The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Started scaling in here yesterday myself, £22.5 million cash vs £29.3 million market cap. $9.5 million spent on Brazilian licensing and 3D seismic at the bottom end of the cycle, no further commitments, 2-3 data rooms open, majors across all postcodes, certainly makes for a compelling investment. Track record of successful partnering speaks for itself.
Interesting article, 79% of the share price valuation supprted by cash, Not convinced of a placing, partner more likely given the CEO's recent comments and the addition of a second optional well in Namibia.
23rd of February CHAR were trading in 20-23p range @ £55 - £59million market cap vs $13 million* cash and 10% free carry.Agree the discounted raise was excessive, however without it, the company would have been decimated post duster. 3p range most likely. The market is now valuing the companies assets at £8.5 million, any meaning full farmout deal from Nanimbia or Brazil derisks the 8p - 10p range IMO.
Trying to take an objective view, It certainly seems undervalued, with sentiment being a heavy factor. Obvious risks are no further farm in partners on Namibia. I think it's unlikely given the strong data set, 29% COS, low rig rate, interest in the area from majors and increasing oil price, Brazil is a big draw and will certainly spark interest in time. Can understand LTH frustration,Fundamentally CHAR apears to be a healthy company, just had a bad run of luck, GLA
Scrap that, approximately $31.7 million dollars cash. Factoring working capital @ $3 million = £21.5 million cash. Shell paid $73 million dollars for there Brazilian licence next door to CHAR. With two data rooms now open, CHAR currently have an enterprise value of £8.5 million.
Good afternoon all, just starting to do some reaserch here. So approximately £15m cash, A multi well rig contracted for Q4, 459MMBO fully funded from cash, at discounted rig rates. Two data rooms currently open for Namibia/Brazilian assets. No debt, Acreage surounded by majors, £30m MC. It appears that limited value has been attributes to current assets and 3D seismic acquisitions in Brazil. With potential for further farm in partners, this looks quite close to cash value. Am I missing something?
https://www.google.com/amp/www.proactiveinvestors.co.uk/companies/amp/news/60030 Q4.What are the key milestones that investors can look out for in the months ahead for Predator Oil and Gas? A4: I think turning to Trinidad first is going be the immediate news flow and that will be the commencement of drilling operations onshore where we have the rig available at present to start those operations, those wells only take 10-15 days to drill so it’s very quick news flow on that. They only take 5-10 days to hook up to the existing production and gathering facilities which means you have sales oil very quickly from the project. The next step in Trinidad will be the design of the Co2 EOR, enhanced ore recovery project, and with some estimates of the potential uplift in production we can get from individual wells from using this technology, this proven technology. Moving on from that, we then execute, over the next 6-9 months, the pilot Co2 EOR project and then provide updated resources based on the results of that for the Innis Trinity field. In Ireland, the first step is basically to progress to the next stage in negotiating and obtaining the successful authorisation which would be Frontier Exploration Licence, which would be subject obviously to regulatory approval. From that, we would move on to open our discussions and continue our negotiations with the new Corrib gas field operator and as you know, that’s still awaiting approval from the regulatory authorities, as far as I understand, the transfer of the operatorship from Shell. The reason for that is because ahead of any drilling commitment, we would want to negotiate a time and tariff agreement before we spent high-risk money drilling a well basically, that’s just a natural commercial thing that most people would attempt to do. Lastly, and most importantly, over the next 6 months we will be establishing the drilling consortium to drill this prospect, no earlier than 2020 unfortunately, that’s the time you need effectively to plan and execute wells these days. The types of parties we have, already having discussion with, are basically a mix of private equity engineering companies and oil majors and the reason why the project is attractive, in terms of these entities, is that they’re looking at the overall project, in a success case, of it being able to tie-back and monetised gas through the Corrib infrastructure very quickly and that makes it a completely different style of farm-out partnership, if you like, to the normal conventional farm-out where you’re farming out for high-risk exploration wells or appraisal wells. So, that allows us to have a broader audience for potential participation in this.
Thanks to Zengas for the heads up here! Pretty impressed with this small companies story and potential. T&T looks like a compelling investment. With favourable cost recovery terms. https://www.google.com/amp/www.proactiveinvestors.co.uk/companies/amp/news/60030 Ref Corrib Gas - "I immediately saw that that was a tremendous opportunity for us at that time.I was very very comfortable with the geology" Any developments here will be materially significant. An exciting 6/12 months ahead. GLA
" This will be a useful facility over the coming weeks and months as the Company expects to become increasingly active, principally through its participation in the drilling of the Wick well in Q3 this year; which although fully funded from existing cash resources allows flexibility towards over runs."
Mike UPL have a loan facility of £3.5m, better again it's with cornerstone and major investors. (for this very reason) Might be worth doing a little bit more research on this company. The CEO is one step ahead of everyone.
https://www.offshore-mag.com/articles/2018/05/upland-brooke-enter-sarawak-upstream-mou.html
Nice to see us back on the move! GLA
Not forgetting 49% of Upland is held by Malaysians. Probably difficult to stick a value on any of this current, but I sense the wheels are very much in motion in Sarawak. Always open to alternative views. Patience wins the day IMO.
The next steps being laid out "Once all things is in place, Petros will open up doors of opportunities to serious and competent Sarawakian contractors and their partners for new and upcoming Production Sharing Contracts (PSC) in a transparent and openness manner,” he said of the contracts which were typically meant for upstream sectors.
Chief Minister. “Petros have been granted rights to mine oil and natural gas in the state and such a licence has already been issued to Petros. In performing its mandated roles, the state has delegated its oil and gas regulatory and supervisory authority to Petros,”