The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Looks like Herscha Hill is right on the southernmost boundary of Tipperty (what is being sold). There's a map on Rightmove(!).
And if you look at Google maps (Satellite view) you can actually see an existing turbine - just outside the boundary of the land they are selling). But don't know if that is PMG's land?
The bigger existing wind farm at Mid Hill is to the North of Tipperty. You can that on Google maps too.
Would be good to have some more detail from PMG..
Yes, it's not clear to me - the blurb says:
"WIND TURBINES
There is planning consent (2017/1344) granted by Aberdeenshire Council on 28 July 2017 for two 800kW wind turbines, a substation and associated tracks on Herscha Hill."
I read that as the agents are being upfront about the planning having already been granted for a 'neighbouring property' (Herscha Hill), rather than for the Tipperty property itself - but could be wrong... might have a dig tomorrow.
Robs12 To me it looks like they are selling the bit with the planning permission for 2 turbines, its in the blurb. This is the part that is confusing me, sure there is a rational reason for doing so, just want to understand what it is. Re Longboat not sure they have the capital to invest in Perth but maybe wrong.
SOTB not trying to ramp or deramp just wanting clarity. I have traded it a few time though but not at present. Been in PMG since 2014 and have a modest holding.
Hi Davde,
PMG bought Pitreadie, which was 2,320 acres for £8.5m or £3,664 per acre. Tipperty was only a part of that. They are now (hopefully) selling Tipperty and two other parcels of land totalling 1080 acres, and keeping 1,240 acres themselves.
The asking prices for the parts they are selling are:
Lot 3 alone (150 acres, no buildings) is offers over £680K, or £4533/acre.
Lot 2 is 120 acres, no buildings - offers over £790K or £6,583/acre.
Lot 1 (811 acres, with all the buildings/sheds) - offers over £3.35m or £4,130/acre.
Quite a lot more per acre than they paid.
Presumably the land they are keeping is the windy bit towards the higher ground - which already has planning permission for 2 turbines. They are hoping to get planning for more I guess. And/or biomass/solar, though wind must be the main driver I think.
To add ref Longboat, I'd forgotten Faroe also acquired 100% of Lowlander in 2013, with Graham Stewart saying "Faroe is building an exciting core area around Perth and Lowlander in the Central North Sea and work is underway together with our Perth partners to progress the potential high value Perth/Lowlander joint development project."
Then they gave it up and wrote it off in 2016.
There is a WH Ireland research note (22.09.2016) that says "Faroe Petroleum Refocusing on Norway: Faroe Petroleum (“Faroe”) has committed capital to a number of material projects in Norway and we believe it is effectively recasting itself as a Norwegian focused E&P company. Faroe has written off its remaining investment in PDL as non-core in its recently announced H1 results, which we believe reflects its Norwegian focused strategy. In our opinion it is untenable to have an uncommitted partner in a high-quality and undeveloped oil project that is of material scale from the perspective of the OGA. Parkmead is committed to progressing the field and the OGA would not hesitate, in our opinion, to force Faroe to exit the Perth, Dolphin, Lowlander hub-area given that they are manifestly pursuing a strategy outside of the UK in terms of future growth and capital allocation decisions. In contrast, the UK North Sea remains an area of core strategic focus for Parkmead."
Interesting....if FPM (remembering that PMG had a sizeable stake in them at the time) didn't actually want to give it up and liked the look of it...maybe they still do?
Davde : you are not thick..... You are playing the share .
Good luck to you.
SOTB sorry being a bit thick here, I can see rationale for buying it in first place, still not clear why selling, presumably because its not feasible, this is the bit I am not clear on, planning for 2 albeit small turbines and one next door there must be a reason. Anyway sure it will all become clear in time.
Davde: The farm was bought in the first place because it was next to a wind farm and plans had already been passed for two turbines at Tipperty. Parkmead are not agriculture or livestock farmers so why hold onto it.
At the AGM Tom stated he had invited the Germans over to assess where would be the best place to situate future wind turbines on the hill.
What Tom was unsure of was 100% ownership of the turbines or partnership . He also mentioned he could take rental for the turbines that were staked on the hill !
Yes, a nice tick up on not much volume.
I wonder if anyone is speculating that Longboat may take an interest in the Perth development.
Way back when (2011), Faroe bought 28% of Perth and said of it - ”We are very pleased to announce this acquisition, which fits Faroe Petroleum’s strategy of securing suitable opportunities which draw upon the skills and experience of our technical team with the aim of adding significant upside value. To that end, the Company intends to play a key role in assessing the sub-surface potential, ahead of a field development decision.
The Perth field has the makings of becoming an important new field development in the near term, with scope to tie-back several additional undeveloped discoveries as well as offering exploration upside in the area.”
Maybe if Perth oil now has a route to market, the ex Faroe team would like back in?
An update re land feasibilty for renewables would be welcome. Firstly to let us know why the land being sold is not viable for renewables (it begs question why bought in first place if of no use otherwise!). Secondly progress with remaining land and it's feasibility for renewables, appreciate Covid may have delayed progress but we are nearly a year since purchase. I personally think selling the Tipperty farm would have warrented an RNS as it's not an unsubstantial asset and more importantly what they plan to do with income, e.g. pay off bank loan associated with origional purchase. Pleased with todays SP uplift long may it continue. GLA
Robs12 yeah ok I was referring to Tipperty only and not the remaining acreage you speak of.As you say have not heard of future planning .
SOTB, the 1080 acres is what they are selling (hopefully...and more hopefully at a decent profit!) - Tipperty farm and two other lots of land. They're keeping 1240 by my sums.
Anyway, 12 -15 turbines would be a good. Nothing gone into planning yet though that I've seen?
Robs12 : It states 1080 acres on the UK land and farms website.
Besides it's the upper most top of the hill for the wind turbines that Parkmead are planning.
Thats why I speculated 10-15
I should hope so too with 1240 acres....should be a lot more than 10-15!!
Just had a car run over the Cairn o mount which presented a view of Tippertys Farm Hill prior to driving into laurencekirk
There's easy room for 10-15 wind turbines.
In the know !
Out of no where. Background buys
Mary Mullins, good to hear from you. Yes fingertips still gripping- just!
There have been occasions when I have been on the verge of selling up but at the last minute have changed my mind. Something tells me that a major development at the farm will be announced and in the current " renewable energy climate" this could provide a much needed and much awaited boost to the s.p.
You have always been very well informed so if you have any interesting info please let us know.
Regards
BtB
GPA oil gonna come out of the ground sooner than later...
https://www.parkmeadgroup.com/news/latest_news/parkmead_increases_stake_in_perth_and_dolphin_oil_fields_to_100_and_signs_agreement_with_nexen_petroleum_to_study_potential_tieback_/ Ardens figures definitely higher. What would I risked NAV be on 498 million barrels at $25 break even?
Interesting that in the Arden note the 2P & 2C quoted for Perth is 99mmboe:
Perth 2P - 64
Dolphin 2C - 12
Lowlander 2C - 23
PMG's own numbers a while back were:
Perth and Dolphin - 104mmboe
Lowlander - 21.4
So total 125.4.
But since then, PMG have made a couple of statements ref the potential for stimulating the reservoirs - (2018 AR) - "Parkmead commissioned a new reservoir study with AGR Tracs International in relation to well stimulation, to analyse the effect of stimulation on the GPA sandstones.
The Perth reservoir has a substantial gross oil column of around 2,000 feet, making the reservoir ideal for stimulation. The study concluded that stimulating the Claymore formation would result in a considerable increase in well productivity and is likely to increase the overall oil recovery factor. This option will require further well trajectory work to optimise the inflow performance."
The previous Perth 2P figure was based on a recovery rate of 24%, and an old Charles Stanley note stated "Senergy estimated 24% a while back for Perth, when 2P was given as 41.3MMBbls. Charles Stanley had to say about it: “For Phase 1, our economic valuation assumes a recovery rate of 24% (based on the Senergy 2P estimates). We expect the actual recovery rate to vary from this current best estimate, perhaps materially because there is quite a bit of uncertainty, in our opinion, relating to the distribution of higher quality sands within the heterogeneous Claymore reservoir. Recovery estimates for the Claymore and Scapa fields, which also produce from Claymore sands, increased over time to 40% and 56% respectively (according to the operator Talisman Energy’s most recent publicly available estimates).”
So where have Arden's figures come from - the company? And if so, have they already taken into account a higher recovery rate? It looks like it - 2018 interims had total 2P at 46.3mmboe - this includes NL, which is maybe 2, so call it 44.3 for Perth+Dolphin. Now Perth alone is at 64?
Even though the total 2P+2C is quite reduced?
Seems a little confusing.... and surprising if PMG haven't formally announced such a significant increase in 2P?
Still here. Testing patience but confident of good news re GPA over 400 million barrels in place and economy of scale bring break even Down to $25. Hoping for Pitreadie update too.
Bite the bull, good to see there are still a few of us hanging on by our fingertips.
GLA.
Hopefully ~105p soon then... unfortunately still very near my average. Overshoot would be very welcome ofcourse, which does happen gl
As per my previous note, this report summaries all key value drivers and potential upside. The most interesting thing in the report: information was definitely obtained from the management team as it deviates from other public sources (incl. WoodMac). Strangely or conveniently that the team decided to speak now after years of improper communication?.. Or maybe something is coming up?