Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Winning with a prediction so far from the mark is an unwanted record. I feel I should quote something from Kipling about keeping one’s head when everyone else is losing theirs but I’ll spare you the platitudes. In the long term we should be ok, probably. “It’s all about the payments” used to be the mantra, now it’s all about the asset developments. We’ll have to learn to live with a lower OP. With increasing production the cash will continue to accumulate exponentially. One day some of that cash hoard may come our way. Or maybe not. Anyway here’s to a better future.
The pipeline fees will assist in propping up the beleaguered (corrupt) KRG and allay the long-standing fears of bankruptcy there. I’m happy the sp bounced this week. Perhaps there’s a buyer accumulating before news on BB oil, Tawke/Pesh, Taq’s Tanking field developments. I may even join the Friday Dreamers Club next week.
With the latest unannounced payment there will be approx $340m in the war chest. It needs to be put to work (subject to bond covenants) before I have to put myself to work to recoup my battered resources. Definitely not lol.
Hydrogen. Agreed. People distrust this period of apparent stability with the KRG despite it’s recent exemplary payments record. Note to self, when we again touch £3ps, sell G and buy that place in TorrimaBenidorm as planned!
Lemming thanks for clarifying. My fagpack calcs were only orbital. If I had a few $m I’d buy G, raid the coffers, rake in the income and send the puddle rats down Taq tank’s lowest recesses to search for the missing 100k bopd.
Hydrogen I understand your point concerning the company’s undervalue but history is littered with reluctant sellers who capitulate for a modest premium. Market cap is approx $600m, cash in bank $315m, income approx $28m pm and growing. Net profit $10m pm ?) Bond debt $300m (another 4years at 10%pa). So a buyer gets his hands on the company’s cash (subject to bond covenants) and enjoys a massive monthly profit (subject to the whim of our friends in the KRG).
Somaliland, which is bigger than the U.S. state of Florida, is also planning its own oil production. Genel Energy Plc, an oil company founded by Nathaniel Rothschild and ex-BP Plc Chief Executive Officer Tony Hayward, is preparing to drill as many as three wells in the territory’s east, where it has production-sharing agreements, Jama said. Genel will start drilling at one well in the fourth-quarter of 2019, near Burao in the Togdheer region, according to Jama and Genel’s communications head, Andrew Benbow. “There is oil for sure, but they have to come to know if this is viable for commercial business,” Jama said. Seismic processing is near-complete and preliminary analysis and interpretation underway, Benbow said. Seeking Jade RAK Gas LLC of the U.A.E., which has production-sharing agreements for two blocks south and east of Berbera, is in talks with Genel over co-drilling arrangements, according to Jama. The company didn’t respond to two emailed requests for comment sent to an address on its website. Three Chinese companies will explore with local partners for jade in southeast Berbera, between the Genel and RAK gas blocks and near the U.A.E. base, according to Jama. He said unidentified Canadian, Chinese, Norwegian and British companies are interested in exploring three offshore blocks on the approach to the Bab el-Mandeb, where the Red Sea meets the Gulf of Aden. Chinese and British companies are also in talks over two further onshore blocks at Somaliland’s border with Ethiopia. (Updates with progress of Genel testing in paragraph above Seeking Jade subheadline.) To contact the reporter on this story: Nizar Manek in Hargeisa at nmanek2@bloomberg.net
JL the Blues are still playing at the Arms Park although their fortunes are much diminished. And so are mine, woe is me after a painful week particularly after buying another 10k shares at 210 on Wednesday. We need good news to stop the downward rot. As for the Bluebirds today, Klopp’s panzer division are unlikely to lift my black clouds. Good luck to the Friday club,I’ll re-join when I can confidently predict an uplift.
“The committee … expressed concerns about rising inventories in recent weeks and also noted looming macro-economic uncertainties, which may require changing course,” it noted after its most recent deliberations. With oil prices now in retreat below $80 per barrel, the group may decide it is time to change strategy to avoid a repeat of 2014.
..........Meanwhile, producers have been opening their spigots to take advantage of higher prices while they last. Opec’s 15 members pumped over 33 million barrels per day – equal to about a third of global supply – in September, according to figures compiled by S&P Global Platts. Excluding the Republic of Congo, it was the highest output level recorded by the group since July 2017. Russia – which is expected to extend its alliance with Opec indefinitely when the group meets in Vienna in December – also pumped at a record approaching 11.4 million barrels per day last month. Meanwhile, the US is producing close to 11 million barrels per day, with the country’s shale boom showing few real signs of slowing. ‘Oil producers have been opening their spigots to take advantage of the higher prices while they last’ Of course, US sanctions against Iran due to come into force early next month will create a gap in the market. Despite attempts by some major consumers to obtain waivers the sanctions could still remove 1.7 million barrels per day from the Islamic republic’s exports, compared with levels in May, according to estimates by S&P Global Platts Analytics. Concerns also remain over the amount of spare capacity held by major producers like Saudi Arabia and the Gulf states to react to potential supply shocks. Saudi Arabia has the ability to pump up to 12 million barrels per day in theory but would have to agree a deal with its neighbour Kuwait to go beyond that by reactivating mothballed fields in the so called neutral zone, which separates the two states. Then there is the issue of Venezuela, where production could fall further due to the battered state of its economy and political system. However, Opec is unlikely to repeat its mistake from 2014 when it stood back and watched the price of oil plummet by allowing a giant lake of unwanted crude in storage to build up. By the beginning of 2016 prices had fallen to $35 per barrel from a peak $115 per barrel in the middle of 2014 after the group attempted a knockout blow against higher-cost shale producers, which ultimately backfired. Since then Opec has expanded its ranks and struck an alliance with Russia, which gives it control of around 45pc of the world’s oil. Earlier this year it decided to ease back on production cuts, which had restricted output by 1.8 million barrels per day, partly in response to criticism from US president Donald Trump and concerns over the loss of Iranian supplies. Opec won’t want to repeat its previous mistake of oversupplying markets, despite Trump’s repeated complaints about high gasoline prices in the run-up to midterm elections in the US. The group’s influential joint technical committee, which closely tracks trends in supply and demand, has already woken up to the risks. “The committee … expressed concerns about rising inventories in recent weeks and also noted looming macro-ec
Comment Stuttering growth and an oil glut leave Opec over a barrel Andy Critchlow O il markets are once again in the doldrums. Stuttering global growth and growing trade protectionism are raising concerns about too much crude sloshing about to meet demand. It is an old problem Opec can’t afford to ignore for long. Despite the fact that global demand is expected to average an all-time record of 100 million barrels per day this year, warning signs are flashing over oil markets. Dubai’s ports operator DP World has given an early signal of the problems emerging in global trade, which is vital to underpinning consumption for crude. The world’s fourth largest operator of ports reported a slight drop in like-for-like container volumes in the third quarter, compared to the same period last year. Uncertainty over global trade was one of the reasons pinpointed by DP World for the decline. Saudi Aramco’s Shaybah oilfield. Opec will not want to repeat its 2014 mistake of oversupplying markets, resulting in a price collapse Credit: REUTERS Handling over 70 million containers each year, DP World is a useful barometer for trouble ahead in commodities, especially oil. The International Energy Agency has already trimmed its forecast for global demand growth next year by 100,000 barrels per day, to 1.3 million b/d, blaming trade disputes and a sluggish market in China for the revision. Even more worrying, the IEA earlier this month flagged a build-up of commercial stocks of crude to almost 2.9 billion barrels, the highest level since February. The watchdog warned inventories in major industrialised nations in the third quarter may have seen their largest increase since the start of 2016. All the signals point to a toxic scenario for oil markets taking shape with slowdown in demand, coinciding with the decision by major producers to pump more crude. Prices climbing to four-year highs above $85 per barrel a few weeks ago, coupled with the inflationary impact of the strong dollar in emerging markets, have contributed to the problem. According to S&P Global Platts Analytics these factors have led to a 25pc increase in oil prices in places like India and Indonesia, which were forced to lower fuel duties to head off unrest over the rising cost of fuel. Meanwhile, producers have been opening their spigots to take advantage of higher prices while they last. Opec’s 15 members pumped over 33 million barrels per day – equal to about a third of global supply – in September, according to figures compiled by S&P Global Platts. Excluding the Republic of Congo, it was the highest output level recorded by the group since July 2017. Russia – which is expected to extend its alliance with Opec indefinitely when the group meets in Vienna in December – also pumped at a record approaching 11.4 million barrels per day last month. Meanwhile, the US is producing close to 11 million barrels per day, with the country’s shale
JL I agree with everything you’ve said but I’m still clinging to the fundamentals here. So provided POO stays at a reasonable level, G keeps producing oil and the KRG coughs up every month, we’ll be ok. However it’s wider market worries that presently hurt us because (wise) people understandably want to preserve their cash whilst there is a danger of financial meltdown across the global markets. The BOD is certain to use the accumulated cash eventually and more wisely than their predecessors. An investment in BB oil extraction is a certainty when KRG gives the go ahead. Investments in established oil producers (in stable countries please) or even (ahem) a return of some cash to shareholders might also improve the market’s view of G’s pedigree. Anyway and most importantly the Bluebirds are off the bottom of the table.
One day soon we’ll have some good news, until then, I won’t sell on impatience. Still holding 75k shares. And still worrying and definitely not lol. Withoutt 220 Klassic 225 SnapDog 226 Bunks 232 COV 235 tiger100 236 Hawkey 240 Broadland 245 Jandialbi 249 Boyobach 252 PostieRemy 255 Rangor 260 Ocelot 265 No Opinion