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Fully agree
Ireland - not Iceland - but maybe that’s our next destination!
Yes that’s what I’ve read - but only here. That’s my point - nothing wrong with a 50/50 deal, but SO should have passed because they couldn’t afford to do several of them and so stack the odds in favour of success. As a result 1 failure wrecks the company’s finances. Don’t blame WH for that, 50/50s are decent calls but will fail half the time whoever is in charge!
I think FDs point is key for me - WH now needs to show hunger for success - which is why I want some project dates. He’s improved the presentation, he’s kept Iceland alive and I think he’s improved the portfolio, but now he has to show he has the drive and determination to get some of these projects through value adding points - which is the hard graft required.
Serif,
I heard that WH brought the Serenity deal to EOG. I am not sure if that is correct but that is what I heard.
One point on Serenity - WH was not the management at the time - - that decision clearly sat with SO. If WH brought a 50/50 option to EOG fair enough - they are the ones who should have said it stretches our finances too much.
Aim... your summation is pretty spot on. In essence too much being spent on salaries and not enough hunger for success.
WH is a nice chap, but does he have the hunger required to drive the company forward and provide long suffering shareholders the added value required?
People don’t give away producing assets at below value - you end up in an ANGS situation. Merger is one thing (may or may not help), but changing overall strategy is another. Why invest in a high risk/high reward company then say you want them to become a low risk/low return company?
For the past ten years they have tried?
Disagree. This is Aim. The market is looking for blue sky farm outs and big prospective resources drills. WH has set out the strategy clearly.
1. Agree, I think they are looking for something transformative and landed on EG. WH and co says it is his connections but since it has 3D already, I am also skeptical that they have found a project ahead of the pact. I am sure the company that farmed it out would have wanted a big player instead of EOG if they could. It is probably a good project but it is high risk and years to a well, which would be transformative. Still let's pray they get someone to farm in this year. HIGH RISK
2. Ireland, yes good geology but you are looking for a farminee who has deep pockets and will take the political risks. The Canadian pension fund who are part owners of Corrib are definitely not going to do it. That leaves very few potential farminees. VERY HIGH RISK
3. My hand is up. I think Wressle is a good project but all it will ever do is pay salaries. The sad thing about EOGs UK onshore is that it has allowed the management to take large salaries without having to perform. Bramhill is clearly looking at moving away from the UK onshore due to the restrictive long process of doing anything. GOING NO WHERE FAST
4. Pauls' comments about vending into larger company are sensible. He is saying a merger creating a larger entity that can spread risks and undertake more projects in the nearer term should be looked at. Without a doubt larger companies better than smaller ones. They have access to better deals and more financial products. SENSIBLE
5. He is saying that with their salaries they would not entertain a merger. This has been Europa's problem for a very, very long time.
6. Can add one more. Serenity. The management including WH, put the company at jeopardy with this disastrous well. I am not sure if it really has life but I suspect it will be difficult and will they be able to fund it? A larger company would have been better able to withstand the blow from the poor result and precipitous fall in share price.
ROLL ON MERGER
Tony. What you have said is very true. I would like the management to build a firm base of steady reliable and sustainable income from investing the Wressle cash into already producing oil and gas assets before they start chasing wild and adventurous, over the rainbow type assets that they cannot afford to develop themselves. The EOG management do not seem to be using the the litmus test of asking the question "if it was my own personal money would I invest it in this risky project" . If I asked that question to myself for EG and Ireland and Serenity I would without doubt say NO an they are far, far to expensive for a small company to fund in anyway at all and the big oilers will hang around (as there are plenty of other more lucrative and less risky) projects until the EOG money fizzles out and they dissappear. They must build a very secure and substantial base income stream first on the back of the Wressle cash and not squander it on wild cat Wells as they are doing now. Pick a known field for sale that is producing oil and gas now and is sustainable for 10 years or so and could be developed further with the cash coming in so it is self funding. Get very rich, very quickly, projects are big gambles with shareholders cash that are shown to be not paying off and are becoming stranded non proven assets, that are worthless.
The truth hurts
The share price flatlining is entirely understandable Imo – Europa’s entire history is one of not delivering on any meaningful projects.
1) EQ whilst an exciting project and potentially transformative – I believe there is some skepticism on how Europa were able to acquire the Project ahead of the major players in the area who presumably have much better connections. Will Holland did explain this point and very eloquently but still? And how are Europa able to spend $4m acquiring the project, have their geologist give the data a quick once over and then immediately farm out a free carry on a $40m drill?
2) The license extension in Ireland was positive as is the apparent softening of political opposition to the Project – but still they’ve been working on the Project for years with minimal apparent progress and how is a $45m drill with a 30% COS low risk?
3) Wressle – hands up who is disappointed with the results of the Jet pump so far – how many months production did we lose due to installation primarily to mismanagement we understand and I’m sure I’m not the only one who was expecting higher production numbers post installation.
4) “The management should be looking at vending the company into a larger, more diverse entity, so we get exposure to more activity” – My assumption is this is what they are trying to do and what they have done with EQ for example – can you be more specific.
5) “but we all know this is not on their radar and why would it be?” Do we all know this and why would it not be???
If you have any good feedback - I will pass it onto Will if you have not already done so.
Persistent seller gone. Hello £20m m cap please.
Well there were £23k of buys today which is a definite improvement. Question is - have we yet got rid of our persistent 1p seller setting the level - and is that maybe why the mms moved it up so readily? Sure there must be others who have been waiting to see the back of them before investing more. Profit taking as the SP rises is only to be expected, but that constant hammering of the SP until a week or so ago has been very frustrating..
Difference is you’re not a director but he can afford to lose it knowing his salary
If I'd known buys of £15k would have such a positive affect, I'd of bought £15k myself......
Seriously that's a shockingly disproportionate impact.
SP really should be trading 1.6-1.8p given the portfolio upside of IW and EG.
Wtfdik, but two farm outs, free carried and two discoveries.
Nice to see director buy today confidence going forward I hope
Something suddenly positive with the sp for a change, just at closing time. We could do with some good news?
Because he has a buck load of options so no need to buy any more. To me he shows he has listened but believe me I am not excited just good to see him buy shares with his own money
Holland’s latest purchase is less than £6k - What is everyone getting so excited about?
Well done Will Holland. Regular adding on his part is a big endorsement of his growth strategy for Europa.
It is good news. My only slight issue. At the last online preso he said news imminent on Cloughton?
I think that is right, need to check. Well it cant be huge needs or insider rules apply.
But good news.
Good on him - been down on this company but this is great to see