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The Sheer scale of value destruction of that (failing) UK Oil & Gas Placing - who should be fired?

By Tom Winnifrith | Tuesday 16 May 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. 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.

As we forced it to admit on May 9th, UK Oil & Gas (UKOG), the Horse Hill explorer run by pompous little prig Steve Sanderson is trying to raise c £6 million. The shares before that scoop were 1.2p mid. But having raisred to get the issue away at 1p, hapless broker to frauds like Quindell, Lagos Securities is now struggling to get it away at 0.8p as we revealed last night. Just to put the value destruction in perspective...

On May 1 ahead of Lagos - which was appointed on March 1 because of its claimed placing power - trying to get this placing away the mid price was 1.425p. That valued UK Oil & Gas at £37 million. Today the shares trade at 0.85p -0.90p with only the certifiable wanting to be at the buy end of that spread. That values UK Oil & Gas at just £23 million. In other words, trying to raise £6 million has slashed the market cap by c£14 million - that is punters money sent to money heaven.

Who is to blame for this fiasco? Lagos Securities will get is 5% + chunky retainer for raising the cash whatever the price but surely its competence is very much in question. No wonder its CEO has just walked. But what about the pompous prig of a CEO little Steve. In 2016 this man earned a stonking £607,000. Since he joined in July 2015 the share price has more than halved. Boy is he being rewarded handsomely for failure. Does he accept his share of the blame for this value destroying fund raise?

Fire Lagos, fire pompous little Steve.

Bring back Big Dave Lenigas... all is forgiven.

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