Meeting With Prospex Oil & Gas

This week I had the pleasure of meeting Ed Dawson of Prospex Oil & Gas, I found Ed to be quite an affable yet cautious man who clearly didn't want to talk out of school, so on this occasion I became a good listener. The company raised £1m and is currently capitalized at £1.02m which kind of suggests the risk has been taken out of this aim cash shell, so whats PXOG and Ed planning for the future?

I talked about the attraction to aim cash shells from my own previous decent track record with Oil & Gas shells, none more so than UK Oil & Gas or Mx Oil (formerly Astar Minerals) The catalyst to great returns are a clear and concise outline of what the company intends on doing to trigger value creation for shareholders, particularly those bonkers enough to get in early.

Rather than waffle on in a sales pitch manner I prefer to look at the facts, Dawson and Co. come from an institutional/hedge fund deal flow background, the impressive back story of creating a $100m deal with industry majors or a consistent year on year place on the hedge fund podium at RAB capital it became clear that the guys at PXOG are more than well positioned to have a fair crack at progressing Prospex Oil & Gas on.

The simple way for this to happen would be to vend in some attractive assets and bingo '' we have a result '' however Dawson wasn't to willing to let the cat out of the bag on how this would happen other than to remind me that he doesn't want to piss on the chips of people who have been prepared to back the company in its embryonic stage of the cycle. The early move advantage often comes from showing foresight which is where I am personally as a shareholder of Prospex, some can argue that this motivates me to give a one sided appraisal of the situation but to be brutally frank there isn't actually to much we know right now.

Its important to understand the strategy -

To acquire meaningful assets with high impact near term deal flow not dilly dallying with shooting seismic for the next 18 months. (Check)

It's important to understand the Boards back story -

This comes by the virtues of historical success, ED worked successfully in finance & management of Junior O&G companies whilst holding a keen analytical eye on what works against what doesn't. (Check)

Getting a sense of capability and Viability -

Does the company have the capability to make this transition in tough markets and is there enough interest to build. (Check)

The surrounding influences within the company -

The management team has a historical (combined) Billion dollar deal flow from seed to sapling sized business before well engineered moves into the junior natural resource arena. (Check)

(Note) - Whilst I hold a bullish outlook on Prospex I do however understand the need to move things along, I feel confident that a deal will be done sooner rather than later however in light of transparency I would suggest should the company not secure a deal this year then they are at risk of becoming another modest cash shell wasting space on aim.

I'll be talking more about PXOG in due course.

All the best


Doc



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(These are but opinions derived from my own experiences and thoughts and are not adopted as a statement of fact)

DocsLaymanChatter XLI

As a kid I would sit watching VHS videos with my dad, the ones that your mum doesn't like you to watch but the ones all dads love to share with kids. I remember a particular scene where Johnny had gone into the forest with deputy Kern hard on his tail with his group of deputies, Col.Trautman walks in as the official, sent from Bragg to bring their man home. 

Company leader to identify Baker Team - Rambo, Messner, Ortega, Coletta, Jurgensen, Berry, Krakauer confirm! This is Colonel Trautman. Talk to me, Johnny

The story goes of John Rambo an ex- Vietnam war vet caught up by the snare set by his own government, now left in limbo aimlessly wandering state to state without purpose place or need. C'mon you all remember the film and the story line... 

During the past couple of weeks this scene or movie resonates with the markets more than anything, gang banging corrupt officers! Blood hungry dogs, a broken system with a government that seem to have forgotten them. At some point normality will return but with China in Crisis and Greece between a proverbial rock 'n' hard place then It's no doubt fair to say we can expect a choppy summer and potentially a turbulent continuation during 2015. 

Regardless just how good the Jedi mind tricks are, or in fact the Mr Buffet beating snake oil sales man peddling the Italian princess's clients, we as private investors have to measure whats dictating the markets price action. We must treat the markets with contempt, believe little to nothing while trying to insulate against wipe out protecting capital being the paramount ingredient to keeping us in the game. That said unless you intend to take a 2-3 month break then you have to try to yield some returns from the markets and I believe this will come by identifying the weakness in a turning peer group/commodity. I believe resource stocks with finance already secured are now basking in shallow water leaving a spear fishing session worth consideration as the chase the ace of junior resource stocks kicks off over summer . (manage expectations and don't steam roll into the markets, rather take a measured outlook) 

Kodal Minerals: After hitting the markets at 0.90p a wham bam thank you mam pump took them to the dizzy heights of 2p, today sits at a near 95% loss. The company has some cash, operational news pending and crying out for some love. Consistent updates,momentum and support are needed, when this comes in you have the recipe for value creation. Kod is one of a string of cheap looking stocks that should the micro mining trend flare up again then I see plenty of upside. 

Noricum Gold: Have been on a roller coaster 12 months in the market however with a decent cash position circa £900,000 coupled to an expectant work program / update leaves investors more interested in Fridays session ( closing 17% higher ) NMG have already drawn the line in the sand with its recent results released 9th June. I've personally backed this one for much of 2015, I remain moderately confident.

Nostra Terra Oil & Gas: After announcing a new chairman (Ex-GKP Financial controller CFO Mr Ainsworth) the company has more recently announced a JV partnership with the U.S second biggest private company. Yet shares remain stuck range bound at 0.145-0.20p should any slight weight of positivity drop one way or another on the scales of success I can see Ntog growing stronger.

Prospex Oil & Gas: A small funded shell, furnished as one (if not) the cheapest aim vehicle, Pre- Pxog the company was a washed up gold mining company who's board managed to crash the business however with a completely new outlook and setup Prospex are searching to acquire / reverse value accredited assets into the shell. The Board have £1m cash of a £1.1m mcap which smacks of a embryo MXO / CEB in the making. 

AIM is a very tricky place, great when you are winning but terrible when taking heat, I advise all investors to protect capital, understand the markets mechanics. I also urge investors to carry out as much due diligence in the people they support within the alternative investment markets, yet again today BMD pens a piece of diatribe and nonsense. The modus operandi has been well reported and the cack handed 2 suddenly fall into the arms of Miss Whitford, you see they cannot progress single handily and with the markets not taking the same line of bait twice the boys have to capitulate. Now that doesn't fit the remit of bad boy Dan from Manchester so a gentle bonding over some Ellerton dirt will do the trick. 

Prickles and nettles will never stop stinging, its apart of the makeup but should you be able to make a clear path you have a chance to succeed, history cannot be erased however the future can be changed i wish Miss Whitford the best or luck and damn I'd love to see Sefton shareholders get some of there loses back, if this means BadmanDan and Snake Oil making money by virtue then so be it but be under no illusions of who tanked the SP while financially hijacking others for personal gratification using there public presence.  

Note: It has been suggested that I am the Kaiser soze of Aim, masterminding short squeezes while working over dozens of aim stocks!!! I still await any evidence of this or a long threatened expose, '' You see folks bullies work to either cosy up to you or destroy you '' please remember who was invited to Annabelle's ( and refused to sit at the table of greed ) or who helped Mr Levi only to then be attacked when failing to capitulate with cheating and shafting UK investors.

Keep your pecker up Folks....

All the best


Doc



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http://docslaymanschatter.blogspot.com/

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(These are but opinions derived from my own experiences and thoughts and are not adopted as a statement of fact)