Friday, June 28, 2019

AAOG – Jokers and Clowns.



“Clowns to the left of me…
Jokers to the right….here I am.
Stuck in the middle with you..”

Let’s get one thing straight. I am invested in AAOG. I’ve had a small top up today at 5p and am keeping some more cash in case of a rights issue or fund raising.

It does seem as if we are stuck in the middle at the moment. We have a BOD who have performed a terrible job in communicating what’s been going on. I have been waiting and waiting for the final results as it’s at last a chance to see where the company is in an official RNS with all the backing that entails through accounts sign off and nomad oversight.

Key bits for me are the affirmation that the topside can cope with 2500bopd currently. Djeno oil is not just seeping through, but as James puts it (a reliable none spin source), the Oil is flowing everytime they open the well. The oil has managed to come up from a crack in the bottom cap.

There are now three plans
.
A)     To produce from the middle or top Djeno depending on 103 sidetrack.
B)      Produce from the known top Djeno
C)      Produce from the Mengo/R layer

The write downs etc are irrelevant for me. Many companies do this but just keep quiet about it.
Now imagine if this news had been properly managed, instead of negative comments they talked about the possibility of increasing revenue by $1m a month by taking a further 6 months to finish the hole etc. Over the course of 3 years by taking it’s Djeno strategy the company is probably going to generate over $50m more revenue through this route than the Mengo route (for just the 103 hole).

A few issues re funding, but this is a 28 day event, rather than the 100+ day event of the 103C drill. With that in mind the cost is likely to be no more than 4m, so 2.2m or so for AAOG.
AAOG have also heavily dropped the hint(not confirmed by RNS), that its looking at maybe offering a percentage of the license for funding, hence the strong desire to get SNPC to swop debt for more percentage of production. David also confirmed that he had been speaking to the key shareholders. Probably for their AGM support. They don’t want lots of dilution and some kind of commitment was likely given.

We’ve also heard today that SNPC have just paid a further $850k. Plenty of money coming in.

So we’ve covered the clowns.

Now for the jokers.

I hope folks have been reading and following some of the happenings over the last few weeks on the boards for AAOG.

Take note of the names.

We have seen some brainless, spineless, idiotic, mange induced, personalities. People so low on the scale of humanity that even a pound shop wouldn’t trust them to shelf stack.

We all know who they are.

They are the people that constantly tried to sow fear by talking about suspension due to no accounts.
They are the people who talked about legal action from SMP.
They are the people that talked about fund raising over the last 6 months.
They are the people that have spread lies about Ebola, strikes, SNPC taking the license away, no oil etc etc.
They are the folks who this morning sold, complained how the share price would crash, then in a blink of an eye brought back and then turned really positive.

They are the cretins who think that because it’s AIM they can do and say whatever they like. It’s all OK because everybody is doing it. They are probably the kind of people who would, in a war, commit war crimes, because everybody else was doing it. Or even in Nazi Germany happily send innocents on the death trains, because everybody else was doing it.

The honest answer is not everybody does, there are some really nasty players on AIM, but you don’t have to join their ranks to make money. If you do, then it’s because you choose to do so. However you might try and justify it.

I have had enough success to not care too much about AAOG this year, it will come good at some point, but every investor has their own choices to make. I just hope, without much anticipation, that the Jokers on AAOG realise what kind of person they really are.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.