Imho I think this will be £1.50+ at some point next 12...24 months if poo and Falklands comes to production ,there's also a possibility there maybe a deal to transfer oil to an Argentina port for refining now we are on better relations there and the benefit to thecargentina government would be huge long term ,just my thoughts though will be adding to my holding along the way ..
If there is any logic and POO matters - as this is the level it was trading at when Brent at similar prices to present in January 2015 and July 2015, Brent just a 15 month high and RKH is trading below when Brent was a multi-year low in January. Unbelievable - the share price is being manipulated as unless some big unknown there is no other reason that it is trading so low......
Really 0 in the next 12 months - SERIOUSLY??? If lightening strikes or a Force Majeure for sure but not a realistic proposition. RKH has $75mn cash in USD as of 1st September per RKH update and expected cash flow / profit from 1500bpd with 1000-1100 at an operating cost of $8 bpd to cover ongoing costs and preserve cash. With oil price increasing this cash flow might even be incremental and result in a profit for RKH. Taking this cash pile as $75m plus the amount RKH paid for Beach Energy Egyptian Assets in April 2016 ($20.5mn), plus a comparable amount for Italian producing assets there is a floor of around 20p to the share price. Below which Falklands oil is valued at negative - do the math yourself!!! There seems to be some manipulation re UBS or others / programme trades - look through the holding RNS of UBS which have been increasingly frequent for the last few months when the correlation of RKHs share price broke down with POO levels which have almost double from Jan 2016 and PMO share price. RKH should be trading around 50-60p at present if not more as these are the levels the share was trading at in January 2015 when Brent at this price - and it was lacking many positives that are now there for the share - such as formal CPR of resources (300mn barrels of audited oil with a break even at a price $45 for crude and an IRR of 25% in 2017 with present forward curve should project be sanctioned, acquisition of Beach Energy producing assets, depreciating pound resulting in lowering of cost base by 20% and increasing value of USD cash pile by 20%, the average analyst estimate for the share is closer to 100p - with no sells 2 holds and 5 buys. Do your own research. To start with compare price of RKH versus Brent and PMO over the last 2 years, look at holding RNS, look at Analyst estimates, study the balance sheet of company - debt, assets etc. RKH IS A STRONG BUY!!!!!
If all goes well, and why shouldn't it, I have an idea you will be at 60-65p on the back of the POO and should PMO be replaced or even watered down by a stronger third party then probably 125p-150p. If Isobel comes good also that should be another 30p-40p or so. Just my crystal ball though at this stage so don't bet the house on it.
Hi Red. Dependent on farm in/poo etc. Somewhere between zero and some pounds. Impossible to say really - although I feel that this is a share which should in pounds rather than pence in a normalised oil environment. Sorry can't be of more help. Farm in and poo are the catalysts though.
Hi I read your postings and experience with interest and would like your opinions and projections as where Rkh share price will be in 12 months time Plus if possible your opinions on NOP Many thanks in anticipation of a response
Hi eegbvi, the HUR current map is £400M. There is a placing at £70M and that was heavily oversubscribed including by key investors like Kerogen. The Open Offer is around £4.4M so that is 1% of current MCAP. Unless some of the big boys looking to make a quick turn on the placing would doubt the OO and any sales of that would take the stock down to the levels you suggest. Of course you might be right.
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