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Workover SIA, CEY, SAVP, OPHR, TRIN & TSCO,
Lol seven ! Me and you are almost identical in our investments OPHR SIA CEY ETC ! I bought Centamin 2 weeks but sold earlier today at 99p for a small profit ! I will buy back in because I don’t think the results are as bad as the market’s reaction ... PS: I’m also in SQZ FPM TRIN JOG KAZ among others
Soco completes sale of Angolan assets. https://bit.ly/2OGbHx8
Workover Just thought I’d direct you to another one I’ve just bought into Centamin. You may or may not be invested there. I’ve just grilled the Q3 results, quite heavily oversold imho. Worth a look. Just like to share my strategy of buying the dips only if they are worthwhile. As this board is used adhoc thought I’d throw in a little extra. Apologies to the rest of you guys. Please feel free to let me in on any opportunities that may be of interest. GLA
Thanks Seven ! I’m overweight on the oil sector at the moment and will probably have to sell a company before I can add a new one (to avoid sector risk)! I’ve actually had SAVP on my watch list but have never fully researched it ! I thought it might be a good idea to look at it near year end when they are nearer to the EPS and production! I like the fact that they talk about paying dividends ! The market cap is fairly high though ... will research further ... Thanks Seven that’s what these boards are about ! Sharing info
Spot on Seven ! RNS just issued confirming completion of sale!
Workover Ed Story made the quote after the announcement of the Egypt deal. I’ll try post the link. Article from Offshore subscription weekly. Workover here’s a decent E&P company that might fit your investment portfolio to add to your watchlist “Savannah Petroleum” (Savp.l). I won’t discuss it on this B.B. worth a watch or add to your watchlist.
Hi seven When did he make that quote? I really hope we can get another acquisition to bolster Egypt!
Unlike most other relatively small independent E&P companies SOCO is debt-free, and is now looking to expand elsewhere in Vietnam, the wider Asia region and North Africa, if suitable opportunities arise. “We think now is the right time to grow,” Story said. “Having come off the period of highs and lows, the industry is now at an intermediate level where things can stabilize. We think there will be a lot of M&A activity over the months ahead, and we don’t want to be left behind.”
The long stop date for satisfaction or, where applicable, waiver of the SPA conditions was 30 September 2018. SOCO is pleased to confirm that all substantive conditions precedent to the transaction have been irrevocably satisfied or waived. To allow a brief period to undertake the necessary mechanics of completion, the parties have agreed a further extension of the SPA long stop date to 5 October 2018. An update will be provided to the market when completion occurs.
Hopefully we should see a 7am RNS re: Angolan assets sale. Twice the dates been extending, should be put to bed tomorrow.
Brent @ $56 Feb 17 - Sp was abou 160p Brent @ $85 Oct 18 - Sp at 88p Am I missing something? I’ve just been invested here recently, to me it looks very undervalued compared to peers. I believe Friday is the date set for completion of the Angolan assets sale. May be that’ll be the catalyst for a re-rate. The Egypt deal looks a perfect fit for Soco, imho, time will tell.
thr sp is not North of £1.00. Presumably the Egypt deal is creating some uncertainty but even so.................
It’s quite refreshing to see the BB being used again with meaningful posts. Keep updating and sharing. GLA
Stockable Spot on mate.
As a shareholder, I am supportive. And I think the deal will go through. But I would like to see more details. The earlier merger discussions the company had with Kuwait Energy proved fruitless. This, in my view, is a much better fit. The company will be buying into Egypt and retaining management control. The Kuwait Energy deal would have involved assets in several different countries, including Iraq. There appeared no obvious synergies.
This acquisition strikes me as more binary. It's entering a country moving towards or back to energy independence. Sure, there are problems with getting paid in full and on time. But it's in the interests of the Egyptians to create an environment attractive to foreign investors – punctual payment is key to that.
Put simply, it's onshore low-risk and low-cost. SOCO cites research by Wood Mackenzie claiming that over the last 10 years the cost of the average well in the Western Desert was US$3.8 million with many at less than US$1 million. With that scale of costs, I would suggest the upside could be substantial. And SOCO appears committed to its model of distributing excess cash to shareholders.
Stockable Fair point and analysis. Are you not confident that this deal with close as previously Soco have failed to deliver (in the near past)?
Should the Merlon acquisition go ahead, it will, in my opinion, open up many avenues for SOCO to exploit. To start with, Merlon has some 1570 square kilometres of acreage and around 70% of this is covered by 3D seismic. It appears to be relatively cheap to drill. Certainly compared to drilling offshore Vietnam. And it claims that the exploration success rate on the concession exceeds 50%.
Although the Merlon deal is largely cash-based, it might be worth bearing in mind that Yorktown Energy Partners will hold around 12% of SOCO's stock if the deal completes. Yorktown is one of the world's most established private equity businesses operating in the oil and gas space. It seems prepared to bet big that SOCO can optimise this resource.
However, getting paid in full and on time has proved problematic for international oil companies operating in Egypt in recent years. My understanding is that after the upheavals of 2011, the country experienced a US dollar shortage. Simply paying oil companies became a major problem. But the high water mark appears to have passed and it looks as though the country is heading into what might be regarded as normality. The Government has expressed its intention of paying all its outstanding debts to international oil companies by the end of 2019. A brief look at the Credit Default Swap markets shows that insuring Egyptian debt is still expensive but over the last two years the cost has fallen substantially and the trajectory appears downward. And, of course, huge amounts of direct foreign investment are pouring into the energy sector. The backdrop is an IMF loan secured in 2016 that is compelling the Egyptians to carry out reforms.
In my view, this is a good deal for SOCO. Not “Transformational” but very manageable.
Slight understatement.. lol oil above $85 now!!! Nigeria strikes !!! https://oilprice.com/Latest-Energy-News/World-News/Oil-Workers-Join-Nigeria-Strike-Fuel-Supply-Under-Threat.html
Oil pushing north today
That’s brilliant, imminent good news soon.
This was tweeted 1 hour ago from Soco International “TGT well drilled on time within budget, rig off contract preparations for perforating underway.”
SOCO was valued at over £3.0/ share !!! The shares have been hammered based on reserves reduction and declining Vietnam production! Most peers have trebled in the past 12 months whereas Soco hasn’t benefited from the increase in the oil price ! This should be above £2 if the oil price stabilises around these levels !
Absolutely on the money, diversification into Egypt was key to investing here more money. Once the Acquisition is signed, sealed and delivered there’ll be a new wave of personal and retail investors interested in this again. Not many small or mid cap oilers paying a dividend. This should be back on everyone’s radar. The recent EBT is quite significant as I believe Soco made a scoop at current low levels and they believe that they where buying at the bottom, imho. Previously with the bad press, Africa, Virunga, Mangolia and current issues Soco has been shunned by a lot PIs. It’ll come good. I believe the Angola assets offload deadline is Friday will be another catalyst towards upward trajectory in the SP.
Yes with the oil price increasing , hoping to return to the more substantial dividends of previous years ! I was discussing Soco with someone recently and they pointed out the over reliance on Vietnam as the One reason he wouldn’t invest! Now that we have diversified, that will entice new investors