I like the look of CNE, Diver, but it's a poor moment to buy in view of the oil price and general sentiment in the industry. It's a mug's game to try and predict the oil price but there seems to be a lot of evidence that things may get worse before we see an improvement especially if/once Iran comes online. That said, CNE is well protected with its large cash pile and exploration activities but this seems to be overlooked by investors who presently seem to be driven by general sentiment. I shall wait a while longer and may buy just before the Autumn drilling campaign when hopefully wider issues may have improved.
19 Aug '15
16 drilling campaign According to Cairn, the firm 2015/16 drilling campaign will consist of the following sequence of wells: The first appraisal well, SNE-2, is in the Sangomar Deep Offshore block, 3km north of the SNE- 1 discovery. SNE-2 is a Crestal well in a central location in the heart of the field. SNE-2 will spud in Q4 2015 and is expected to take approximately six weeks to drill and core and a further four weeks to test. The second appraisal well, SNE-3, is on the Southern Flank and is expected to begin in Q4 2015/Q1 2016. This well will test the southern extent of the field and will help to delineate the shape of the structure and define the aerial extension to the south. Cairn noted that this is a key well to establish deliverability and the full potential of the field. The third well, BEL-1, is an exploration well which is also planned to be deepened as an SNE appraisal well and will start operations in Q1/Q2 2016. This well will test the Bellatrix prospect and also evaluate the Northern Flank of the SNE field.
18 Aug '15
Any thoughts on how low this could go? Sub 130?
18 Aug '15
£576m cash balance
The Indian government and Cairn are now required to negotiate to seek a resolution to the dispute. If there is no agreement, an international arbitration panel will adjudicate. Simon Thomson, chief executive of Cairn Energy, said the new bill is "very disappointing" after regular engagement with the Indian government over the past 14 months. "Cairn has consistently confirmed that it has been fully compliant with all relevant legislation and paid all applicable taxes in India and we are confident of our position under the UK-India Investment Treaty," he added. New wells He also raised wider concerns about the Indian government's treatment of foreign investors in the country, implying that this case will damage the country's interests. "Since the election of the BJP, senior government ministers have consistently commented on the negative impact the issue of retrospective taxation has had on international reputation and investor sentiment towards India," said Mr Thompson. The heightening of the dispute came hours after the annual results showed Cairn's loss last year fell to £252m - less than the previous year. In its annual results, it announced plans to drill at least three new wells in Senegal, West Africa, this year. The exploration firm has no revenue because its focus is exploration work. However, it reports a cash balance of £576m, which analysts said puts it in a solid financial position ahead of expected first sales in two years' time.
12 Aug '15
Ready for court action.
http://news.google.com/news/url?sa=T&ct2=uk&fd=S&url=http://economictimes.indiatimes.com/industry/energy/oil-gas/cairn-energy-seeks-quick-judicial-resolution-to-tax-row/articleshow/48451214.cms&cid=52778923768249&ei=CDvLVfnaKMyisAHO2Zq4Dw&usg=AFQjCNGF439_EbSrJ3HjcXD4izwWIQcX8g Confidence and maybe an early settlement/compensation.! click top lines to view.
5 Aug '15
Hi Robby, I'm watching the forum too but very quiet. Expect it will become slightly busier when the rig arrives in Q4 for the Senegal campaign. Yes as you said the issue is the Indian tax claim which isn't looking like it will be sorted anytime soon. I think there is enough cash for a while (end of 2017 if I remember correctly). The Senegal campaign is huge and i will be writing a piece on my website in the run up, 3 firm wells and an optional 3 more. It was the biggest offshore discovery in the world last year so expecting big things....
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