with debt is always a bad idea, it now looks like sheer lunacy in light of the oil price collapse. But unfortunately, that collapse only commenced in mid-2014, after two years of a stable $100+ oil price and Circles spending orgy was obviously launched at that point. You know the rest the drilling was touted as successful but we saw no meaningful increase in reserves, then reserves were decimated by a re-classification & the oil price collapse, which in turn breached the covenants of the IFC loan, all while the company was burning cash, and so on & so on
A new reserve report shows 5.4 MMboe net proved (again, well value at $8 per boe) & 2.3 MMboe net probable (at $4 per boe) and since theyre producing fields, well include 5.5 MMboe net possible/contingent (P50) (at $2 per boe). The other figures we need are here: As of year-end, COP had $10 million of cash, $7.5 million of net receivables, and $77.5 million of debt. Except we should also adjust for at least half years cash burn, to get us to end-June the last interims indicate a $26 million semi-annual burn, so lets use that to be conservative. [Sure, maybe the companys on a starvation diet now but if you run different numbers, youll see it makes no difference!]:
(5.4 M boe Proved * $8 + 2.3 M boe Prob * $4 + 5.5 M boe Poss/Cgent * $2 + USD 10.0 M Cash + 7.5 M Net Receivables 77.5 M Debt 26 M Semi-Ann Cash Burn) / 1.4623 GBP/USD / 566 M Shares = Zero
Yes. Circle Oil is, without a doubt, worthless
And if you know anybody whos still a shareholder please oh please, pass along a right old slapping from me. I mean, really, how stupid can some people get maybe they just deserve it!
Price Target: Zero
For related links/graphs/files, and more TGISVP analyses/price targets: Google the Wexboy investment blog.
Seems as payment is going to happen and all of it by year end.
We could do with a large chunk of of dues to change the outlook .
Not long to go to find out how much.
Egypt Daily News:
Shell and British Gas (BG) have reached an agreement with the Petroleum Ministry to obtain $400m of their financial dues by the end of June, in exchange for renting a driller and resuming work in the 9B phase of the project in the Mediterranean.
A source close to the negotiations with the government told Daily News Egypt that during a recent meeting Petroleum Minister Tarek El-Molla promised the CEO of BG Samy Eskandar to repay $400m by the end of June and complete the repayment of the full dues by the end of 2016.
He added that BGs dues are estimated at $1bn, and they represent 30% of the governments full dues to the foreign petroleum company working in Egypt. The full dues are worth $3.2bn.
The Dutch company Shell acquired all assets and concessions of BG in February 2016.
The source said that the deal would accelerate the work and link wells of stage 9-B by the fourth quarter of 2017, adding that the entire project can be completed in the second half of 2018.
The agreement was preceded by negotiations between BG and the Egyptian General Petroleum Corporation to raise the price of gas.
The source pointed out that the gas from the 9B stage in the deep Mediterranean water was priced through a pricing formula linked to the price of Brent crude oil with a maximum of $5.88 and a minimum of $2.5 per million British Thermal Units.
He added that Shell will not resume work in stage 9B until the price is set by the parliament and part of its financial dues have been received, as well as allowing the company to export 100m to 150m cubic gas feet per day from Edco liquefaction factory owned by Shells BG.
I was once on a cafe terrace in Rouen, and overheard two fellow Brits saying to the waiter that their steak and chips were very over-cooked, so I turned to the waiter and applauded him and then told the two Brits that if they ask for Steak and chips and the waiter asks "quelle cuissons messieurs?" and then reply "a la Jeannne d'Arc", then in Rouen of all places, they deserved the cinders on their plates and that if they did not pay the bill & tips, I would stand witness against them. Haha, shut them up, and they tipped well. I had a glass of red on the house!
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