Tom Winnifrith Bonus Bearcast: can anyone interpret my new nightmare, a Saint (Vin) and a sinner (Lucian) and his toxic 4
When I last looked at the ongoing shenanigans at AIM-listed Block Energy (BLOE), the rebels had lost their first attempt to get their own way at the requisitioned EGM failed to support their attempts to remove Block Energy’s Chairman. As the second requisitioned EGM approached (next Wednesday), the rebels, whose behaviour in light of their track record is questionable as I revealed here, attempted to move the goalposts by offering to pay for the requisitioned forensic investigation into the company’s affairs. Now the sitting board had come out fighting: grab your beer and popcorn, and read on…..
Not satisfied with having lost the first requisitioned EGM, where shareholders in AIM-listed Block Energy (BLOE) were invited to sack the chairman and replace him with the one remaining NED, the rebels have another requisitioned EGM for shareholders to consider appointing one of the big four accounting firms to conduct a full forensic. This will, of course, be expensive – and having lost round one the rebels have made a seemingly helpful suggestion.
The first of two EGM’s requisitioned by rebels at AIM-listed Block Energy (BLOE) saw the Chairman, Philip Dimmock, see off resolutions to give him the boot and appoint independent NED Charles Valceschini in his place. In the meantime, the company has appointed a new NED in the form of Jeremy Asher, current chairman of fellow Casino listed Tower Resources (TRP).
Having discussed rebel moves to oust the Chairman of AIM-listed Block Energy (BLOE) and commission a forensic report into the affairs of the company several times there are, it seems, more than a few questions to be answered by the rebel camp. It seems that the case for reform is not quite so cut-and-dried as some might think. In fact there is a stronf case suggesting that the board may offer the lesser of two evils.
Shares in AIM-listed Block Energy (BLOE) are up this morning by 7.5% on no news, although yesterday the company announced a series of nil-cost options being issued to its directors and employees in lieu of salary. In this mad market, nothing surprises me and the dilution is apparently a good thing as far as shareholders are concerned! Meanwhile, more bombs have been dropped by the rebels looking to oust current chairman Philip Dimmock in favour of the last independent NED still standing, Mr Charles Valceschini and commission an independent forensic report into the affairs of the company. Oh dear…..
I have been following the saga at AIM-listed Block Energy (BLOE) for some time, noting a need for beer and popcorn as things developed. But I have received a damning dossier, which you can read below, which is rather more explicit.
A group calling itself the Block Energy Support Group has emerged, representing around 20% of the currently issued shares in AIM-listed Block Energy (BLOE). Unlike some shareholder support groups, such as the Quindell one, this support group is not for the support of current management and already two EGMs – one to remove the chairman and the other to commission a forensic report into the affairs of the company – have been called. One would imagine that such aggressive action might suggest that somebody knows something and via the support group’s website the bombs have started to drop.
Last September some rebel shareholders were so concerned as to what was going on at AIM-listed Block Energy (BLOE) that there were rumours of an imminent requisition of a sack-the-board EGM. That time the rebels were placated and by the end of the month all was apparently well. Or was it: for now there is a sack-the-chairman EGM Requisition on the table and this morning a further EGM was requisitioned to commission an independent forensic investigation into the company’s affairs by one of the “big four” accountants. Best order in double portions of beer and popcorn – this could get very entertaining.
Block Energy (BLOE) is typical of so many AIM listed oil and gas companies, which sound great on paper but usually have spent years failing to live up to expectations whilst burning through considerable amounts of cash in the process.
AIM-listed Block Energy (BLOE) seems to have made a pretty decent effort at addressing the problems I raised HERE. On Thursday, an RNS appeared which seems a pretty good overview of where things are and announced the departure from the board of NED and former technical director, Mr Roger McMechan...
Normally Malcolm Graham Wood, the whore blogger, pumps out fake news or rather fake analysis because he is paid to do so by a company, something he fails to declare. But for once I have caught him pumping out fake news just because he is an idle tosser who is too lazy to actually do 30 seconds research. Incidentally there also appears to be an admission that he "copies" our work which might amount to copyright breach. Does the whore blogger engage in what is theft as well? His rap sheet grows ever longer it seems.
Gary Newman was – quite rightly - never a fan of AIM-listed oiler Block Energy (BLOE) – despite its apparently large fan-base on the Bulletin Boards. Now, it seems as though some shareholders – apparently representing around 20% of the stock – have had enough. I gather they want to know what is going on, but can’t seem to get management to engage. Given the apparent shambles, it is hardly surprising.
My views on Block Energy (BLOE) haven’t exactly been popular over the past year as it was a favourite with private investors, but unfortunately so far everything has played out as I feared that it would do.
My views on Block Energy (BLOE) in recent months haven’t exactly been popular amongst shareholders, but unfortunately much of what I feared in relation its operations is now playing out and I feel that investors have been deceived by the company. I have been utterly vindicated. It will get worse for thise who ignore my latest warning.
Questions have to be asked when a company produces a headline rate from a well test; the CEO goes on an interview road trips talking about how much free cash flow will be generated; £12 million is raised via an equity issue – and then subsequently initial production rates are just a third of what investors were expecting!
There is often an argument for letting your winners continue to run, but in the case of many natural resource stocks listed on AIM you are often better off taking a healthy profit whilst it is on offer.
These days it often seems to be the case that if you are interested in a new IPO, it is better to wait until that company has listed and the dust has settled, as often you will get a chance to buy in cheaper than those taking part in the initial fundraise. Block Energy (BLOE) looks to be one such outfit and the timing of its listing looks good, with the oil sector showing strength, plus there is plenty of potential from gas as well.
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