The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Government approcal received at last
CEPSA to joint venture with Pan Andean on Peruvian blocks 114 and 131 Pan Andean to recover costs incurred to date CEPSA to cover exploration costs including first well and half of second well on both blocks Pan Andean (AIM:PRE), the AIM listed oil and gas producer, is pleased to announce that it has agreed terms on which CEPSA, a major international Spanish based oil company, will joint venture Blocks 114 and 131 in the Ucayali jungle of Peru. Previous drilling proved a working oil system in the Blocks. The joint venture is part of the Pan Andean strategy to reduce financial exposure whilst accelerating drilling plans in high potential blocks. The agreement is subject to the regulatory approval of the Authorities. Once such approval is obtained, CEPSA will reimburse Pan Andean for all costs incurred to date, estimated at US$3m.
Rumours of a bid for property developer Minerva pushed the shares up from 126p to 132p. I believe they are a very good buy at this level. While talk has focused on a US developer called LeFrak, there is almost certainly a Continental buyer also looking at Minerva. With net worth the right side of 350p a share, there is clearly a lot of upside - provided you can accommodate a high-risk punt in your portfolio
Trade price & offer price currently at 70, will this go to 80
It is from Tom Winnifrith.
Southern Bear (STBR) was once called Croatia Ventures and was another useless cash shell from Stephen Dean. Deano got out long before it was clear that Croatia was (unlike its national football team) going nowhere. So there was a cash shell. Into that, an entrepreneurial but sensible team has reversed a number of businesses which are profitable, growing fast and generating cash. In the current year to March 31st 2008 attributable profits (post tax after minorities but adding back goodwill amortization) will hit £0.95 million . Next year expect £1.56 million and for 2010 £1.94 million is on the cards. On a fully diluted basis that equates to earnings per share of 0.36p, rising to 0.6p and on to 0.7p. I'd have hope that a company which would be debt free by the end of the period, is well managed by men with a decent record and which is growing fast merits at least a double digit current year rating. Hence my fifteen month price target is a minimum of 7p and the shares are a buy at 4p with a 4.5p limit buying price
The Directors are pleased to provide an update on the company's activities in Colombia and the Southern North Sea. Too long, you may have to check their website The Acacia Este -1 discovery well has been re-worked with a gravel pack and has commenced an extended production test, with positive production results at a current average of 70 barrels of oil per day ("BOPD") under low pump rates. The Directors expect that the Acacia Este-2 appraisal well will be spudded in December and it will enter an extended production test early in 2008. The location of a further appraisal well will be determined following the acquisition in early 2008 of new seismic over the field. The directors continue to be excited about the prospects for Acacia Este. Cont...
Pan Andean Resources PLC ('Pan Andean') the AIM listed oil and gas producer (AIM: PRE) is pleased to announce that drilling of an exploration well on block High Island 52 ("HI 52") in the Gulf of Mexico will commence within the next seven days. The well will be drilled by our farm in partner Phoenix Exploration. In 2006 a farm in deal was agreed with Phoenix Exploration, whereby they have an option to drill the deep plays on most of block HI 52. Pan Andean holds a 2.15% royalty. Under the terms of the deal, Pan Andean will also benefit from the release of abandonment liabilities. The well will take about a month to complete and will be drilled to a depth of around 8000 feet. The well is a side track well and will target a zone expected to have gas reserves. If successful, the well will be tied back to existing facilities and will be put into production. Additional exploration wells, targeting deeper zones, may be considered by our farm in partner.
The successful 3D programme at the company's Louza Permit has prompted an increase in the estimated potential oil reserves in two (M'Aila East and M'Sela West #1) of the four identified prospects adjacent to the M'Sela-1 oil discovery. Elsewhere, the company's applications for three offshore Spanish permits have been accepted by the Ministry of Industry, Tourism and Commerce, whilst the company's application for two permits offshore Sicily, adjacent to the Vega Oil field, have been accepted by the Italian Government, subject to Medoil's environmental impact study. The company's environmental reports were submitted to the authorities in April 2007, meanwhile it has started gathering technical data on these permits. As a result of the increase in potential reserves announced today we believe that the M'Sela structure alone is worth 70p on a fully diluted basis. The other two structures, M' Aila East and Ourata are, we believe, worth up to 29p on a fully diluted basis. The new valuations are based on conservative drilling probabilities (a risk weighting of 97.5%) and a barrel of oil value of $3.50. Any further exploration progress could cause us to increase these estimates significantly. Equally, any progress on the Albanian, Spanish and Sicilian prospects would also invite a revised upwards valuation. Our new valuation for Medoil is 100p on a fully diluted basis. At 22.25p, stance remains unchanged. Buy.
Tuesday, June 19th, 2007 Uranium in 2008: $255/lb. Is Just the Beginning By Keith Kohl Baltimore, MD --The recent record prices for uranium are only the beginning. The growing nuclear industry will ensure the demand for yellowcake. And by next year, we're going to see uranium break over $255 a pound.
The boys at Daniel Stewart have produced a pretty useful note on this company for those that are interested. I agree with their intimation that the shares will be significantly re-rated this year as the group achieves the dual goals of financial closure and planning consent of its first major 65MW UK site at Stallingborough. This will reduce concept risk, validate the business plan and trigger receipt of at least £20 million in up-front development fees on the first project. The DCF valuation of 49p is conservative in my view, based on a £34.2 million fair value. I should say on this basis, the target price would still only equate to 5.7 times 2010 earnings. Yes there are plenty of risks, but this is an industry in vogue and there is more that will go right in the short term than can go wrong and on that basis, the shares have at least 30% upside over the summer as newsflow kicks in. At 33.5p, be aware of the risks and if you still like what you see - "buy".
Helius holds a 3-year option to purchase the 36 hectare freehold Stallingborough site which is located on the south side of the Humber Estuary, 6km from the port of Immingham. The local grid capacity supports a new 65MW power station and the application for planning permission is at an advanced stage. The site also allows for the potential co-location of separate bio-ethanol and bio-diesel plants, which would produce biomass as by-products. It also holds an eighteen-month option to acquire a site at Seaton Port in Hartlepool, adjacent to an existing power plant on the north side of the Tees Estuary.
Helius Energy, which only joined the market in January, is the first AIM company dedicated to installing and operating biomass-fired renewable electricity generating plants. The company is now in the process of setting up a number of both stand alone and co-located biomass power generation sites in the UK and Southern Africa, which will generate revenue from both electricity sales and environmental credits. I reckon the shares are a good bet purely because they trade at a silly discount to a sensible, estimated intrinsic value. Helius plans to initially focus on the UK and Southern Africa where it plans to install and operate a range of biomass energy plants supplied by leading international suppliers of thermal power generation and environmental engineering services. The plants will burn an extensive range of biomass feedstock including residues from bio-ethanol production and other qualifying feedstock. Helius' strategy is to secure feedstock at an economically viable cost from a number of sources
Its good woman actually. Good luck
I did bought in a little yesterday at 20p, after a little research, lets hope it goes further.
Jointy, only just seen your post. is it too late to get in. Trying to research it, but what do you think
The cost of promotion into premiership last season was £60m and pundit are predicting it will be more this year. therefore the company will be worth a lot more.
Derby lost out to Crystal Palace thereby mathematically Birmingham and Sunderland are promoted to the premiership.
Birmingham FC will be pronmoted to the premiership if Derby lose today. I wonder how much far the shares will go