Member Info for AIMOilking

Glad I added a load yesterday.

Would it not make sense for ENQ to buy out PMG, if they bought PMG at today's price plus 40% they would get half back in cash by the time the deal went through, enhance renewable credentials, get all the PMG assets for peanuts in an area where most of the operations are currently (North Sea) and immediately strip out a load of overhead costs such as a BoD etc. Makes perfect sense - any comments?

I can't beelleeave it! Sp plummets and we are back at £50m MCap with £30m in the bank and a good chance of good news any day now.

Can only believe PMG has been hit hard as AIM's always get hit hardest and fastest in a downturn, but all the indicators suggest gas prices will rise and PMG will benefit - winter-war-embargoes-Iran-sabotaged gas pipe-hurricane-resrves and supply etc. Time will tell but I also believe PMG Sp downside risk is small.

Re my earlier post the free cash flow quoted was for just six months from last report, pro rata that would £600m for a full year against a £500m MCap, it is ridiculous free cash flow being 120% of MCap.

MCap now below £500m versus £300m free cash flow after operational costs. This is ridiculous.

This is not like a manufacturing company, where I consider forward order book as an important indicator, this is an oil company pumping 50,000bpd and going forward. I realise POO has dropped but barely below the average achieved during the last 6 months with the prospect of POO rising. This sp should be much higher and since the last report another £20-30m of debt will have been paid down. Added again today despite market turmoil.

Surprised at the drop in the FTSE, but for the second time today added ENQ and some other shares, on the hope we'll see a bounce this afternoon, digestion of the budget over the weekend and a bit of a recovery in the FTSE next week.

The government gets a good portion of these large sums back through tax etc, although not sure why they have stoked the housing market at this point.

I have a big commitment to ENQ, but still in profit, but with hindsight should have been more patient.

Added ENQ today, one of the most notable budgets I have seen for a while, it should boost the economy, just hope it does not boost the trade deficit.

PMG now has a MCap is down to almost £50m as I type - with little debt and £30m in the bank. I wonder if the government realises the potential damage it has done to the smaller or debt laden oilers. It is simply making them targets for asset stripping by hedge funds et al. Brought uncertainty to the sector and undermined those brave enough to risk there cash and pensions on the stock market to mitigate the high inflation. Let's hope this mini budget helps.

Yep, saw this article and a quick take out at 40-60%, I would accept and move on.

The question is then, realistically, if you purchased PMG and pocketed the cash, what would you get for the assets?

Obviously, I have seen the 164p valuation, but what would you get for a quick sale?

Thanks for your comments - not exactly an exciting play or have we all become a little jaundiced over time - a long time.

Added a few today at the lows but generally agree, anything less than mid 40's worth a further punt.

We simply need some positive news and of course decent prices for gas.

I have held off accumulating more PMG for some time as the sp has tanked, somewhat regretting being a little greedy when I hit 86% profit, however still in profit.

We appear to be plunging rather than drifting on no news (GLA, Wind farms, drills etc), but my question is at what point is it worth buying again?

It would be nice to end blue for a change.

Just going out for a slice of humble pie - did not see 27p coming!

Market cap just over £500m...blah-blah-blah................we need some news from the company, markets, the war, Russia or a take-over bid to stop this drift. Stupmy was right after all.

I was looking at this site this morning https://uk.investing.com/equities/enquest-consensus-estimates, just before I bought. If you go down to the technical analysis section, you can change the time frame and any time frame within a week says sell, but from a week onwards to a month ENQ becomes an increasingly strong buy. The latter is certainly my view, the sp will fluctuate but ultimately the steady accumulation of cash will win out. We know the average price achieved was $79 barrel, so we are a long way off stripping out that cash flow, even if the POO drops a little further - supply and production issues will have an impact especially if the war suddenly ends and Covid is milder than expected this winter etc.

Last time Barclays put out a target of 21p - ridiculous, so I bought into ENQ. Today, a catch up target of 28p, so I bought a load more.

From experience Barclays get it wrong at both extremes of the spectrum, they over value and push junk and grossly undervalue companies that are clearly (barring a monumental act of God) value stocks.

We might see a few turbulent days and we very nearly saw the bottom I predicted 28p today (28p being my buying target), but cash generation and reducing net debt will win here, which I have estimated is worth 1.6p share growth per month. I take Barclays new 28p target as the new baseline for ENQ.

Well done Stupmy. At least we are up so far today despite all the grim news around the market and O&E industry.

Stupmy, £50k+ buy just gone through late today, is that a signal?

While you are waiting, it has gone sub 30p, so I have added further 15%+. As I said earlier, whatever the charts say today, the £30m per month clock of additional value is ticking away - I hope you don't miss the boat.

However, if they go below your target of 28p, that will be my next purchase point. Look forward to your signal.....

As you say we are adding £30m a month in value to ENQ, that is an equivalent of 1.6p a month in sp. So on a cash or reduced loan basis, ENQ should be at 35p+ by Christmas without any news unless it is already factored into the sp, oh but wait a minute, we are already undervalued! Achieving 40p by Christmas is totally achievable and I am still convinced the H2 actual production will be towards the higher end of forecasts. Why, because AB will be doing everything to get every barrel out of the ground whilst prices are high to deliver the targets he has set ahead of schedule, there is higher production from Malaysia and according to ENQ's last presentation there shut downs are shorter than programmed and even under budget.

Good point, today's news will make PMG's assets look more attractive and therefore the chances of a takeover is more likely and consolidation in the North Sea, a relatively benign political environment has to be attractive.

All PMG's assets are currently valued at around £30m................!!! The rest of the MCap is covered by cash in the bank!

"he has form in leading us on."

My feelings exactly.................he should not be able to get away with it time after time, but then RRR is essentially a one man band. AB is a good story teller who gets paid for his tales or should I say we pay for his tales, he did have a modicum of success with Jupiter, let's just hope another one of his tales comes true.

Market has been doing a bit of a see-saw at the moment, everyone jittery over so many issues and particularly the economy here and worldwide, the last financial crisis is still fresh in investors memories. The last crash happened later than expected and those that got out too early missed out. Personally, not worried about POO until it drops below $80, as far as ENQ are concerned and that I think is a long way off given current and likely future circumstances. Noted another North Sea O&E , PMG issued an RNS this morning which indicates a certain positivity returning to the North Sea exploration, just hope the government understands that our oilers have a chance to move ahead over the competition if they don't over tax profits.