It’s looking ever bleaker at the house of Solo Oil & Gas (LON: SOLO) who’ve now spunked away their 2015 placing cash. Punters will recall that they raised £2,700,000 this year via two placing’s. Just what in the name of Jupiter has the cash been squandered on? Maybe the ‘invisible man’ CEO Neil Ritson would like to explain to shareholders?
I’ve never met Neil, never spoken to him or had any kind of conversation via phone or email, so I’m not here to personally disparage a man I do not know. What I do know is that the current falling oil price has certainly had an effect. The Winnifrith preposterous claim he’s a “David Lenigas puppet on a string” holds no weight with me. Neil is his own man. The responsibility for Solo rests firmly on his shoulders and his shoulders alone. This is business and I’m now making it my business. What I am doing is setting out the case that Solo are going to do what their CEO has done through-out his tenure at the company and that is place and dilute for the 19th time and fail to deliver. Then place and dilute a 20th time then fail to deliver….. Reading through their RNS’s from 2010, when Mr Ritson took control, It’s a groundhog day company. Not one I would consider as worthy of researching, or invest cash into until there was a Board room clear out.
On a fundamental case Solo are as CaliforniaJoe writes HERE ‘running on fumes’ it’s my understanding that with the recent employment of Raylene Whitford (she who spitefully dissipated Sefton’s shareholder cash over a 12 week period to spike the incoming new management team while covertly running a smear campaign recruiting BB Trolls against Seftons requistioners) has been brought in as an oil & gas consultant. Her only claim to fame? 6 Months experience roughnecking on a rig in Canada. Just quite what this girl thinks she can achieve for Solo may become apparent over time. But it’s time that is quickly running out. With estimates varying of between £80k and £200k in the bank at year end 2015, Solo will place and or draw down on their debt facility. That is a 100% certainty.
Any investor holding stock here will receive a massive dilution not only to their holding but the actual cash value of that holding. If I was them I’d be out 1st thing tomorrow morning. The placing when it comes, and come it will, will have to be at a massive discount in-order for the bucket shops to entice the gullible into parting with their cash. It could be a case of Deja vu re’ the disastrous Whitford Novum Sefton placing at 0.065p
Time for Board Room Change.
How long should senior management get to turn a company into a viable business? Neil Ritson is entering his 6th year. One has to beg the question; When will the penny drop that his tenure at Solo is way past it’s ‘sell by date’? Shareholders need results there’s only one thing that can save him. Tanzanian gas production which has been promised and postponed more times than an USA inmate on California’s death row. The difference being that in California they eventually always get the gas to flow! If the gas doesn’t come for Solo then It’s time for a resignation with a new team taking control. If not then shareholders should band together en-masse and vote him out. For far too long CEO’s fill their pockets with shareholder cash while bringing absolutely no value whatsoever back into the pockets of the faithful.
I challenge Neil Ritson to a public platform debate in London on Solo Oil & Gas. I’ll organise it and pay for it. The gauntlet has been thrown. Pick it up Neil and defend your record. Failure to do so will speak volumes.
You maybe a good geologist however as a CEO you need to step away.