VOG 2005 New Thread

Well, whatever the prospects of this company, and however good the gas at west med. I am sorely disappointed in what and how the company, Mr Foo in particular, has presented and managed this "story"!
At the AGM of the 17 November he was specifically asked (I was there) whether the company had sufficient funds for its operations at West Med (into next year; ie the 3 wells or so) or whether they would need to raise additional equity.
The answer given was that YES they did have sufficient equity and that IF they required funding for the other projects they would do deals with local banks, because that's where the knowledge was about the risk and reward in these ventures. It was quite clear that Foo, although Mannheim said "raising finance would be very easy anyway", was answering this question in the negative and, as shareholders, we shouldnt have anything to "worry about" in DILUTION!!!
Based on what they are doing now (and I have nothing against them DOING it if that is what is required) the answers given at the AGM were pure BULLSHIT... both in the fact that they are now raising equity and that it will be dilutive to ordinary shareholders!! On this basis of trust I'm OUT! (fully now having sold 50% at 100p.

Byeeeee...!!!

Partial quote of announcement that they require funding for the west med wells and operating capital!!!!:

"Placing to raise approximately £12.8 million

deleted para.

The proceeds of the placing will be used to fund:

· Well test operations at Well 104 and the drilling and testing of Wells 106 and 103 at the West Medvezhye gas and gas condensate project in the Yamal-Nenetsk Region of Russia;
· Re-entry of three shut-in wells, drilling of one twin well, a 3D seismic survey, and further new wells and outstanding acquisition costs at its Kemerkol oil project in the Atyrau Oblast of Kazakhstan;"

The only "commercial" logic I can see here is that, the story of additional potential reserves at West Med having created a big price spike they are raising capital on this news, ie at a low risk/reward perceived time, rather than await the results of testing well 104 (which might be disappointing!!!!) and suffer a shre price fall thus panning any capital raising at an inopportune time. My view: Beware being sucked into this until Well 104 testing proves something!