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As it says on the presentation THE NEXT BIG THING
anybody care to put a share valuation on our 35% of production let's be conservative at the bottom end of 80,000 - 100,000 BPD
so that's 28,000 barrels a day for Rockhopper at let's say an average price of $70 per barrel š
https://ir.navitaspet.com/company-presentation/
K3 CAPITAL (K3C): CORP Positioned to flourish across the cycle following strong FY 21 Full-year results to 30 May 2021 were ahead of expectations (post adjustments) with revenue of Ā£47.2m (against our Ā£46.0m estimate) and adjusted EBITDA of Ā£15.7m. After taking into account an uplift in both revenue and profits following a detailed review of the WIP treatment, we see performance well ahead of our Ā£14.3m estimate. This performance is testament to the Groupās transformation amid a very difficult trading environment, and positions K3 to capture upside across its diversified divisions as the economy begins to recover. We make no changes to our estimates and reiterate our price target of 477p, equating to an FY 2022E P/E of 24.0x, falling to 19.5x to May 2023E. With shares currently trading on a FY 2022E P/E of 17.5x, we see an opportunity to own this diversified, high-growth, fixed-dividend professional service offering ahead of a full economic recovery that has the potential to accelerate progress in Restructuring and deliver outlier profits in the M&A division. The outlook is currently in line with expectations, though the building blocks that have been put in place so far have positioned the Group to capture substantial medium-term upside.
The good news keeps coming !
Another upgrade in profits.
https://uk.advfn.com/stock-market/london/k3-capital-K3C/share-news/K3-Capital-Group-PLC-Trading-Update/84819678
I had an email from Sam Moody the other day the legal team are contacting the arbitrators in the coming week, one of them fell ill some time ago don't know the details though and whether that should slow the process down or not cant see how it would, wouldn't be surprised if Brexit has has owt to do with it lol.
Am pretty confident we have a pay out coming though. It seems the Italians have admitted defeat as well.
And still dropping buy on any weakness and dips
dyor
The 5 year graph is looking healthy could be due a good run up to results in the next couple of months.
Agreed!
with the progress made they look well undervalued but I wonder what Mr Market makes of them?
I have communicated with the company today regards the cash position within the company and any future fund raising ( if any ). To say I am comfortable with my investment is an understatement. Time to load up on weakness IMHO.
https://www.malcysblog.com/2019/07/oil-price-rockhopper-united-and-finally/
For Rockhopper this has been a good asset but given a chance to crystallise real value ahead of the formal loan application this was a no-brainer. The company have made a āprofitā of some $8m on a $12m investment in 2 1/2 years and putting the money into Sea Lion which will unlock transformational value makes a lot of sense.
For United this is a major piece of business buying an asset for $16m with a market cap of only Ā£14m. As CEO Brian Larkin states āthis is a truly transformational deal for United. Not only will it deliver our first production, positive cashflow and significant reserves it also offers very promising infill and exploration upsideā.
Overall this is one of those deals that appears genuinely good for both sides, RKH has shown an ability to buy low and sell high and has delivered ahead of the crucial Sea Lion denouement. UOG has, in one step, really grown the company, as advertised.
My calculation of NPV10 to Rockhopper of just Phase 1a is a very large number, making the current Market cap of Ā£106 million look like a bargain, but of course realising this value is not under Rockhopper control. What risk factor one applies is a matter of judgement, but my opinion the market is very clearly overly risking Sealion.
I would also note Rockhopper have some longstanding Institutional shareholders, one of whom I had dealings with a few years back. Very savvy guys, and I take comfort seeing them remain on the shareholder list from a far higher share price.
Sealion remains a new development in a new oil province which has risks in itself over and above the project risks outlined above, however I hold Rockhopper and remain comfortable doing so. BUY.
Premier has dug itself out of a big financial hole in recent years by a combination of a good debt for equity deal, recovery in the oil price, but also very good operational performance of the Catcher project in the North Sea, which is a traditional FPSO project. Premier has commented a number of times very positively how the Sealion project is technically very similar to Catcher.
Premier have demonstrated clear ability to do both sale and purchase deals and fund new projects, despite the constraints they operate with as they pay down debt, and they have acknowledged the potential to sell the Zama asset. To me Premier have positioned themselves as Operator whenever they can ā non-operated assets have featured highly in their disposals. With Zama being non-operated monetising this asset by way of sale would be consistent with recent moves. I am not sure what the carrying value of Zama is but it looks to me to be around the $150 million dollars. With some 810 million barrels gross P50 (202 million to Premier), I can see this asset having a value significantly greater than carrying value. It can be sold for cash and profit booked.
Even if Premier can book profit and raise cash, why sell Zama to develop Sealion? First and foremost in my view is the asset value carried on the balance sheet. The 2018 accounts declare $648 million of balance sheet asset in the Falklands. That is a very material chunk of the total assets. If Premier do nothing with the asset, then at some point this would need to be written off. That would hurt and is a real incentive to get Sealion moving. Premier will be the operator on Sealion of course.
So I can see very good reason why Premier will take Sealion forward, and I can see financial options to make this happen, but i think a further twist will occur prior to FID.
I have long held the view that a 3rd party will farm into Sealion. Premier has stated that is their wish, and I can see to Rockhopper taking part in a farm down has significant attraction. Rockhopper has 40% of the Sealion Phase 1a development, but 64% of the later Phases. These include the Isobel / Elaine complex where oil has been found, but further appraisal is needed. Fundamentally Rockhopper has always been an explorer and having cash to drill wells will always hold attraction. So I can see Premier farming down to cover the equity investment required, over and above the vendor and export credit guarantee funding, and Rockhopper farming down to get some cash to drill more holes in the ground. Of course an incoming partners gets a slice of the reserves post FID and a slice of the appraisal and exploration assets.
The final shape of any deal is pure guesswork at this stage, if only because Premier and Rockhopper agreed in 2106 that Rockhopper would pay offset development carry fees to re-set the Phase 1a returns at 50/50 NPV. I can see all of this being up for grabs.
My calculation of NPV10 to Rockhopper of just Phase 1a is a very large number