Australia's largest stock trading and investment forum Australia's #1 stock forum

GPP

Click for more information

0.00%

0.1¢ greenpower energy limited

Management, page-78

First 78 Last

Share
Profile

Follow
fooca

4,294 Posts.

511

14/04/18

13:03

Post #: 32455015
Share

Originally posted by fooca ↑

Some contributors to the thread may not like the contents as being in the past, let it go etc, I personally think it is relevant and a lesson of properly doing your own research before investing in a company. I have also previously admitted I was guilty of not being thorough enough prior to buying in to GPP, by going back only a few of years looking into the CTL/OHD project, the reason I am invested in GPP.
I will eventually post the rest of my research notes and it is understandable but unfortunate that the great potential that exists in GPP's projects (and they all have the potential to be company makers in their own form) is being eroded by a lack lustre management team.
The crux of it, it is history repeating and can/will management eventually change and get a project to the market that will be able to sustain shareholder value, I am starting to think they can't and a change is needed.

A history lesson in GPP’s management …………Part 1

The transactions of tenements prior to listing were difficult to understand as was some of the shares that were issued/brought prior to the IPO, as well as tracking IPO tenement and share transactions.
A bit like “who is on first”, but definitely some “eye brow” raising data in here, well IMO only of course.

The MO of management begins ……………
Sleight discrepancies in financial reports pre listing:

View attachment 1049923
View attachment 1049926
https://www.asx.com.au/asxpdf/20080229/pdf/317sfj83zwzmlz.pdf

There were no shares issued or related party transactions in the year ending June 30^th 2006 but King loaned the company $304,949 (page 7 of Financial report) during the year, appears they were struggling a little, with a cash balance at start of year of $9,429. The loan was repaid with the issue of 30,490,868 shares (pre consolidation)

2007 Financials shares issued doesn’t include 600, 000 “new” shares (post consolidation) issued to Heritage Petroleum Plc (Flavelle a director) for Permit 425 valuing the transaction at $60,000 (assuming that they were issued @10c) – (financial year ending 30^th June 06) events subsequent to reporting date, page 19
https://www.asx.com.au/asxpdf/20080229/pdf/317sfj83zwzmlz.pdf

Greenpower issued 6M shares @10c to King (Lodestar) for the acquisition of WA tenements EP 425 & EP 447, valuing the transaction @ $600,000 (Year ending June 2007 Financial Statement, sect 17 – related party)
View attachment 1049935
From the same announcement (sect 10 – other assets) shares were issued for only EP425
https://www.asx.com.au/asxpdf/20080229/pdf/317sfv74y1qkbv.pdf

They also issued 4M shares @ 20c to European Gas Limited (Flavelle a director) for the same WA tenement EP 447 valuing the transaction @ $800,000 (Investigating Accountants Report)
https://www.asx.com.au/asxpdf/20080229/pdf/317sf4vltqz40l.pdf

Further more, I don’t know how this works but, (any budding lawyers out there) CCC Methane (a wholly owned subsidiary of GPP) entered into a tenement agreement with Heritage Petroleum and Lodestar? (King) on 28^th Feb 2006 to acquire 100% interest in EP425 (page 65 of the prospectus) Unfortunately, there is no information I can find on who actually owned the tenement other than what is in the prospectus. Heritage Petroleum (Trustee) was the legally registered holder of EP425, other than reading it in the prospectus I can’t see how or why Lodestar were issued 6M shares as being the beneficiary? (6.3 Prospectus)
Trying to get any historic information of either Heritage or Lodestar draws blanks.
Then further in the Prospectus “Antares” are the legal owners of EP425 (6.5 prospectus)
https://www.asx.com.au/asxpdf/20070914/pdf/314k19551s1h75.pdf

BUT!!! Wait, rut roh...............
In European Gas’s Financial report for year ending 30^th June 2007
They completed the acquisition of Heritage Petroleum (registered owners of EP425) and were in the process of divesting exploration permits EP425 & EP447 (page14 of report) so if European Gas owned these tenements why did Lodestar get paid for them?
https://www.asx.com.au/asxpdf/20071001/pdf/314vwt03yrbpmq.pdf

The above certainly does raise the eye brows on who actually owned tenements EP425 & EP447 but also interesting was the value of $5,000,000 that was accredited to the tenement (EP425), (as reported in year ending June 30 2007 (page 27) versus the deemed value “as above” in the 6m shares issued to King ($600,000) and if you add in the shares issued to Heritage Petroleum Plc ($60,000) and European Gas Ltd ($800,000), $20,000 paid to Antares, then the total cash and deemed value of shares issued for the two tenements $1,480,000.
I am at a loss to understand, if I held tenements valued at $5,000,000 I doubt that I would be only accepting shares to the value of $600,000!!

View attachment 1049941

Tenements purchase for IPO listing:
From Planet Gas: EL4500, EL4807, EL4811, PEL428 (20%) EL4859, EL4860, EL4861, EL4862, EL4877
JV with Lynch Mining – EL4368, EL4369, SAPELA145, SAPELA146 for consideration of 12,500,000 shares in GPP @20c = $2.5M deemed valve.
European Gas: EP425, EP447 – for consideration of 4,000,000 shares in GPP @20c = $800,000 deemed value
Heritage Petroleum: EP425 – for consideration of 600,000 shares in GPP@10c $60,000 deemed value
Comet Ridge/Davidson Prospecting – contract to acquire 20%
See above for shares issued to King….

The prospectus (sect 2.9) clearly states: “The minimum subscription for the offer is $6M comprising 30M shares. No shares will be allotted under this prospectus until the minimum subscription has been reached.”
https://www.asx.com.au/asxpdf/20070914/pdf/314k19551s1h75.pdf
Going on the announcement “Statement of Commitments” they never raised the required minimum subscription monetary value, https://www.asx.com.au/asxpdf/20080229/pdf/317sfbjs1kc6gl.pdf or the 30M shares minimum.
22,638,850 shares issued under the public offer *note 2:
https://www.asx.com.au/asxpdf/20080229/pdf/317sf4vltqz40l.pdf

Wait, there is more: as per the 30^thJune 2008 Yearly Financials:
Non-Cash Financing and Investing Activities:
Subsequent to the IPO 43,019,010 shares were issued, of this 10,138,850 shares raised cash of $1,783,405 and the rest of the shares were issued for acquisitions. So we just popped out another 20m or so shares?
Also interesting to note, the deals between GPP and European Gas / Astron, whereas my thoughts are that the IPO was poorly subscribed to and they needed topping up to get ASX listed as per the minimum requirement, eg:
Lodestar (King) subscribed for 12,500,000 shares @20c ($2,500,000) after being satisfied by the transfer of $2,500,000 of shares in Astron (King a director).
Flavelle subscribed for 1,860,160 shares @20c ($375,032) after being satisfied by the transfer of $375,032 of shares in European Gas (Flavelle a director).

Royalty Interests over Exploration Licence 4500 was surrendered to GPP by former shareholders for 2,000,000 shares issued under this Public Offer – valued at $400,000 which actually detracts from the Royalty terms outlined in the prospectus, (sect 6.7). One wonders why they opted to pay out the royalty interests in lump sum versus the term as per the prospectus.

The cost of the offer was reported differently on 3 occasions: from these announcements – more oopsies?
$453,000 https://www.asx.com.au/asxpdf/20080229/pdf/317sfbjs1kc6gl.pdf
$243,125 https://www.asx.com.au/asxpdf/20080229/pdf/317sf4vltqz40l.pdf
$288,493 https://www.asx.com.au/asxpdf/20081001/pdf/31cn4cz5xbqq92.pdf

Even prior to and at the time of listing, King has had to inject money into GPP to
1) to provide funds to for working capital (2005/2006)
2) to actually get it listed and
3) over the subsequent years to keep it operational all due to the inability to progress a project beyond a pipe dream and using funds to chase the next big thing.
The agreement between Lodestar to buy 12.5M shares in the IPO on the transfer of $2.5M worth of shares in Astron only looks like it is serving a, yes we have enough to satisfy the minimum requirement of the prospectus to be listed but then channel the funds raised into another company, where King is a director??
The agreement between Flavelle and European Gas has the same purpose, but to serve what means?
The funds raised by shares purchased by McCullough pre IPO were also to assist seeding for listing on the ASX.

All the above is MY OPINION ONLY and information has been directly sourced from available announcements released by all companies mentioned.

Expand

Management Part 3 – projects and performance
2009:
My take on the year: all the following is solely IMO only….. the company MO is being enhanced!!!
1: Planned drilling never eventuated or was way past the company’s initial time lines across most of the tenements,
2: a tenement purchased during the IPO was relinquished
3: additional tenements were applied for and granted
4: JV’s hinted at the previous year have yet to materialise (EP447)
5: sale of a tenement purchased during the IPO
6: JV’s and HOA signed for selected permit areas
7: Applications for additional tenements
8: $420,000 to purchase equity interests – without indicating what they are
9: Preserving the shareholder precious funds (company’s wording) while doing all the above
10: Share price has declined from 15.9c (June 08) to 7.2c (June 09)
11: CSG is the focus but already of the mindset of looking for other potential green hydrocarbon/energy productions
12: UCTL dream was born
13: Tenements required spending is not being achieved/addressed although quarterly budgets aren’t being exhausted, does/will this have an impact at a later date ?? (As we have already relinquished 1 tenement)
14: Directors issued a total of 1.2 million options per the Employee Share Option Plan (set up April 2007)

https://www.asx.com.au/asxpdf/20080229/pdf/317sfkp3r6j4pl.pdf

PEL 428 announcements (GPP 20% ownership)
20^th Jan 09 – Drilling to commence in February – yeah!! Finally, something is happening.
https://www.asx.com.au/asxpdf/20090120/pdf/31fmps9yk8kkqf.pdf
29^th Jan – quarterly activity report - review and analysis of existing information was continued, in the quarterly the plan was to drill February/March.
23^rd Mar – update report on drilling PEL427 (GPP has no interests in) but due to operational problems since Mar 16^th have been rectified with another 8 days? PEL428 drilling to immediately follow, early April – so it went from Feb, to Feb/March and now April - MEH
https://www.asx.com.au/asxpdf/20090323/pdf/31gqgsyrcbvszr.pdf
6^th April – drilling commences
https://www.asx.com.au/asxpdf/20090406/pdf/31gyq2vyq6pv84.pdf
14^th Apr – update coring of the target coal members to provide important information
https://www.asx.com.au/asxpdf/20090414/pdf/31h1j49drs4b6w.pdf
20^th April – a further update, the drill has reached its total depth, wireline log data has been acquired and total gas volumes to be determined over coming months.
https://www.asx.com.au/asxpdf/20090424/pdf/31h6rxd6rqbm0f.pdf
30^th April – ESG Drilling report, coal samples collected for gas content and isotherm measurement, and the well was plugged and abandoned as planned.
https://www.asx.com.au/asxpdf/20090430/pdf/31hb1zx453h8ll.pdf
25^th Nov – Earlier in year Kurrabooma was drilled, analyses of coal cores in progress.
https://www.asx.com.au/asxpdf/20091125/pdf/31m99hrlp8kc1q.pdf

EP447 – announcements
28^th Jan - GPP have commenced a detailed review, including investigation of first drilling sites – no mention of any JV’s as per the previous announcement (30^th Oct 08)
https://www.asx.com.au/asxpdf/20090128/pdf/31fqnmt5mhfz4z.pdf
29^th Jan – quarterly activities report – review of technical data was continued, it is expected that a major structural study aimed at out lining specific CBM targets will begin early 2009
https://www.asx.com.au/asxpdf/20090129/pdf/31frc0q3bxq5dj.pdf
25^th Mar – Structural study of Walyering trend identifies substantial potential for Coal Seam Methane, Gas and Oil
https://www.asx.com.au/asxpdf/20090325/pdf/31grw4wfs7kyll.pdf
25^th Nov – Contains the shut Walyering Gas Field (a major hydrocarbon fairway) The trend has the potential for gas including coal seam gas (CSG) In 2010 the company plans to test the potential and a feasibility study for the re-opening of the WGF that is currently in progress will be completed by early 2010.
https://www.asx.com.au/asxpdf/20091125/pdf/31m99hrlp8kc1q.pdf

EP425 – announcements
29^th Jan – quarterly activity report - no work carried out on this permit, analysis of geochemical data from wells in the region suggest the potential for oil and a study to define targets for testing to be carried out early 2009
25^th Nov – Analyses of thermal imagery in progress
https://www.asx.com.au/asxpdf/20091125/pdf/31m99hrlp8kc1q.pdf

EL4500 – announcements
30^th July – quarterly activity report – review of existing information over the area is continuing, as part of the information sharing agreement with Granite Energy, it is anticipated that drilling within EL4500 will occur in the coming 6 months –
Well we have heard it before and yet again a statement that never produced in a timely manner:
12^th June 08 – agreement with Granite Power (unlisted) Granite is expected to begin drilling in the near future. GPP is moving rapidly to develop its 2 million hectares of commercially attractive tenements and to extract natural gas to sell to electricity producers and gas marketers.
https://www.asx.com.au/asxpdf/20080613/pdf/319lxfy4y9xb5k.pdf
30^th Oct 08 - as part of the agreement to share drills/data with Granite, anticipated drilling will occur in November/December
https://www.asx.com.au/asxpdf/20081030/pdf/31d8x7htmk51ds.pdf

Quarterly Finance reports….
29^th Jan – Cash at end of quarter $1,020,000 - $205,000 was a payment for purchases of equity investments, but isn’t clear what equity was purchased - budgeted spending for next quarter $190,000 – budget not spent

27^th April – Cash at end of quarter $913,000 – budgeted spending for next quarter $190,000 - budget not spent
30^th July – Cash at end of quarter $559,000 – $215,000 was for payment for purchases of equity investments, but it isn’t clear what equity was purchased - budget spending for next quarter $190,000 – $54,000 spent

30^th Oct – Cash at end of quarter $679,000 boosted by $200,000 (sale of Mirboo deposit) – budget for next quarter $190,000 – EL4807 first of tenements relinquished, (purchased from Planet Gas @IPO) and EL4500 reduced in area.

I like this from the shareholder update – Year ending 30^th June:
First full year since listing, after the GFC, GPP devoted to re-evaluation of its extensive acreage of tenements, a sale of one area, two new JV’s, applications for new areas, and above all, very careful conservation of precious shareholder funds has underpinned the year……… very careful conservation of funds by spending $420,000 on an equity purchases (??), applications for new areas and 2 new JV’s. Taking the cash balance from $913,000 to $559,000 for the quarter ending 30^th June. The company was pleased to report their current financial position remained nearly as strong as when they listed - all considering the recovery from the GFC.
March 2008 SP 20c (IPO) June 2008 SP – 15.9c, June 2009 SP – 7.2c
One year in and the company is already of the mindset to “go looking” re: Coal Seam Gas remains a target, this year the company has broadened its objectives to look at other green hydrocarbon production and indeed other green energy production!
https://www.asx.com.au/asxpdf/20091028/pdf/31lmxd2z45nnmn.pdf

6th Feb – Finsia Presentation rehashed
https://www.asx.com.au/asxpdf/20090206/pdf/31fxwq9h7bc95l.pdf

1^st July – Appendix 3B announced – 3 million options issued to renumerate executives and consultants for work performed to 30^th June 2009. Options issued for nil consideration with a strike of 10c – these were issued as per the Employee Share Option Plan (set up April 2007) to renumerate directors and officers for services provided.
Flavelle 1.2 million, King 200,000, McCullough 200,000, Mitsui 200,000 (Appendix 3Y, announced the following day.
https://www.asx.com.au/asxpdf/20090701/pdf/31jcfpwvxlz3x0.pdf
https://www.asx.com.au/asxpdf/20090708/pdf/31jgjyd1sh34h4.pdf

17^th Aug – Heads of Agreement signed with Clean Global Energy – Initially a 3 month review of GPP’s Victorian coal tenements to select suitable sites for UCG purposes. If appropriate in a JV with GPP select sites within JV areas to build a UCG Pilot Plant and in due course a UCG (Underground Coal Gasification) commercial plant/s.
https://www.asx.com.au/asxpdf/20090817/pdf/31k3vwf9df83ss.pdf
https://www.asx.com.au/asxpdf/20090818/pdf/31k4p6wq7v6cmx.pdf

9th Sept – GPP to sell Mirboo tenement for $2.8M – EL4877 (which was acquired from Planet Gas at IPO) and would make a nice return to shareholders considering EL4877 was one of 5 tenements that were acquired, at time of the IPO GPP issued Planet Gas 12,500,000 shares @20c = $2.5M in value. The initial deposit has been paid into GPP’s accounts.

19^th Oct – Regal Resources signs farm-in agreement, conditional on licence renewals. The farm-in agreement object was to establish a commercial operation of the Underground Coal to Liquids process. The UCTL being a new process invention – the dream has begun….
https://www.asx.com.au/asxpdf/20091019/pdf/31ldw0jy1z5zf8.pdf

18^th Nov – TNC secures exclusive access to BME (Bio Methane Enhancement) by taking a 20% stake in EBM (Exclusive Australian Licence) to the BME technology, EBM have access to coal/lignite resource via farm-ins (35%) with Regal Resources and GPP at EL4860
https://www.asx.com.au/asxpdf/20091118/pdf/31m3zt2mqhz6xq.pdf

23^rd Nov – GPP granted 2 new exploration areas in Nth Gippsland – EL5227 & EL5228. In 2010 plans to analyse the technical data base to establish an exploration and development plan, for coal seam natural gas or gasification in-situ.
https://www.asx.com.au/asxpdf/20091124/pdf/31m7yl8m699btc.pdf

All the above is MY OPINION ONLY and information has been directly sourced from available announcements released by all companies mentioned.

GPP Price at posting: 1.5¢ Sentiment: Hold Disclosure: Held
4 Upvote

3 Great analysis

Reply

Top Stories

EDE

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

LYN

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

AN1

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

HotCopper Highlights: Your most watched stocks for Week 46, 2024

AUN

Cyclone signs MOU with Vale for development of Iron Bear play

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

ME1

Banshee's historic trenches prove rich in antimony and gold for GDM

GRL

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

There are more pages in this discussion • 80 more messages in this thread...

First 78 Last

Add GPP (ASX) to my watchlist