By Nigel Somerville, the Deputy Sheriff of AIM | Friday 23 October 2015
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Despite knowing that its execution is booked as soon as soon as it gets around to calling the now overdue AGM, the Board of AIM-listed New World Oil and Gas (NEW) has announced the triumphant extension to its exploration license in Belize. To help you understand what is really going on, here is the ShareProphets RNS Translation Service on today’s announcement (original in bold)
12 Month Extension to Blue Creek Project PSA
We can still claim to have a business, even though we will not be around past the AGM.
New World Oil and Gas Plc, an oil and gas operating company, is pleased to announce that following a meeting with the Minister of Energy in Belize, the Company has negotiated a 12 month extension to its Production Sharing Agreement ("PSA") for the Group's Blue Creek Project in Belize ("Blue Creek"). The PSA which was previously due to expire on 31 October 2015 will now terminate on 31 October 2016.
We have checked the dates very carefully and we think we’ve got it right. That was a bit of an embarrassment to have to admit we got the expiry date wrong last time. We’ll keep quiet about how much this has cost as it might look a bit dodgy to have committed shareholders’ cash to something which won’t happen if and when we are booted off the board at the AGM (when we finally get around to calling it).
While the expiry date of the PSA is extended, the approval restricts the Group's future activity to areas high-graded by New World Oil and Gas (Belize Operations) Ltd. (the PSA holder and a subsidiary of the Company) in its extension application and areas identified as viable drilling targets by the seismic programme conducted in 2012-2013 - namely the A and C Prospects.
While the expiry date of the PSA is extended, that of the current board is not. Since we have somewhere between Bob Hope and no hope of surviving the AGM (when we finally get around to calling it) there is no chance New World will actually drill anything.
New World Non-Executive Chairman Christopher Einchcomb said, "We are delighted to have secured a 12 month extension to the Group's Blue Creek PSA…..
“We wish we could get a 12 month extension to the Board’s tenure….
…… as it gives us the opportunity to continue our current negotiations with potential partners on continuing operations…..
…as it would give us the opportunity to continue our current destruction of shareholder value through incompetence with our incompetent partners
We continue to analyse different drilling techniques
We continue to analyse different delaying techniques
….with a view to maximizing our potential chances of success….
….with a view to maximizing our tenure before we get the bullet at an AGM, when we finally call it…
….whilst at the same time reducing the net cost to the Group….
…whilst at the same time diverting attention away from the fact that we still have not called the AGM, at which we would surely be booted off the Board….
…should we decide to conduct future drilling operations.
Ho ho, just thought we’d chuck that in one more time. Of course, after the AGM it won’t be us making that decision
I look forward to updating shareholders on our progress."
Not as much as shareholders look forward to being updated on when the AGM will be held so that this farce can come to an end and a proper and competent board of directors with a real business can start building shareholder value and getting its RNSs right.
Never miss a story.
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