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Leaderboard today .....looking very strong today
1P up from 11.17 to 11.71!
Not massive, but a raise on the previous year.
Next, let's have have something from the Green energies that we are part of please.
GLA
Danno
From prior profit
it's a rum one this...should/could be multiples higher, but the pros (institutions) seem to have given it up
tough for an amateur like me to bet against the big lads/lasses
Https://www.thinkgeoenergy.com/drilling-set-to-begin-for-slatina-3-geothermal-project-croatia/
Https://parliamentlive.tv/event/index/51acf113-4ded-4573-838a-5cb8b73f8c37
From 11:17:00 onwards Ross Glover CEO speaks Geothermal
Https://committees.parliament.uk/event/20417/formal-meeting-oral-evidence-session/
24 January 2024 - Keeping the power on: our future energy technology mix - Oral evidence
Lingering around the 9p pivot.
Mass accumulation since 18/12/23
Https://committees.parliament.uk/event/20417/formal-meeting-oral-evidence-session/
This is coming up next week. Star appear to be the governments voice on energy mix/geothermal matters
No selling pressure anymore it seems. Price going up strongly for each buy and subsequent sells higher GLA
.... Lots of inflow from 13:53 onwards.
The price-to-book ratio = 0.2x
In comparison, Rolls Royce = negative -5.0x
So much value to be realised here. Positive news is near.
Post on ADVFN....
the balance sheet actually shows £143 million in total assets, with £84 million in total liabilities -
(should be noted that £60 million of the liabilities are the decommissioning provisions i.e the total cost expected to return each and every well site back to its natural state, as close to the way it looked before they even started)
the reality is that they probably incur about £3 million a year in decom costs, so the £60m figure is just the total expected amount to be spent, probably over a 20 year period or thereabouts.
The above gives a figure of £59m for net assets, after all liabilities removed. Without even considering revenues, profits in the future, the stock should at least trade at the net asset value, which is 5 x the current share price - i.e 45-50p
There seems to be off loading going on and it still seems that there is an active seller here
I can't see the share price dropping below < 8p with near term cash flow strong from current oil production and debt declining on each subsequent earnings report.
There is a lot of value to be realised in this share especially as the company is focusing on the future energy transition through the means of its geothermal business in Croatia, thus creating opportunity for ESG funds to buy some stock with not only clean morals at heart but incredible value compared with small energy peers.
"The company sees longer-term growth through its geothermal businesses, it is the UK conventional hydrocarbons that provide the backbone of cashflow in the nearer-term," said Canaccord."
https://txtify.it/https://www.telegraph.co.uk/business/2024/01/08/oil-gas-north-sea-transition-chief-stuart-payne/
My tweets to TiceRichard [PasajeroToro/status/1742941953472200948]:
Regulate stock issues to
#FTSE #AIM to prevent over dilution of holdings of shareholders.
Rule 1: Companies must provide new evidence of new value in their ventures for new placements to go ahead & if they don't qualify they can only issue bonds at +2% pa min rate
Choices:
A. Rule1 for share placement
B. Do nothing
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Rule 2: If corporate bonds do not sell due to bearish market conditions, companies can make a request to the treasury to help back their bonds with insurance, but their capital gains tax threshold must be reduced according to
(eg, in proportion to) the amount insured.
I see a post for arrow
‘3200 boe/d at say $80-85/b is $90-$100m and is likely to double in 2024. This SP will soon be moving.’
MCAP is 5 times that of STAR and current production is 50% only 50% higher. If production does double (to 6400) that is (roughly) 3 times more than us and MCAP (currently) 5 times higher however investors there would expect the MCAP to increase on doubling production.
Long winded way of saying (again) STAR seem highly undervalued
Https://x.com/DeItaone/status/1742562351717528061?s=20
Uptime across the portfolio has remained strong with good results from workovers at Singleton and a rolling programme of well optimisation and stimulation that has yielded additional production equal to c. 50 boepd over this year.
Extra oil £££ in the bank
The operation is likely to continue for approximately one month, with results expected by late January 2024, on schedule with the planned work programme.
Frankie. Whilst I am in STAR and feel that it is still undervalued at current MCap, a lot of things need to line up before we will see 50P. I like this company a lot, they do things properly, balance risk well through hedging and have a feasible plan in Geothermal to give them a great chance of a promising long term future. As ID points out, you can't compare onshore and offshore on straight outputs. There are a lot of things which could cause a spike in SP, but I like to plan on assumptions that external and political impacts are minimal, but a potentail side benefit nonetheless. With this head on, 50p is feasible but would take some time based on hydrocarbon production and Geothermal progress. A great share to stick in an ISA or SIPP and wait it out, but not a FOMO play at this stage.
No worries at all as all good.
hTTps://www.starenergygroupplc.com/about-us/board-of-directors/
Take a look at the pedigree and background of the STAR ENERGY team.... Looking forward to the Share Price moving up towards 50p and beyond in the not so distant.
Certainly seems one of the best stocks to be invested in for many multiple returns on your investment.....
Happy Xmas to you all :))
Frankie thank you.
Work has been too busy for me to research properly, which I need to do however I did want to know things like
- offshore or onshore (big difference cost wise)
- where do they operate (safe, it’s the uk!)
You have answered this for me.
Need to do some real research but I will buy a few today based on this limited knowledge.
Appreciate the response - thank you
When you think that companies like egdon resources which had just over 250 boepd was sold to petrichor for £26.6m in may of this year and europa oil and gas, which currently has production of 265 bopd, has a mcap of £11m and are both onshore Uk Producers, it just goes to show how undervalued STAR is
after all, STAR has eight times the production levels of the above two companies and yet has a mcap at the same level as europa and at the same level egdon was before it was sold - egdon surged 85% on news of the takeover.
45p is not an undemanding level for star to move back to.
If any of you look at IGAS which was the name that STAR originally had and take a look at the share graph
Then take into account the distressed seller(s)
The share price is only beginning it's move upwards.
With the latest valuation report from the brokers at 60p odd and the incoming news flow 50p min is not out of the question here imo.
The share price had exceeded past the £1.00 mark during the fracking news and the distressed seller(s) taking it to single digits - with the change of name from IGAS to STAR Energy and change of plan, this share has been truly battered down to shoddy levels.
The drill news and incoming newsflow incoming will make this share flavour of the month and hopefully 2024
Don't leave it too late as the share is off radar due to the name change
Good luck
News just 2 days ago and investors are latching on
Canaccord Genuity said Star's recent updates highlighted the progress made across its "diverse UK onshore oil and gas production base" and in the Croatian geothermal business.
Over the past year, Canaccord said Star has turned around "a declining UK production profile" for the first time in many years, through a combination of greater focus on incremental low-cost enhancements to well performance and significantly improved surface facilities efficiencies and uptime.
"That has clearly borne fruit over the past 12+ months, and we think there is plenty of scope to maintain that elevated performance at least over the next few years. That is important because while the company sees longer-term growth through its geothermal businesses, it is the UK conventional hydrocarbons that provide the backbone of cashflow in the nearer-term," said Canaccord.
The Canadian bank thinks the progress made by Star in the UK and in Croatia was "substantial", and certainly not reflected in its recent market performance. However, the analysts trimmed their risked NPV10 target price to reflect the slow pace of progress of the UK geothermal business but still think the company's valuation footing has "improved significantly" over the past year.
The share price is not making any sense here as it should be a lot higher......If the seller is out which certainly looks like it....The share price will accrue institutional interest going forwards and mop up the slack shares available on the market......
Can we see this over £1.00 again ?
Well 50p would be a great start and is highly probable i'd say...... Lots of incoming news and drill results on the horizon coupled with the recent appointment makes STAR ENERGY one of my multi multi baggers for 2024
Stonking Buy at these levels imo.....
The operation is likely to continue for approximately one month, with results expected by late January 2024, on schedule with the planned work programme.
The proposed plant would connect into the Ernestinovo HOPS substation - a major substation with 400kV transmission lines to the national grid, Hungary, Serbia and Bosnia, and local distribution lines at 110 kV and 85kV - and sell electricity on either a market premium arrangement (CfD) or bilaterally.
Drill Rig Mobilised to Ernestinovo Licence, Croatia
Star Energy (AIM:STAR) is pleased to announce that a drill rig has been mobilised to a recently constructed well pad on its Ernestinovo Licence in Eastern Croatia, three months after the acquisition of its Croatian Geothermal interests. The rig will re-enter the Ernestinovo-3 well to test the geothermal potential of the fractured metamorphic pre-Cenozoic formation.
Crosco is conducting the well re-entry programme. They are a highly experienced Croatian based international drilling company and have conducted the successful re-entry of a number of wells in country.
The operation is likely to continue for approximately one month, with results expected by late January 2024, on schedule with the planned work programme.
Commenting, CEO Chris Hopkinson, said:
"We are excited to begin the well re-entry on Ernestinovo-3. The speed with which we have constructed a well pad and commenced this operation demonstrates both the expertise of our local partners and the efficiency of the Croatian regulators. The Ernestinovo licence has excellent data from three deep exploration wells drilled in the 1980s and would suggest high temperatures and flow rates are achievable from this well. Our UK and Croatian teams are working closely to ensure a successful operation."
The Ernestinovo Development Project
Based on preliminary heat reserves and well productivity estimates, the Company's internal assessment forecasts the potential for a first phase development of a 10 MW electricity generation plant utilising five to six wells producing and re-injecting geothermal brine.
The proposed plant would connect into the Ernestinovo HOPS substation - a major substation with 400kV transmission lines to the national grid, Hungary, Serbia and Bosnia, and local distribution lines at 110 kV and 85kV - and sell electricity on either a market premium arrangement (CfD) or bilaterally.
When you think that companies like egdon resources which had just over 250 boepd was sold to petrichor for £26.6m in may of this year and europa oil and gas, which currently has production of 265 bopd, has a mcap of £11m and are both onshore Uk Producers, it just goes to show how undervalued STAR is
after all, STAR has eight times the production levels of the above two companies and yet has a mcap at the same level as europa and at the same level egdon was before it was sold - egdon surged 85% on news of the takeover.
45p is not an undemanding level for star to move back to.