In November, Dow Jones Newswires got spun and duped by Alange Energy CEO Luis Giusti.
“There’s a lot of investor appetite here,” Giusti said. The company will likely book a profit next year after reporting a net loss of $7.6 million in the second quarter. The company’s equity oil production in the second quarter neared 3,600 barrels per day and the company plans to close the year at 8,000 barrels of equity oil per day, Giusti said.
We now know that the 3,600 barrels a day number was wrong, and that the 8,000 barrels was a fantasy.
But rather than calling the guy up and putting him on the spot about this, Dow instead gives the story the best possible spin, running an apologia that’s much more positive than anything the company itself has put out.
The chief executive of a small oil firm in Colombia has left the company after its shares plunged when it had to retract previously stated production numbers, but the incident is unlikely to put a dent in Colombia’s booming oil sector…
Don’t worry folks, Colombia’s still a fine place to invest, that executive is gone.
…Some analysts say Alange had little choice but to do what it did, while others say the firm seemed to show little concern for shareholders.
That sentence confuses me. Did Dow find someone who said that Alange showed concern for shareholders? I’d love to see that person quoted, and then publicly mocked.
…Jennifer Stevenson, manager of the C$63.9 million Dynamic Global Energy Class Fund, is expecting [exploration success]. She participated in Alange’s share offering that the company did as part of its recapitalization, undeterred by the revision of Alange’s output data.
“I think the (offering) was a good opportunity to get in at a good (price) level,” following the cuts to the figures, said Stevenson, who owns three million Alange shares. “The assets are still there and we’re getting” new management with a mandate to streamline and refocus the company.
Sorry to be a bore, but it’s a classic journalism error to say what someone is expecting. You don’t know what she expects. You know what she said. And unfortunately, she was speaking in bankerese.
Now, I don’t have access to the Ottotrans™ (the strange device that translates financial BS into English), but it’s possible (who knows!) that her quote would come out something like: “I bought as a favor to my university pals who work at Canadian banks. They were at risk of losing $47 million. We’ll get a nice chunk of that paid off, and I’ll be able to sell the stock for a healthy return. After all, plenty of people trust Dow Jones stories.”
…Natalia Agudelo, an energy analyst at Celfin Capital in Medellin, said Giusti brought a lot of credibility to the Colombian oil sector. Although he is no longer the CEO of Alange, the fact that he remains on the board should keep the confidence level relatively high.
Wait, didn’t you say up above that the executive had “left the company”? Well, anyway, good thing he didn’t — because nothing says “confidence” like having a guy on the board of directors who doesn’t know the difference between oil output and “potential” oil output. (Oh wait, yes there is — having a guy there who just a month ago sold all his shares at prices at least 50% higher than Friday’s close. Funny how Dow forgot this tidbit.)