From £6.99 per month
ShareProphets
The one stop source for breaking news, expert analysis, and podcasts on fast-moving AIM and LSE listed shares

MINDING THE LSE’S BUSINESS

Join for as low as £6.99 per month

With ShareProphets’ membership, you receive:

• All premium articles

• Tom Winnifrith’s Bearcast

• Access to all the entire nearly 10 year archive

• ShareProphets Daily Newsletter

Tangiers Petroleum; David Wall obliterates his shareholders

By Ben Turney | Wednesday 24 September 2014


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


The reckless mismanagement of Tangiers Petroleum (TPET) has led to yet another shareholder wipeout. To be frank the writing has been on the wall for this dreadful stock for a while, but today’s shocking RNS announcement will do little to soothe badly burned shareholders. The company claims that the “final cost of the TAO-1 well was in excess of the Company's internal budget”. This is apparently why Tangiers is now in such a dire financial state and is being forced to relinquish its 25% stake in the Tarfaya Offshore Block, Morocco, as well as conduct a $1.2million placement at the equivalent of 0.324p (a 97.5% discount to the prevailing pre-duster price). The problem with this line of argument is that the costs of the TAO-1 exploration well came within the “plus or minus 25% variance” announced in the amended budget on April 28th. To add insult to injury, rather than explain why he bet the farm on a single wildcat exploration well, Managing Director David Wall instead believes the market owes him a second chance. It doesn’t.


Filed under:



Subscribe to our newsletter

Daily digest of our latest stories.



Search ShareProphets

Market News

Complete Coverage

Recent Comments

That Was the Week that Was

 

PICH

Pitch Pit – this stinks

 

GEX

Georgina Energy: Lyin’ Yet again

Time left: 19:23:19