Member Info for NorthernMagic

that making real progress for a company in the O and G industry must by definition be a function of successful drills and production or acquiring production that no longer fits into another company's portfolio but would fit well into yours.
So, President has, supposedly a strategy of looking at possible acquisitions when the fit is right. As far as I can remember it has talked about such acquisitions but I don't believe it has yet made one. Moreover it has talked about doing so for a number of years. This still I believe is part of there strategy - I'm pretty sure I saw it mentioned either in a recent presentation or comments on an RNS and I'm sure it mentioned not just acquisitions in Argentina.
So, you could argue the fit isn't right as being the cause. Now though they have a board member of Trafigura on the board, so surely that must help. Whilst President have done nothing in this regard other company's have picked up acquisitions, or shares in production. Hence my frustration.
When you tell someone you are going to do something that would have beneficial results and year after year don't do it then you start to believe they aren't going to do it. It might explain a little as to why we have the current sp we have now. There hasn't been enough to move the production of the company forward and increase revenue and then expand further!!
Maybe we will have success in Paraguay but this acquisition "policy" sadly just doesn't appear to be working.
Atb,
Northern

Forgot to mention - cash bank now in operation :-)
Atb,
Northern

and something tells me there is lots more to come.
Atb,
Northern

Hi scriven,
Whilst I agree some patience is required I believe the raise was to provide the cash flow to allow things to happen more quickly. Deal now very nearly done - then day by day will get the money to invest and I assume the Paradox will then be able to be developed more quickly.
Plus they have a JV with a firm looking for great deals and the CPR due out soon with presumably some headline figures.
So, yes some patience but some companies don't appear to achieve what this company have done in much longer time scales.
Atb,
Northern

My hope too tom111. Time will tell.
Atb,
Northern

Thanks tom111,
Appreciate the info. I suppose regardless of any rules, or ways of estimating the market cap all that matters is the current market cap and what the market thinks it is worth.
To me though there is a bit of a disconnect between the market cap and the near term production and current prices, let alone what I think most of us expect to be big numbers in the CPR.
Atb,
Northern

Is there a rule of thumb method to get a market valuation of an O and G company based on production, revenue and reserves. Zephyr as far as I can see have(will have shortly) great production, revenue and when the CPR comes out a great indication of reserves which sound to be huge.
The market cap is currently £66m I assume the market cap should be higher but am not sure how these things are estimated.
Atb,
Northern

It would be really sad given all the activity last year and the price of oil and gas if the company only had 2 million dollars in the bank.
Will have to wait and see on that. Fingers crossed for Paraguay doing something as Atome hasn't set the world on fire.
Atb,
Northern

It's brilliant isn't it. So much more to come and you can't keep upping the production and the prices being so high without the sp following. Eager to see what that CPR days and to get the deal sign. Fantastic that once they get the deal signed they don't need to do anything apart from watching the bank balance grow and starting to use the money to start further expansion!
Atb,
Northern

I could be wrong but I thought it was 1st December. Either way as soon as the transaction is signed off we get at least 2 and a half months production and then from them onwards lots of revenue hitting the bottom line every day!
Atb,
Northern

with some big plans for drilling long laterals in this coming year.
The big question and I don't know how this one can be answered is can Falcon/Origin bridge the gap between the current 100-150 dollars to 4000 dollars plus per acre. It's a big ask but those are the numbers they have seen as their target for some years now. Time will tell.
Atb,
Northern

Great post V111JAS,
Totally agree with everything you say. It won't be long before(even without the Paradox) everyday they will be earning some great revenue!
Just wish I had some spare cash myself at these prices - talk about a disconnect!
The think I really liked about last night's presentation was it was so positive and all the decisions being made will be moving the company forward in the next few months and certainly this year.
I really liked the idea of the longer laterals too and I am sure if and when.they can There might be other details queuing too. This company is going places and if more people start seeing that then the sp will definitely be heading north!
Atb,
Northern

because of high O and G prices last year I wonder what President are going to do with their profits?
Pay down debt or make some acquisitions that they've been talking about for ages.
Time will tell but it would be good to have a few positive news items to kick start the sp whilst we wait for the Paraguay drilling to get started.
Atb,
Northern

VLLLJAS,
Maybe I got it wrong but I always thought the CPR report was due by the end of February. Anyway in terms of timing if you are a long term holder not long to wait. Coupled with the news in the presentation Ithink this will be a fantastic year for Zephyr. CH said he was proud they were the top performing share on Aim last year - so here's hoping they can perform a similar result this year.
Atb,
Northern

fantastic to hear the ambition of the company and the plans for both this year(those longer laterals sound exciting - plus looking for more acquisitions) and next with the expanding of the number of wells drilled.
Arb,
Northern

do you think it's a case of the market not realising what this company has already done and what will be happening in 2022 and the revenue stream that will be being created. That revenue too is heading for more production - and repeat the strategy. All looks good to me - just really surprised the sp isn't moving up. Must do in time - just a matter of how long I suppose.
Atb,
Northern

tom111,
Very much agree once they get the wells producing and the revenue rapidly increasing and the cash flow to invest in the Paradox and other projects I think there will be lift off. One great thing about the strategy is the mix of non operated and operated assets - a great way to spread the risks.
Atb,
Northern

Thank you,
Will have a look. Must have missed that.
Atb,
Northern

Hi Highlandmatt,
Very interested 're your comment about As a reckoning it is close to 4TCF. Before seeing that I thought I had seen nearly 2TCF. 4TCF is a huge number - do you have a link please to where that was discussed. Would be interested in having a read.
Atb,
Northern

hope that next week we are a good rebound in the sp - deserves to be much higher especially with the price of oil being so high.
Hopefully we will get some good news to see the sp take off again, to more like where it belongs.
Atb,
Northern