Member Info for marineclark

Well, if company A and B both have market cap of 53 million and A has debt of 20 million and B has net cash of 20 million, clearly B is better off assuming everything else is equal.

No one is saying drilling is not risky because it is. You only need to look at ADV which drilled an appraisal well, and the bad results- didnt follow it too closely, but I think the find wasnt commercial rather than a duster. It tanked 90 percent. Then on the other hand, look at CHAR and it 3-4 bags on good results.

Best option is a farmout for GPA, reduces risk at cost of smaller WI, which is fair. Can't have it all. The global conditions, price of oil and risk to energy secuity, provides the perfect conditions for a successful farmout. I would say GPA is price at nil, so upside will be massive when and if it comes.

....basically, it cheap as cheaps.

I'm using cash balance as at December 2021, so EV will actually be lower as it doesnt include profits since then.

EV = Market cap + net debt. In PMG's case, net debt is negative, i.e it is net cash.

EV is more useful than market cap in evaluating companies size, when it has large debt, or net cash.

The RNS rallied the Share price 25 percent on the day, sure it pulled back, but in the last few days sees the price approaching back up again. Clearly it generated interest.
The WI interest is what it is, whether its 2, 5 15, 50, 75 percent....... What matters is the income generated relative to market cap or better enterprise valuation. 100 percent WI in 0, is 0. For a small company, the revenues generated from that "small" WI is large relative to the size of the company. If PMG was a large cap, it would be peanuts, but who laughs at £12.5 million revenues, when the enterprise value of the PMG is currently only £29 million.
Not to mention GPA valued at nil atm.

https://www.parkmeadgroup.com/uploaded/research/FinnCap_Research_06072022.pdf

If only PMG owed 100 percent of the gas produced....

Put it this way, in another six months, at this rate, the amount of cash will be almost equal the current market cap, so all oil and gas assets, plus reneweable will be valued at nil. Clearly, for anyone who likes free money, now would be good time to buy. Obviously do at your own risk, the oil and gas assests could get hit by a meteor and be worth nothing, or an earthquake destroys the windfarms, but I must be a fool or a genius to be fully loaded in this, otherwise I would be buying more.

Goes up 25 percent than ends up 2 percent up on close. Bit sad really. At least the high volumes would have flushed out some sellers. The day will come hopefully...

Looking back just over 2 months the price hit 62p. No reason why the price can't get back up there in a few weeks. Its true that this share goes up and down, in fact within a long term symmetrical triangle i.e higher lows and lower highs, but eventually a breakout will occur. I had thought about trading this, and its possible depending on your cash needs, but as that triangle nears its apex, the risk of missing out increases significantly. In this period of high energy prices, that GPA farmout is beckoning... and when it happens, todays low price will be history.

Expecting a update/tip on Investor Chronicles from Simon Thompson shortly. He usually updates after a notable RNS. Should push up further the share price. Good RNS this morning. Once that GPA farmout RNS comes out, today's move will seem like nothing.

Strap in folks....

Price back to support again, so I bought back in. Price has been stuck inside a triangle pattern for a while now, but eventually will break out of it. In the meantime, I'm going to trade this instead of investing, which is what I should have done the last time it touched support and rallied only to pull back to support again.

There is a reason why its called investing. Not expecting the price to hit the risked price targeof 160p overnight, unless we get the farm out news of course. And speaking of fossil fuels, EU,UK are going to need every barrel of oil/gas it can get its hands on. The conditions for a farmout is never going to get better than now, which is why I don't expect to have to wait too long for some news.

Price still consolidating, but bouncing back strongly after the 50 percent pullback from the recent 54p highs. Creaping back up to 54p now. A run to 60p looks promising. Still someway to go to the risked 160p target, so lot of upside to come.

good find SOTB, reckon we should see price double instantly on farm in news, and then move higher thereafter. Any day now....

Simarly to JOG and CHAR which have rocketed recently, hoping for the same here. IF farmout news comes, expecting this to fly.

DYOR research of course. **** does happen. I bought in a 44p so happy with the profit so far. Happy to hold for a month or two to see what happens, and will decide when to take profits if and when a breakout does occurs.

Price has been in a rising triangle since March 2020 when it hit lows of 18p and is showing successive higher lows thereafter of 25p in OCt 2020, 35p in Dec 2021 and again in Feb 2022 - a double bottom, and more recently the 40p lows last month in May 2022.
Interesting to note that the last downward swing to 40p didnt touch the lower line of the triangle as in the past, indicating a possible breakout ahead.
As the price moves closer and closer to the apex of the triangle which is not too far off, expect to see a breakout of the upper line of triangle to the upside., beyond 60p.
This is a good trader's share. Catch the bottoms and the upward swings can be highly profitable. However, when it looks like a breakout is about to happen, best to hold on for longer.

Unrisked NPV is 1754p, 35 bags. Risked NPV 159.6p, a 3 bagger from current price.

GPA is the biggy. It may be true that the share price has moved within a range in the last 5 years (25p to 80p), but the difference now is the ukraine war and its effect and long term UK and global energy security. Which means that GPA farm out is could be any day now.

After the rally from 40p to 52p in the last week and half(including jubilee break), price is holding well and appears to be consolidating, a good sign of a pending move higher to the 60p resistance level in the coming few days/week. If we can break 60p then next resistance level is 75-80p. There is a good reason why the price target is 160p. With sanctions on Russian oil expected to last years, UK energy security means that the likelihood of a GPA farmout is dramatically higher. Also, with recession probably ahead, commodities/energy is the best place to invest because of the supply issues driving up prices and profitsand . I woudnt risk investing in any thing else. Not many good energy shares left out there with potential to multibag.