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Sorry to see this guys, it would be nice for malcy to fess up and say he got ot wrong after all the ramping and then radio silence.
peteb, probably the next news should be about a deal with a partner which is being handled by Jeffries. Don't hold me to this but I think the RNS said January 2016 for an announcement. Of course there are risks with that but it struck me that they were very specific with a date rather than saying that discussions were ongoing.
Lucan, good point about the oil price. I've always thought of this as long term but I wasn't thinking 25 years long term! Nothing we can do about the poo but We'll see how things are in ayear or two which is well within my time frame. In the meantime if there is positive news about a partner, which according to the RNS there should be, we might see a bit of a rerate. My average is under 6p so I'm not about to throw out the bath water!
Share Prophets is a joke. The company has always been forthright on funding requirements, the announcement yesterday simply confirmed what we already know...MOIL will need funding. The search for an investor appears to be well in hand, with an actual date stated. I topped up yesterday and if I can free up some funds will add more today or tomorrow. Anyone interested in the credibility of Share Prophets should check out the recent article on Guerilla Investing about the editor of SP.
I agree, this is a kneejerk reaction to what was actually a good RNS. We have known about the funding for a long time so nothing new there. They now have an actual date to finalise a deal, that's confidence for you not the usual "we'll keep the market updated" announcement. I'm strongly thinking of taking £5k form AFPO and adding to my holding here, just don't like parting with the AFPO shares at the moment! Good luck if you do decide to buy in, it's a long term investment for sure but the project will be massive.
Deepsurvey, I agree that the funding is an issue but do you not think that it may be offset somewhat by bringing in a partner. I would expect any partner to provide funding which should reduce MOIL's requirements. Also they have strong investor backing and I have not seen it suggested anywhere that they will have trouble raising the necessary funds. In the current market I guess anything is possible and far from a slam dunk. Good luck.
http://www.proactiveinvestors.co.uk/companies/news/109295/madagascar-oil-gets-boost-as-electricity-generator-to-set-up-next-door-109295.html Madagascar Oil gets boost as electricity generator to set up next door 15:40 23 Jul 2015 The largest plant will produce 116MW and be located near to the Tsimiroro field currently under development by Madagascar Oil. Madagascar Oil (LON:MOIL) got a boost today as US power group Symbion unveiled plans to build seven electricity plants across the island. The plants will produce 180 Mw of power and use a combination of biomass, solar and heavy fuel oil as the feedstock. The largest plant will produce 116MW and be located near to the Tsimiroro field currently under development by Madagascar Oil. Symbion said it plans to use heavy fuel oil produced locally. Broker VSA said: “While providing electricity to millions of people, we see this as an excellent opportunity for MOIL which now has a new buyer for around 3-4kboe/d from its flagship asset. “ “It will improve the economics at Tsimiroro in its first phase of development since almost half of the initial 10kboe/d production target will now be acquired by Symbion without incurring any transportation costs.” In short, it is very positive news for Madgascar Oil said the broker. Madagascar plans to drill around 400 new wells in its initial phase, which will see production established in the range of 7,000 to 10,000 barrels per day by late 2018 or early 2019. It will require between US$200mln and US$400mln to fund the anchor stage of the field development. Shares rose 7% to 8.43p.
Thanks for your responses. I'm afraid I decided to cut my losses and sell after the SP drop earlier. Dumped the money into ROSE, there are some interesting rumours over there which if correct could make the company. Good luck to you all.
I guess the next news is the financial statement. Any CAZA experts have any thoughts about how it might read and if there is any other news due. I'm down about 40% and trying to decide whether it's worth hanging on or if this is going t**ts-up.
http://www.edisoninvestmentresearch.com/research/report/madagascar-oil7
The MC is £7m, net assets circa £21m ($30m). What sort of price would be reasonable if they were to sell? Thanks.
Newstate, Why do you clog up thse BBs with your unsubstatiated nonsense?
All positive but it does tend to drift back after a substantial rise. This is a long term holding for me so won't sneeze at a 20% plus rise.
Tunggie, not sure why you posted a question about caza in the blvn board but then again i don't see the point of you period. The answer is that i don't know what the next news from caza will be but management are in the uk in the next week or so and will no doubt be doing some pr then so we might know a bit more. Yes the sp has tanked but at these levels is a strong buy as they have assets and good management and i believe will come back strong. When that might happen i don't know?
Sounds like some positive developments, I particularly liked the bit about partners. "The Company remains in dialogue with a number of potential partners and it is envisaged that the appointment of Jefferies will enable Madagascar Oil to access a wider pool of potential partners. Jeffries is also expected to provide strategic advice which will help secure the optimal partner(s) for the Company going forward. The Company is confident of a successful conclusion to this process before the end of 2015 and will provide further updates in due course."
Adastra, I've heard all that, more than a year ago and nothing has happened the sp is lower if I'm not mistaken. Nothing seems to move it. I hope it works out for you but it might be a long wait.
I sold out a few months back but got the RNS delivered today so thought I'd take a look. At a glance the results look good. So why the continued drop? I think this is just one of those companies that, no matter what, attract no interest. They are too risky for large cap investors and not sexy enough for AIM investors. Just my view, no technical analysis involved. I don't know what they can do generate interest but I would have thought there are better opportunities out there.
I should also have added that this is AIM and it could be 35p next week and 5p the week after!
I meant 15p this time next year