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%

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

Not much happenin ...yet...

Here'ss your clue how Global will do...
http://www.source1drilling.com/links.htm

OWL, another placing!!!!

FFS!! How much money do they need!!!!!?

This placing comes as no suprise.....why should it ?? weve had enough of them !!

But....why now at 15p and not last month at 20p-25p ?
Why the total lack of PR with the news ?
What were the facilities set up with the bank for ?

This management need to do some serious explaining or lose the confidence of the PI completly..IMO

Seems to me we have been pissed on from a great hight.....again :-(

Think we just have to hope Paul Findlay can take the reigns and make the three important phone calls.

Is one of them to GOD?

Think they're striking while the iron's hot.

If their 3 year business plan was financed, this will be extra cash.
They have 4.75m from Jan placing+4.0 (June placing)+RBS facilities (2m??)+ profits from completed work - total of between 10m-12m.

I guess the price could have been raised (e.g. back to 27p) then do a placing, Spec. however, it would just fall back again once placing announced.

Better to get it out of the way, knowing there are several institutions now with Open Interest at the 15-17p level. Cannot imagine they'd have a need for any more till the share price goes well over 50p. Even if they did, would the instis now let them dilute the big guys - be very surprised if they did!

Will probably go to the EGM to see what the questions are. Would be good to catch up as I'm working in Leeds currently so 12pm is no problem.

If orders are to be c20m for 2007, and they can deliver 40% margins, there should be a return within a year on the placings. Let's see.

Small buy today of 5000 shares. I'm hoping to add 15k more over next few weeks before July placing. Need to move a few monies first though. Wondering if any PI's are left in this thing!! Blimey - need a sense of humour ...

Have a good weekend.

Is the end of year results out tomorrow? Anyone?

Should be !

July 5th - EGM day, 7am I reckon.

Later is better as just 10-12 weeks to 2007 half-year profits.

THREAD CLOSED - PLEASE FEEL FREE TO START ANOTHER

11 Aug - Audited results show sales 4.76m rose to 11.2m (7m since interims) under Mr Findlay, CFO Mr Baer (Patriot), Mr Gibson (New Finance Director appointed in Jan)

Previous RNS gives order book at 24m in July with 'in excess of 3m' delivered in first 2 months of 2007 Financial year. Net cash 4m following placing.

I believe one can only sit and wait with this company as they have not shown they can be trusted. Great prospects though and if they pull it off, the share price will rise significantly, but promises have not been fulfilled so far. Good growth area but financial management has been a problem imo. Perhaps new FD can get to grips with that.