Azinam is a sponsor and presenter at the Africa Summit in London this week
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Offshore oil and gas exploration firm Azinam focused on Namibia is preparing for a multi-well drilling campaign over the next two years.
Azinam Chairman, Erik Tiller, said: £With a rapidly improving market combined with a significant renewed industry appetite for exploration and upcoming drilling activity, the spotlight is firmly on Namibia.
I said 3 years ago this company should be wound up and cash returned.
Market cap is circa 750k GBP and apparently they have $9m in cash. This company will never drill, like many other explorers they like to put everything on a slow burner while directors and cronies draw down on the pot until its all gone.
Cash now nearly £11m mkt cap less than £3m.
Liquidation and distribution appears to be in shareholders' interests,
however, we don't know what the liquidation costs would be.
Looks like another wait and see for existing holders but there is nothing in the update
that will prompt anyone to invest new money here, certainly not me.
If i was a holder i would lobby for them to wind up the cmpqny and give cash to the share holders. But i was a director id be happy to sit on my hands while continuing to receive ive my salary for doing f all.
But to be honest, it will just be spent on 5 years worth of 'salaries' for the hapless Board of Directors as they furiously hand wring, suck teeth and tut tut whilst turning down each and every opportunity to use the dwindling cash pile on something other than paying themselves.
A much better bet is Antrim Energy (AEY). They are trading at 36% discount to cash in bank (no debt) - and they actually have some oil. Just have to find a cheaper way of getting it out from underneath the North Sea....
Yet still they draw salaries from the one thing they say differentiates them - the cash pile. They fail to realise that given a good enough prospect having cash is by the by. Money is available if the prospect is good enough.
Having the cash doesn't guarantee success but delays a failure that will occur if there is no good prospect.
Crunch time will come, do the business or get off the pot.
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