The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
A little over optimistic in my guesswork probably but betting on myself to lose money is stupid. Good news from the flanks of the Tanking Taq Taq fallen giant although I note production was down to about 10k bopd before the new 3.5k addition. Further good news likely soon however. BB easy oil pre-gas is the next big step for G. We also have the DNO update on Peshkabir to look forward to and then my bolt hole to TorreBenimolinos on proceeds of £3ps won’t seem so unlikely. Is this a turning point? It seemed so when I saw the Bluebirds win on Saturday evening. GLA keep up the banter.
Just popped in to read this week’s victory speech where is it? And I was confused by the general discussion, thought I’d clicked onto the Brexit pub drone by mistake. Well lads I’m still not lol at our lack of progress but patience as they say is, well, ........wearing thin with those misguided investors who expect some eventual returns on their capital. Still holding large amount in G, 100k shares in SAVP and smaller amounts in GKP and BP. JL, I bet they’ll still be looking for oil after Brexit.
Bunks yes that makes sense, I can’t see them making any extraordinary announcements in the update. However the production and cash in hand figures could make the scribblers pull their hands from noses when looking at G’s prospects. A hint of a dividend? Or a phone conference with PI’s as per SAVP this week? Only joking. Anyway sooner or later the cash must be put to work.
Well said Ocelot. Results day approaching Trump bulldozing his critics to star spangled pulp POO bouncing great wads of cash into G’s corpulent cash waistline G’s BOD due to declare love and kisses with KRG as Bina Bawi gets drilled
Nice speech JustinD. Certainly a year of two halves. If told I’d be 40% up at year end I think I’d have punched the air. If told I’d lose 40% of my capital from May I’d have punched myself. Mrs Klassic may yet do that when she sees the ISA statement. I have no crystal ball but see continuing headwinds ahead from a combination of well known global factors. I cling like other long term holders to the fundamental economic strengths in G. News must surely be imminent of Peshkabir production, BB easy oil, licence extensions and deployment of the $400m chest. What’s the point of paying $30m interest pa on a $300m bond that remains effectively unused? It’s certain to be used eventually, hopefully wisely this time. So I continue to hold. Now reduced to 55k shares and already down on the 10k shares I sold recently at 1.58. HNY especially to the regulars Bunks, JL, JT, Hawkey, Lemming, Ocelot, Hydrogen et al.
11.45am: Savannah Petroleum PLC surges as it amends Seven Energy transaction Savannah Petroleum PLC (LON:SAVP) released a well-received edition of Carry on up the Niger in which it announced a couple of acquisitions. “Savannah Petroleum has published a positive update on the Seven Energy transaction, unveiling substantial improvements to the deal. As well as being materially cash flow and NAV [net asset value] accretive, the agreed changes deliver control of the gas value chain and a substantial cash injection upfront,” reported Mirabaud Securities Research. Savannah is to acquire an additional 55% of Accugas, he midstream arm of Seven Energy, in a change to the transaction originally announced on 20 September. READ Seven Energy Transaction and Operational Update The acquisition will lift Savannah’s stake in Accugas to 75% for nil cash consideration. “Importantly, this gives SAVP control of a key piece of regional infrastructure which acts as the gateway to energy hungry gas customers in southeast Nigeria,” Mirabud noted. SAVP CEO: “We are delighted to announce the amendments to our Seven Energy Transaction this morning. They grant control of Accugas to Savannah, are NPV and cash flow accretive and release significant cash to Savannah” #savp #savannahpetroleum #nigeria — Savannah Petroleum (@SavannahPetrol) December 21, 2018 Savannah will sell 25% of the Uquo gas field and Accugas to African Infrastructure Investment Managers (AIIM) for US$70m in cash, “aligning its interests across the upstream and midstream divisions at 75%”, Mirabaud explained. “Valuation wise, the deal franks the value of Seven’s integrated gas business at US$280m (gross) – versus SAVP’s market cap of ~US$250m – implying little if any value for the Stubb Creek field or the potential in Niger. To put this in context, our risked NAV for the Niger portfolio alone stands at US$373m,” Mirabaud said. Mirabaud is the joint broker of Savannah. Savannah’s shares rose 11.6% on Friday morning to 27p.
Whitehat yes I’ve also been wondering if the licence extensions will go through on the nod or will the KRG put the squeeze on our introverted BOD? The next couple of months will be crucial but until news is released I’m afraid the tone of Mr Bunks’s Crimbo party will be more Bleak House than Christmas Carol.
Thank Gawd I didn’t win this week with my lowball effort. SP holding up, is there a buyer or just another plateau before the next leg down? Waiting for news on BB oil, Pesh, acquisitions. Until then we’re subject to the vagaries of the algos and low volumes. I’m going to watch Bluebirds v Wolves tonight, cycling to the ground in the rain with Mrs Klassiic, hopefully we’ll mirror G’s bouyant performance of the last few days.