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I don't think the update is too bad considering the circumstances. Yeah, sure problems with taq taq, and payment worries but they've been issues for ages.
On the positive, the update on sarta is very encouraging. sarta production appears to be just around the corner, with potential for fast expansion next year.
I'm used to being disappointed with gas progress but it does seem genel are trying to get an acceptable agreement in place.
Interim dividend is also encouraging. Can't remember what the cost is to company (something like $15 mill?) but that should be affordable if oil price stays roughly where it is.
As for diversification, the company has licences in Somalia and Morocco, just need to find willing partners! Buying into existing already producing assets elsewhere does seem like a good idea. They'vettalked about it many times before and I'm sure if they get an opportunity they will do it.
well they're going to milk this on a dismal day like today, eminently possible we'll see 130's - my small success in holding AV. has been eroded by this little set back ....I'm hopeful we can close somewhere decent, no real surprises in the update.
It doesn’t read well. Does it? Doing better than most but no real material to look forward.
What a day hur and this!
When is oil going to ever get it s grace back?
Bp shell all
Reducing o&g exposure at rapid pace
I'm sure many feel the same as you Hasiba and, indeed, I was also focused on the gas two years ago. But the Miran write-down put an end to all that for me. The report is solid, in my view, without any obvious hype - I liked this line:
'The Company has a portfolio that contains assets with material value creation possibilities, with discovered resource with the potential to add incremental value to the share price greater than the current market capitalisation of the Company. '
Still hold a small position bunks and do my best to remain balanced imo
difficult to measure the market reaction to this today, I'd say it's flat, G still very strong to weather subsequent Covid wave(s) stifling op and the usual KRG shenanigans . Leem makes me laugh, yeah, you're in the same place except you have no position to exit, you must be looking for a lower re-entry price or you wouldn't be dropping in here.
I don’t agree with you Boyo.....gas is crucial here and Genl oil is not a big deal even with the very low cost production as its production is lower now and with the current oil price or lower ..Genl profits margins are not great when you take the krg uncertainty of payment and regional un stability from the central government to the krg region. I am taking bigger risk in my investment without gas exploration and production..Other opportunities are better like Rdsb looks even more appealing..
Genel are clearly negotiating for that money rather than demanding it.....
There's a lot to negotiate and it's much more complicated than just the recent receivables - there's the over-ride issue as well. All this has been achieved before with the KRG (the overdue receivables is a lot less than last time btw).
As Bill says: 'While the mechanism through which the receivable from the KRG will be recovered has yet to be finalised, we are confident that a solution that works for both parties will be found, as has been done in the past, and our discussions with the KRG continue.'
It beats me how 'unprepared' some investors in G really are. But then I forget how long the company has been navigating through all its setbacks and how new some investors are.
f15jcm....
I start to think similar..
Trin is dealing with better progressive government....and Genl is in the opposite of this...
KRG decimated Gkp in 2015 and I start getting uneasy with Genl and will get out or cut my holdings while I am still in good profits....
I can no longer wait for the KRG to straighten their twisted corrupt habits.
I don't think you are that much out of step with the market, Leem, judging by the way the sp is moving today. There probably has been more anticipation about Bina Bawi than there should have been. After years around G, I still can't understand the eternal optimism that persists around the gas reserves. But as an oil co they are doing OK - the report was solid under the circumstances.
No nasty surprises but Genel are clearly negotiating for that money rather than demanding it, i.e. they are going to take a haircut. Oil price is flatlining and cash flow won't support another dividend unless oil goes up significantly. Investment has been cut back. End of the day I've decided I no longer want to hold a stock whose business model involves iffy IOUs. Much happier with my holding in TRIN.
Hi Boyo, point taken, my opinion was purely that there was nothing in this update that justifies a 150p valuation. Nothing terrible at all and maybe I was expecting news that warrants the price strength
The thing is, Leem & f15, was there anything in today's report that came as a nasty surprise? There shouldn't have been.
Was there anything that fell below your expectations? If you were expecting there to be something significant about Bina Bawi or payment of receivables then, to be honest, you've been in 'wishful thinking' mode and not paying attention to what the company has been saying (and not saying).
PS: liquidity wasn't great
That’s sort of where I’m at f15. At this price level there is no discount for the KRG risks
I've exited my position. I'm not comfortable with the KRG situation. $121m is a lot of money which the KRG are clearly unwilling/unable to hand over. Risk/reward doesn't look very attractive at this level.