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Thank goodness it wasn't bad news. I dread to think where the share price would have ended up. It does seem like an over reaction to me. I wouldn't be at all surprised to see a speculative bid go in, 60p would look tempting at this level. I noted that on the last shareholder call they referenced recieving speculative interest in the company. I would prefer a 2022 recovery and they seem well placed for it. But when a share is this unloved a cheeky bid might be the best option. All in my opinion
I agree, there doesnt seem to be anything unusual here. The same happens after pretty much all the equity raises I have seen. If you believe in the company what is there to worry about. Look back at the dividends they used to pay when they were firing on all cylinders and having listened to the last webcast, they were pretty clear they expect 2022 to be a big year. I havent heard confidence like that from a ceo for a long time I don't think he left himself much wriggle room for failure. We are at the mercy of the big players who will exploit all and any perceived weakness, in this case increased liquidity in shares, there is nothing we can do about it unless this becomes a meme stock. Of course all of the above is imo, and any advice should be sought from a financial advisor
Lampedusa, i have to say my comments on QD2 are just my uninformed feelings. The sarta field was already a discovery and the deal seems fantastic as the bod constantly remind us. As for QD we know there is alot of oil there, as i understand the flow rates from the various sections of the qd1 well flowed at 400-500 barrels a day but not consistantly. Genel certainly think its worth the gamble drilling qd2 and given the amount of money they generate I think so too, but my investment in genel assumes this is likley to be unsuccessful.
They did mention on the conference call at HY results that it could run in to Q4 though i seem to recall that was for sarta 5. QD2 is unlikley to be successful imo (i would love to be wrong on this) i suspect that genl had to commit to qd2 in order to get the deal on Sarta so i am more interested in the results from sarta. Results now could land at any moment, the strength in sp is hopefully a good sign, i would have certainly been a little concerned had it had moved 20% in the other direction from the 120's
I remember holding gkp at 70p when genel was circa the price it is today, that was about 15ish months ago. I shared the same frustration with gkp then as i do now with genel, most notably the lack of interest and trading volume. however it didnt take long for sentiment to chang and gkp sp to shoot up. The bod over there have forced the issue with aggressive dividends and a delivery on their strategy. Our bod placed their bets on sata and qd and lets face it if they come in we will soon be keading gkp in sp again imo. However if they dont they really should go and fresh blood brought in. I have to say i am suprised with the lack of interest given qd2 and sarta are due any time in the next few weeks especially considering the value they could add.
At the moment its very testing with the slow sp decline day by day. I think that the board will need a shake up if things dont turn around soon. We all know the challenges the company faces operating in this region but it has the potential to churn out money at todays oil price. The bod need to give investors a compelling reason to become stakeholders if they are incapable of doing so then they need to go and be replaced with a more dynamic team.
Does anyone have any thoughts on the value the field would carry based on a successful outcome? Given the depressed share price, speculators must be attracted by the potential upside it holds. Hopefully we will find out in a few weeks when the results come in.
Yes nacho, those are my concerns too. if the krg are soley interested in the assets being developed swiftly then there is still something in this for genel, imo. However if the krg want to steal the assets then they can do this easily. One thing is for sure I dont think we will go down without a fight. I am sure our largest shareholder will see to that.
Not sure it is gone just yet. Below is the 2017 rns and it does state gebel should get 49% option to partake in new psc if agreed within 3 years of ternination. Unless i am reading it incorrectly.
Genel Energy PLC Update on Miran and Bina Bawi fieldsSource: UK Regulatory (RNS & others)
TIDMGENL
RNS Number : 6682W
Genel Energy PLC
13 February 2017
13 February 2017
Genel Energy plc
Update on Miran and Bina Bawi Fields
Genel Energy plc ('Genel' or 'the Company') is pleased to announce that the Company has finalised documentation of previously agreed terms of Amended and Restated Production Sharing Contracts ('PSC's) and Gas Lifting Agreements ('GLA's) for both the Miran and Bina Bawi gas fields.
The Amended and Restated PSCs and GLAs for Miran and Bina Bawi incorporate the commercial terms as announced in the term sheets signed in 2015 by Genel and the Kurdistan Regional Government ('KRG') and reiterated in the Appendix below.
With the PSC and GLA terms formally confirmed, Genel will now be able to progress the project. The Company remains committed to developing these large scale, low-cost, onshore gas fields, which will form the cornerstone of gas exports to Turkey under the 2013 KRG-Turkey Gas Sales Agreement.
The GLAs contain conditions precedent, which, inter alia, include the execution of final agreements on the midstream gas processing facilities and pipeline transportation, the execution of the financing documents and the completion of updated competent person's reports for Miran and Bina Bawi.
Both Genel and the KRG have the option to terminate the GLAs by February 2018. If the conditions precedent are not satisfied within 12 months, the KRG has a right to terminate the GLAs. In the event of termination, and a subsequent failure to conclude new gas lifting agreements within one year period, the KRG can also terminate the Miran and Bina Bawi PSCs. During the three year period following such a termination, Genel would have a right of first refusal to participate in the development of the Miran and Bina Bawi gas fields with a 49% working interest on the same terms offered to any third party.
Murat Özgül, Chief Executive of Genel, said:
"We are very pleased to have signed definitive agreements for our gas project and are now focused on the next step of concluding negotiations with potential partners, and moving the gas project towards the FID. We are determined that 2017 will be a watershed year as we seek to create a gas business that will be transformational for both Genel and the KRG."
APPENDIX
PSC terms (apply to both Miran and Bina Bawi) as previously announced on 6 August 2015
Genel Energy is the sole contractor with 100% working interest in both Miran and Bina Bawi fields
I suspect the next 4 weeks will be a somewhat quiet in terms of sp performance as interest here has seemingly fallen off a cliff. It will be interesting to see if the interest picks up mid september in anticipation of the QD2 results. Its incredibly disappointing to see the gas assets remain undeveloped as these are game changers imo, there doesnt appear to be any value attributed to them in the current sp, but i agree with genels investment approach with them, maybe the mnr will suprise us all and formalise what genel informally agreed with the mnr a few years ago, but i am not holding my breath. Anyway good look to all long term shareholders and hopefully a stellar drill result in september.