I believe the current sp is languishing because investors are cheesed off that oil export via the OBA is constrained due the perceived need for the Chiritza pumping station.
From RNS dated Thu, 27th Oct 2016 12:45.
Quote starts The Company has a guaranteed throughput of up to 5,000 BOPD in the pipeline and an increase is currently being negotiated. The technical capacity is 50,000 BPD and the line has a currently installed export pump capacity of 18,000 BOPD. End Quote.
Is it that the export pump is not fit for purpose, or is it that SOTE need to install a pump as part of the guaranteed throughput of 5000 BOPD? I was so unimpressed with the situation when export constraint was identified, that I sold most of my shares. I believed the resolution to this problem might lay outside of AMER's ability to do anything about it. I try to keep up with the situation, but I may have missed something. I do not think Malcy has mentioned Chiritza, and avoids discussing export constraint, describing AMER as being "unlucky".
What if AMER manages to export 5000 BOPD every day, is SOTE likely to sit on their hands - job done - or will they provide further assistance? Hopefully we will find out soon enough.
Its unknowns and issues such as these that explain the present sp for me anyway, and the seller has picked his moment hasn't he.
On the bright side A transportation cost saving of at least $10 / barrel, at 5000 BOPD = $50000 / day - can't be all bad can it? - straight on the bottom line surely, - pays for the pipeline in 18,000,000 / 50000 = 360 days or one year, less than a year if > 5000 BOPD passes through OBA.
Credit where Credit due-Board realising need to keep market informed on a regular basis. I was naturally annoyed at the Boards lack of information between Sept 2016 and Jan 2017 BUT they have woke up at last==Todays RNS is great news and so is throughput of OBA Steadily raising. We still need urgent update re Licence to increase BOPD above 5000 and latest update on ongoing progress to increase potential Throughput.. Well Done Giles and please keep us informed
Not too sure is the answer, I bought in after watching a Maccys ? Video in which he tipped this share; after a wee bit of research I added it to my gas and oil portfolio. Not one of my trading shares ( thank god).....
I've been here for a while, unfortunately I bought in at the high twenties but have followed the price down and recently bought some at 22p and a little top up today. Not a huge holding but with the pipeline and possibility of increased production I'm happy to hold for a while. GLA
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.