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Can anyone tell me the point of that?
Oil price increases so cashflow does, isnt that obvious.
Billy back on form again after all these years
Good stuff
Last time it was around $47 was March 2017. A lots happened since then. Cost of lifting hasn't gone down. Still need 3 times the amount of oil we had back then to make any well viable sad to say.
WTI needs to be $55 plus for good economics and $70 plus for returns we can "BANK" not borrow against.
Anyway looks the pumping team can't get the SP up or interest going. Only if the cards were put on the table 1st in this game of poker (oil guessing).
Whats required is a road map. We had one back in 2011 which everyone could follow. Theres no secrets no more in the oil patch. Smaller oilies are either shutting in wells or letting everything go in a fire sales. There make more in corn oil.
Currently $47.30
Very, very helpful for NTOG and other smaller oilers.
Why so many sells last few days when drilling results are expected?
"As for interview I learnt too much."
You little teaser... :)
"As for interview I learnt too much."
You little teaser! :)
Key point never put down your share your invested in. You might as well bet on 3 legged horse.
6 to 7 years ago my opinion NTOG would have gone somewhere. If crap shoots like MAGP were worth more than the we should have been flying. At the time we had wells at a lower cost than what we have now.
That said we played in Egypt...big big ..mistake then oil drops. Waste of time and space.
Since FCA stop shorting/borrowing shares on a industrial scale playing in penny shares was dead.
As for interview I learnt too much.
Less than 10 year life span would mean higher per day output as they have to depreciate 1m over lesser years
Anyway I have not seen a management that is good at cash allocation. When price of crude (commodities) is high instead of selling the asset at a good profit they want to buy more and develop it further
When price drops they are left suckling their thumbs or sometimes raise cash to buy more not knowing crude might crash further
Very few raise cash when pe or cycle is in upswing and hold that cash
Look at what Elon musk did when Micheal Burry of “big short” shorted his Tesla however asked Elon to raise capital at this valuation, Elon paid heed to that good advice. Not everyone is Elon Musk but for us investors I think when cycle is down and turned around, we can get some things are a good price
If you know any other crude company at a good valuation I am all ears
Good to see billy back after a long absence
I remember the LNS group from years ago billy with a lot of long termers
Why don’t you repost that interview you did with lofgran ?
Simple question why hasn't money received every year ever covered costs. Why? Why?
Answer> Its never suppose to. Then goal posts keep moving.
Its easy for a Public listed company to raise funds from market. Killer is it spends it with private companies. Its these that are taking the lion share and some extra for good measure.
For your math you used, most of our wells haven't got a 10 year life span as price of oil kills them off. Like posted before its cost us to lift oil on some of the wells if not all.
(math its Americanism)
"
Current total production is 67 bopd.
Not bad for 11 years work by a under performing CEO"
It's around 90 during normal times
250 to 300 will come from Permian
At least 100 will come from Pine
Assuming contracts are set at fair value you can back calculate it
Anyone that is drilling needs to, in a low oil price scenario, commit to 1m to drill oil
Based on 10 year life of well, that's 100k a year
70% of production belongs to the driller
He also has operational costs, so let's say when he signed his profit was 10 per barrel after uplifting
To break even he needs to make around 40 barrels a day
100000/10/365/.7
And a huge risk of not finding enough oil
Also 1m drilling cost is upfront and recovery is on discounted cash flow
For any sane business unless there is 70-80 barrels it doesn't make sense
Current total production is 67 bopd.
Not bad for 11 years work by a under performing CEO
I think thats a bit optimistic, but will see soon enough i guess.
Yes you are right, it's 32%
100 barrels per day is worst case, by the interest it's generated it might be more, don't want to guess at the moment
But either pine or Permian will click I think this month or both
Yes you are right, it's 32%
100 per day is worst case, by the interest it's generated it might be more, don't want to guess at the moment
But either pine hill or
Isnt it 32% or 32.5% of the new well?
Hi Steeltitan
Thank you for your kind message.
Total loss for 6 months ending June 2020 was 437k
Out of which administration expenses was 610k
There is also foreign exchange gain which is not recurring, of 228k
610k they said is reduced by 60%
So recalculating that we should have:
-437k
+366k
So just without any benefit of lower cost of production and higher prices the loss for next 6 months is most likely 71k
There is also a rough saving of $7 per barrell of uplifting cost ( $23/bbl to $16/bbl.) Output per day is roughly 67 so 67 X 7 X 180 days roughly 70-80k
So new loss could be foreign exchange profit that is not recurring of 228k
I have ignored the hedging profit because that was at price of 55-57 for part of output not all, so the average price they got, probably is still achieveable at higher crude price
Add to that 25% of pinehill is extra, if the well can generate 100 barrells a day, I don't think why a company would bear cost of drilling if it's less than that
100 barrels X 25% X 40 usd X 180 days probably another usd 180k there
It all depends on what the barrell per day output is
Also add to that the just acquired resource with pv of usd 1m producing 30 bpd and the Permian basin farm in where ntog gets 50% of net cash flow.
I do think ntog might be a turn around story but given past history as you pointed out it's doubtful. I think that doubt is priced in the share price, I hope it is
Thank you again for reposting the comment
Lobsi ... you sound very green to the workings of Matt Lofgran and ntog.
Did you not see the recent summary from Oilmam Jim .. See below
Since I’ve seen a flurry of promotional tweets this week regarding Nostra Terra Oil & Gas (NTOG), which can only be aimed at unwary newcomers, I’ll comment on it. The problem is that no one apart from the directors, brokers, PR companies and paid social media posters is ever going to make a profit from it. It’s essentially a small business (with a turnover similar to a petrol station) whose operating profits, if any, can never approach covering a quoted public company’s overheads. Even with a profit of $10 a barrel at the operational level (which is a generous assumption since many fields in the area do not even achieve operating break-even) NTOG would need 500 barrels of oil per day production just to cover administration and other expenses. Remember, they’ve been at it for years, have achieved nothing other than massive losses for shareholders, and in the process squandered nearly $30 million of investors’ money. There’s always an exciting new project to draw in new punters, but it always fails to reward them. A huge avoid.
The hedge on a small production with BP is way 50-55 something from memory
Crude is already looking at 50, and last rns said cost of production is down
Will get update in December but I think it will be quite positive
I wouldn't we suprised with the rise in sp is down to someone doing a placing to get funds to complete well, buy more acreage blah blah.
Or someone off loading a few million shares as its certainly not down to a few trades that making the SP move.
Looks like the PR team can't even help now.
MASGOOD tis all GOOD MASGOOD.
Keep up the running commentary .
I’m sat here naked with a raging hard on . It’s like listening to a commentator during a World Cup final and waiting for the final whistle
LMFAO
So if you were to buy shares right now it will cost you.
Happy happy! keep pumping