Petroceltic Share Chat (PCI)

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.

Davy Research stated just the facts of the deal yesterday - see http://www.davy.ie/content/pubarticles/eqbrief20120817.pdf.

They appear to have some new analysis on this development, but this is only available to Davy customers via a link within the brief, above. Anyone, by any chance, have access to this analysis?

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).

http://www.iea.org/Textbase/npsum/NGL2010SUM.pdf

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.

I managed to come out yesterday at 8.25p but feel the price may come down to 7.3p short term and we will see what happens later. Good luck to every one but glad I am out.

It was clear the AIM-quoted company was thinking outside the box to fund a project that sees it punching way above its weight among the industry heavyweights in Algeria. Hickey, the former CFO at Tullow Oil as it made its stellar trajectory from AIM tiddler to FTSE100 superindependent, is known for shrewd deal-making and astute use of debt to fund growth. This unexpected marriage of Petroceltic and Melrose certainly appears to provide an alternative route for AIM companies looking to access the tight debt markets.
Looks like the $300m dollars from HSBC is the carrot that PCI needed to funs Algeria--where else were they going to get the money from----dilute the shares with another placing. I think when the dust settles this will be seen as quite a clever move-----time will tell I guess

Big trade right on the bell how surprising--just knew that was coming although thought it would be after hrs--another one a bit later--I wonder if there will be more showing mon--- A good sign perhaps for next week to get back over 8p

good find mate