Proposed Directors of Tirupati Graphite explain why they have requisitioned an GM. Watch the video here.
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scotlouie more than you would be having a heart attack!
GG12 0.12p. need to check what the real price for buying or selling through broker but LSE page showing 0.14p to buy or 0.12p to sell.
so 0.14p per share instead of your quoted 14p a share.... think id have a heart attack if it was 14p!!
SCOTLOUIE: When you say your "happy to add when i can and sit on my stocks until were reaching 1p+", I thought PROX sp was 14p, or am I mistaken? I fairly new to this.
When you say your "happy to add when i can and sit on my stocks until were reaching 1p+", I thought PROX
broad thanks for the post, it makes good reading and i also firmly believe the disconnect in assets vs sp. and there will be a time where sp will jump to reflect this. i believe it could be italy news. when the red tape has been cut and finally producing then sp will jump up gaining traction with new investors pushing sp into the single digits.
its just a waiting game until pxog proves they can get the deals.done and revenue coming in and were off. until then im happy to add when i can and sit on my stocks until were reaching 1p+
@broad - excellent summary statement of where PXOG is at.
I have always said ( and cannot understand why) there is a massive gap between the value of our portfolio and where our current SP sits. I am very happy to be holding ready for the rerate.
The catalyst will be the Italian permit and once we have this financing becomes a lot easier and off we go …
Not long to wait now
Good find. All the more reason to pull all this together into an updated, PXOG sponsored, 'Peterhouse' (or similar) report. Lot's of value yet to be realised in SP. GLA
Thus, the El Romeral gas power project is, for all intents and purposes, truly transformational to Prospex as it allows the company to transition from an energy-focussed investment company into an asset-backed and cash flow-generative investment company.
But here’s the real kicker;
The tentative valuation of the company’s portfolio of oil and gas assets, following the acquisition, now stands at £47.76m or 2.1p per share. Compare that to the company’s current market cap of £3.09m (0.14p per share).
Yes, feel free to bark the unsavoury but apt remark, “What the ….!”
And yes, the stock market is not always the perfect arbiter of value. However, for as sure as night follows day, the market will soon move to correct the mispricing.
And that, by the way, is the reason why Simon Chantler and the BOD own 11% and 6.5% of the company respectively.
In the meantime, look out for the following share price re-valuation triggers that are expected in the short to medium term:
• A ‘Completion of the El Romeral Gas Power Project Acquisition’ RNS. This will immediately drop a multimillion-pound asset into the company’s portfolio whilst injecting £58,000 worth of monthly revenues into the company’s existing cash flow.
• The ‘INTESA (intergovernmental agreement for Selva)’ RNS.
• The ‘Final Production Concession’ RNS from Italy's Economic Development Ministry.
• The ‘First Gas Production at Selva’ RNS advising of an initial production rate of 150,000 cubic metres per day and the subsequent new injection of cash.
• A ‘Technical Work Programme Update’ RNS to de-risk the 830 BCF gross prospective resources at the Tesorillo project in Spain.
• A ‘Production Update’ for the Bainet field.
Remember, all intelligent investing is value investing; acquiring an asset for less than its value means seeing what everyone else sees and thinking what no one else thinks.
Following the significant commercial gas discovery at the Podere Maiar-1d well in 2018, Prospex’s 17% interest in the Podere Gallina licence was assigned net 2P reserves of 2.26 BCF and net contingent and prospective resources of 2.40 BCF and 15.56 BCF respectively. House broker Novum believes historic gas production at the asset should allow the company and its partners to recover most of its 2P gas resources from Podere Maiar-1d. Thus, using long-term gas prices of £5.44/mcf and fixed OPEX costs of £251,000 per annum, the broker has ascribed a value to Prospex’s interest of £4.7m.
However, the broker goes on to stress that, the Podere Gallina licence contains plenty of contingent resources beyond the Selva Malvezzi Gas-Field. Most of this potential is housed within two prospects called Selva North and Selva South, and which both sit within the same stratigraphic concept as Podere Maiar-1d.
And despite being called prospects, the two structures have already produced gas to surface in commercial quantities from previous wells, leaving significant volumes of gas updip in each accumulation. As such, the broker views them as ‘attractive low-risk, potential additions to the longer-term Selva production profile’ and has assigned the prospects net un-risked and risked valuations of £5.59m and £2.34m respectively, highlighting that successful drilling will boost these numbers further.
Then there’s the Tesorillo project. At 831 BCF gross P50, the prospective resource size is substantive. The permits are located in farm land close to the gas trunkline from Africa to Europe and gas prices in Europe are attractive. A commercial discovery by Tesorillo-1 should create significant value. However, further appraisal drilling is likely to be required to confirm resource size before a development decision can be taken. Novum has, nevertheless, ascribed a risked valuation to Prospex’s 15% interest of £12.3m.
The EIV-1 Suceava Concession (onshore Romania), on the other hand, and which still holds multiple prospects and leads, including a gas discovery, has been ascribed a risked valuation to Prospex’s 50% interest of £3.13m.
That being said, however, the ‘mother of all assets’ has got to be the El Romeral gas power project. The asset, previously owned by Chevron, includes three blocks with existing gas production and a gas-to-power station housing three Jenbacher gas engines that convert gas to electricity. The facility was built at a cost of £8.3m and currently generates annual revenues of £669,000. Prospective resources for the three blocks currently stands at 90 BCF alongside two proven, but undeveloped, discoveries (5 BCF gross contingent resources). Thus, there’s significant opportunity to scale-up production. Using long-term gas prices of £5.44/mcf, and allowing for increased revenues, house broker Novum has ascribed a risked valuation to Prospex’s 49.9% interest of £19.7m.
Howard Stanley Marks, the billionaire serial investor and founder of Oaktree Capital Management, once opined that:
"When looking for the best stocks to buy, it pays to follow the money.”
Indeed, investing alongside some of the world’s wealthiest can be very profitable.
Take the London-listed, energy-focussed, investment company, Prospex Oil & Gas (PXOG), for example. It currently boasts millionaire entrepreneur and value investor, Simon Chantler (of Meadow Foods), as its largest shareholder.
The extremely well-heeled (estimated net worth of circa £74.5m) northerner owns close to 11% of the company and is one of the most highly regarded executives in the UK.
Known for his innate ability to unearth mispriced opportunities, Mr Chantler is one of those high-net-worth investors who prefer to keep things pretty simple; invest in well-run companies, with significant growth potential, in ‘safe’ sectors, and within ‘safe’ jurisdictions, that sport a substantial discount to NAV.
Pretty simple.
Thus, cue Prospex Oil and Gas Plc.
The company has a considerable portfolio of oil and gas assets but is only valued at a fraction of those assets.
And until the recent announcement of its latest investment, a 49.9% stake in a Spanish gas power project, the company had, largely, flown under the radar of even the most avid follower of the energy sector.
But that is rapidly coming to an end.
Private investors appear to have spotted a glaring market anomaly;
Not possible for me, but perhaps someone else could take the opportunity to chat with Ed.
Come along to the Shares and AJ Bell Investor Evening in London on Wednesday 11 March. Inspirational Healthcare Group, Prospex Oil & Gas plus others will present their latest plans.
Nice to see this one up on a day when markets were a tad nasty..
could it be the start of big movement?
good to see a blue day when overall the markets are getting smashed.
just need some momentum and push over 0.2p+ not seen that level for a long time
Yup full ask getting hammered
Broad, thanks and apologies for my misunderstanding, cheers
Broad, thanks and apologies for my misunderstanding, cheers
broad, I think 'recommending' in the sense of flagging as 'buy' etc. is really akin to advice, which I won't do.
Dont get your drift, recommended for effort not for advice.
broad, I think 'recommending' in the sense of flagging as 'buy' etc. is really akin to advice, which I won't do. Investing in AIM is inherently risky and so I think everyone should DYOR and determine their own level of acceptable the risk. I simply try to pull together info from published material from PXOG, partners and related parties. Have been a holder since Dec 2017, have only increased since then and not (as yet) sold any shares. Will be hanging on for some real return. Good luck.
15 would be great but settle for 5p
15p sounds good! And I'm not too surprised. With dwindling resources many tiny players are going to see their SPs rocketing.
LLP recommend
Peterhouse July 2018 – 2.2p fully diluted (on 1213.6m shares plus 95.6m options), valuation includes 10% CoS and 50% commercial risk for Tesorillo. What’s changed?
More shares issued, now 2213.6m (plus options). Also £480k Loan Notes (with warrants). OK, dilution and debt, but used to keep the company running and improve / increase assets.
Various delays – Italy, Spain. Bainet-West ‘duster’. On the plus side ...
Romania – some revenue.
Italy – reserves confirmed, plus upgraded Contingent Resources (2C) and Prospective Resources (2U), one more approval pending, some funding, and then production / revenue. Should see a step up if all goes to plan.
El Romeral – we have a gas producing and electricity generating asset. Drilling to follow for increased capacity utilisation and revenue.
Tesorillo – lots of work (should have been!) done with historical data re-processing and G&G integration, just waiting for CPR update and well decisions. Note that original struggling partner PRL are gone and replaced by WGO (who have a 50% share of a 1.2TCF 2C resource in Western Australia and some cash) and seem very interested in Spain – so may be driving the timeline. Depending on CPR, potential for significant re-rate.
What else – recent director buys, warrants / options due Oct / Nov this year @ 0.6p / 0.52p respectively should motivate? PXOG presentation says “huge potential NPV uplift (>€0.4B)”, if this really means ~£333m then that would be ~15p if fully realised in sp! Wonder what the Tesorillo CPR assumptions are in this?
Really need an update to the Peterhouse presentation pulling all the facts and updates together. As things stand value would seem to lie somewhere between the current ~0.14p and ~15p. Not far to go then, haha!
Above from my research (so big health warning!), i.e. please DYOR and GLA
Is Italy due to be online this summer?