Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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Workover decent returns from dividends. SP will come good imho and this acquisition and offloading of African assets will boost the future dividends and reserves.
Seven From memory the returns I received from the company are as follows 2013- 40p 2014- 22p 2015- 10p 2016- 5p 2017- 5p 2018- 5.25 Give or take a penny here or there
Workover Sounds fantastic with SDX looking to capitalise on BPs Egypt assets. Egypt seems very hot at the moment. I’ve Been looking at SDX an will be making a move after suspension. You are quite right another acquisition to diversification would really make Soco a real beast of a company. Once the Angola assets are offloaded tand this acquisition is signed, sealed and delivered, a new wave of M&A might be on the cards (here’s hoping). Could you clarify your position on dividend payments.
Fully agree with you Seven ! I also hold shares in SDX ENERGY and they seem to think there is a lot of consolidation opportunities in Egypt! In fact they are in the process of buying assets from BP EGYPT. I hope we can secure another acquisition in Egypt or (preferably) overseas for diversification!
I like the fact that SIA seem to have plans to continue with M&A action and that perhaps a future deal will really make the market sit up and take notice: Soco International president and CEO Ed Story said: “In addition to providing a high-quality, free cash flow generating oil concession with significant development upside and exploration optionality, Merlon creates a new hub for our business in Egypt, which we will utilise to support further growth not only in Egypt but also the wider MENA region, both organically and through additional M&A.
Merlon Acquisition related article. Https://www.hydrocarbons-technology.com/news/soco-international-buy-egypts-merlon-
Great Article in the Global Legal Chronicle. Http://www.globallegalchronicle.com/soco-international-plcs-us215-million-proposed-acquisition-of-merlon-petroleum-el-fayum-company/
I bought a while back and have been using these as a nice dividend income every summer. It’s not a bad company but the market he unfairly punished it due to declining Vietnam production! It’s amazing value at these prices ... I agree the Egypt deal could be the change in growth we have been waiting for ... I have already made nearly £1 in dividends since I originally bought and I’m happy to continue to hold these as a regular dividend income.
Soco is the tip of the week and a Buy in the Investors Chronicle. A good opportunity for newbies and LTH alike to add to their PF. With the EBT purchase this stock is looking good at the moment. https://www.investors chronicle.co.uk/tips-ideas/2018/09/27/a-new-strategy-at-soco/
Workover What are you in for? It’s irresistible at this level. Could be a takeover target for a major when deal closes and with body cutting synergies and alignment of both businesses. Once the Africa assets are all off loaded, I believe the BOD will look at adding to the reserves 2p & 2c, smaller similar deals. IMHO.
You’re lucky to be joining in at these prices ! Most long term holders just use these as an income stream (tucked in bottom drawer)...
https://www.linkedin.com/pulse/soco-international-quite-star-michael-crilly
Using the mobile typos,
Talk about a dormant B.B. Anyways the Merlon deal seems good got Soco to get a foothold into North Africa, adding extra production and value accretive. For me it seems like a good deal Dayo why have dipped my toe in this morning. Can’t really understand the bot buys and sells for single digit numbers and low figures, can’t really see the AT attacks. I’d like to kick off here and get some insight and it’d be a good starting point to just restart a conversation on here. Come on guys it’s not all doom & gloom.
SOCO International plc is pleased to announce that it has agreed to acquire Merlon Petroleum El Fayum Company for approximately US$215 million (the "Proposed Transaction"). Merlon is a privately owned oil and gas company with a 100% operated working interest in the onshore El Fayum concession in Egypt. The consideration will be satisfied through the payment of approximately US$136 million in cash and the issue of c.66 million new SOCO shares, representing 19.75% of SOCO's current issued share capital. SOCO will also arrange for the repayment of Merlon's net debt, which was approximately US$22 million as at 31 December 2017.
Ahead of its half-year results on Thursday, SOCO International (SIA) has signed a new $125m, five-year, reserve-based lending facility, with another $125m available on request. Given the company was set to end the first half of 2018 with a strong cash balance and no debt, one can only assume that SOCO has identified an acquisition (or “acquisitions”, as this morning’s statement hints).
Up to $250 million of debt is now available for strategic acquisitions!
Remember we get a $3 premium to Brent so we are currently making $83/bbl! Very low operational costs of $13/bbl. Great margins
I've been topping up during the past week. Very 'crude' estimate: last year they did just over 8200 BOPD at $56 average and paid out a 5.25p dividend. They might still just about hit 8000 BOPD but the average will be well over $70 unless Brent dips significantly. So I can't see them paying less than 5.25p and probably more. So at 90p we're looking at a good yield, and still got healthy cash balances, some asset sales to follow, and potential to increase production in the coming years.
- Brent now over $80.
I completely agree deep survey! If someone has a medium term view this is easy money ! Everything has been written down in the past few years and the company should be very profitable from 2018 onwards ! Shame about rig delays and the slight 6-8% decrease in production but that trend should change significantly next year following the new wells ! The FPSO issues should also be sorted in the next month or 2 which has been a drag on the share price ! Throw in a potential acquisition or 2 and this is really one of the best oilies in the sector (just an undiscovered gem) ! It can be £2-2.5 and would still be cheap! This 6% dividend is just something you don’t see with many small -medium sized oilies ! I’m happily adding ! Good luck all
Ok that makes me happier
Eggs in one basket comes to mind with this outfit, let's hope it don't go tits up in Vietnam????
Let's hope the infill wells up production while the price is right
Should bring the two new wells online ASAP.!!
The share price is low. The Oil Price is high and they have a lot of cash in the bank. The level of Oil production which is due to increase makes the market Cap look very low. This is a very slick operating company that pay dividends and churn out lots of cash and do what they say they will do. All good for the potential of the share price to rise rapidly once investors start to notice Soco again (it only needs one mainstream tipster to light the touch paper). It also helps that oil shares are back in fashion meaning there's a bigger set of buyers when it gets going. It's a case of buy low sell high or in this case keep it for the dividend. The temporary rig delay is an absolute gift to hold this buying window open for a short while. However I think others will have spotted the opportunity too.
Arsenal Are you talking about drilling wells in blocks 125 and 126?? They won’t be drilling those until 2020-2021! I thought you were talking about this year's development drills ! Because those are the ones delayed
Workover. Blocks 125 &126 are new exploration wells are they not ????
They need to up their production while the oil price is flying