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Thats what I’m was saying Steven49 - which means if you look at all the other activity areas plus the Paraguay drill and you are looking at this even as short term 6 month investment /trade this should prove to be a good bet - if the short term drill investors/traders come in and the SP rises by a large % I would of course top slice profits, but subject to the how much the SP rises at spud and during drilling - if a duster it shouldn't knock the SP back down too much as many other activities already in play - IMO I do feel a rerate in the SP is due very soon - of course subject to what news is announced next week - my target is 3p or 1 bag from here by Sept - that is if the Paraguay drill is still on target and not delayed. I’m fortunate (unlike some LTH’s - so understand when some are frustrated) that my buying prices are all under 1.70p so I’m more than happy with my risk/reward - well at the moment anyway - anything can happen with PPC so understand nothing Is guaranteed!
So that means if the cost of the drill is $10m then 40% will cover the drill from the $4m payment received from the agreed farm in , if the drill increases to $15m then PPC’s charge is an extra $2m - still a good deal to spend zero or $2m to see if they discover anything -very good small risk/potential very big reward - failure won’t break the bank - of course G & A costs will have to be paid as PPC is the operator. But I think this is very good deal for PPC. Image if they discover oil from a $10m cost drill and it cost PPC nothing. CPC corp are paying at least $10m possibly $13m to see what’s down there!! Not far off a no lose gamble if you ask me!
No value will come until a date time line 4 drill bit. Nearer drill bit traders will come in
President's share of the well will be funded out of its own resources where applicable, with, for the avoidance of doubt, no equity issuance contemplated in this regard
President's share of the well will be funded out of its own resources where applicable, with, for the avoidance of doubt, no equity issuance contemplated in this regard
farm in for a 50% participating interest in the Pirity Concession, Paraguay
· In return, the Farminee will pay 60% of the costs of an exploration well and will also pay President US$4m in consideration of the Company agreeing to enter into its performance obligations under the Agreement
· Agreement subject only to regulatory approval and prolongation of the licence for a defined period
· The exploration well will target the Delray complex of prospects, estimated by the Company to contain in aggregate over 260 MMbo of Pmean Unrisked Resources
· Costs of the well are estimated at between US$10-15 million with an estimated chance of success of 30%
· President will continue as the operator of Pirity
grsshaw Yes nothing priced in .It is strange they have not mentioned any drill's for this year, yep Martinex del Tineo looks a good move and would be a great target for early 2023. I wouldn't want a buyout at this stage , must remember ATOM should start to preform next year with plenty of news, i really like the Iceland connection. I am hopeful our new oil well's will keep producing at a decent rate along with Louisiana and start to see some real profit this year after all the expenditure over the last two years.
100% comeonvog - Plus sales 19,000 barrels via trafiguar at international prices - plus Martinex del Tineo field farm out start Q3 - I am hopeful that things will change for the better from next week - I just wonder if PL may buy out PPC now that the company can raise funds via bonds plus he has his own cash - not sure what Aim listing adds to the company at the moment TBH - other than market cap destruction!!
Everybody is fed up , not really how a chat board for a O&G E&P company should be , time for some action Peter.
"With a strong strategic and institutional base of support, including the international commodity trader and logistics company Trafigura, an in-country management team as well as the Chairman whose interests as the largest shareholder are aligned to those of its shareholders, President Energy gives UK investors access to an energy growth story combined with world class standards of corporate governance, environmental and social responsibility."
I will be quoting this statement in my future emails to Peter and Nikita .
No value for Paraguay ( when it happens) , ATOM , Louisiana back on line, recent oil wells , treatment plant with estimated $4/boe reduction in operating costs.Realised prices for domestic sale of President's Salta crude continue to increase with prices currently US$66 per barrel, an increase of 12% from the start of the year .Accounts to DEC 2020 we were getting paid US$30.0/boe (2019: US$49.6/boe) We have no value here for all the work PPC has done these last two years and in fact our SP is lower , i think Peter will be doing something this year.
I may have this totally wrong, but I wonder if the recent bond and improved cash flow will be used to pay back PL’s loan in full. A divi payment could be introduced which is where PL,with just under 30% holding, would get a nice income rather than charging PPC high interest on his loan money.
There doesn’t seem to be any value in the SP for the Paraguay drill. Am I correct that the first drill is fully carried for PPC with the farm out payment of $4m if the drill is approx $10m cost? High risk but nothing lost if a duster and costs of the first drill are managed to $10m! Not too bad of a deal, so PPC now have 50% asset with no cash spend risk? PPC as operator you would hope will be drilling this with a strict $10m budget in mind.
Be update on Paraguay too, my feeling this will go into next year,
I think it will be Monday too. Topped up this morning but listed here as a sell. Market cap is now only £31m and that includes the Atome investment. Crazy low price.
Results Monday morning I suspect
Debt think also holding this back, does like too borrow P L rather than building cash pile and buy from this, his got nice loan given ppc that his earning good rates on,
that PL is and has been so quiet for quite some time now.
I didn't think this was his style - makes me wonder whether something is going on in the background. Would be good if we had some real impetus to the sp - maybe he sees Paraguay and the Farm out all we are due for this year. Time will tell.
Atb,
Northern
Got to remember results are for last year, it will be all about the forward statement and plans for the reminder of this year. I hope we are now at a stage with all the drilling these last two years to have a steady production that will put some cash on the books and we get some sort of corporate news. I remain hopeful that they have something to excite the market this is dire.
Tend think same that P L has something 4 that bond too be put too use, normally herd move in on drill bit but these markets r not same now so not so sure.
I don’t think the results will be too bad as the city know what to expect already - imo the main mover for the SP will be about this years trading to date and what to expect future trading to look like - hopefully it will be an upbeat statement. Still a little puzzled by the recent bond but I guess all will be revealed very soon! I do hope PL has been working on a new opportunity to excite the market which is why the money has been put in place for a deal. Maybe too enthusiastic on that front though! Unsure if the O & G drill squad investors/traders will take a position for the Paraguay drill. Could be very interesting if so…
Gone quite no volume, markets not often wrong and my feeling results not going be over great, lot PR from atome of late, paper profit markets wo t put too much value on this, Paraguay feel not going do much 4 value 4 company, believe as low as 15% chance success lot money wasted on this in past, PL good at that wasting and borrowing on placings loans at share holders expense, mayb he will surprise us soon, feel oil peaked now could fall back now on world recession fears, GLA sorry carnt be more optimistic but its been a horrid share too hold,
Moving down on small vol, unless big seller there, when u think can not go any lower, no real buyers,
Martinez Del Tineo prospect holds gross prospective gas resources of 570 billion cubic feet with an additional 14.5 million barrels of condensate.The net present value of this resource stands at US$1.03 billion, or US$515 million net to President,
Thank you comeonvog - I did find it a bit strange to put out a new comms when waiting on the 2021 results along with an update on current trading in less than 2 weeks!
grsshaw just a reiteration on our last RNS with a positive slant . Still a bit of PR that we desperately need more of IMO.