This might be a good use of the $11m debt raise in March - if we still have this property -- I assume the two first wells were shallow, and they're planning a deep high pressure well
The $11.5m debt offering is what they contemplated last summer and did a roadshow for.
They didn't mention it a requirement in their own filing in November, but since it's intended to be 3rd party funding, they simply didn't need to report it as an obligation.
They must be confident that they will close the loan in 5 weeks, or they wouldn't have sent in the $600k, securing the equity in escrow
Overall, this is a lot of dilution, but a significant amount of funding, and GGLR has several properties that are primed to use the funds and produce results.
Key Capital Corporation Settles First US$600,000 Tranche of GeoGlobal Resources, Inc. Series B Preference Shares
February 18, 2015: 02:16 PM ET
Key Capital Corporation (OTC PINK: KCPC) ("Key Capital" or "the Company") is pleased to advise that the Company has settled the first tranche of the GeoGlobal Resources (OTC PINK: GGLR) ("GeoGlobal") Series B Preference Shares pursuant to a Stock Purchase agreement entered into between the parties on August 24, 2014.
The Company is required to settle a further four tranches of the Series B Preference Shares at 180 day intervals in consideration of payment of US$600,000 for each tranche and to also provision a US$11.5 million loan facility agreement by March 23, 2015.
This is positive - GGLR will need to ay in $4m into the $80m planned well reentry. but it seems we have those funds from the India operations at this point.
Hope Energean can get started in a few months.
For whatever reason - operational, financial, political - they've managed to stall enough to prevent any sales from the field in the fiscal year ending this March.
I suspect they do not want to publicly report the operational metrics and resulting margins, as might be appropriate in a year-end financial report. So, they are delaying that information for another year.
Good to see a bit of buying the last couple of days. looks like .016 shares were taken, and a computer/market maker is slowly adding at .0165 - either to even out their book, or in response to the recent buys in order to build inventory.
I assume it'll be a few more months before we see an SEC filing or other definitive news.
I'm dumbfounded - I don't see what GSPC thinks they can gain ... Is this an elaborate delaying tactic because the infrastructure isn't ready? Or is it ready and they really think they can go sell the gas elsewhere? ... I bet the govt can't wait for the merger to close at the end of March, so they can also force a big management change
I'm inclined to believe the more thorough statements from the Key Capital team. If there was a problem, JPR should have raised it much earlier.
Each of the transactions makes sense. Taking first rights on accounts payable prior to a more formal investment. It's similar to a pre-pack financing, except GGLR didn't enter bankruptcy in order to preserve the property rights.
At this point Key Capital needs a functioning board, including an independent committee, since the contemplated financing involves officers/insiders providing the funding. I don't know that the deal will be ended. Not that GSPC has stopped holding up revenues, GGLR may not really need much financing. $4m-5m in the bank and $500k per month incoming.
I'm still very surprised that ILDE, the largest shareholder, isn't being mentioned - they should be very interested in the cash flow and equity growth
Key Capital and GeoGlobal are being assisted by former GeoGlobal executive management to, as quickly as possible achieve comp....liance, reinst.....atement, and corporate currency for all Group companies
Yahoo wound't let me post the rest
But the info includes:
- "long outstanding revenue has now been released to the Company in India,"
- JPR intends to pay himself $600k in consulting fees
- Key Capital has frozen outgoing payments to prevent JPR removal of funds
- Firm has two staff in India
- Key Capital will not move forward with funding the firm until filing become current, including Delaware Corp filing
SCOTTSDALE, AZ, Jan 12, 2015 (Marketwired via COMTEX) -- Key Capital Corporation (otc pink:KCPC) ("Key Capital") and GeoGlobal Resources (otc pink:GGLR) ("Company" or "GeoGlobal") following the publication of a grossly misleading purported GeoGlobal release to the market last Thursday, January 8, 2015, by Mr. Jean Paul Roy, a former director/president and chairman of GeoGlobal Resources, Inc., and enquiries from shareholders, Key Capital and GeoGlobal jointly advise as follows for clarification.
Key Capital and GeoGlobal management totally reject the allegations and statements in the unauthorized January 8 press release by disgruntled former GeoGlobal director, Mr. Jean Paul Roy. The release is misleading, false and Mr. Jean Paul Roy is no longer a director or officer of any of the GeoGlobal interests. The formal removal of Mr. Jean Paul Roy from all subsidiaries is in process. Despite proper advice to Mr. Jean Paul Roy, he continues in endeavours to represent himself as a director and officer.
GeoGlobal Resources, Inc. ("gglr" formerly nyse:GGR), contrary to the representations of Mr. Jean Paul Roy in the unauthorized January 8 press release, was incorporated in Delaware, USA and is not registered in Canada, nor does it maintain a corporate office in Canada.
No idea about the Is...raeli subsidiary.
"Eran Erov, 35, has served as the Controller of RiT Technologies since joining the Company in 2013. Prior to joining RiT, Mr. Erov held the position of Assistant CFO at GeoGlobal Resources Isr....ael ltd."
Good point that the 5% of myra/sara might still be subject to change with the Energean transaction
The 5% of Deen Dayal to JPR's firm, and also 5% to GGLR are highly valuable, but it's going to take some time to produce cash flow
At some point they will pay themselves well
And they are incentivized to pay themselves even better through the value of the equity advancing
If the GSPC stalled cash flow was coming into the firm under JPR, he would have a full staff being paid well too
The first couple $m that come in, either from GSPC or investors, is going to pay for Tarapur development and Myra/Sara development
Unclear if the Key Capital team have JPR out on a sloppy technicality, or if they claim evidence of a bigger problem. I doubt we'll find out. Either way, they decided they couldn't work with him. I've seen restructuring investors go in and try to turn around a firm, then decide the founder/previous management was hindering, so they make a change.
I doubt any other investment firm would want anything less than full control. These guys are bringing their own labor and cash. I agree there should be an SEC filing. Maybe that was even the point of disagreement between JPR and Key. They promised one within 5 months. JPR has owed us several going back a few years- yes, they are expensive to do properly, but he could have filed an incomplete one with status information - he seemed to do fine with the CYA info at the bottom of the press release he put out this week. There are likely 100-200 shareholders.
There was likely a lot of talk of $15m of other people's money as junk debt with options/equity attached. That was a stretch. the global petro market has done nothing but tank for the last 6 months, and there is no end in sight for that situation. There will be little to no speculative cash to fund drilling projects through GGLR. It'll have to be done via cash flow released from Cambay/Tarapur and whatever the Key Capital folks are bringing to the table themselves. So far, they've promised $3m, with the performance guarantee that if they back out mid-stream, they'll forfeit 90% of their preferred shares.
The Myra/Sara re-enter will probably happen, because the new partners are bringing their own drill rig. GGLR will need to come up with $4m or sell that 5%.
The Sarus deal would have been great. But Miller/GGLR had no way of getting GSPC to agree to the transaction.
I doubt this is a dire development. The execs that ran GGR into the ground were paying themselves up to half a million in salary, and not doing enough to protect the firm, the properties, the cash reserves.
It's likely a disagreement over how to move forward, and Key/JPR were at a discord, and there needs to be one direction.
It's very easy for officers of public firms to be sued and lose whatever they may have 'taken inappropriately' - I think this Key Capital crew are cognizant of acting appropriately and restoring the firm to health. And if they pull it off, they will and should be rewarded. As a shareholder, I trust I'll share in those rewards.
GSPC seeks sanction for procurement of equipment and services for KG-OSN-2001/3: Gujarat State Petroleum Corporation Limited (GSPC), the operator on block KG-OSN-2001/3 seeks ministry sanction for procurement of equipment and services for the block.
The operator has sought sanction for the following:
--Placing order on SVR International LLC (OEM) for harmonizing fire and gas alarm tones for PLQP with Nabros rig at a total price of $2,500 plus arranging to and fro transportation of engineer from Mumbai to PLQP for the block.
--Procurement of spares for pressure control valve at PLQP from Emerson Process Management, Chennai at a total price of Rs.726,070
--Approval for hiring of instrumentation and control service engineer from Bharat Heavy Electricals Limited (BHEL) for a period of six months.
--Awarding contract to International Tubulars FZE for hiring of casing tubing running services for three years at a total coast of $3,523,343 plus mob/demob cost for equipment other than currently on hire with GSPC for the existing contract plus service tax, with additional provisions.
--Purchase order to ABB Limited for supply of PLC spares for HVAC system at PLQP at a total price of Rs.8,07,109.
--Purchase order to Euroflex Transmissions (India) Private Limited at a total price of Rs.19,10,60.
Unless ILDE joins JPR against Key Capital ... I don't see what he'll be able to do himself. All Key Capital has to do is have a shareholder vote, and it appears they would be able to manage that type of event. ILDE+ Crede votes would decide the thing.
The funding as described in Key's own filing is $3m. The $15m is not discussed. The cash flow anticipated from Tarapur/Cambay will go a long way to covering GeoGlobal's needs - all it takes is for GSPC to release it. There will also be a one time payment from ONGC for the 6% of Tarapur ring fence area
Update on outstanding issues-XI: Development of GSPC's Deendayal (West) field hits ROU hurdle
Jan 8: 8GSPC`s Deendayal (West) Field Development Project: The Consent for Establishment (CFE) for the Rs 9,000 crore KG Development Project from the Andhra Pradesh Pollution Control Board (APPCB) has not yet been granted.
--Along with this, ROU issues for raw water pipeline have not yet been sorted out and water withdrawal permissions from the state government are yet to come.
Yesterday's PR from the Key Capital team seemed more factual, but not discounting JPR's side - it's just lacking supporting information (such as who are members of the board, who are the significant shareholders, what is the count of equity shares of the firm outstanding, etc). If no investment occurred, this flag from JPR should have been thrown last summer when the public announcements were initially made. The Key Capital team have control over the Geoglobal website, and have been providing the public information for 6 months.
It'll take a SEC filing to really make it clear.
Prior to Key Capital, the major shareholders were:
All others apparently under 5%
There was a board comprised of JPR, an ILDE rep, and an independent broker.
Key Capital PR and their own filing said that they had stepped in to take a number of board seats, operational roles in the firm, and had a capital funding agreement. This agreement transferred preferred shares, which had a common stock conversion that would have equated to 65% of the firm. Nearly all the preferred shares were essentially in escrow under a performance guarantee that additional common shares would be purchased at .10/each, with $600k minimums every 6 months, for a total of $3m in funds. Overall investment was at a cost of .01167 - seems consistent with reality.