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By Tom Winnifrith | Friday 8 June 2018
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 noted many times, but most recently in bearcast yesterday, UK Oil & Gas (UKOG) is running on fumes. It quite simply does not have the cash to both cover its (bloated) PLC costs and fulfil its exploration commitments for the rest of calendar 2018. Thus a City source close to the situation tells us that ShoreCap is - as we speak - sounding out investors about a £5 million placing. And it is struggling to find any demand.
Shore Cap is not a retained broker to UK Oil & Gas but its lead director Jerry Keen is a) a man who would raise money for Satan or indeed anyone as long as he got his 5% and b) a man with close long term ties to the Lenigas linked companies stable.
The problem Keen faces is that there is still £3.75 million of death spiral loan note to be converted into shares and dumped and that overhang, plus the fact that UK is clearly grossly ov ervalued and desperate for cash is putting off his normal sources of funds.
If or rather when Keen struggles to get this placing away, UK Oil & Gas will have no option but to revert to a bucket shop operation raising a smaller amount at a vast discount just to keep the lights on.
At 1.3p bid, SELL!
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