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Management, page-151

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fooca

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08/05/18

08:26

Post #: 32943592
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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

While we all twiddle our thumbs....

Management Part 5 – projects and performance

2011:
A correction to previous post #32679937 tenement sold was EL4877 and not EL4500

1: More tenements from initial IPO expired/lapsed, (EP4861, EP4862)
2: Tenement EP425 expired/lapsed which was purchased from Lodestar ?? (King) prior to IPO for 6M shares @ $0.10c = $600,000 but with the carrying value of $5,000,000? being expensed. EP425 was also in European Gas Limited’s Annual Report divested exploration permits EP425 & EP447 (still can’t work out why Lodestar was paid for EP425) https://www.asx.com.au/asxpdf/20071001/pdf/314vwt03yrbpmq.pd
3: Sold equity investments? (no mention which) To maintain enough working capital to continue as a going concern
4: Coal sample for CTL assessment dispatched and waiting for test results (31st Jan) still no result?
5: Placement to Astron raises working capital and funds for CTL project, and forges an even stronger strategic link between GPP and ATR (Astron) (GPP holds 1,292,250 shares in ATR) as well as having common directors (King/McCullough) – what is/was the advantage of having this strategic link? And what exactly is the strategic links?
6: It is somewhat annoying that shares GPP have invested in ASX listed companies are not reported more transparently, but rather having to go looking for announcements/annual reports. As per point 3 “above” but going on Astron’s previous year annual report where we held 1,442,250 shares has been reduced to 1,292,250 in the 2011 annual report
https://www.asx.com.au/asxpdf/20111017/pdf/421sq5hg7l77xb.pdf
7: During the year consolidate cash almost entered negative territory but was bolstered by the sale of Astron sales, for the quarter a drop in administration costs to $18k versus pervious quarters $58k & $65k?
8: Michael Piperoglou becomes a substantial holder (10.12%)
Planet Gas ceases to be a substantial holder – sale of 11,635,000 shares off market
By years end there was no Becoming a Substantial Notice from Astron issued? One would think that as both these companies are ASX listed they would know their reporting requirements!
9: Drilling progressing on tenements we still own!
10: EL4877 sale stalling and has been rejigged!

Quarterly Financials & Activities:
31^st Jan – John Watts active in reviewing areas held and onsite surveys. Activities focused on EL4500, EL5227, EL4860, EL4877 with detailed fieldwork choosing suitable areas for drilling programmes.
Coal sample for CTL assessment dispatched and waiting for test results.
Cash at end of quarter $151,000 – budgeted spending for next quarter $150,000
EP425, EP4861, EP4862 tenements expired/lapsed
29^th Apr – Company focused on drill targets EL4500, EL5227 and EL4860, all targets lie within freehold land and are being identified by the company tenement manger
Cash at end of quarter $385,000 – budgeted spending for next quarter, interesting to note that for previous 2 quarters administration had been $58k and $65k, budget spend for the quarter was $50k but spend was $18k ?? (making ends meet? for reporting the quarterly?)
Joint venture agreement with UIL LLC EP447 Walyering
Consolidated cash almost entered negative territory but was bolstered with the sale of Astron shares
31^st Oct – Latrobe Valley lignite is an excellent feedstock for Direct Coal to Liquids (DCTL) processes.
Negotiations commenced with a North America Research group who are developing the DCTL technology.
Cash at end of quarter $895,000 – includes $523,000 from placement and a further $200,000 from sale of EP4877 (still $2.4M in negotiations) Admin costs for the quarter $197,000 a multiple of 4 from previous quarters?

PEL 145 – announcements
28^th Jan - GPP offered licence covering the Willochra Basin for a period of 5 years. The basin is adjacent to the Walloway Basin where a large lignite resource has been identified, supporting an interesting and ambitious downstream development including plans for a coal to liquid undertaking. The presence of a similar resource in the Willochra Basin is an exciting possibility for GPP.
https://www.asx.com.au/asxpdf/20110128/pdf/41wdt27wd5gnm9.pdf
31^st Oct - Data from groundwater analysed and a comprehensive report on the prospectivity of the permit will be undertaken in Dec quarter.
https://www.asx.com.au/asxpdf/20111031/pdf/4226vmvhzkbqgw.pdf

EL 4500 – announcements
31^st Jan – Resource and Coal Quality by an independent consultant returned 101.92Mt of coal, stripping ratio of less than 6:1, further drilling in area to upgrade resource estimate.
https://www.asx.com.au/asxpdf/20110429/pdf/41yc7y35gjl5qr.pdf
29^th Apr - Further drilling hadn’t started to add to define coal resource.
https://www.asx.com.au/asxpdf/20110429/pdf/41yc817mtfx51q.pdf

EL 4877 – announcements
31^st Jan – (Sold Sept 2009) Negotiations continuing with the purchaser on the transfer of the EL.
https://www.asx.com.au/asxpdf/20110429/pdf/41yc7y35gjl5qr.pdf
27^th July – Upon the licence renewal the tenement was reduced bt the Victorian Department of Primary Industries in size from 700 graticular sections at time of sale to 200, the purchaser was concerned the reduction would affect parts of the prospective underlying coal deposit which was the reason for the purchase. A new Novated Deed was recorded with the DPI on the 18^th July
https://www.asx.com.au/asxpdf/20110722/pdf/41zx3sfj11nk71.pdf

GEP37 & GEP38 announcements
31^st Jan – exploration progressed, Geophysical data review and fieldwork to be further investigated during 2011.
29^th Apr –exploration continued, land freehold status under review

EP5227 – announcements
Some historical information from Esso, interest in the ability for the Latrobe Valley lignite to form the basis of Coal to Liquids, In addition to the drilling Esso also carried out testing in their labs in North America but discontinued when the oil prices collapsed – using the base of Esso’s work the company has re-started lab work assessing the potential, a 6 hole core sample will be used for the testing programme.
Coal sample for CTL assessment dispatched and waiting for test results (LUCA Technologies)
https://www.asx.com.au/asxpdf/20110131/pdf/41wh8ttlbjg1gl.pdf

EP447 – announcements
29^th Apr – Greenpower enters into a JV agreement with UIL LLC, UIL are currently completing a data review and are formulating a development programme for the second half of 2012, programme information will be available by the end of May 2011

Placement – 15^th July
GPP issues 9,513,018 shares @5.5c to raise $532,726 to Astron (13.04%)
Placement used for working capital and in particular to assist funding its Coal to Liquids project involving technology developed by the University of Texas.
https://www.asx.com.au/asxpdf/20110715/pdf/41zsypbm2qplln.pdf

Substantial Holder Notices:
11^th Oct – Michael Piperoglou becomes a substantial holder (10.12%)
12^th Oct – Planet Gas ceases to be a substantial holder – sale of 11,635,000 shares off market
By years end there was no Becoming a Substantial Notice from Astron?

Drilling progress update for tenements we still own…..
https://www.asx.com.au/asxpdf/20111026/pdf/4221htgxz85k6z.pdf

Coal to Liquids Project: Latrobe Valley
Latrobe Valley lignite is an excellent feedstock for Direct Coal to Liquids (DCTL) processes.
Greenpower after examining many conversion processes has concluded that only one satisfies critical environmental guidelines. Application of this process could produce synthetic oil in an environmentally manner at an operating cost lest than $35/bbl BUT then say “an exact figure will depend on input costs”.
Negotiations commenced with a North America Research group who are developing this DCTL technology.
https://www.asx.com.au/asxpdf/20111031/pdf/4226vmvhzkbqgw.pdf

All the above IMO only unless directly taken from announcements

GPP Price at posting: 0.9¢ Sentiment: Hold Disclosure: Held
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3 Great analysis

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