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Of course, not
The US is frightening Russia with harsh sanctions in case of invasion
They will then say: you see, this has worked perfectly well, Russia is now afraid and that’s why they’ve changed their mind
When, in reality, nobody has ever thought about it in the first place
In ENW case, cash balance is only relevant when you take into account their accounts payable
They could easily have $30-40 mn due to their contractors for drilling of several wells, plant upgrade, 3D, etc
If that is the case, once it is settled in early 2022, cash is back to $60-70 mn
So we need more details to confirm cash really increased
That said, we have up to minus 25 degrees Celsius in Moscow this week
Allegedly, up to minus 15 in Kiev
Below zero pretty much everywhere across Northern and Central Europe
Gas prices are over $2000/mcm, as we speak
I always laughed when people here and on Twitter screamed ENW would trade at 1 pound
But f@ck me, that’s what we truly deserve in this price environment. If the governance was ok
So if they have to shutdown these two wells altogetger, they would need to successfully drill two new wells just to get the the previous production levels
It will take them 1,5 years and cost another $30mn
Not to mention missed revenue during the drilling period
Re water inflow, it is very bad for gas wells, in general
Once gas is mixed with water, it is dissolved in it and you can’t do much about it
For oil wells you can produce liquid which is 80-90% water. You would then separate water at your oil preparation unit and put it back via injection wells to maintain reservoir pressure
That increases your opex but at least it is easily doable
You can separate associated gas if needed, when it is only a fraction of your overall fluid volume
But when your main product, gas, is dissolved in water, there are no easy solutions. They haven’t disclosed enough information to judge what actually happened.
Would not be surprised that was a way to suppress the share price before making an offer. At a low price, of course
OfficerFigby, I am still holding but getting more and more nervous every day
I have a sizable chunk, over 600k shares in this stock. Not easy to liquidate even if I wanted to
My average purchase price is slightly above 25p, so I should not lose money here even if goes the bad direction
Still, I hoped it would at least double. Or better triple. Nothing extraordinary in this price environment
Oldholder, re past experience it is only partly relevant
In general, Ukrainian oligarkhs would not miss a chance to seize an opportunity to get something cheaply
We are in the best ever environment for fas producers. Gas prices are 15+ times higher than what they were just recently
ENW’s share price is half of what it was in 2018
So JKX was the first one
Now is Zoltav in Russia - pretty much the same approach, i.e. an offer at current market price, once it halved. The shareholder controlling almost 90%, same as in ENW
Who may be next?
ENW is definitely on the list of candidates
Alongside PTR and CAD, I reckon
Perfect moment to rip off minority shareholders of junior oil and gas co’s
It is all b/s, not more than a joke
Russia’s got all what it needed from Ukraine:
- Crimea, first and utmost
- Instability in Donbass
- Weakness of Ukrainian economy
There is not a single reason for Russia to even consider invading Ukraine. Just makes no sense whatsoever
This nonsense shall disappear from news soon like it happened on several similar occasions in the past
There was a battle between two Ukrainian oligarkhs - Pinchuk and Novinskiy. The latter finally won having paid 38p per share
The company experienced issues with its core licenses, production was halted at some point.
Back then 38p represented 200+ per cent premium to share price before the offer
The previous board and management led by Paul Davies had fought with Kolomoiskiy for several years but finally lost
The new board seems just to do what they are told
Before joining JKX board, Tony Alves had played a pivotal role in selling Volga Gas for peanuts having screwed the minority shareholders similarly
JKX should by now have $60+ mn of cash
Their Russian asset is worth $30-40 mn, so it is already $100 mn
This equals to the implied mcap in this dodgy tender offer
So they get all the Ukrainian assets for free
Tge value of 10% stake is UNB is another $30-40 mn and the only realistic buyer is Kolomoiskiy/Bogoslavsky & Co
What a shame