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This comment in Harbour's latest results makes it sound like the sort of company that would benefit from farming in here:
"We seek to maximise the value of our production base, including in the UK where Harbour today is the largest producer and supplies c.15 per cent of the UK's domestic oil and gas. While the EPL has impacted our activity levels in the UK, we continue to undertake targeted investment in high return, infrastructure-led opportunities which improve recovery, extend field life and support production and cash flow generation"
This seems oversold IMHO, looks like there might be a recovery. Not quite sure how the market quantified this news with a 25% drop earlier. Rolex will still need distributors of its products. It's a watch maker first and foremost.
Stepping up nicely here, 12.5p on the Ask as i write. Also, while the rest of the market is heavily in the red today.
Wonder if there's been a leak. Or maybe people are taking a position before the weekend/next week potential news. Company said update anticipated in August and we have one more full week left.
Always good to get an update from ST. Crazy to think his previous updates - at times when we were way off a farmout - were at higher share prices than today.
As we creep towards the end of August some volume may return as summer comes to an end, and hopefully his article plus a move into the final quarter of 2023 will send this upwards.
From a mid-term perspective, MB's update was actually fairly positive. Everything looks on track, so with a bit of luck on our side to have oil producing year end would be a great result.
What's unfortunate is that the market doesn't operate that way and short term the news put up a big signpost saying 'nothing happening for the next few months' which for AIM might as well mean sell up and go away and demand dries up for 4 months.
I think MB could have probably avoided this by not giving an update at all, but at the same time if there'd been no news the SP would have drifted anyway.
IMHO this is probably a buying opportunity and one to tuck away for 4 months. The fundamentals are still good, it's just more waiting. The risk is that we've been here before and MATD has had a number of false starts. I'll probably be adding to my position.
Looks like people are taking their seats pending the outcome of the trial results.
I reckon 10-15p is a reasonable estimate as we move towards then IMHO. I think when the russia trial results came through early 2022 this closed c.24p on the day, having spiked about 100%. Not sure what it'll do this time but it shows the legs it has potentially with good news.
Jadee, the board reckons c.150m is a fair valuation of Blvn's remaining Etinde interest, it was stated in the last accounts.
Also worth noting that under the original farmout many years ago Blvn farmed out the first half of its interest for c.200m (or it may have been 250..i can't remember..).
Either way, if FID comes through the SP will IMHO go stratospheric and the market cap will dwarf what it is today. Big if though. This is a bit like a Hollywood movie stuck in development hell. The potential's there but it may never happen.
Definitely. Reminds me of those days a couple of years ago when it would go up and up, nice steady rises
Reminder of the Block XX / Heron summary set out in Feb corporate presentation, potentially a few of these could crop up quite soon as newsflow:
"Transformational for the Company
• First oil forecast in 2023 using adjacent infrastructure
• 194 MMbo2 resource in place, 33 MMbo3 to >60 MMbo3
recoverable
• Low-cost appraisal/development
• Funded for production start up once the government
resolves land access issues
• Production equipment for Heron 1 acquired
• Negotiations for a multi-year multi-well drilling contract at
an advanced stage offering significant cost reduction
potential
• Negotiations on oil processing and export underway
• Near-field exploration will be targeted during exploitation
phase with high chance of success, low cost drilling,
significant resource potential"
Exploration wells always generate a lot of noise but need to cut through that today and look at what we've still got. MATD is not a one trick pony like some explorers. The LP grant was crucial - potential is still huge. A lot of price targets materially higher than today's SP, even without V1 factored in.
Looks like SP has settled to around 3.9/4p at present.
The big risk here was that LP would be delayed beyond V1 result, which in the event of a duster would have destroyed the SP. The SP would then have had to pick itself off the ground again, and even with positive LP news it would no doubt have been a painful and unguaranteed rise (knowing how AIM works).
Brilliant result that we have avoided this scenario as the LP really underpins the SP now whatever happens with V1. And if V1 comes in good or they decide to drill a follow-up well, IMHO the sky's the limit
Even thought the SP has barely moved an inch, it really feels like the inking of the farmout with NEO has turned JOG onto the next stage of its journey. The recent news flow is starting to demonstrate that. I'm sitting patiently waiting for the SP to do the same (ok..impatiently). This is surely as derisked as we've ever seen JOG
I wonder if the next farmin partner could in any way be linked to the provision of the FSPO. Enquest was mentioned in that article.
The JOG SP is a bit like a catapult with the ability to fire upwards when the market decides - let's hope we're getting there.
Agreed looks like another c.10 days till the drill reaches target depth. No complaints from me if the upwards trend continues through next week ahead of that. That said, no doubt the chance of early news next week inducing some people to take a position before the weekend.
Ramping or no ramping, the price action just seems odd to me purely based on historical context. That we were at 8 or 9p at various points in time over the last 2-4 years with little to show other than pre-drilling of Heron/Gazelle, awaiting the exploitation licence etc. Whereas now we're languishing back in the 3s merely a few weeks away from the V1 results and the potential LP grant with cash in the bank too - potentially the two biggest value adds in MATD's history. I'm not going to say we should be 20p or 2p. But the whole context feels so odd to me based on prior share price performance. It also seems so odd the SP has dropped 50% based on a delay to the LP, nothing more. Is that really worth half the market cap of the company? There really seems to be no correlation, but then again this is AIM.
In the May RNS MB told us "In the event of encouragement in the well, the rig contract allows for follow up with an appraisal well".
My suspicion is that if there's the sniff of anything positive they will drill the follow up. This is the last chance change they have this year, drill costs are super cheap, everything is in place, MB has the money in the bank, it seems too good an opportunity to pass up to make sure no stone is left uncovered