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I do visit Saudi about every ten weeks or so plus talk to some of the senior people there. Their problem for years has been dealing with some of the more extreme religious nuts. You need to realise just how far they have actually come in the last 40 years. The GCC so far as I know is still very much together re the oil price except for my golfing friend the Oman Oil Minister but Oman isn't an OPEC member. Iraq isn't going to get any favours off Saudi or even the GCC as its the main cause of the oil glut plus is now an Iran proxy state.
The Saudis unlike Russia and the US are an OPEC-member and produce 3x more than the second highest OPEC members [UAE, Iraq] They have a responsibility to look after other OPEC members - it is part of the OPEC charter. Venezuela, Algeria, Nigeria and Iraq have been effectively bankrupted by this Saudi strategy - which has failed. US production is essentially the same today as it was a year ago. It has not risen further perhaps but at the same time has not fallen either. More than half the OPEC members asked for a cut today - as they have been for the past year. Pleading even. Even a small cut in production would cause a spike in oil prices and the overall difference in revenue would be negligible. Of course in an ideal world the US and Russia would also cut their production. The Saudis have had decades to make something out of their oil wealth (as Dubai has done) but instead have hoarded the cash. They are still heavily dependent on (i) oil revenue and (ii) income from the Hajj and Umrah pilgrimages. Both of these one could argue were given to them by God. They should have been a powerful figure and mediator in the Middle East but too often have sat back and done nothing even as their fellow Islamic countries have needed their help. Palestine for example. They had the means to be a technological super-power akin to the US, Russia and now China but the truth is they are decades behind. Take a walk around Saudi Arabia and you will see what I mean by being 'decades behind'. Forget about them mis-spending money it has all too often not been spent at all but in fact been hoarded hence the vast reserves. The average person is extremely poor. Oil prices will inevitably go up at some point and there will be nothing stopping new US companies from setting up. What then? 30M @ $55 or 31.5M @ $35? Should have been an easy decision. Unfortunately the Iran elephant and the Shia/Sunni conflict inevitably proved too big an obstacle again. Who are the Saudis to deny Iran reclaiming their own market share? The only solution is for the major producers including non-OPEC to agree to a shared reduction in production.
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http://lparchive.org/Dominions-3-(by-Lilli-et-al)/Update%20168/49-EsAoN.gif
The only OPEC members that matter to Saudi are GCC members Saudi, Kuwait, UAE, plus to some extent Qatar and since they collectively control 60% of OPEC oil output the others can shout as much as they like but that's it. Oman is also in GCC but not an OPEC member since Shell controls Oman oil production. Why don't you do some research prior to blindly repeating press hacks who often know little about it all. I'm not in any way defending Saudi or OPEC by the way but I just wish the press did some proper research prior to firing off. This is all about the survival of the Al Saud family plus Saudi itself and I'm their eyes even Islam. OK neither of us may agree with that but its preferable to ISIS and the mess that Bush & Blair left in Iraq.
Saudi Arabia risks destroying Opec and feeding the Isil monster It can ignore desperate pleas from Venezuela, Ecuador and Algeria, among others, for concerted cuts in output in order to soak the world glut of 2m barrels a day, and lift prices to around $75. ***But to do so is to violate the Opec charter safeguarding the welfare of all member states.*** "Saudi Arabia is acting directly against the interests of half the cartel and is running Opec over a cliff. There could be a total blow-out in Vienna," said Helima Croft, a former oil analyst at the US Central Intelligence Agency and now at RBC Capital Markets. http://www.telegraph.co.uk/finance/economics/11989469/Saudi-Arabia-risks-destroying-Opec-and-feeding-the-Isis-monster.html
Paralysed Opec pleads for allies as oil price crumbles The cartel is no longer able to steer prices and risks going the way of the Texas Railroad Commission. The oil market has become a jungle The Opec cartel is to continue flooding the world with crude oil despite a chronic glut and the desperate plight of its own members, demanding that Russia, Kazakhstan and other producers join forces before there can be output cuts. Brent prices tumbled almost $2 a barrel to $42.90 as traders tried to make sense of the fractious Opec gathering in Vienna, which ended with no production target and no guidance on policy. It reeked of paralysis. Prices are poised to test lows last seen at the depths of the financial crisis in early 2009. The shares of oil companies plummeted in London, and US shale drillers went into freefall on Wall Street. Bhushan Bahree, from HIS Energy, says there is no longer anything to distinguish Opec members from any other producer. The cartel is defunct. “Opec and non-Opec are irrelevant classifications,” he said. http://www.telegraph.co.uk/finance/economics/12033696/Paralysed-Opec-pleads-for-allies-as-oil-price-crumbles.html
Seems you read too much US press. Saudi now has two US refineries and is looking at more so they will eventually process more US shale oil. They have also increased crude exports to US at the expense of US shale oil. They are now concentrating on undercutting Russian supplies to Europe with Saudi blend at about $38-39 per bbl. They have already taken a chunk of Chinese business from Russia. But OPEC isn't going to say that. Also they want to cut down Iraqi production since that and Russia are the main problems.
the world? ‘Stupidest business people in the world?’ At a meeting just over a year ago, OPEC left its output ceiling at 30 million barrels a day despite a plunge in oil prices, making it clear that it was willing to withstand lower oil prices to defend its market share, particularly against shale-oil producers in the United States. Since peaking in mid-2014, prices for West Texas Intermediate CLF6, -2.41% crude and Brent crude LCOF6, -1.30% have dropped by more than 60%. “Are Saudis the stupidest business people in the world?” said Byron King, editor of investment newsletter Outstanding Investments. By essentially sanctioning a higher level of output, the Saudis and OPEC “further undercut [their] economic case for higher oil prices across the board,” he said. “Instead of selling slightly less oil for higher prices, Saudis, OPEC members and oil producers everywhere can now look forward to selling more oil for lower prices.” Charles Perry, chief executive officer of energy-consulting firm Perry Management, said that increasing production is not the answer to balancing the market. “All that does is eliminate the weaker oil producers via bankruptcy and consolidation with the stronger companies,” he said. “OPEC has not figured out that the ‘survivors’ will be much stronger competitors.” http://www.marketwatch.com/story/opec-squeezing-shale-producers-but-also-feels-pain-of-oil-rout-2015-12-04
OPEC's secretary general Abdullah al-Badri said OPEC could not agree on any figures because it could not predict how much oil Iran would add to the market next year, as sanctions are withdrawn under a deal reached six months ago with world powers over its nuclear program. Most ministers left the meeting without making comments. Badri tried to lessen the embarrassment by saying OPEC was as strong as ever, only to hear an outburst of laughter from reporters and analysts in the conference room. http://www.reuters.com/article/us-opec-meeting-idUSKBN0TM30B20151204
I think it's a safe statement to say the bigger the crash the bigger the price correction will be once it does. Surely India and China will start stockpiling in huge volumes, cause an increase in demand, then lack of supply due to no new oil fields producing the price will rocket..
No its fixed read the announcement.
It reads as a set ratio of 1 FOGL share = 0.2993 RKH share. BW
Does the 0.2993 figure fluctuate depending on the respective share prices or has it been set already ?
Ok thanks to all for info.
Its a share swap at ratio of, for each FOGL Share you get 0.2993 Rockhopper Consideration Shares, no cash,.... multiply your existing FOGL shareholding by 0.2993 to give the amount of RKH shares that you will receive in their place. BW
We get 10.7p based on the RKH price of 35.75p which equates to .2993. If you have 10,000 FOGL shares you'll get 2993 RKH shares.
This merger. If the share price offered is 10.7p is that what we would get irrespective of the price at the time of completion ? or if not how does it work ? I have not been involved in one of these "deals" before. Thanks.
Falkland Oil and Gas Limited (LON:FOGL)‘s stock had its “hold” rating restated by analysts at Panmure Gordon in a research report issued on Friday, MarketBeat.Com reports. They currently have a GBX 9.50 ($0.14) price target on the stock. Panmure Gordon’s price objective indicates a potential upside of 12.43% from the stock’s previous close. Other analysts have also issued reports about the stock. Peel Hunt lowered shares of Falkland Oil and Gas Limited to a “hold” rating and set a GBX 10 ($0.15) price objective on the stock. in a research report on Thursday, November 26th. Mirabaud Securities reiterated a “sell” rating and set a GBX 3 ($0.05) price target on shares of Falkland Oil and Gas Limited in a report on Tuesday, November 17th. Jefferies Group downgraded shares of Falkland Oil and Gas Limited to an “underperform” rating and lowered their price objective for the stock from GBX 29 ($0.44) to GBX 8 ($0.12) in a research note on Friday, September 11th. Numis Securities Ltd reiterated a “buy” rating and set a GBX 38 ($0.57) price target on shares of Falkland Oil and Gas Limited in a research note on Tuesday, August 25th. Finally, Canaccord Genuity cut their price objective on Falkland Oil and Gas Limited from GBX 18 ($0.27) to GBX 14 ($0.21) and set a “hold” rating for the company in a report on Monday, November 2nd. Two equities research analysts have rated the stock with a sell rating, five have issued a hold rating and one has given a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus price target of GBX 14.38 ($0.22). Falkland Oil and Gas Limited (LON:FOGL) opened at 8.2500 on Friday. The firm’s market cap is GBX 44.02 million. Falkland Oil and Gas Limited has a 12 month low of GBX 8.06 and a 12 month high of GBX 45.00. The company’s 50-day moving average is GBX 14.51 and its 200 day moving average is GBX 22.91. Falkland oil and Gas Limited is a United Kingdom-based oil and gas exploration company. The Company’s portfolio covers the North, South and East Falkland Basins. The Company holds interest in the Sea Lion development project. The Company is focused on oil and gas exploration activities in the Falkland Islands. The Company operates business through two segments, which include North and the South basins in the Falkland Islands. In the North Falkland Basin three wells are operated by Premier Oil. These include exploration wells on the Zebedee, Jayne East and Isobel/Elaine prospects.
http://seekingalpha.com/article/3727286-ocean-rig-udw-the-eirik-raude-re-spudded-the-14-20-isobel-2-well-on-nov-21 BE A NICE XMAS INVESTMENT COULD SEE SOME STRONG GAINS
http://www.financialmagazin.com/how-many-james-fisher-sons-plc-lonfsjs-analysts-are-bearish-2/
Hey eeky instead of nattering away about 'The Fed' and what the Russians and Saudis are going to do, why don't you pop over to the IOF board and explain to us why the SP there has plummeted to 11p when you were confidently predicting IOF were a young company going places. Cos you know we had all the above dribble including 'your oil dealings and Bahrain residency status' along with a retinue of socks that appeared on your behalf. So when you are ready mate come over and fight your corner and explain what will happen next at IOF.
you could be right but still would hardly make them cash rich
Plus they have $5mln due from RKH/PMO and maybe some valid insurance claims, which even NBL acknowledge.