The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
Maybe the idea of an electric powered rig is sufficiently novel on this side of the north sea that the JOG story will receive some publicity outside the oil and gas sector and attract some fresh punters to punch us through the £2.50 mark.
I too seek clarification because if the OGA has received new briefing from recently appointed minister concerning government attitude to fresh north sea exploration, this could be of paramount importance to shareholders. Or am I seeing hurdles that do not exist ?
Like many of the posters here I have been following the JOG story since pre sidetrack days and my current holding of 7000 shares is significantly diminished from previous 30,000. Given the rise in anti carbon sentiment during the last five years there are days when the scale of JOG's ambition concerns me. However, if our only asset was Buchan with its revised capacity estimate, can anyone estimate what that alone would be worth at today's Brent price.
Some posters seemed surprised yesterday that JOG's Board weren't in the final stages of negotiating a farm out. But you have to go fishing when the fish are biting and if they're not biting, hen increasing the awareness of the potential value of your asset makes sense as per yesterday's activity. In the current environment, both Covid and climate change/carbon capture, any new north sea project of scale would need to be squeaky clean. (Of course if it was seen to be strengthening the Union that could assist ) Until the oil price makes Buchan (on its own) or JOG's larger plan compelling, our Board will be concerned about the current burn rate with nothing coming in and I would expect them to try and raise again to make sure that if the climate for a farm out isn't right until the 4th quarter, we are negotiating from a position of cash stability.
So if we speed forward to mid 2021 and imagine that Brent has reached $50 and JOG has £3m in cash remaining, do we have a result or are we heading for the buffers. Or are you assuming that by then Brent will be considerably higher ?
Sitting tight and ignoring the share price erosion is fine if your stock has an established income stream but is out of favour. But if JOG needs to raise funds to still be around until the oil price recovers, how easy will that be at an SP of under £1.00.
This has been a stellar rise and with an investment period of one month I have recently turned ten into
fourteen £K. I am out at the moment and hence my interest in a reentry price. The Board know that they
must keep a news flow so even if the farm out news is some months off, some news will be generated and
off we'll go again. The more stagnant the oil price/ covid news the greater the need for news. This is AIM
I know the long term holders have driven you away but this is a trading stock (and of course may be a long term bonanza)
and we need to know how far back this correction will take us. Pearls of wisdom please
I think it may suit the Chinese to be seen to have some problems with Covid outside of Wuhan, it deflects attention from their responsibility for the pandemic. The markets are surely consumed with justifiable concerns about a second wave, concerns which may last for a while. I was very negative on JOG in the midst of the pandemic but am impressed by the way it is building momentum and bought back in some weeks ago. Interested to know what people think is the next news item(s) that can help build the current momentum. I mean JOG news as opposed to other news.
A) Might have £10 million left divided by 22million equals 45pence. So if the business was wound up now you might get 40p
B) The second wave of Corona locks Europe down for ten weeks. Don't ask
C) Oil producers stun the world with a massive reduction in supply. More than 40p
D) The Israeli Prof is right and Corona is over finished, finito in 70 days. Today's price
E) Equinor see the light and make a cheeky bid for JOG. £1.50
As you can see I have no more idea than the next man but I am working off my option A at the moment