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what do you mean contaminated?
what do you mean contaminated?
Even if you valued it at a low 1$/barrel 2P reserves you would be looking at an SP of around 250p. Recent sales in Russia for inferior reserves have gone for higher ratios. Bottom line the company is contaminated by the two major shareholders and their influence over the board and management.
benefiting from the rouble depreciation against the dollar. Cost of sales excluding depreciation and depletion expenses for the first six months of 2015 decreased to US$54.2 million (2014: US$85.9 million), along with the decrease in production by 7% to 3,012,458 bbl (2014: 3,222,006 bbl). The difference between the production volumes and sales volumes is due to the change in the oil inventory balance during the period. The depreciation of Rouble against US dollar is the main reason for the decrease in production costs, all of which are nominated in Roubles. Consequently, the major reduction occurred in mineral extraction tax from US$71.7 million in 2014 to US$45.0 million in 2015.
At first glance looks like one of the better small cap oil companies out there. Nice cash balance, low geared and has a net profit. I thought PMG was solid oil co. This looks better to me. I can't really see what's wrong with the company other than POO and the EBITDA and profits being down. But at least its not loss making like most oilies. The only thing that puzzles me is, "The additions to the property, plant and equipment of US$30.0 million included aircraft acquisition of US$10.6 million" Solid oil company though. I may decide to move in.
what's wrong with the company?
The board of Exillon ought to make a statement on this. They probably won't - silence is now their modus operandi.
Nov 18 2015: In recent days, Russian media reported the sale of Negusneft, a Western Siberian producer, by Sintez, a company controlled by Leonid Lebedev. The buyers are Yuriy and Aleksei Khotin, a mysterious father and son duo who have been steadily acquiring oil and gas assets in the past few years. Negusneft brings the total number of oil companies controlled by the Khotins to four, with total production attributable to them reaching almost 40,000 bpd: …
Conoco first announced it would seek a buyer for its stake in Polar Lights last year. A person familiar with the deal said the joint venture had been sold to a company owned by the Khotin family. Originally, the Khotins, led by father and son, made money from real estate development in Moscow. In recent years, though, they have started to invest in oil, through the acquisition of a small company in the Irkutsk region and a 29.9 per cent stake in London-listed Exillon Energy. A Conoco spokesman said: “We sold our 50 per cent interest to Trisonnery Asset Limited. We no longer have operations in Russia.” Rosneft declined to comment on the identity of the buyer, and the Khotin family could not be reached for comment.
Controlled by Alexei Hotin Exillon Energy became the owner of 100 percent. shares of Polar Lights - reported Kommersant source familiar with the situation. Polar Lights was a joint venture of ConocoPhillips and Rosneft. As reported on December 22 BiznesAlert.pl, after 25 years of its presence in Russia, the US company sold 50 per cent. stake in Polar Lights leaving the same eventually with all projects implemented on the territory of that country. In turn, Rosneft announced last week that it completed the sale of 50 per cent. shares in the company Polar Lights. The press service of the company not announced who sold shares in the Polar Lights. According to a second source of newspaper assets they were bought not only by Exillon, but also by its main owners: Alexei Hotin (through Seneal International has 29.9 per cent. Interest) and Alexander Kljacina (by Sinclair Holdings holds 26.7 per cent. Interest). Both Exilon, Rosneft and ConocoPhillips refused to comment on the matter. Polar Lights was created in 1992. A joint venture of Rosneft and ConocoPhillips is the operator of five oil group Ardalinskaja - Adralinskoje, Eastern Kolwinskoje, Oszkotynskoje, the West and the Middle Oszkotynskoje Chorejwer in the Nenets Autonomous. In the past there was exported 16 million tons of oil annually to the European market. Production dropped, however, in 2010. In 2012. Was already 520 thousand. tone. In 2014. Fell to 410 thousand. tone. ConocoPhillips previously worked in Russia with Lukoil - in 2004. American company bought from the Russian government's 7.6 percent. Lukoil shares (in 2006. up to 20 percent. increased its stake) and became the owner of 30 percent. interest in the joint venture Narjanmarneftegaz (Lukoil had 70 per cent. of the shares, management companies was carried out on a parity basis). In 2010. Conoco sold 18 per cent. Lukoil shares (partly on the market, partly yourself LUKoil) in 2011. completed the shareholding leave the Russian company. Later, Lukoil announced the acquisition of 30 percent. ConocoPhillips shares in the company Narjanmarneftegaz, as well as certain assets associated with that joint venture. Sources of Kommersant counted earlier that the family Hotin, which in recent years actively interested in small, Russian oil assets will be the main contender for the purchase of the Polar Lights. In November, Forbes reported that the structure of Hotin for $ 200 million. bought Negusnieft (company exploring Warginskoje deposit in the Khanty-Mansi Autonomous District) from Sintez group belonging to the former senator Leonid Lebedev. In 2012. They bought from Sberbank Dulisma company, which holds the license for exploration of oil fields and gas condensate Dulisminskoje (Irkutsk Region), reaching later to her relief on export duty. According to Karen roofs of Advance Capital Polar Lights is attractive to Exlion primarily because it is already ready infrastructure and because of the proximity of already eksplorowany
movement
Exillon Energy – As The Freeze Comes, Production Should Rise Today's production report continues to detail a decline in produced volumes, but this shouldn't be a surprise as the Company is restricted to being able to only undertake minor interventions due to the need for ice roads, or all weather roads constructed during the winter, to move heavy plant in the summer. http://www.proactiveinvestors.co.uk/columns/sp-angel/23651/sp-angel-morning-oil-gas-caza-oil-gas-falcon-oil-gas-and-exillon-energy-23651.html
Held this for ages , anyone shed any light on what's going on with the company ? I thought it was a certainty to be taken private by now , I live in hope.
New super low.....what a mistake to have invested in this rubbish.
must be a mistake in the price.
news anyone? Is this actually waking up? Thanks.
Maybe it has gone 'missing'
No end of year results 2014. No quarterly update 2015. No information regarding business strategy. Management and board members that are essentially invisible. And the complete inability to publish a reserves update that has been ready for over a year.
SP on HL site down 10p? Why has production fallen off from 18k to 16k per day?
http://oilprice.com/Energy/Crude-Oil/Goldman-Sachs-Busts-Myth-Of-Impending-Russian-Oil-Collapse.html Yesterday's Russian downgrade pulled yet another raft of "smartest people in the room" to tell investors how screwed Russia is by low oil prices (and yet the US Shale industry is fine and will manage through this). However, Goldman Sachs prefers facts in its analysis of the Russian oil sector and concludes, investor concerns about the health of Russia's oil industry should remain more myth than reality. Two factors contribute to the low sensitivity of Russian upstream cash flow to oil prices. The first is upstream industry taxation: the per-barrel tax rate decreases as oil prices fall, shifting most of the upside/downside due to changes in the oil price from the oil producers to the state. The second factor is a ruble-denominated cost structure. Russian oil producers' opex and capex mainly consist of ruble-denominated contracts, as the services industry is localized. These factors offset the negative impact of oil price declines on upstream earnings. Effectively, at US$110/bbl oil and 33 RUB/USD, Russian upstream free cash flow (FCF) for the companies we cover is roughly the same as under US$60 oil and 60 RUB/USD. Hence, we do not expect to see a slowdown in upstream activity. Moreover, the Russian government is likely to incentivize output growth in order to mitigate the impact of lower oil prices on budget revenues. Given that Russia has one of the lowest cash costs of production in the world, it would make sense in the current oil price environment for Russia to maintain its market share. We therefore expect production to reach 532 million tons in 2015 from 527 in 2014. In most countries, lower oil prices negatively affect the upstream industry while positively impacting refining due to feedstock cost reduction. In Russia, however, the tax system is designed in such a way that changes in oil prices have no major upstream implications but strongly influence refining profits. Even if the operating environment turns more negative- assuming RUB/USD of 70, a 20% decline in capex volume, and no dividend payments - the companies' strong starting positions would allow them to navigate 2015 at an oil price as low as $40/bbl (below our commodity research team's forecasts). In sum, provided that the ruble continues to adjust to the shock of weaker oil prices, investor concerns about the health of Russia's oil industry should remain more myth than reality.
http://blogs.ft.com/beyond-brics/2015/02/23/guest-post-russia-ripe-for-ma-in-oil-and-gas/ On February 2, the Financial Times reported that ExxonMobil is considering acquisitions to ‘strengthen its long-term production potential’. Exxon’s Vice President said that the current business climate “presents a number of really good opportunities” and investment analysts expected the company to take “advantage of depressed oil and gas valuations”. And with falling oil prices, it’s likely that other buyers and sellers across the world will be looking to do the same and start the hunt for potential acquisitions. Could some of these acquisitions take place in Russia? Yes, I think so – in spite of the international sanctions and, in a way, thanks to them. The international sanctions imposed by the US and the EU in 2014 negatively affect the ability of Russian companies to develop shell and Arctic shelf fields, as Russia has neither technology nor experience in these areas. However, these projects have been pushed by large vertically integrated companies (known in Russia as ‘VINCs’), such as state-controlled Rosneft. At the same time, Russia has a large number of small conventional fields which have so far escaped the attention of domestic giants. Some of them are not being developed as private licence holders do not have the resources; others are being developed by small local producers with some success. According to Elena Korzun, head of Russian Association of Independent Oil and Gas Producers, the independents’ share in total oil and gas production in the country rose from 2.7 percent in 2013 to 3.7 per cent in 2014. Multinationals may not be the only ones looking to capitalise on these opportunities, and competition from Russian buyers is highly possible. To quote Igor Sechin, the Rosneft CEO, speaking at the International Petroleum Week in London in February: “Small and medium oil companies will suffer more than others… Many of them will experience financial problems and may become takeover targets”. The window of opportunity is open but it might not be for long. If the peace process in eastern Ukraine holds and the EU revisits sectoral sanctions which are due to expire on 31 July, Russian banks will be back in the international debt market by the end of the year. The lifting of the sanctions will relieve a great deal of pressure on the Russian hydrocarbons sector, and cheap assets might begin regaining their value. So, if you are considering taking advantage of the current market in Russia, now is the time to go hunting
Reserves update this month. Will be interesting to see what happens to 2P reserves, two years in the waiting.
Decent volumes on the buy side and all automatic trades - somebody is willing to clear the book upto a certain price. As a single event it still does not imply anything significant, if it continues this week and the price starts to move towards two hundred, then maybe we can think something is happening. I have been thinking maybe the recent movements are related to the ceasefire and today's annocuncement: '(Reuters) - The Moscow Arbitration Court has awarded the Sistema business conglomerate damages of 70.7 billion roubles ($1.13 billion) for losses related to the seizure of the Bashneft oil company, RIA news agency reported on Monday. The court ruled that a firm called Ural-Invest, which sold a stake of over 70 percent in Bashneft to Sistema in 2009, should pay the damages. Last year, Sistema had to transfer its stake in Bashneft to the state to comply with a court ruling that said the privatisation of Bashneft in the early 2000s was unlawful.' This maybe is risk off with regards to Putin nationalisation of private oil companies. Maybe it is that a bid is coming, I'm guessing it is not.
Big volumes today and buys of over 2.5mil??Maybe at last things are moving??
unusually large movements going on here?