Good to see the heir to the quintessential Texas Redneck joining us. Of course his Daddy didnt earnt the money to buy chicken lips and feet in the good ol days.......sat behind a desk. He use to drive a tractor up to a burning well head to deliver 200 Kg of HE to the inferno at the well head and then skidaddle before the boom. So the boy dun good !!?? Or has he ? Some years back i wanted to buy Melrose on the back of the name on the truck
Glad I didnt then.........I dont know about now. I dont think Melrose did that well without us.......dont know about with us. Most posters dont think much of our capacity for supervision of the Engineering.........now I dont think Melrose can make up the gap ......IMHO maybe ???? We shall see
12 --18 months from now we should see sig gains---why? we have Italy onshore and offshore to drill and Kurdy and farm in partner for Algeria + 15 to 25$million in back payment due from Enel and now we have Melrose assets to drill as well----6 drills in next 18mths is stated in press---these should give the sp a boost---one every three months on average---if we are successful in 2 of those or even 3 where do you think the sp will be then--certainly not at 7.44 is my guess---surely has to be higher IMHO
In this since Mar 09. Lately was hoping for something of this sort and as mentioned elsewhere concerns of dilution for more capital. The Kurdistan venture is in the background and not much info on that since there join up with partner. my concern was is the long lead time before production in 2017. Had hopes they would be able to press on for a quicker production date in Algeria. With all this news IMHO I would have expected a rise in the SP not a fall back. I was in for the short gains originally but also now see this as a probable long term gain. However reckon my kids are more likely to benefit on this one as 2017 puts me well up the age scale. Still, God may well smile on me and see me around to about 2021 GLA
Not all on the PCI will see this as a good thing but then many want to make a quick profit and get out, the thing I like about this deal it makes PCI a solid long term player not a volatile pump and dump share with no solid assets.
This is IMHO now an investor's share NOT a day trader's share.
Monday could be interesting with lots of small PIs caught out by their stop losses trying to buy back in before the price rises again, which i don't thin is going to take long when people realise the significance of this takeover, which it is despite being billed as a merger.
Petroceltic, which operates in Algeria, Italy and Iraq's autonomous Kurdistan region, stood by Melrose's production forecast of 28 thousand barrels of oil equivalent per day for 2012.
"The production profile will rise substantially when the Algerian asset comes onstream in four or five years, and we have a clear line of sight to produce 40 to 50 thousand barrels a day," O'Cathain said.
I agree with all you say---and thats exactly the point I was trying to get across in my post below. I'm going to give Tom Hickey and Co the benefit of the doubt at the minute and see where we go,they aren't stupid and have pedigree especially Tom from doing this sort of thing before. It could well be a shrewd move
Well I for one am still in and glad to be there. I have an average below 0.7 so could still come out with a small profit if I chose but why would I want to. Consider this, we are now a significantly bigger player than before, we are better funded than before, how else were we going to develop Algeria by dilution?
A summary of why this was, IMHO a briliant move on the part of PCI (we still control 54% remember).
Our assets have grown significantly to 84 million bbl of oil equivalent proved and probable reserves, 357 million boe of contingent resources, and 1.365 billion boe of unrisked prospective resources.
We are now in a position to pursue an active exploratory drilling campaign and participate in the development of Petroceltic’s Ain Tsila gas-condensate development in eastern Algeria. The merged group will have a $300 million capital facility from the merger effective date.
Gas condensates are becoming hot news, if we had waited until 2017 we would most likely have missed the boat on what is becoming a hugely growing part of the energy picture. Check out this report on GTL (Gas to liquids).
Lastly but certainly not least we will probably get full listing on the LSE and Ireland and no longer be seen by the market as an AIM minnow which has got to appeal to the Institutional investors and majors out there.
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