3986 days ago
When is $756.3 million worth $72 million? Over on the AIM Cesspit of course. This is a story about the disgrace that is Resaca Exploitation but it applies to many other AIM listed companies that have trumpeted competent person’s reports as well. But before looking at some other cases, let’s start with Resaca.
It listed on the Cesspit in 2008 at 130p. It was going to make money from exploiting US oil and gas assets. Hmmm. The main men here (and only executive directors) are JP Bryan and Jay Lendrum who are behind a company called Torch. I refer you now to the 2012 Annual Report:
The Company receives support services from Torch Energy Advisors Incorporated (“TEAI”) and its subsidiaries, which includes office administration, risk management, corporate secretary, legal and litigation services, tax department services, financial planning and analysis, information technology management, financial reporting and accounting services, and engineering and technical services. The Company was charged by TEAI and a subsidiary of TEAI $980,560, $960,904 and $1,440,241 during the years ended June 30, 2012, 2011 and 2010, respectively, for such services. The majority of such fees are included in general and administrative expenses.
Hmmm so with the shares now at 3p-4p not everyone has done really badly out of this POS
