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Nice director purchase to kick start what should be a run of positive news in the coming weeks.
A reminder,
https://www.proactiveinvestors.co.uk/companies/news/990772/southern-energy-corp-reports-3-6-million-of-adjusted-funds-flow-from-operations-in-q2-2022-an-increase-of-490-from-the-same-period-in-2021-990772.html
Always intruiged when ex-shareholders who have previously been silent, start bad-mouthing a company they no longer have a financial interest in.
Strange behaviour, but I suppose in a period when the SP has been adversely impacted by low volume sales it is worth noting their belated commentary.
It is also worth noting that low volume trading suggests the UK placees, who have been free to sell since the placing, dont appear to be in a hurry to do so. Perhaps Babe and Hebridean have not got their message through to them yet.
Not at all Babe. I'm simply someone that is invested and that believes the growth plan laid out by the company, and that starts next month, will see SOUC's share price more than recover the pre-placement highs.
You on the other hand don't seem interested in that plan, or the global LNG market or the increased revenues that will be announced end Oct.
No your take is that the company cannot be doing well but you are unable or unwilling to offer justification of that sweeping statement other than to point at the current SP.
I'm wondering if the recent dramatic drop on low volume sales might indicate a concerted effort to short the share price? Now I wonder if any newcomers to the thread, one of whom claims to have sold-off their holding could shed any light on that possibility?
Average volumes ...not average bonuses???
Precisely Tom. It is a matter of the record that drillingbrigs have not been available until Oct and SOUC were up front about this when announcing the pending (contracted) drilling campaign. Similarly it is a matter of the record that Q3(July-Aug) results are normally published end Oct. That can be checked on the financial results section of the SOUC website. The Freeport story is also well documented particularly the timing of the restart. The increase in gas flows from Gwinville can be seen on the Mississippi Gas & Oil site. These are all facts and not inventions as some are implying.
Patience will be a virtue here. In fact the SP was trending back towards pre-placement levels before panic set in amongst a handful of sellers. I doubt there has been more than a couple of days trading where average bonuses have been exceeded in several weeks.
Well if you bothered to read the thread you would be aware that rigs Re contracted to start drilling new wells. Gas prices are way higher than 12 months ago and SOUC are getting a premium on HH prices. There is a global shortage of NG. The issue at freeport is common knowledge. So yes there is concrete evidence of everything I have said. You may even notice that I warned of a lull in news leading up to next month several weeks ago.
The share price being down is not an indicatorthat the company is doing badly it merely reflects the recent low volume trading as I have previously indicated.
Maybe you should DYOR starting with a careful reading of recent RNS messages.
Your evidence the company iis doing badly being what exactly? Presumably you are aware of something concrete?
Another significant drop in SP but entirely driven by small volume sales from retail investors both sides of the pond. This has driven price down 15% this week.
I can see profit taking will have motivated some of the recent small sales however the fundamentals have not changed here and we are only weeks away from a tranche of good news. The current SP is ridiculous, doesn't reflect true value and will reverse very soon.
-Drilling to start on new wells in a matter of weeks
-3Q results (reflecting both high gas pricing and higher flows from Gwinville) by end next month)
- Restart of lost LNG capacity (Freeport)
-Onset of winter in Europe to drive LNG pricing still higher.
A bargain at current pricing and am increasing holding att these prices.
Hi Tom,
The recent drift lower has been on low volumes withh MM's knocking the price down on liquidity. Always amuses that they see low liquidity as a negative instead of viewing it as holders unwilling to sell but there you go.
Too many positives in the pipeline for this to stay where it is much longer. A couple of step changes coming hopefully.
Low volumes so can but assume that is why they are knocking 1.5,% off the SP. Bought value more than double sold value this morning.
Knocking the price down by >2% on very thin trading by retail investors possibly taking profits because the price rise has temporarily stalled. Outlook here remains very strong. Transco trading at higher than Henry Hub and was still >$9 yesterday. Souc getting a healthy premium on that Transco price.
Don't expect much of consequence to happen until Oct when we should get new drilling commencement to be followed by Freeport capacity back Oct/Nov. See this close to £1 by year end.
Will increase the demand for alternative sources of natural gas, but that will particularly apply to sources near liquefaction facilities. Should provide a driver for London to close the 5% gap with Canada today.
There should be a nice Xmas present in the making for Souc shareholders. So many positives to look forward to with a new drilling campaign just weeks away followed by winter gas prices and reopening of Freeport. Expect the £1 per share level to be tested if not broken. Sept likely to be the lull before the storm.
GLA & DYOR
Sold my holding months ago due to the LOG overhang combined with their operational ineptitude . Switched over to SOUC and have not regretted that. Expect to bag on them by year end. Broker targets are 3 times current value.
https://www.malcysblog.com/2022/08/oil-price-southern-energy-scirocco-and-finally/
Thanks for posting the 8C update Viable. Having brokers (8c and Canaccord) rate souc as a 2/3 bagger in a year is very encouraging . I can see them revalue even higher as gas prices show no sign of peaking yet.
Good luck with PTAL today. Another set of stellar results!
Wow, what a year, on 10th August last year SOUC arrived on the Aim market at 40p and without anyone knowing much about them drifted for a while down towards 20p. But since then, as they outlined their strategy a number of people including myself realised that this is no ordinary play.
Since then they have completed the initiated planning and procurement for a multi-well program to follow-up on the successful appraisal program at Gwinville and then completed a financing to accelerate the programme. Raising in Canada at C$0.87 and in the UK at 54.5p the raise was over $30m and the first well as can be seen above was a success and significantly increased production with concomitant increase in revenues.
The company have clearly got a world class asset at the Gwinville as well as the rest of the portfolio and will be in the market for other assets in the Gulf Coast area of the United States and I can see huge upside for the company.
The shares have performed pretty well, they are now above the price at the raise and at 62.5p I consider them to be excellent value, with such an exciting portfolio in the right post code, a top quality management team and now strongly financed leaves Southern very well placed.
Whilst you casually forget the share price is up about 15% since you started telling us the placees are having a fire sale.
@10:49.
The trading today looks to be predominantly retail traders pocketing a modest profit. With just over 1 million shares traded (less than 1% of issued shares). It is difficult to interpret that as 'placees flipping'.
Some modest profit taking was inevitable today but even so it would be prudent to await the reaction on the TSX before drawing conclusions about the SP. There is still a gap to close to the TSX and those placees are locked in.
I just don't see a rush of placees to sell. Not with ever increasing gas prices , Freeport reopening soon plus new wells on line by turn of the year.
You seem motives to push a narrative that has no supporting evidence.
Sales for last 3 months up ~250% on last year. Debt reduced by approximately 12%. Adjusted funds from operations up a phenomenal 500%. Confirmation of near term drilling program to further boost production by end 2022. There wont be many companies growing at a comparable rate in the current economic climate!
Onwards and upwards!
The delusion here is your conviction that you know the identity of the few sellers. You were posting similar messages of doom and gloom a week or so ago when the SP was 10% lower.
The H1 results tomorrow is just the first of several imminent SP catalysts. I have mentioned these to you before. No doubt some placees might sell if they meet their price targets tomorrow , but I expect many more will sit put or buy in anticipation of what's to come over the next 2-3 months.
I