Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
I don’t usually indulge in pumping up the prices forecast but will allow myself the liberty on this occasion in light of the excellent RNS;
Increased Field Reserves,
Final $25m dividend totalling $50m for year with possibility of further shareholder distributions (if the KRG behave thenselves),
Recent production in excess 53000 bopd,
Recent narrowing of KBT discount,
Production to increase towards long heralded 85,000 bopd (if the KRG behave themselves),
If this doesn’t reverse the depressing share price trend I’ll have to give up and invest (what’s left) in a mom’s and pops general tracker.
Alliance News;
Crystal Amber Fund Ltd - London-listed activist investor - Net asset value per share at December 31 falls 9.2% to 130.05 pence from 143.19p a year prior. Total return is positive 4.4%, reflecting total dividend payments of 20 pence per share during the six months. Looking ahead, expects that Hurricane Energy PLC will be successfully sold. Hurricane is the owner and operator of Lancaster field offshore Shetland, in which Crystal Amber Fund is an investor.
senseman’s message has a clear message. I don’t usually bother voting but I’ll put my 600k in the No box in some personal recognition of his work. I understand his angst. Perhaps I will eventually recover my 9.5p per share.
Regarding tax. My shares are in an ISA. Surely any post-takeover payments will be sent to the same account and therefore tax free?
I have 600k at about 9.5p avg.
News will come soon.
PUTUP, at the risk of the idiots suggesting that we are talking to ourselves again I agree with your summation.
Personally I cannot see the dividend halting at $50m. A 5% yield on this high risk stock is unpalatable to any sensible investor.
I continue to favour dividends over share buybacks here as a solid route to investment returns. This ain’t a 100yr old company with an imperial history. The risks of catastrophic economic/political events remain, for now, a major concern.
The Johnny-come-lately “takeover imminent” lobby will no doubt go into an indignant swoon at my comments. I pay them no attention.
Positives, as you point out, are cash owed, possible poo increases and increased production.
We all expect the arrears to be paid…….eventually whatever the outcome of the Brent v KB wrangling.
So I expect dividends of $50-75m.
Look lads you’ve got this wrong.
Despite my longstanding disagreement with PUTUP on the dividends v debate I respect his detailed analysis of costs, expenditure and income.
The opinions of PUTUP, theoryman and one or two others have value when compared the “takeover imminent” rubbish espoused by so many of you.
And yes, Klassic, PUTUP and theoryman are just one A.I. algo. No point trying to hide it.
Ah ok I now see Corry’s post. I assume he’s looked into it so he must be correct.
Sense it’s not a daft question.
At a General Meeting (which this is), an ordinary resolution is 'passed' when more than 50% of the votes cast are in favour of the resolution.
An Extraordinary General Meeting requires 75% of votes cast.
By the way, HNY and try to ignore your bear baiter, there’s no point in becoming involved in unedifying public skirmishes.
I’m still holding 600k shares here at about 9.5p avg.
senseman yes that’s my point. The tacit demand for the NSTA to give future flaring consents was like asking a football ref to promise that he won’t wave offside flags at future goalscoring opportunities.
There must be rules and guidance on flaring. It’s not a finger in the wind kind of thing.
I think the HUR bod’s demands for “comfort” on future flaring consents was impossible.
Anyway there’s no going back to it now.
May I point out that the Govt did not reject the new drilling proposal. The HUR bod decided not to proceed, citing “comfort” reasons. An odd term to use, but the explanation is clear in the extract below from the Half Year Report;
“It is disappointing that despite the enormous efforts of our team, and extensive interactions over many months, the NSTA is unable to provide comfort to the Company with regard to the likelihood of it being granted the necessary consents related to flaring for Hurricane to make further commitments to investment in Lancaster.”
BAGHDAD - A court in Baghdad has invalidated four more of the Kurdistan Regional Government's (KRG) oil and gas contracts, marking a further escalation in the federal government's campaign to establish authority over the KRG's independently managed oil and gas sector.
At a hearing Sunday at the Karkh Commercial Court, Judge Mohammed Ali Mahmoud Nadeem issued decisions to annul the contracts of the UAE's Dana Gas, China's Addax Petroleum, Canada's ShaMaran Petroleum, and UK-listed Gulf Keystone, according to multiple officials who have seen the written rulings.
A previous set of rulings by Nadeem to annul four other KRG oil contracts has not had any practical effect on those projects, because the KRG controls its own security forces and has rejected the authority of the federal courts. Most oil companies in Kurdistan are operating as usual and even expanding their investment plans.
I have 600k at about 9.5p average so am underwater. But not selling. The company is debt free and has a substantial albeit declining income stream. Patience is the key here.
I note CA’s sharp rebuke to the BOD for their failure to redeem the debt when it was much cheaper. Perhaps the same criticism will apply in the future if there are no share buybacks at this level.
PUTUP you’ve summarised perfectly the situation. We have disagreed on the dividend v buyback debate for some time. I remain convinced that dividends offer the best means of investment extraction. Buybacks are an uncertain avenue to prosperity through which we gaze in Iraqi turmoil.
But I respect your observations, particularly on the forward income prospects. As you correctly observe, it’s not just about the poo, though that does seem to have an overweight influence here.
Have a good weekend.
At my usual poor entry point I bought 52000 shares at 48p some time ago. Now I’m only down £500. But purchasing healthy oilers like this one is a fantastic way to make substantial gains even for an amateur like myself. Patience when holding a position has been well learned from reading the lessons of the professionals. The selling point is an even more difficult pivot to master. I’ll look again at the situation when we reach £1.
GKP has been my magnus opus. I certainly won’t sell any shares there.
Now, further recovery time is required for HUR (down £10k on 600,000 shares) and JSE also down £2.5k. They’ll both come good, eventually.
Have a great day.
Saudi Arabia energy minister says they may need to curb output
Bullish oil comment from the Saudis
Adam Button
Adam Button
22/08/2022 | 15:25 GMT-0
The Saudi Energy minister said they may need to tighten oil output to stabilize the market.
Just three weeks ago, OPEC+ increased production quotas by 100k bpd. Now they're already talking about curbing output.
Abdulaziz said the disconnect in oil futures may prompt OPEC+ action. I think what he's referring to is the lower oil foward curve. The problem is that it disincentivizes investments in future production.
Oil has jumped on the headline but still remains deeply lower today.
I still have my 500k at 10p avg.