This company has been run close to ruin by the previous Whitby management, which has been highlighted on here and on Shareprophets more times than I can remember, on that historical basis it isn’t one I recommend, post consolidation then hopefully for holders there could be a case. New Board, new assets (Real ones this time), new Nomad, PR, Brokers and a genuine strategy which ditches the Whitby ramptastic ethos of telling ‘tall tales’….. While delivering nothing. With my investors hat on, which is (caution) I’d wait post consolidation to see where the new Boards’ strategy takes them.
In this space I hear this saying, (Usually from P&Ders) “Know the game”. Let me tell each and every-one of you some thing! This isn’t a fu*king ‘Game’. This is hard-earned cash being invested to try to enhance the lives of the lowly private investor & their families. It’s money that has been earned (Usually) through months, if not years, of hard labour & graft, people have scrimped & saved.. It’s deadly serious. The consequences for small investors losing thousands of pounds should be the first thought in every CEO’s, Nomad and Brokers mind & the mind of you the investor. On this site and on my twitter feed I tell it as it is or as I genuinely believe it to be or could be. That gets me a lot of flak, (which I don’t give two hoots about) because most of the time it’s negative some of the time it’s positive, regardless of who runs the company or invested, but it is always based on well placed sources and fact.
So, here’s what we know and why we know it. I’ve been to Indonesia several times. I’ve built up good connections within Jakarta, Sumatra & Pertamina, have met plenty of Indo’ operators. Such as Fosters Oil. That’s a fact, like it or not. BMD isn’t an armchair commentator. I get about. I’ve had a site visit on two of these fields. ADL are in advanced negotiations, on several Indonesian assets. Bunga Mas, which contains real production upside, Ramok which is already producing 60bopd that could increase to 300bopd, Pilona TAC and the Deras field. They’ve coughed on BM and I’m fairly confident that they are in discussions on at least two of the other licenses mentioned, (whittling them down to 1/2 on their due diligence (DD), that’s because those who own BM also have an interest and knowledge on the above. I’m not going to release the Fosters oil info due to the fact that I don’t know if ADL have been talking to them. Fosters asset produces 600bopd with a workover potential of 2,000+ bopd, which seems unlikely ADL could get.
In comparison to BP they’re small fields but for a minnow oiler on the AIM, each one of them will bring significant oil & gas production to the company subject of course to a deal being struck on favourable/fair terms and percentage/s taken. Now remember the asking prices are what I call ‘Indonesian bluff’. That is to say that any final deal will be at a considerable discount to what is being asked. The structure of a deal could involve paper being issued (Stock) as well as cash tied into production Or a combination of debt/stock/placing or taking on a new director etc. The difference here post Whitby the dreamer, who not only destroyed value but also ADLs reputation within Indonesia, is that Gorringe and Jorgensen are pragmatists who are having to reach out and re-build bridges, while confronting the demons, fortunately they’re in discussions with companies I have talked with for a very long time. My information was gleaned well before ADL came knocking.
It was good to see Simon Gorringe come out with an (forced) RNS in such a way that down-played the potential. That bodes well for the future but at this stage it’s only 1 of 2 RNS’s that have been correctly formed without the usual Whitby ramptastic horse shit. These licences any 1 of the 4/5, I know about, have the potential to put significant production and exploration on their books. ADL haven’t turned the corner yet. They are at the corner. But they may, if they can turn the corner, have a future. Post consolidation they become a new company with no doubt a new name. It’s wait and see how it goes, not a throw the kitchen sink in moment. ‘Cautiously Optimistic’ should be the mind-set here.
Have a good read of the links below and then you’ll be much better placed to form a judgement than you were two days ago! BTW this shit doesn’t drop out of the sky. If you feel inclined Please make a donation £5, £10 to the Killer #YOMP that will probably leave me and ‘Winnie‘ incapacitated for several weeks 🙂 RogueBloggers4Woodlarks
It’s a worthy charity cause. A camp-site run by volunteers that gives disabled & severely mentally handicapped kids a camping adventure. Plus it’s good #Karma for you!
Click HERE to download/read
Bunga Mas CPR Arctic_Bay_Ventures_BMIC_CPR_August_2014_Final
Deras information Deras Flyer new version 190716 (1)
Ramok Summary BMIC and Ramok