Despite all the bad news and delays in the sea lion development I strongly think RKH is very solid at this SP. One the finally investment decision is made in Q1 next year and all the full commitments are made RKH will fly back to £1.20/50 minimum. It's not just the cash balance that de risks RKH it's the assets and the known reserves that underpin the company. The market is very gloomy right now but I have seen this 100 times and will do another 100 times most likely. The market knows what is coming with the significantly de risked drill program and they will be buying in force in the coming weeks and months. Look at every falkland drill campaign and the SP in all the falkland company's they always rise and rise strongly in the last two months prior the start up. What's different about this drill campaign is allot of the prospects are likely to be a success! And with minimal outlay to RKH could significantly move the value of the company. Then we have the possible prospect of a buy out in times of bad markets and lower sentiment the bigger companies always go on a spending spree. I won't go into the production we all know that of RKH survive to production this will be £1 billion + by that time Good luck to all with whatever your position
Lots of broker targets for this one ranging from 120p up to 345p. New one out today at 220p. Looks like this could be the bottom but who knows with the craziness going at the moment. Agree that things should start to move up over coming months as we near end of year with usual santa rallies plus as we move in to the 2015 drilling campaign.
I do think this will be good in a few months buy cash in bank value does not mean price will hold at that level. Look at SEY, $107million in the bank and £55million MK with their concessions. Sentiment is all on aim! Sad but true.
I wont be selling my 108,000 shares for a very long time I wont state how long because I don't want a load of abuse. One thing I have learned over the years is never sell on fear and falling markets. Saudi will pull back production soon 1, because they cant afford to maintain the current price 2, because they cant keep production that high for a long stint of time the days of Saudi kings is coming to its close! 3, the world is creeping more and more into all sort of conflict and nothing drives oil more than a little conflict
Someone had a fantastic post not long ago about the RKH production levels 4 years from now this will be a £1 billion+ market cap company with huge reserves and strong production with a bigger partner to help keep costs as low as possible. The added reserves that could be added in the next 4-8 months could add another £1 a share with ease. I looked back and every time the Falklands has been drilled it causes masses of buying so short or long term buyers wont be unhappy here.
I also looked at the AIM oil producers and not one company has this level of production foretasted other than GKP and AFR now both of there are operating in risky environment with dodgy governments. to boot they are both heading into large scale debt! It does not take a rocket scientist to know that RKH will either be £5 by 2017/18 or gone and taken out for £2/3 a share minimum!
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