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Dave, et al, winning contracts is good - up to a point.

The real valve to the company, and us share holders, is the successful execution of those contracts both operationally and financially. Winning a contract is an opportunity but it is also a risk.

I fear we will have to wait a while to see the valve of the contract wins reflected in the SP.

When I worked for SLB in the 90's they went, very briefly, on a spree of buying work - any idiot can win a contract, you just have to be the cheapest bidder! They didn't do that for very long!

Not sure if anyone has already posted this as it's a few months old - my apologies if they have. Just another avenue of investigation.

https://www.nasa.gov/aeroresearch/nasa-solid-state-battery-research-exceeds-initial-goals-draws-interest

There have been some interesting discussions here about the potential equity raise of £2.5m

There is another possibility...

147m shares at 1.7p is currently a discount of 82% to the current share price of 9.5p - that's a MASSIVE discount and a huge dilution.

The possibility also exists that 36.4m shares @ 9.5p becomes 36.4m shares at 1.7p = £620k

There will not be two groups of shares, with most trading at 1.7p and a few at 9.5p - whatever the final value is it will apply to all shares equally.

It's difficult to tell where the SP will eventually settle but in my experience it's always closer to the discounted price than the trading price before dilution. Those who have calculated a final value of around 3p per share maybe correct, but they might still end up being too optimistic.

I for one will sit this out and see where it settles, if you have real money in this right now - good luck to you.

GEMD - as in Gem 'Dog' Diamonds - lol.

That's a VERY good question 4C.

There are certainly more buys than sells in the few weeks, and from what I can see many of them look like most PI buys, with a few chunkier sales in the range of 500k -1m shares, so it looks like real buying and the spread has come down in the last few days too.

But as to why? I'm not sure. Maybe it was just the very low valuation, but I have a few other stocks with similar valuations and none of them are showing any signs of waking up.

Do you have a target for next 12 months 4C?

Hi Mac - welcome back to project Tortoise we missed you - the board has been very quiet over the last few months - just like the SP.

I'm curious. What grounds do you have for thinking that it's up, up and away for the SP??

The only way I can see that the SP will sky rocket is if a rival party starts to make a bid, then it could get interesting. BUT with the two partners holding more than 55% of the stock someone is going to have to be able to drive a wedge between them. That's the only way we'll get rich. But I do agree that the value is there, the rigs are almost certainly worth more than the debt at the moment and the market vale of £61m is very low.

And, the current SP is above the warrant price of 5.75p , so it's possible that some 137m shares might soon be available. Would the bank hold on to them, or sell them, and to whom? Now those are good questions :)

Well it's good to see the shorters get there fingers burned today and their losses will hurt - but it's not in the £100's of millions.

Astaris is the largest short holder listed on shortracker with 1.26% of the equity as of the close yesterday 29th. There are 522.05 million shares of PFC in issue, 1.26% is 6.578 million shares - assuming they are down 30p a share it's only a £2m loss. Still hurts but not end of the world stuff.

As for the future of PFC, I'm a lot more relaxed today than I was yesterday. Keep the faith.

Thanks Blinker, and that's just one of many, many articles along similar lines.

There has been a chronic lack of investment in oil and gas exploration over many years and at some point it will be 'crunch time' when demand exceeds supply. Exactly when is debatable but it is inevitable. We are currently using about 100 million barrels of oil per day - that's a lot of oil supply to have to replace just to stand still and it's not being replaced at anything like that rate.

So, while I'm currently sitting on some paper losses right now, I'm also taking the opportunity on days like today to selectively top-up on oil and gas and especially field service companies.

I'm curious, no one else has commented on the difference between the 'warrant calculation' back in Dec and the issue info from Jan. In the original calculation it was 7.11p for the warrants and 110m were to issued, it's now 5.75 p and 137m were issued. That's a significant increase in dilution, now almost 13.5% ..... :( And, yes I know it's because the SP tanked in Dec.

About the only possible upside is that COULD be 137m shares that someone outside of the two partners could get hold of, if only...

Happy New Year folks, let's hope The Mac is right about his rocket theories, mind you - that did not go so well off Cornwall on Monday evening!! I still think this more of a tortoise but at least one unknown is now out of the way with the issue of the warrants.

Well it looks like we finally know what the next move is, warrants at £0.0711 or 7.11p on a roughly 10% dilution, now that's a lot better than it could have been - no $50m raised at fire sale prices. Or, am I been too optimistic here?

Hi Folks, anyone know anything about Ivan Lindsay Brunette who picked up 3.18% last week?? I've done a few searches but can't find any real info on him.

A take over is what we need, and those tangible assets are now worth significantly more than the written down book value - guaranteed. BUT with two players owing over 50% of the shares someone would have to drive a wedge between them - then we might get some real action.

Hi Folks
My 10c worth.... I feel that oil service companies, and most oil companies are a good bet in the medium (2 - 3 years) time frame - so the current SP of PFC, WG, SLB, HAL and others offers a potential buying opportunity. Why?

World oil use per day, every day, day after day after day is currently just shy of 100 million barrels per day (McKinsey) and oil fields decline at a rate of between 3 and 6 % per year, year after year. There are currently anchors on global oil demand; China covid lock downs, the high price , fears of recession - so they 100m/day could easily grown if conditions were right. Then there is gas - it's very obvious that there is not enough gas in the right places at the moment.

There has been a significant lack of investment in oil and gas exploration in recent years, this started long before the lock downs - but that did not help. Oil companies have a dilemma - they are constantly hearing the message that fossil fuels have had their day, governments and lots and lots and lots of us are telling them that there is no future in exploring for more oil and gas - so they have reduced this activity. They also know that their reserves are depleting and that to 're-stock' they need to spend more on exploration than they have been doing in the past few years.

Right now oil companies are making money hand over fist, but they have yet to fully open the purse strings and start significant extra exploration. They are looking for quick improvements and things with a shorter payback, no one is going to sanction a multi billion$ big oil field development that will have a life time of 30+ years - those days have gone. So right now service companies are in a bit of limbo, there is work but not enough yet where they can have the upper hand in pricing - but those days will come.

There are only so many exploration experts and a finite amount of equipment, once they are all busy the pricing power of the service companies will significantly increase and they will not hesitate to take advantage - after all oil companies have stuck it to service companies big time for years - I know, I used to work for SLB.

Oh and as a side note. There is going be an EVEN bigger need for gas in the future than there currently is, it's a relatively clean fuel (cleaner than coal, oil, biomass). And, we can remove the carbon and pump it back under ground using CCS, which will liberate hydrogen as a replacement for gas-heating. SRM (Stream reformation) and CCS are all in their infancy today - but it's one of the few serious ways to make a low carbon future.

And as if that was not enough, many of the service companies have a foot in the future too, PFC - CCS/Wind, SLB geo-thermal, etc....

Will the SP go down from here - maybe, it's a wired market right now, but in a couple of years it's got to be a winner.

As I said, my 10c worth.

213.25 to sell on HL this morning 3.5% above the offer price of 206, but very little volume - looks like most of us sitting tight - at least for now......

I see the SP is now above the 206p offer price - why?

The additional 3 or 4 p premium is not covered by the dividend that will be paid in September. Is someone building a stake to make a rival bid - they would really have to make a substantial offer after RPS already greed to the current deal.

????

We are not all grumpy Mcatee, especially when the SP is heading in the right direction. Long may it continue.

Or, someone else could be interested in the assets........ That's were the real excitement would come - but I'm not going to hold my breath.
But, I have been in the oil business for over 40 years and seen a fair few acquisitions and consolidations, sometimes the only way to grow quickly is to buy the assets of another company - along with the company . However, given the lopsided distribution of shares in this company it's not a very likely scenario, but if someone did build a stake and look to drive a wedge between the two principle players - then we would all be 'laughing all the way to the bank'.
Even without the above scenario I still think there is plenty of upside, but Amtech is right - until the issue of the possible dilution is resolved there is a level of risk that keeps a lid on the price.

Hi Folks,

One thing that might get this stock to have real boosters is the increasing valve and desirability of the assets.

The cost of building new rigs has gone through the roof with all the increases in energy/materials/labour costs, and it takes time to build a new rig. The GMS fleet is relatively young and although there was a hefty write down last year the true valve of the assets in todays open market is almost certainly higher (perhaps significantly higher) than the current value on the books.

Just a thought ......

As a loooong term investor in GMS one thing that cheers me is the tightening of supply with regards to vessels. From my experience, which even goes back as far as 1986 which was a truly awful year in O&G, they difference between adequately supplied and under supplied is often only a few vessels.
When times are tough like they have been for the last few years the 'sales guys' always try to get the best deals they can but the clients normally hold all the cards, and it's hard to turn down a multi-year contract even if the rates are poor - because a working vessel that more or less covers it's costs is better than stacking. Hence we see some of the recent announcements that options with NOC's have been extended at only slightly improved date rates.
Once the slack disappears from the market, and it WILL, the suppliers start to hold all the cards. Things that the supplier was stuck with paying like; fuel, crew change, standby, etc can be passed on to the customer. So, it's only a matter of time before the improved day rates and other charges reach the bottom line.

Mcatee - I think we are less rocket ship and more tortoise but we all know who wins that race in the end, but I'd be delighted to be proved wrong and if it goes to 18p in the not too distant future I for one would be laughing all the way to the bank. Keep the faith people.

4C - a £4.00 close would make me smile for sure - and your right of course, this business is not run for minority share holders - very few are.