Member Info for highlandmatt

That's my recollection from the time, but I can't find the reference just now. I'll have a look this evening.

OlderandWiser - At one point it was netting $1m profit annually, so $10m seemed a reasonable value at that point. Then FRAM pulled the plug. $10m (say £8m) divided in to 384m shares is approx 2p / share. Now the concept has been proven, hopefully the plan is to scale it up a bit.

'Industry interest'. Reckon PG has been talking to various contacts that are saying things like 'if you can prove up a resource of x, we will be interested in buying in'.

It is a consideration. If the SP predrill means my holding equals my annual take home pay, then I'll take 10-20% off the table. In the success case, I'll still have plenty in. In the failure case (or perceived failure), I'll either have some profit to show (cry in to) or funds available to take advantage.

A reminder of slide 7 of the Sept presentation.
10mmcf/s = $58m revenue, $33m net operating revenue to PRD
50mmcf/s = $292m revenue, $159m net operating revenue to PRD

A rough calculation on a p/e of 5 (or p/e10 but risk weighted to 50% if you like), gives expected mcap and therefore SP once in production of $165m (£150m) for 10mmcf/d or $795m (£700m) for 50mmcf/d.

With 366m shares, that's 41p to £1.91. So, as a rough rule of thumb, at least 41p on the SP for every 10mmcf/d on test.

Fingers crossed for a successful drill.

Fairly certain PRD does not have the cash for Mou3 at present.

I suppose GGL could always pay a 'management charge' or dividends to EAG, to ensure that there is no profit.

I see the chancellor just announced an increase in UK energy windfall levy and a windfall tax on UK electricity generators. Will GGL be affected by either of these?

McAdder. Big pharma tends to wait until approvals are in place, as it reduces the risk for them.

https://twitter.com/CorePath/status/1590363838771515394?t=QPj3L9tn3eUvJjlstS9AKg&s=19

And surely UK would be next on the list, before France?

Yes, it would be 6% if buying now. Yep, I also hold a small amount of PTAL. Looks like being a proper cash machine - when they can transport the oil.

For the criticism he gets for being a paid promoter (some of it probably justified), it was one of Malcy's lists. I took that, short listed a few, applied some of my own filters and gut feel, and settled on PRD.

Legacy oil is bringing near $10m a quarter revenue. Coho should do $1m net a quarter. But Casca initial production is guided at $14m net a quarter. So $60m net profit per annum. Minus exploration and Casca development campaign, say $40m net profit, = £35m. Mcap £350m? £1.50+. Say £10m for divis = 5p for 3%+ yield. Anything under £1 is a screaming buy.

If the parties were far apart, I don't think exclusivity would have been extended.

Indeed. I bought Genmark during the pandemic. An interesting diagnostic device for hospitals. Always loss making, but market share was increasing. I sold most of my shares when the mcap hit $1bn, as I thought 'if you can't turn a profit in a pandemic, how is this justified?!'. Roche bought it out for $1.8bn.

Over 8p yesterday would be a buy?

I see the small staff as a positive due to low cash burn. Would you prefer multiple placings to fund the payroll?

From memory the quarterly financials are usually pretty brief about operations.

Coho pipe sold for $1.2m.
Coho production disappointing so far.
Cascadura now end of Q1 (which prob means Q2).