Member Info for Andy144

You need to follow Henry Hub gas price futures. That is what determines, for the most part, what price DEC can hedge it's gas at. They are hedged well into the future for a good part of their production. I have no idea where you get your £30 - £70 from. What units are you looking at? Gas is measured in mBTU's and is currently a little over $2.2 /mBTU. Looking into the future, HH has a rising gas price and DEC is hedged at well over the current gas price. This will create a hedging profit in the accounts.
We have a trading update on the 9th.

Hello Dive,

This is generally a great board to get informed opinions. FWIW here is mine:

DEC has many good qualities, many set out in this thread. The high divi is attractive and the hedging keeps this sustainable even in lowering gas price environments. However, as pointed out in this thread, a 15% divi is rather unusual. Yes there has been talk of a 'basket case' but this is more to do with it looking like one to an outsider rather than DEC actually being one.
The SP will follow the gas price (GP) but not violently. Naturally DEC can get better hedging prices in the future with higher future GP. When GP is lower, it is assumed DEC can pick up assets at attractive prices.
There have been 4 main reasons for the SP to go lower over the last year or so:
1) Bloonberg hatchet article on methane leaks from DEC wells - This in the long run will benefit DEC. See other post in this thread on clean up job etc.
2) GP fall from a high last August - pretty relentless fall for this time.
3) Share issue a few months back to fund aquisition. This was quite poorly done in the opinion of a number of posters including myself. A few years back a similar raise hit the SP hard and DEC management suggested this would not occur again; so it was pooly received when they did.
4) The cost of capping (eventually) DEC's 70k odd wells.

My summary is that DEC is an excellent Co in an unloved sector and that these issues will blow over. A really good Co will take advantage of the issues above and learn and adapt. DEC has shown this is there style - instantly reacting to the Bloomberg article for one and purchasing capping companies (and doing 3rd partly capping) for another.

Regards.

You have only just bought. Perhaps give it more than a day?

It has simply followed the c3% gas price fall.

Possibly not near peak fear. US debt in the headlines again and the Republicans will let this go to the wire as usual. Crude and gas taking a hit on recession fears. Downside in the SM looks more likely than a rally. Consolidation required from DEC in my view. Agreed it looks very cheap but it did at 98p when I last bought a shed load more.

Cyril: A bit of interesting economic history: It takes roughly 50 years (sometimes a little longer) from the introduction of a new type of energy for that energy to replace the previous one as the main economic energy resource. So from wood / peat to coal, coal to oil, oil to gas etc. We have only just started on renewables really and over 90% of all transport of goods and humans is done with fossil based energy. The world is hooked on oil and it might be 40 years before it isn't. Peak oil production ended in the 1970's and it is now taking more and more energy to extract (oil) energy. The UK government and the world in general can shout as much as they like about climate change but we need oil, and it's getting harder to find.
So the UK needs the NS. Shale plays don't really stack up as they decline very rapidly and can be difficult to drill. Alternatives like hydrogen won't work either as it takes more energy to make it than you can get out of it.
So net zero is a great catch phrase for the masses but in reality we are probably miles away.

You are right. Sorry everyone.

I've never used the filter before. 2 added.

Hello JS. You have been caught out, again. So you throw insults. Classic narcissistic behaviour.

Have a good weekend.

"You think you’re a smart **** Andy . Trice loved his wonderful technology and yes he was an oil man from UCL like RL . However when his technology failed it did blow your dirty pants off !. I can see why you still have interest in HUR ."

Morning JS. It seems obvious now that you have narcissistic tendencies worthy of Donald Trump; able to brush off being found out a liar by simply trying to deflect it away with further untruths. This is not being unpleasant by the way. True narcissists cannot actually help themselves, and simply have to get it out. A bit like tourettes.

So, what was the 'wonderful technology' RT loved? There wasn't any. He was drilling oil wells. He simply tried to do this in a fractured basement in the NS which hadn't been tried before. This is not 'technology' and it isn't new; such wells have been drilled for years in the Far East. It also didn't fail. HUR currently pump c7000bopd from one of 2 production wells drilled.

If someone lies on a BB they will get called out. Further lies to hide the first lies will get called out too. And so on and so on. Doing a quick Google search and then making up some pathetic story to try and boost your narcissistic ego and make yourself look big and clever will also get called out.

I am not a smart @rse. I am smart on some things and can be an @rse on others. I feel like being an @rse this morning so look up some other fact, try and make yourself look big, and I'll have another pop.

JS: "Andy I happened to meet Dr Trice at an oil conference in 2017. He was full of it and at the time he rejected a massive takeover which would have propelled the co into orbit . It’s lost a majority of its value and is where it is today due to his **** up"

I have traded long and short HUR since before 2017 and I know for a fact that there was no 'massive takeover' or indeed any takeover attempt prior to the current one. 2017 was when funds were raised, mainly via bonds, to fund drilling and production. So I know now, for a fact, that you are lying. You just simply saw the headline on google of: $520m bid in 2017...but it was a bid for funds not a takeover.
HUR is a salutary lesson in the pitfalls of NS oil exploration and production; it also happened to be a traders dream. I worked for years in the NS (Norway mostly), mainly as a directional driller, but in lesser roles too. Been out of it quite a while but there is little I havn't seen or came across in my time. I bought into JOG when they had a duster but decided to go for a sidetrack. I've been involved with enough of those to know that you don't do that without reason. The price was 41p.
So here we are. You with your continuous BS, and me boring the pant off everyone else.

JS. No need for the 5 year old name calling. I was actually being quite serious. HUR is, with a little luck, almost a free carry. It has many issues and is in the process of a rather poor takeover effort but it is quite likely that when the takeover happens, an investor will get nearly all his money back within months and then have a freeroll for future payouts. DYOR and all that and it needs a good deal of looking into.
Unfortunately, a bit like here, there are 2 camps taking chunks out of each other. On the plus side, the BOD are truely incompetent; but this can give a willing investor a chance. HUR doesn't need a smart BOD in it's case. It needs to be wound up, and dividend payments made.

JS. Take a look at HUR. The board there could certainly use a white knight with 600k in his account to boost the SP. Could be a good value play actually. The BOD at HUR are really, really, really incompetent so that should be pleasing for you too.

https://en.wikipedia.org/wiki/******_(pejorative)

*Parkmead

On the other hand, just looking at Parkmean, a company I thought about for a while, their SP has been decimated by the GP fall. So not all doom and gloom.

On the IG candlestick chart on a monthly timescale, we are currently 7 straight months of declining SP. DEC has never been anywhere near this before. I would have thought that the SP would have been flatter, the income being hedged to iron out gas price rises and falls.

Well done JS. I'm sure it can go towards paying off that mortgage

was that on a fill order?

With such an illiquid market, advertising to the world that you are selling large chunks means a) you are lying. or b) you have a low IQ. or c) you have so much money it doesn't matter. Which one is it?

Keep selling please. £2 would be lovely.

JS. Fair enough. If you could get the price under £2 for us I will buy a few more.

Cheers.