Those of you who received the e-mail version of this post know that I initially said he was fired. That’s not what the statement says. I guess I was just reading between these lines:
The Company announced today that Mr. Luis Giusti Sr. has stepped down as Chief Executive Officer and will remain on the board to provide his support to this process. The board will also ensure it has the resources available to oversee the execution of the strategic plan that is being implemented under new leadership and a new management team. To this effect, the Executive Committee of the board of directors (consisting of the independent members of the board) has authorized the delegation of authority to Mr. Gregg Vernon, Interim Chief Operating Officer, while it conducts a search for a new Chief Executive Officer. In addition, the Executive Committee has hired two experienced oil and gas industry consultants to support the implementation of the strategic plan initiatives. Mr. Luciano Biondi Golinucci, a graduate of the Universidad del Zulia with a B.Sc. in petroleum engineering with 42 years of extensive experience in all facets of the business, in particular the production and drilling operations in all manner of fields, will focus on improvements to increase production from the Company’s core assets. The Executive Committee has also retained the services of Mr. Francisco Bustillos, an executive with over 30 years of financial and management experience in the oil industry. Working closely with Michael Davies, the Company’s Chief Financial Officer, Mr. Bustillos will lead the implementation of improved internal controls, processes and management systems in Alange Energy’s Colombian operations.
They’re firing 40% of the staff in an attempt to get their administrative spending down.
The company will hang on, for now, to its equity interest in the Topoyaco block with its “gusher,” but is giving operational control to its partner, Pacific Rubiales.
Alange is also issuing $50 million worth of stock to try and pick up some working capital and pay off some of its $47 million of debt, and is promising that it will comply with its commitment to spend $12.5 million in the next four months on a new exploration block.
Gotta wonder about those 17 million shares that traded today, with piles of folks buying into the stock on tout from Thom Calandra: “I expect some sort of recapitalization and fresh faces to turn things around.” Prescient. He said he thought the stock had bottomed at 27c. Be that as it may, with 167 million new shares about to get sold at 30c (with a half-share warrant good for 5 years at 50c) about to come on the market, those who bought today at 34 cents might may be a little sore at Mr. Calandra. Luckily for him, they will mostly blame themselves, and he will continue to sell newsletters.