Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I meant to add that SDIP is the UK version. The original is the US ETF, SDIV. The only place I've found which offers proper div info is Dividendmax. Other sites give SDIV info in USD which is not helpful.
It's a young ETF but seems stable. Fingers crossed!
TerryM1, O&G is still a growth industry for those co's positioned correctly. Exploration, acquisitions, improved production through technology etc allows such co's to grow market cap & eps. As with any investment it's a case of choosing the right co.
Is the tender not another way to assist the availability of shares for the US market where there are more buyers? UK institutional shareholders have lost faith in the company hence the ability of the Hedge funds to short a fundamentally sound business.
Thank you pickedpeck for your post-a good clarification of DEC's field of play. There are millions of stripper wells in the US & Canada that produce little individually, but a significant amount en masse. Opex is very small with no rigs required for workovers & servicing done by local, cheap contractors.
FIL just doubled their stake to over 10%
New Study Reveals Key Factors for Estimating Costs to Plug Abandoned Oil and Gas Wells
In their analysis of the 19,500 wells, the researchers at Resources for the Future (RFF) found that:
"The median cost of plugging a well without restoring the surface is about $20,000.
Plugging and reclaiming the surface around the well—which may be done for aesthetic, environmental, or job creation reasons—increases the median cost to $76,000.
Each additional 1,000 feet of well depth increases costs by 20 percent.
Costs of plugging wells goes up with the age of the well itself—Compared with wells that were more than 60 years old when decommissioned, wells aged 40 to 60 years old were 9 percent less expensive, and wells aged from 0 to 40 were roughly 20 percent less expensive to plug.
Natural gas wells are 9 percent more expensive than oil wells to plug.
Upon further analysis of almost 4,000 contracts, it appears that contracting plugging efforts in bulk pays off—each additional well per contract reduces decommissioning costs by 3 percent per well.
The paper focuses on orphaned oil and gas wells in Kansas, Montana, New Mexico, Pennsylvania, and Texas. These states were chosen because they differ in terms of geology, history, and regulatory structure, which helps ensure that the data is representative of more than just one region. Notably, there are significant differences in decommissioning costs across states"
So, in a significant dataset of 19,500 wells spread across many states the average plugging cost was $20,000 per well without land reclamation etc. This supports the DEC numbers. The research is from a non-profit, independent organisation which focuses on the environment i.e not oil industry shills
David I know that companies have suffered severe SP drops in the past but perhaps I am being unclear in my question. The drop was 17% when I asked my question. If the SP continued to drop at pace, at what point would they suspend trading in the share? 20%, 30%, 40% or what? Does the LSE have protocols for this that are specific?
This is it:
https://mb.cision.com/Public/22548/3877836/9f27750820c4ef3a.pdf
Https://www.voxmarkets.co.uk/rns/announcement/2c40747f-8156-4d63-b166-349ed88908dd/
Trader, why would they do that? The cash will be used to develop Toliara (if the approvals come through); if not, they may use it to finance an acquisition. With Kwale finishing it's either Toliara, acquire another co., or dissolve BSE.
Pikeman, I fully agree with you, the Oak Bloke's analysis clarifies a lot of the fog around DEC's accounts. A very useful piece.
Here is the link for others to access it:
https://theoakbloke.substack.com/p/dec-the-halls?utm_source=profile&utm_medium=reader2
Terry, There are currently no individual shorts >0.5%, which suggests there is little to no institutional shorting. If the market thought DEC was in trouble then the institutions would surely be making larger shorts. The fundamentals of DEC are good & that is why, I suggest, there is little shorting. The market is currently poor but NG buying is starting to rise going into winter. High interest rates & the concerns over recession are driving down the market,particularly for commodities.
Thank you Jim. The problem with many BB's is the feverish approach of the participants. As you say, look at the company's fundamentals. Is it a good company or not? Pretty much everything about DEC says good. Is the investment climate good? No it's not. Maybe that's got something to do with the SP dropping. People need to spend time with the fundamentals & stop panicking over the temporary gyrations of the SP.