The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
very informative post, thanks.
mcap currently 5 million. Revenue from wressle at $40 will be $2.8 million. So £1 million profit or 0.2p EPS.
Also a big chance to increase production in wressle.
However, there is a slight chance a mini fundraise is on the cards as cash was £1.5 milion in the beginning of 2020 (they used 1.4 milion in 2nd half 2019). Although, they did cut costs, so maybe not just required
I think we still have to take the mid term view on EOG. This years turmoil in oil market should ease next summer. Prediction of $55 to £60 oil by end of 2021, so Wressle should be very profitable by then, and share price may get back to 3p. Im not sure where gas market is going- Gas price is down at moment, and we may have to wait for a cold spell to affect demand. Eire energy policy is for security of energy supply. So any hiccup in future gas imports from russia/uk that may affect future security may tip balance in persuading greens that its a good idea to invest in Corrib., as its due to start depleting from 2025 ( for security- note current debate on future of new NORD gas pipe to Germany due to politcal assassination attempts) It has been frustrating to be here for last 2 years and I'm also puzzzled how EOG managed to spend the last fund raise issue in such short space of time. I think its worth staying in EOG to next summer to find out more on Corrib, so no more sellers please.
Back when we used to produce 230 odd bopd from our current wells the market cap stuck around £12m if I remember. But this was with the hype of the Romanian licences which looked promising at the time. You would like to think producing around the similar bopd would get us back there but then again I think there is little faith in Ireland now fossil fuels are such a ‘dirty’ word and the oil price was higher back then. This BOD really have rinsed this companies coffers dry and do not trust them enough to believe there won’t be another placing, which they have said already in an RNS, will be required if wressle doesn’t produce on time. It’s not clear if this was with the wage cuts or not. I assume with everything in this sector there will be a delay to production? I just hope they can hold out long enough.
Oh dear, things are now so bad we are getting nostalgic rather than angry! Harking back to those halcyon days of Vera Lynn and Space Hoppers. Anyway, I get where you are coming from - if you can't see a way forward, why not look back for clues. I think the main clue is in the Board - useless, the lot of them. Bring back Vera Lynn!
Just browsing, looking nostalgically, at the charts. Three years ago the SP stood at 8.785pps, Eight years ago it stood at 12.375pps, before that I can't remember but I know paid in guineas. All that and we were producing naff all really, those figures were achieved on sentiment and hope, now that there is a chance of enhancing our production rates, having a company making prospect in the Irish Atlantic and the golden opportunity that is Morocco, there still seems to be a lack of investor support. I wonder why, who or what could possibly be the problem. If there was a smiley face to post up, I would.
Oh well, GLA as usual.
"I emailed EOG a few years back, got no reply..."
That's the excuse Si uses regarding the farm out.
I emailed EOG a few years back, got no reply...
Yes, I've got that and the email address, cheers. Perhaps we should all call him and email him, maybe a seance if we can find a medium. Getting cabin fever now, been locked in too long.
Tacuma, call him 020 7224 3770
@Copper 3, A similar synopsis to my own, but I would like to add that I'm more than disappointed at the attitude of our BOD in that there is little communication between themselves and their investors. The lack of informative updates regarding the developing of Wressle, further interest from prospective farm in partners for Inishkea, what if any, contributions from individual members of the BOD have furthered progressive development in any areas within the company. Once again I would like to know why we have the CEO if Reabold with us , what benefit is he to the company, if any, what is it. My cynical side borders on the suspicious.
In July I mailed the Company asking a simple question that was this, "Can you tell me if the application for the merger of FEL 3/13 and FEL 1/17, plus the extension that was applied for , has been approved." A simple question that produced absolutely nothing. Now either they are all incredibly busy or don't give a shiny ****e about answers to investors questions. I asked because of this statement in the interim report this year which went,
" Application submitted for a two year extension and merger of FEL's 3/13 and 1/17. Should the merger not be granted then FEL 3/13 will be relinquished and the Company has elected to write off the £1.3 million intangible asset in their accounts."
Now I think that's quite an important question to at least acknowledge to a LTI like myself or anyone else that is interested.
But not this BOD and that's what I mean about their attitude to lack of comms, it shows arrogance at the worst and poor management at the least.
Not a happy bunny right now, come on Europa , lets see some fire in your belly, less damp squibs please.
The simple answer at the moment is nobody want them. There is a glut of oil, which will take at least to end of 2021, maybe 2024 to normalise so morrocco may not be needed for another 6 years or so , past EOG licence period. Inniskea may be needed, but firstly wholesale gas prices need to rise significantlyto at least $3.0- they have slipped recently with oil prices, although still much better than in early summer, currently $2.38 , and secondly the irish energy minister as leader of green party will need to see significat green energy come into market from wind farms etc.- Amazon and other data centre electricity users are financing some of new wind farms...before he could politically approve any further extension of corrib gas field, and thirdly although Hugh and now Simon tell us its a worls class asset , there is a geological risk of 30% success, so its still risky for a multi million drill,.and the 7km of seabed pipeline needed, I think it will happen next year, but what do I really know?.Eire still have the option of importing russian gas through UK interconnectors which seems to be the current policy. Just hoping Wressle comes good, and they can increase production next year and of course oil prices lift in 2021
Flash to bang (a Hughie phrase) currently running at 5 years.
Why can't Si and the team get these world class assets farmed out, or are we all missing something?
5 years ago Hugh Mackay said that the Komos withdrawal was an opportunity for the business!!! It's clearly been a set back.
https://www.proactiveinvestors.co.uk/companies/news/304169/europa-boss-unphased-by-kosmos-exit-4169.html
I agree that Morrocco may be wasted time and effort. As to Wressle, with oil down today to $40 it looks a bit gloomier, but we have got to see positive cash flow, from October which can't be bad, then oil price should rebound at least to $50 with world economy past covid by next summer., although we've got the UK economy uncertainty of Brexit to look forward to. So maybe a smaller share price increase on wressle production than hoped for, but improving into 2021.
seems to be the legacy from Hugh. Unfortunately more drops than drills. My wall chart shows a litany of relinquished follies and I'm not sure that Morocco will not be another. We have a two year programme of which one has passed, the option after that is drill or relinquish over the remaining 6 years. Personally I can't see the point of chasing a farm in partner for 25 mbo when we can't find a partner for the prospective Billions of reserves in Ireland.
The world is not short of oil, there are surpluses around the globe, 97 million barrels a day are being consumed per day. This is going to decrease and the POO is going to stay flat. Its one of the reasons I'm not too exited about Wressle, my forecast is that its not going to lift the SP very much. It all revolves around the Irish Atlantic prospects, that's the saviour for Europa.
Whether we like it or not, oil is never going to be the certainty that it was regarding new discoveries. Solar and wind will continue to chip away at its longevity and popularity. Just take a look at the global giants in O&G and see where they are headed.
In the time that I've been invested in Europa, I could never have imagined the sea change in Global feelings regarding fossil fuels.
Hindsight must surely be the most useless function of the human brain, torturing yourself over the unalterable past.
All IMHO of course, I wish that I were wrong but the above strikes a chord with me.
GLA LTH's