It really is time that we here at Guerillainvesting took the mantle up and COMMENTED on some of the so-called “Bulletin Board Heroes” for exactly what they are. At best life -style company’s run for the benefit of their Board at worst out and out frauds using the London Stock Exchange as a mechanism for Corporate self aggrandisement. Of course not all are fakirs or frauds some are just badly run company’s while others have failed through poor management decisions or been subject to the vagaries of the market in which they operate. I hear an awful lot about the “China frauds” but there’s another class of dodgy geezers operating out of Perth Western Australia. The “Aussie Lurkers. What’s a Lurk? Google it!
So today we release our very own “Bulletin Board Zeros” slot. Let’s take a look at three closely linked Bulletin Board Zeros. First up; Kea Petroleum (LON: KEA)
Compare what they are telling the market to what Mosman are telling us. Two companies operating in the same basin using the same drilling company and involved with MEO. Kea stated in yesterdays RNS, “Kea has been working hard to resolve mechanical problems with the Puka-1 well, while continuing to produce from Puka-2. Unfortunately the problem cannot be resolved with the equipment currently. An alternative longer term plan is under consideration however given the current oil pricing environment, the Board has decided that the site is shut in until the economics of continued site operations improve.” So the economics of the oil price crash for Kea mean that it’s a busted flush.
By the way you’ll notice that Keas’ interests are in three petroleum exploration permits in the Taranaki Basin of New Zealand. Does that ring a bell? Kea’s joint venture partner, is MEO. Does that ring a bell? Keas’ share-price has tanked and tanked and tanked. It tanked way before consolidation and dilutions and has tanked post consolidation and dilution. Remember this is the company that were briefing the market post the plugged & abandonment RNS of the 18 August 2014 that the share price collapse was a “Massive overreaction” No credibility whatsoever. Maybe the Board should suspend or shut in their bloated remuneration, perks and expense accounts? Stay well away from them. A Bulletin Board Zero.
Mosman Oil & Gas (LON: MSMN) Investors will recall the great hullabaloo and Mosmans’ continual screams of “Discovery! Discovery! Discovery!” back in the summer of 2014, which catapulted their SP into the stratosphere. Of course while the sp rocketed the Company raised millions in cash while ‘some’ pocketed millions in share options that were sold at a massive premium. I along with others began to immediately smell a rat here. All was not what they were “Screaming”. Mosman continually failed to clarify any of the data on what now turns out to be basically a ‘Phantom Discovery’. We all recall this line from the June 2014 RNS on the ‘Discovery’ “Company has been advised by its technical and legal advisors that in accordance with the New Zealand legislation the data from work completed to date meets the definition of a Discovery and the regulations require this to be reported to New Zealand Petroleum & Minerals” They then went on spinning this story out over the months. When a Resource company strikes oil, they get the data on size of discovery & flow rates, (IP’s) out there as soon as possible. At most a few days or so. When a company prevaricate for months upon months they are basically with-holding poor data.
Use yesterdays MSMN RNS as a pointer as to how this POS runs. The RNS is basically saying that their Phantom Discovery’s, which have (after 7 months) never produced any oil, will not be effected by the oil price crash, indeed it’s beneficial to Mosman because it provides “Opportunities”. So the economics of the oil price crash here is a bountiful opportunity! Tell that to all the poor saps who bought in on the hyped up bullshit on the so called Discovery’s in guess where? Taranaki Basin New Zealand. Does that ring a bell? Drilled by Drill Force does that ring a bell? Mosman are in negotiations to takeover? MEO. Does that ring a bell? Stay well away from this Australian POS. A Bulletin Board Zero.
I couldn’t let the opportunity pass by without mentioning that other classic Australian POS Range Resources (LON; RRL). Currently suspended. What have Range got to do with the above two? Promised much , prevaricated on drills that were dusters and bullshitted on their assets. Apart from the fact that they’re an Aussie outfit. Take a tip from a wise old bird. Stay well away from these three Bulletin Board Zeros!