Nope - Key Capital uses structured finance - the actual assets are held in a firm called Red Rock Assets LLC - that's where the $600k payments, and $11.5m debt are being drawn from ... the principals of Key Capital use Red Rock to raise funds from the pulbic (and they likely contribute their own wealth) in order to fund the projects being staged by Key Capital
Since the principals applied their own time towards shoring up GGLR operations last summer, they called that sweat equity earned and paid into Key - that's where the $500k asset on Key's balance sheet comes from
I assume the money flow was from Red Rock accounts to GGLR accounts - didn't go through Key Capital, so not appearing on balance sheet they published a month ago
They also reported meeting the $11.5m debt issue - however that cash is being held in escrow pending outcome of the court case regarding JPR and is also contingent on SEC filing of audited financials
They said 3-6 months in order to get the audited financials ... it's been 3 months
My guess is that Colombia properties are lost, however, there might be a court ruling or settlement regarding GGLR's work and financial assets that were leveraged in obtaining the original license. Might get a few hundred $k out of it
On February 18, 2015, the Company settled its first $600,000 tranche for the purchase of 20,000
Class B Preferred Shares of GeoGlobal pursuant to its August 24, 2014 agreement wherein it will
purchase an aggregate of 100,000 Class B Preferred Shares in blocks of 20,000 shares each every
six months at a total investment of $3,000,000.
The Company has been unable to fully account for the activities of GeoGlobal because the
former CEO of GeoGlobal has been negligent with regard to accounting and reporting issues and
was dismissed for cause. Most of the GeoGlobal group’s required filings are up to two years in
arears. The former CEO is seeking to control GeoGlobal’s business interests in India without
legitimate board or corporate authority creating a hostile environment in which the Company is
attempting to exercise its accounting responsibilities. The Company is pursuing all legal means
to resolve the situation.
Yes, worth more - I think the recent selling of first a few hundred K shares, and recently totally about a million, was a margin call from a small investor
The Key Capital info appears consistent with my understanding
By my calculations, the Key Capital preferred shares, once converted to common, would result in ~486m shares
Unclear if DDW is in a state of technical failure - more likely the GSPC management is using it as a political asset, and slow rolling production
Looks like a solid turnaround in Israeli gas industry policy is underway
Antitrust commissioner David Gilo resigns
Gilo: The emerging natural gas industry structure will not lead to competition.
Antitrust Authority director general Prof. David Gilo today announced his resignation, after the cabinet approved an arrangement for the natural gas industry that Gilo regards as improper. Oil and gas stocks on the Tel Aviv Stock Exchange (TASE) are responding with rises.
Gilo said, "My decision is a result of a number of considerations, most importantly the report that the cabinet, particularly the Prime Minister's Office, the Ministry of Finance, and the Ministry of National Infrastructure, Energy, and Water Resources, will do everything they can to push forward the currently emerging structure in the natural gas sector. I am convinced that such a structure will not lead to competition in this important market, and could possibly detract from the independence of the Antitrust Authority, a matter of public importance, and harm its ability to carry out unilateral measures."
Gilo added, "I always believed that it was right to reach an out-of-court competitive solution with the gas companies because of the gas companies' threat to refrain from developing the gas reservoirs if the matter went to court. As is known, in December, I reached the conclusion that the agreed draft order then drawn up would not lead to competition, and I therefore decided not to submit it for court approval. I welcomed the participation of the other government departments in a joint effort to reach a more competitive solution.
This sounds like substantial progress - looks uncertain if it will apply to the current 6 wells in Deen Dayal, but at least will apply to future wells
I assume they are prepping proper SEC disclosure
Glad to see ILDE is in the fold as major stakeholder and standing up for the firm
"Other foreign operations have already been wound up. The company will now only complete construction of a well at two or three sites where some gas can be extracted. This will take some time," said the official.
State energy and petrochemicals minister Saurabh Patel told TOI that while the company may not completely quit exploration, it certainly plans to "stabilize" existing operations before taking up further exploration.
Sources in the government said the company management has been asked to focus only on gas distribution.
Incidentally, GSPC's executive director (finance) Manish Verma quit the company less than a month ago, soon after the last board meeting where he was not allowed to speak about the mess in the company. Verma, a former official of the RBI, had served in the state finance department for several years. He was deputed to the GSPC three years back to help the company recover its financially.
However, the company's technical wing continued to ignore Verma's objections to risky expenditure. He even tried to draw the attention of senior government officials to the problem but no one took any interest. Sources said he had left the company a disappointed man.
Not sure how much sway this edict will have, but I think the multi-billion $ waste of funds by GSPC is near an end
They will have to produce with the existing wells, and use the cash flow to finance any further drilling
After blowing $3 billion, GSPC runs out of gas
Kapil Dave, TNN | Apr 19, 2015, 02.20AM IST
GANDHINAGAR: Gujarat State Petroleum Corporation has decided to systematically withdraw from gas exploration and focus only on gas distribution — its core business earlier. The move comes after the state-owned company has spent more than Rs 19,000 crore ($3 billion) of public money on exploring for gas.
Despite the huge amount spent, the GSPC never got lucky with major gas finds. Besides domestic regions, GSPC had ventured into this speculative activity abroad — in Egypt, Yemen, Australia and Indonesia.
A senior official of the state government close to the development said "after wider technical consultation" the state government had ordered the GSPC to end any further exploration for gas in the KG Basin.
I suppose if the key execs are arrested, then they will have a problem ... it's funny how that website operated for over a decade, and at least for the past five years had really high quality info they were posting publicly ... that's the type of info that in the US, someone could go find or have released via freedom of information act