ROS .. the gamblers anonymous thread !!!

I believe that the Oil Services Division was sold too cheaply. The money raised covers the £12m loan and the £1.5m owed to Schlumberger. That only leaves £600k, some of which would be swallowed by the nice people at E&Y for overseeing the whole transaction. I doubt there is much left for Ramco to carry forward.

The 7H field is still producing and profit from those sales are probably paying off the £50m loan secured against the gas. There is probably some profit there after repayments and running costs but not a lot.

So, what is now left? A business with some acreage and free carries but very little cash generation. Cash in the bank is how much? £2m? The directors salaries are £1m per year which doesn't leave much money left for developing any of their acreage.

Therefore, as shareholders, you are going to have to hope that the sale of 7H comes with a large cash value attached on top of the repayment of the loan otherwise there will be a fund raising early next year. This is what is keeping the price down.

I also can't understand the support that the Ramco mgt have received over the past two years. Look at the share price and ask yourself who has to be held accountable for that? And they still get share options? And to purchase the Oil Services on the cheap?