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Mayan Energy - appointing a new NED is not enough it's a chocolate teapot - sackings needed: top analyst

By Tom Winnifrith, The Sheriff of AIM | Friday 30 November 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.


I do not see any upsides in appointing Sarah Cope (nee Wharry) as a NED at Mayan Energy (MYN). She is just another City Nomad crony capitalist and not one that I'd rate that highly. But I suppose it's diversity so praise the Lord. Let's all be diverse. Top oil analyst Zac Phillips of SP Angel is kinder than I am about Mrs Cope but still thinks her appointment is like a chocolate teapot. He opines:

Mayan Energy (0.18p) – Chocolate Teapot: Today’s news is a combination of good and bad. The good on the one hand is the arrival of Sarah Cope, while the bad is the belated disclosure of Southern Coastal Operating’s engagement during Gonzalez’ tenure as CEO.

The arrival of Cope will provide much needed corporate governance rigour to a company that has been beleaguered by a management team that has not placed the creation of shareholder value high on its list of priorities. Such has been the litany of failure that any management team containing Charlie Wood is so damaged that even the arrival of a person with Cope’s credentials will have all the impact of a chocolate teapot unless the poison at the heart of this company is excised.

If ever this needed confirming, the fact that Eddie Gonzales during his tenure as CEO may also have benefitted from his ownership of Southern Coastal Operating, which had a contract with Mayan to provide services. This raises the important questions of: (i) 
why this wasn't disclosed at the time of his appointment; (ii) why wasn't it disclosed that one of his companies was engaged to provide services to Mayan Energy; (iii) how much was paid during his tenure as CEO; and (iv) any monies that were paid, can it be considered a fair exchange for the goods and services that were received aas a result?

Given all of this, the next board movement needs to be the removal of Woods and appointment of a person with suitable technical expertise to address the issue of the asset base fully and finally. At that time, Cope can review all contracts and arrangements and highlight any that need to be highlighted, demanding any returns if needed.

If there is anything left to save after that, the replacement of the chairman for somebody also unconnected with Connally, Gonzales & Wood (the unholy trinity), leaving the Company free of the disasters of the past and putting it in the best possible position for the future, if it has one at this point.

Ends.

You will have seen that Richard Jennings wishes to sue Wood, Gonzalez and the useless Nomad who has signed off on so much piffle from this company, Roland "fatty" Cornish.  For so many reasons,. the shares are a slam dunk sell.


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