THREAD NOW CLOSED 3 May 2007

LATEST NEWS...(Check RNS service for details)

10/4/2007 - GME removes its minority interest in Patriot so shareholders enjoy 100% of all growth at Patriot
20/3/2007 - GME announces it will no longer support as NIM as non-core but instead focus on Patriot's US$123 order book
4/1/2007 - Cantor Fitgerald report 6.90% Holding
Decemebr - $31m orders reported
w/b 27/11 - Cantor buy >3%, Further order of $11m for rig packages
w/e 24/11 - Orders of $20m announced, but not profitable as expected
w/e 13/10 - Further $8m orders
w/e 27/09 - Further additions by Schroders to 12%
w/e 22/9 - Further orders of c $18m plus Gartmore stake increases to 20%.

Global Marine Energy plc is an Oil services company primarily bringing together and delivering rig component/equipment packages to international markets. GME is the holding company for two subsidiaries, Patriot Mechanical Handling and NIM engineering. Patriot provides the bulk of GME's sales.

GME is a niche player, there being only 1 or 2 alternatives for packaged equipment.
Patriot is a member of Source One drilling - a marketing alliance created by Le Tourneau Ellis Williams (LEWCO). www.source1drilling.com

Thread re-opened post results. Feel free to post away. News summary under picture.

Disclaimer: As always, Do Your Own research as no comments or foward looking statements posted here can be guaranteed.

This is an AIM listed company so high risk - only for investments you & your family can afford and are prepared to loose.



***Latest*** (also see estimated Share position analysis below @ 20 April 2006)
19 Sept - $9m from Brazil & America
14 Aug - GME announces $9m of orders including $1.2m NIM orders for Baker marine
These funded in part from recent raised capital.
11 Aug - GME delivers 11.2m stg (2005 4.76m). NIM issues notified in July addressed.
June - Cobra Ltd take large stake, a few previous buyers add
June - Placings at 15p
25 May - Paul Findlay promoted to Group CEO. S Wild (NIM subsid) off board.
10 May - PMHH signs up to http://www.source1drilling.com alliance
8 May - PMHH huge $8.6M china order+announces multiple chinese deals
5 May - PMH signs exclusive deal with winch company EMCE/Stokvis
4 May - Shroders increase to 11.16%
19 Apr - Shroders buy 10.10% 4,525,000
4 Apr - Gartmore adds stock now 17%, CAML buys 3.52%

michael.padley@bankside.com

Pommy - have you looked under the bed lately? It's even scarier!

instead of making stupid sarcastic remarks why dont you address my post like an adult.
there is something not right with what is going on.
Most Companies would be over the moon to RNS news like they have had here.
Why do they continually refuse to RNS stuff?
Why despite continual insti buying is the price not considerably higher?

IMHO the directors are talking the stock down! And theres a good reason for this!!

Sounds like a job for shares magazine! If you are right the publicity will do it no harm. Cannot see institutions standing for an MBO though, given how many are now on board.

given they got in at 17p an MBO at 35p would not be too much of a worry

100% return in 6 months!!

no wonder it was so heavily oversubscribed

Michael Barnard himself told me they only took the stock at 17p to sell into the after market at a profit to make up for the losses they had incurred on an earlier investement they had made in GME!

Pom
You could well be right......but then so could any of us......the bloody crime is that we are left to second guess. It could be the best thing since sliced bread or...um...not...Fact is, we haven't a bloody clue......thats the AIM for you :-)

i see more news out in the USA hat won be announced in the UK


its a fuckin joke!!

Owl


I think, for what its worth, GME/PMH keep the institutions updated and thats why they are keen, they are in the know. As for the PI's, I think GME/pmh see us as a necessary evil and an rns cost money to issue.
The PI's at best, just cause instability in the SP. They add an unwelcome volatility to the markets and we just cause them hassle with out BB's, E-mails and guesswork !
We will get to find out in the end, one way or another, thats the gamble. I have been caught like this before, last time i stuck it out and lost the lot as they declared themselves bankrupt......despite a full order book and a load of rosy RNS issues......
Incidentally, the management brought the company back off the receivers for a pittance and were trading again within 6 weeks , minus the PI's and the debts.....(CRT)

I will stick this one out as well but am now wondering if i will see my 38p break even point ?.......

michael.padley@bankside.com
susan.scott@bankside.com
adam.westcott@noblegp.com
or try Derrick Lee.

Another day goes by and they continue to ignore the rules

Spec,
Did CRT have lots of institutions & a major staff holder?
Let's imagine GME did take on too much debt, I think UBS, Gartmore etc would simply form a consortia to buy out the company, sell the debt in the financial markets and sell the company on for it's contracts, yards, staff & assets.

Could they realistically do this ? I think so as the industry is booming and GME equipment & skills can also be used in other industries, nuclear, ofshore wind etc

I was wondering with just 20m-25m shares tradeable, whether they'd attempt another consolidation?
It would leave just 200,000 shares left in the hands of 5MM's! - only 40,000 each. Now if they want to get rid of us PI's, that may be a way to do it.

why would it get rid of us?

holders of odd amounts would lose a few shares, but anymore with multiples of thousands wouldnt be affected

100,000 shares at 27p

would become 1000 shares at 2700p!!

Another consolidation would leave these virtually untradeable in my opinion.

The PI is the guy that stumps up the cash to take a company to the point where an institution might take notice, after that the PI is a pain. A pain to keep informed, with events and results, and actually cost the company money. The SP can double overnight on a rumour on a BB ! this kind of volatility does a company no good at all. Maybe if the investors here sat back and let the company do their thing over the next couple of years, the company might see us as a form of institution in our selfs but if we e-mail/text/phone them on a daily basis I can see why they would want shot of us. This was always going to be a medium term recovery gamble and i think we maybe look to hard , on a daily basis for the changes that are more likely on a quarterly basis....The important SP will be at your exit point in 2007/08 not next week or at results ;-)

:

:

2006-2008 orders = 52m (75m potential)
2006-2008 Patriot W/cap needed (assume 40% margin)=60/100 x 75/3=15m py

Profit est. (Edison) 7m-10m total 2006-2008 = Avg 3m py.
Net funding required = 12m py

Assuming 20% tolerance - How will they fund?
(E.g v.sucessful share placing at deep discount raised 4.75m cash plus RBS??)

Would RBS give them more than 5m pyr = 15m to be repaid by 7-10M profits less interest? Nope.
Can current management take on the risks of these order sizes? IMO Nope

IMO Take-over/merger is ONLY way. It will need to be very soon too
as without it, no more significant orders as they'd need to have a plan to fund them, yet obviously Patriot are still expanding.

The sooner, the better. Rowan is best choice yet IMO.
2 FD's will reach same conclusion soon enough (if not already).

Just my opinion - DYOR

Morning all

Normal Hours:
Mon 70,127 sells
Tue 107,507 sells
Wed 463,210 sells

Total Vol 640,844

Wed After Hours - 4x 200,000=800,000 Buys

Someone disagrees with GME fall & what market will do next.

Bought a few more PMHH.
May be back later or end of tomorrow to pick up another 10k.

Quotes - it's a very good entry now (if you can fix a mental stop at 10-15c), as buyers have now all sold.

The Return of Owl's Saturday Missive! :-)

By the way, no answer yet re who funds SourceOne.

See link below - very interesting Chinese links, also last year SourceOne was (may still be) very close to signing up a full rig!

You want page 12

http://www.rowancompanies.com/pdf-files/404Grapevine.pdf

I know it's not been mentioned in the UK, however I think SourceOne may turn out to be THE IDC REPLACEMENT IN A MUCH BETTER FORM. It's been very understated so far. No one apart form me I think has shown interest in SourceOne - only that US news generally hasn't made it to UK.


This is all my DYOR & not from any other source, so be tolerant if I have some details wrong here. Lots of others know the engineering industry much better than I do.

There are very few rig package suppliers. Although Patriot can put together most of it, a company wouldn't/couldn't just go to Patriot due to demands of clients, and demand for the bits. I'll try to explain...

Clients are getting more demanding, yet timescales go way out, and clients don't want to go to lots of suppliers. They want choice but one supplier. In the rig world they want an IKEA rather then visiting DFS + CarpetWorld+Curtainworld+Cabinet world+++ with all the contract issues etc that would present.

We all know the problems of building a house extension, and co-ordinating plumbing, electrics, plasterers etc - many choose an architect instead, and offload the hassle.
In the rig world, there the oil majors are loaded so an 'architect' extra costs are irrelevant - its' all about who can deliver fastest & highest quality.

Few suppliers provide packages, Patriot is one of the top 3. Even they though cannot do some parts of the package as they could e.g. before they could go to NIM for winches - not any more. This is why they now have EMCE as an exclusive provider of rigs - offsetting NIM non-delivery risk.

By the time they've found a supplier, they find that supplier cannot deliver for 2 years! Also, they may have found a lower quality supplier than they'd like.

Their client, wants a rig-set in a few months to a year. It doesn't want good quality maintenance free cranes, but have safety issues, or break downs in the winch department! . Enter SourceOne - an alliance of companies who already have all the bits needed, and can conform not just to an industry standard, but to their own.

In the Car world a SEAT may have a VW engine, but it doesn't have VW standards etc for the body, safety aspects, dealer show-rooms, finance deals/terms etc.

This means a client can just ask for SourceOne Alliance to provide a rig-set. SourceOne knows it's members, demand, supply etc bit like a 'virtual company', so can make a commitment to a contract & delivery plan in a way Patriot & others simply cannot.

This is very important strategically, because if Patriot currently tries to put together packages in a 'high demand' market, then it will struggle to commit to timescales for the client these days. There are loads of rigs being built - Rowan themselves have orders for 12 yet no contractor to deliver (see Rig Status), and we all know Keppel's issues. It's the same across the industry, so skeleton rigs eventually get built, but then the equipment they need cannot be delivered - so the rig is pretty useless!

E.g. PMHH can get the cranes, BOP handling gear together in a few months, however the winches will not arrive for a year+.

Hence, they can either buy BOP etc now (using valuable capital), wait for two years then get the winches, then sell the whole lot to the client,

OR they can wait till the winches arrive, then buy the BOP handling etc by which time the BOP supplier has grown frustrated at the wait, is using up valuable yard storage, and has sold to a client who can pay now. Patriot can have the next BOP that''s delivered etc. Hardly a good solution.

OR they can (via SourceOne), get all the bits in six months or so from alliance members. This avoids tying up capital for members, risks of non-delivery, and potential payment/creditor problems, and saves time, yard space etc as there's just one contract - with SourceOne.

So the advantages of SourceOne are:

- Faster delivery of rig set,
- releases yard storage
- One contract
- Quicker payment from client, and from SourceOne to supplier
- Lower financial/working capital risk
- Reduced risk of non-delivery e.g. on big contracts (risk is shared where before Patriot would have stood in SourceOne's position)
- Consistent standard of equipment
- Greater choice of equipment & options on that equipment
- For the client, reduces risk one of the members may suffer cashflow issues. SourceOne can either substitute another member or provide more cash, or get two alliance members (similar standards, values remember) working together.

But I still do not know for sure who funds the package.

I think such a contract would have to be with SourceOne directly. Either Le Tourneau or Rowan might provide a float if needed, or alternatively flexible supply terms would be agreed to meet the package delivery aims.

It's crucial IMO we understand SourceOne and it's potential. It resolves many of the funding issues etc we've discussed on Specs BB, and until told otherwise I believe this may be the IDC replacement we've been waiting for.

If it's not, can anyone make the argument why they'd now need an IDC if they have funding from RBS bank facilities+cash+SourceOne funding+ profits?

There was one DIRECT reason why GME fell last Feb 2005 from 1.20. That was funding. It was funding that caused the placements, funding that caused turnover to be missed, funding that meant no contingency when restructure costs were more than expected. IF (and accept it's a big IF) SourceOne solves the funding problem (in the way IDC was meant to have done), then we own a company which has tremendous & unconstrained prospects.

So Wise one

what do we make of this?

CEO based in the US? Or is he moving back? Or are we moving towards cancelling the UK listing in favour of a US listing?

Global Marine Energy PLC
24 May 2006

24 May 2006



Global Marine Energy plc

Appointment of Chief Executive


Global Marine Energy plc, ('GME' or 'the Company'), the oilfield services
company, announces that Paul Findlay, the current Chief Executive of Patriot
Mechanical Handling, GME's US subsidiary, will take over as Group Chief
Executive with immediate effect.



Philip Wood becomes Executive Chairman and Stewart Wild steps down from the
Board with immediate effect.



Philip Wood commented:



'The appointment of Paul as CEO of the Group will help us to continue to drive
the business forward. Paul has a proven pedigree and the Board believes he is
the correct individual to lead the business, especially during this period of
high growth.'



For further information please contact:

Philip Wood, Chairman, Global Marine Energy plc 01274 531 862

Adam Westcott, Noble & Company Limited 020 7763 2200

Michael Padley / Susan Scott, Bankside Consultants 0207 367 8888