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@restingpilgrim, thank you for shedding a little more light. I am quite risk averse as I have more “safer” stocks elsewhere so willing to take the gamble either way. Need a little excitement in these times. I heard about the good cash flow and profits but with all the Russian links I should call it a day but hey, no pain no gain. EUA are my other gamble. Maybe 2 risky ones are enough. Thanks again and much appreciate your response. Makes it a lot clearer.
Russia invading Ukraine means all assets in Russia are out of favour. PTR is in partnership with Oil India on on lease and also has Russian shareholders. At the end of the day it all depends on how risk averse you are @small-time-chap. If you do not like the risk you may be better off taking your losses and move on. If you stay you could lose it all. I am prepared to stay long term and have already had shareholdings for many years. Remember most production was sold on local markets and those prices are still above the figures used for the Miller and Lents report which suggested good cash flow and profits . All we do not know is how well the production is going and what difference sanctions are making to maintenance. It is understandable that the board are not giving updates currently and one assumes if things were materially different from earlier news given they would be obliged to issue an update. Also the board here are large shareholders in the company so have a similar interest to us "normal" shareholders.
Any changes to what’s been going on? Was a bit of a buzz and now, it’s as if the company chat has fallen off the face of the earth. People still wanting to buy, others saying stagnant and leave because of sanctions. Anybody have a clear interpretation? (New to this)
I would have thought that we should be due an update on the Reservoir Stimulation programme very shortly as I imagine it should be complete by now. It would also be good to get an update on production figures and confirmation that the production is being sold. The current prices even though lower in Russian markets would mean plenty of cash generation. Current prices are still well above the figures used in the Miller and Lents report.
No issues with Barclays smart investor you can buy and sell.
I am trying to buy some more of these but I am being told that I cannot due to Russian restrictions applying to the share. Is anybody else having this problem ? The share still seems to be traded on both London and Dublin exchanges.
or would be if London South East had noticed.
36.84% up. Added this morning and am tempted to add again. Such opportunities are rare.
Most oil sold in Russia but export is permitted
NED bought a month ago at 2.6P
( D ) Has Frankfurt listing only and you can place an order . Unlike London Russian type POG , EAU .AMC ect .
Holding in ( W )
Sky news breaking news
"Russia vows to target British interests with sanctions"
"Russia's foreign ministry has vowed to impose tough yet proportionate measures against British interests in Russia over what it called "sanctions hysteria" in London.
It said Britain had clearly chosen to move towards an open confrontation with Russia, leaving Moscow with no choice.
It said the unspecified measures "will undoubtedly undermine British interests in Russia".
Even though PTR is a company registered in Dublin, it's listed on both the Dublin and London exchanges. Right now anything that is considered a British interest or even EU could be considered at risk imo.
"many western banks, refineries and shipowners are in effect “self sanctioning” — behaving as if Russian oil has already been sanctioned. “Russia’s oil has effectively become toxic,” said one banker."
"Some of the biggest buyers of Russian crude have cancelled shipments and orders as companies from banks, to insurers, to shippers retreat from Russian business."
Roughly 70 per cent of Russian crude was “struggling to find buyers”
Does anyone know whether the price/currency paid from the domestic sales are in Rubles or $? Let's hope it's USD!
Remember Petroneft sells the vast majority of it's oil into the local domestic market and has options to alter or stop it's 25% to 30% of export oil which is sold into the Asian market.
The company is under radar and the share price is not a reflection of operations but sentiment, sentiment can change very quickly.
The key statements from RNS are here......
'Historically the Company has sold 100% of its oil production on the Russian domestic market'
'Initially PetroNeft will export between 25%-30% of its production from Licence 61, however PetroNeft has the right to increase or decrease this volume, on a monthly basis, depending on market conditions'
https://www.investegate.co.uk/petroneft-resources--ptr-/rns/export-of-crude-oil/202109230700086808M/
I know that Russia is finding it hard to sell oil on the markets but a lot of this is due to the fact that ships will not go in to the Black Sea as it is not safe. Also you cannot get insurance in a war zone. I feel that decarbonisation policies will hold back the opening off new sources to replace oil from Russia. Also banks are not financing a lot of oil projects as policy.
Oil has already breached 110 dollars and could run rapidly towards 150 dollars a barrel. If pipelines in Ukraine are damaged then surely the price of energy in Europe is going to increase to a level that will cause a leap in inflation.
Mcadder you are right, this is now a big risk Europe are turning away russian oil (even the uk has turned oil tankers around from Russia in the port Milford) I hold now a fraction to what I had gla and only risk what your prepared to lose.
This is why I feel it's just too risky to buy in right now. Might seem a bargain to some but there's a reason the price is down here, whether it drops lower remains to be seen
March 1 (Reuters) - "Russian oil trade was in disarray on Tuesday as producers postponed sales, importers rejected Russian ships and buyers worldwide searched elsewhere for needed crude after a raft of sanctions imposed on Moscow over the war in Ukraine."......
......."Russia's key Urals oil grade was bid at a discount of more than $18 below physical Brent crude, the primary worldwide benchmark, a record in the post-Soviet era. Even at that price, traders have been unable to find willing buyers.
"Nobody wants to buy, ship or store Russian oil," a trader of Russian oil said."
"UK does not rely on any of this and so I have a feeling many European states will not agree because OPEC has already said it cannot replace much of it."
This maybe true but if the UK goes down this route, many other countries are likely to follow suit. It really depends how far Putin is prepared to escalate the invasion as to how far the rest of the world ramp up sanctions and from what we've seen so far it's a pretty worrying picture.
Putin clearly can't be trusted with a single word - he thought he would achieve a tactical advantage by lying to the world that he wouldn't invade, claiming the presence of the military near the border was an exercise - then claiming to be pulling back when he was in fact ordering more troops ready for an invasion he told the world was not going to happen.
There's no telling where this will end but if Putin keeps ramping up the assault on Ukraine leading to scores of innocent people killed, then the countries who trade oil and gas with Russia won't hesitate to cease trade even if it means sky high petrol prices for the short term due to an inevitable supply shortage.
Given that this could drag on for a while with the West unwilling to get involved (unless a Nato country were to be next or nuclear weapons were deployed) the inevitable next steps will be further sanctions on oil and gas in an attempt to crush Russia financially.
No way would I be buying into this right now with the ongoing risks involved.
The Russians are still selling hundreds of millions to Europe and gas supplies jumped enormously through Ukraine in the first couple of days, UK does not rely on any of this and so I have a feeling many European states will not agree because OPEC has already said it cannot replace much of it.
If you are risk averse then this is not the share for you punt on
Yes I hear what you're saying that potentially it is a bargain at this price but they are currently this price for a reason. Far too risky for me even as a speculative punt right now. Nothing off the table as far as sanctions go especially if Russia continue to escalate things.....
LONDON, March 1 (Reuters) - Britain's deputy prime minister Dominic Raab said on Tuesday that "nothing was off the table" when asked whether sanctions could be imposed on Russian oil and gas supplies.
Asked if western countries should go further in terms of the supply of oil and gas, Raab told BBC TV: "Yes I think we will look at that very carefully ... As we take action to starve the Russian war machine, there is nothing that is off the table.”
There have been some chunky trades over the last couple of days. Hopefully they are buys from close holders.
It is amazing the way the shares have fallen though because even though heavy sanctions are in place it is not like the assets are in the Ukraine, they are in Russia and we have some big Russian holders of shares.
I think I will look to take a gamble soon at these prices because if things work out they could be a bargain but I guess one has to be prepared to lose it all
Very sad to see what is happening here just at the point that Petroneft as a business was turning a corner.
The whole conflict and sanctions around the world are clearly a threat here to the continuation of trading of it's shares imo simply because of where Petroneft's assets are.
I had held here previously and sold at around 4.5p. The concern is if the invasion by Russia drags on and on and the rest of the world shuns Russia's oil and gas or if sanctions are extended that affect the trading of their oil and gas. Either way it would mean £2+ a litre at the forecourt for us.
Hopefully this will not end up in a full blown war between Ukraine and Russia and the loss of life will be minimal.
As a long term holder of Petroneft I hope this is just another bump in the road because we finally have a management team to take advantage of the assets we hold.
As I posted in an earlier post as our assets are in Russia I would not expect any interruption in the planned programme providing cash flow has been solid over the last 6 months or so.
I believe the share price is just being punished because of where the assets are rather than anything else.
I will keep holding for the hopefully long term benefits
Spare a thought and let's say a prayer for those poor Ukrainian people, God help them
Will this be allowed to continue trading on AIM?
If so it may be worth a punt?
I doubt that sanctions will have any effect on the programme or the plans. Russia will still be able to sell oil even if sanctions take place. It would possibly make transfers of money between Petroneft and the operating companies a little harder but I would hope that with the recent hike in prices it will have improved cash flow and thus the operating companies will have sufficient capital to proceed with the planned programme on both licences. The company has a good team in Tomsk and also we have several large Russian shareholders and board members who would be well able to keep an eye on the ground.