17 Oct 2007auditor change▼ Bad
BDO's Dubai firm resigned as auditor after a single audit, seven months into the job - the third change of auditor in twelve months.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
12 Sept 2007director officer appointment▼ BadMajor
Leadership churned again - Michael Noonan stepped down as caretaker chief executive after Kinney's departure and director Karim Jobanputra took the job, while Noonan stayed on as VP corporate on $10,000 a month to July 2008. Sky's fourth chief executive in just over two years.
16 May 2007financial restatement▼ BadMajor
Sky told investors not to rely on its audited 2005 accounts or any 2005-2006 quarterly figures: shares issued to Paraskevi Investment for work on the Mubarek deal had been wrongly expensed rather than capitalised, alongside other valuation errors. The first sign that Sky's reporting was not keeping up with its deal-making.
6 Mar 2007auditor change● Neutral
BDO Patel and Al Saleh finally cleared US registration and took over as auditor from March 2007, ending Beckstead and Watts' stop-gap return.
7 Feb 2007director officer appointment● Neutral
With no permanent finance chief since Screaton's exit, Sky rented one: outsourcing firm vcfo was engaged at $165 an hour and its Mike Churchill became chief financial officer - a thin arrangement for a company holding tens of millions of shareholder money.
8 Nov 2006auditor change▼ Bad
The auditor switch stalled: BDO's Dubai firm was not yet registered with the US accounting regulator, so Beckstead and Watts was brought back temporarily to review the third-quarter accounts.
29 Sept 2006auditor change● Neutral
Sky dropped its small Nevada auditor, Beckstead and Watts - whose 2004 opinion had questioned whether the company could survive - and hired BDO Patel and Al Saleh of Dubai, moving its audit next to the UAE assets.
2 June 2006director officer appointment● NeutralMajor
The original shell-era management left: Daniel Meyer, who had bought control for $7,000 fourteen months earlier, resigned as president, finance chief James Screaton was paid off, and Shafiq Ur Rahman was appointed in his place. The bylaws were also loosened to let a third of shareholders form a quorum, a sign the register was too scattered to muster the usual half.
20 Dec 2005capital raising announcement▲ GoodMajor
Sky raised a further $16 million selling 16 million shares at $1.00, its largest raise yet and twice the price of the August placement, taking total funds raised in 2005 to roughly $37 million against the $25 million Mubarek commitment.
What it means for a shareholder
16.0m new shares at US$1.00 to raise about US$16.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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10 Nov 2005director officer appointment● NeutralMajor
Donald Cameron lasted four months as chief executive: his contract was terminated and Brent Kinney, an energy lawyer with long Gulf experience, took over at $17,500 a month. Tellingly, the board could sack Kinney from October 2006 if the two Mubarek wells had not been drilled - the whole company hung on those two wells.
29 Sept 2005capital raising announcement● Neutral
Michael Noonan's appointment as VP corporate was formalised with 600,000 options at $1.29, vesting over three years - the strike price shows how far the stock had run since the $0.50 placement in April.
22 Sept 2005capital raising announcement▲ GoodMajor
An $11 million preferred share placement at $3.60 (convertible into four common shares each) closed with a single offshore investor, who also gets to appoint a director. Combined with the August raise this cleared all of Sky's outstanding debt, ending the demand-loan scramble that had funded the Mubarek payments since June.
2 Sept 2005director officer appointment▲ GoodMajor
Sky raised $7.1 million selling 8.8 million shares at $0.80 to 106 investors, appointed James Screaton as finance chief and Michael Noonan as VP corporate, and - unusually - founder Daniel Meyer handed back 12 million of his own shares for cancellation with no payment, cleaning up the cheap stock left over from the shell days ahead of the raise.
1 Aug 2005director officer appointment▲ GoodMajor
Sky met its $5 million Mubarek instalment on time and hired its first proper chief executive, Donald Cameron, on a consulting contract at $11,000 a month plus 1.5 million options - a shell acquiring both an asset and a management team in the same quarter.
21 July 2005capital raising announcement▼ BadMajor
A further $2.45 million of demand loans plus $1.37 million of shares sold at $0.80 kept the Mubarek payments current. Sky was funding a $25 million obligation hand-to-mouth.
6 July 2005debt financing▼ BadMajor
Sky could not meet the first $5 million instalment on the Mubarek deal, so half of it was deferred by two weeks and $1.5 million was borrowed on demand notes at 8% to cover the rest - the funding strain on this commitment shows up within six weeks of signing it.
25 May 2005capital raising announcement▲ GoodMajor
Sky bought its way into the oil business: subsidiary Sastaro agreed to fund $25 million of drilling on two wells in the Mubarek field offshore the UAE, operated by Buttes Gas and Oil International, a Crescent Petroleum company. Note what Sky did not get - no interest in the concession itself, only a share of whatever those wells produce.
12 May 2005capital raising announcement▲ Good
The $2.5 million subscribed in April was actually received, giving Sky the cash it had promised investors it would deploy.
8 Apr 2005capital raising announcement▲ GoodMajor
Six days after the name change, four offshore investors signed up for 5 million shares at $0.50 to put $2.5 million into the newly renamed company - the first real money behind Meyer's plan to buy into oil and gas.
What it means for a shareholder
5.0m new shares at US$0.500 to raise about US$2.5m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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4 Apr 2005bylaws amendment● NeutralMajor
A dormant Nevada shell called Seaside Exploration changed hands: its majority holder sold a 54% stake to Daniel Meyer for $7,000, and the company was renamed Sky Petroleum, split its shares 4-for-1 and announced it would look for oil and gas deals. Everything that follows starts here - the company had no petroleum assets at all on this date.