ADL/CEB Another ‘TOE in the AndalARSE’ for Shareholders!

News on Andalas Energy ( LON: ADL) or AndalARSE as I like to call them, could be about to drop. Investors will remember it traded as the mega ramped pumped & dumped CEB Resources. It was, as CEB, a major disaster for those gullible enough to fall for the bullshit of the BB and twitter P&D crews, who were being whipped up into a frenzy by off record ‘title tattle’ from various people/organisations associated with the then CEB. One moron claimed that Whitby had turned NIDO Petroleum into a $600M company.  While others were spinning it as a $600M takeover. Complete Bollocks.

Under AIM rules the company have to publish a readmission document in a matter of a week or so, otherwise it’s ‘goodnight Vienna’ off the AIM it will go. $600,000,000 fantasy man CEO Dave Whitby, is reputed to be offering all kinds of financial packages on broker fees, warrants and options in-order to grab the cash. The company recently got out of a bankruptcy hole when raising £500,000 of super expensive debt on March 31 2016 – Tom Winnifrith, the respected City of London financial journalist, described it as “The most expensive debt in AIM history”. You can read his article HERE. That debt is convertible into shares if Andalas relists, and the whispers are that the £500,000 now paying for the RTO and bloated PLC costs will not be the only dilution should they relist. A further £2/3 Million of hugely discounted shares may follow. That’s very bad news for those left holding shares in the suspended cashless, asset less, shell.

$600,000,000 Fantasy Man

AndalARSE have no assets whatsoever other than some Indonesian options on options, assignment agreements and concession agreements. Any and all of those paper agreements will cost millions to sign off and work. Money they simply, as of yet do not have. Should they relist with a £2/3 Million super dilution then as sure as night follows day they will very quickly burn through it. The heads of terms agreement signed to acquire a 30% working interest in the aptly acronymic ‘TOE’,  Tuba Obi East oil and gas concession, will relieve them of approx. $1,600,000 which as we all know will rise substantially, this doesn’t add in the bloated PLC and corporate payments going into the pockets of the company and its advisors. Ergo de facto they’ll be looking to raise further capital within a matter of months of relisting.

What’s interesting is that Corsair Petroleum, owned by team Whitby have already pocketed 31,250,000 CEB shares and have share payments waiting of 34,344,865 ordinary shares exercisable at 0.4p per share until the third anniversary of the Assignment Agreement (“Options”). In the event that Corsair is successful in the acquisition of at least one concession, CEB will issue up to 93,750,000 ordinary shares in CEB and up to 103,034,596 Options in three equal instalments. So Whitby, and cronies, in Corsair will be trousering over 270,000,000 shares. For little more than an introduction! Which again will further add to the dilution… and enrich the $600,000,000 fantasy man.

The sensible should ‘Exit left’.

The pump and dump fest from the usual names will begin almost immediately on twitter and the financial BB sites on relisting.

Avoid the Whitby ‘TOE in the AndalARSE’ Do not be suckered into this POS.

Viva

Dan