Snippet from an article on EOG in Shares magazine 6 February 2014 - "Strike it rich with Europa"
Tom Sieber writes "Chief Executive Officer at Europa Oil & Gas (EOG:AIM) Hugh Mackay has snapped up £45,000 worth of shares ahead of a key period of drilling for the company. The firm's forthcoming exploration campaign could lead to a step change in the market's valuation of its assets. The article goes on to say the upside is 12.7p, marks the share as a buy, and summaries with "An active work programme justifies the bullish consensus at 9.4p"
Bullish ascending triangle formed on the daily (although it’s a little steep so could break to the downside, support at 7.5p - 7.75p). If it breaks above then the target is around the 12p mark. A break above 12p - 12.5p area (which has had Europa by the balls since c.2011) would be extremely bullish and no going back for the stock. Also worth pointing out that all gaps to the downside are now filled.
Obviously news flow is the key here, and there are bags of high-impact news to shift this price upwards.
Seems like an excellent appointment and one which could be very valuable.
It seems our new man has shale experience and is used to doing deals with the big boys. Could this appointment be in response to Total et al banging at our door?
Reading the newsletter last week, it was very, very encouraging that the issue of our shale assets was discussed. So it seems we will be taking samples when drilling for oil at Kiln Lane to determine source rock and de-risking our shale assets.
I would bet my house that the likes of Total will not want to wait until after we have done this before trying to get a piece of the pie. Once we take what is a step forward with our shale assets, the price tag will go up massively and could start a bidding war..........so I guess we either hold our nerve and wait a few months before agreeing a sale/farmout on what would be much favourable terms. Suppose this is right up our new man's street
New board appointment has to be positive in my opinion. His expertise in finance is is paramount in future farm in agreements which we are told are ongoing at the moment.in BERENX and possible future farm ins with our shale gas prospects.
* H1 2014 revenue of £2.1 million (H1 2013: £2.2 million)
* Average H1 2014 volume achieved was 170 barrels of oil equivalent per day (`boepd') (H1 2013: 177 boepd - included 6 boepd earned as commission on oil deliveries Europa made on behalf of another company, an arrangement which ceased in December 2012)
* On course to achieve full year 2014 production target of 165 boepd
* Oil price US$108.2 per barrel compared with US$110.1 in 2013
* Foreign exchange movements negatively impacted revenues by 1%
* Cash balance at 31 January 2014 £4.8 million (31 January 2013 £0.8 million)
Europa is also pleased to announce today the appointment of Mr. Colin Bousfield to the Board as a Non-executive Director. Mr. Bousfield has over 30 years' experience in energy finance having worked for leading financial institutions and also oil and gas operating and services companies.
Colin started his career in banking with Barclays in 1975 and since 1985 has specialised in providing financial solutions to the oil and gas sector, holding senior positions with Barclays Capital, Bank of Scotland, and Royal Bank of Scotland. Colin's most recent position was as Head of European Oil and Gas for the Commonwealth Bank of Australia, a post he held until the end of 2013. Over the course of his career, Colin has arranged just under US$10 billion of debt, equity and hybrid finance in over 45 transactions for oil and gas companies of all sizes, ranging from small private E&Ps to international majors including Cairn Energy PLC and Lundin Petroleum. Many of these transactions were to fund M&A activity and single field project developments.
In 2005, Colin joined the Board of Composite Energy Limited (`Composite'), a private Coal Bed Methane (`CBM') developer, as a Non-executive Director and from July 2007 served as Chief Financial Officer, a post he held until the Group was sold in 2011 to Dart Energy Limited (`Dart'), an Australian unconventional resource group. As CFO, Colin put together a finance division and built a business development team responsible for all new CBM activities including new licences in Poland, Germany and Belgium, along with analysis of Composite's potential shale portfolio. In addition, Colin negotiated several finance packages including a significant equity raising from BG Group and RBS, a JV partnership and carried drilling programme with BG Group, bank facilities with RBS Aberdeen, and a US$12 million equity investment from Dart, prior to it acquiring 100% of Composite.
Following the sale of Composite, Colin was CFO of its former drilling subsidiary, Geometric Drilling Limited, which was spun off when Composite was sold to Dart. Colin negotiated and completed the sale of Geometric to a subsidiary of the Entrepose Group in France, before joining Hutton Energy as CFO between 2011 and 2012.
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