The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
I compared RRE to Faroe some months ago ,albeit at an earlier stage,see DNO have popped up this morning with a cheeky bid at 152p (for Faroe ) hope same doesn't happen here,e get bought on the cheap
i find it difficult to believe the FT would print a story without doing proper due diligence,either that or they've had "a nod" from someone who thinks they know more than us!!
As for the lack of statement from company,it's perfectly feasible that they haven't been approached as yet,hence radar silence when the panel came knocking (as they do after a 10% rise).If the bid is from the states as the article implies,they seem to work on a different agenda,so not beyond the realms of possibility that a bid could surface any day,here's hoping
Great post ravenous,spot on
jimmy00,if the company think they can get 20% at 560 why not 29% at 6 quid?? You not heard of dawn raids??
I guess RRE have done their homework and realise a few investors either want out altogether,or to reduce exposure.The price being offered is fair,and hopefully gets rid of the likes of L and G who have been constantly drip feeding out stock.Let's face it it's been a fantastic investment for them,now hopefully we will reap the rewards as the market can value RRE on a proper basis.The only concern is that having pitched it at 560 leaves the door open to a mid sized oil plc to outbid the company,ie bid 600p for 29.9% then engage Mr Austin in talks for balance at 650.This is obviously hypothetical,and I sincerely hope it doesn't happen,but as I've stated before Austin is a deal maker
I'm not privy to that info i'm afraid but i'm glad they did!!
I suspect,reading Andrew Austin's career history on their website,he wanted to branch out on his own.It looks like he's a dealmaker at heart .What astute timing,starting RRE when oil was 30 bucks a barrel
The thing I love about this company is the number of directors buying over the past year,ok admittedly not up here,but 350-440 range the majority purchased shares,they,in my opinion know best what the company's worth.
This share has not been "ramped" re earlier posts,the market is belatedly waking up to what a gem it is,suspect Cantor's recent price target attainable
In reply to CFlather,no,not remotely
In response to your question jimmy,most large institutions won't invest in anything with a market cap under £20m
I suspect the recent volume is institutional selling (prob some of those who backed RRE from outset) and retail buying.
As i've said before,you can't blame them for top slicing,they're in at minus a quid,50p less 150p special div
I stand corrected on both market cap and seller,sorry think it was Macquarrie,not Legals
Just got home and seen a research note on Faroe Petroleum from Edison,they produce 14k barrels a day and are looking to get up to 40k in the next 5 years,market cap £561m!! RRE producing 11k barrels plus the gas assets, market cap £76m,It's a wonder that some bright spark in m and a hasn't run the slide rule over RRE
I think Legal and General may be the seller,as per recent RNS's,but who can blame them,they've made 10 times their money if they got in on day 1.Also,if it's in their smaller company fund,it's probably too big a holding so they have to sell down,which is ridiculous but there you have it.
Look on the bright side,it's giving us the opportunity to get cheap stock.
Workover,may i point you in the direction of the interim report,which i have reproduced here in part:
Your Company continues to make strong progress and is in the process of completing two further acquisitions, which will more than double current production to over 11,000 boepd. All conditions precedent for the Dyas acquisition have now been satisfied. We continue to benefit from rising hydrocarbon prices. We are also observing an increase in the economic life of the portfolio with dates for decommissioning being delayed in line with the government's MER strategy. The Company sees the cash cost of decommissioning averaging around 20-25% of annual EBITDA for the next five years at current hydrocarbon prices
All this nonsense about decommisioning costs drives me mad,read the prospectus and interim report before spouting nonsense.All the infomation is there in black and white,this is a cracking company,still massively underated with no debt,cash in bank and making proper money
Yesterday's rise on back of buy note from Cantor,not seen it but told price target 641,still too cheap in my view