Member Info for oogleflugal

Caza Oil & Gas Second quarter results from Caza this morning unsurprisingly show a fall in revenues due to the oil price and reduced production volumes as the company cut back on capital expenditure until ‘operational costs adjust to appropriately reflect the current pricing environment’. The average price of oil in the 2nd quarter was up 24% on the first quarter but is down 46% year on year and this quarter will clearly be down again. The company note the drilling activity on trend with and in close proximity to their own Bone Spring lease blocks, these have confirmed three of four potential horizontal Wolfcamp targets in addition to traditional Bone Spring targets. I have seen the maps and the drilling activity around here and it gives significant cause for optimism should things look up and it does have positive ramifications for Caza’s asset inventory in due course. The market has been concerned about the debt situation at Caza and in this release the CEO explains that the board is currently ‘actively considering all available financing options’. They are in ‘advanced negotiations with a proposed financing partner to establish a funding strategy’ which if it goes ahead should provide more financial security and an ability to retire existing commitments and fund development of the Bone Spring assets. Obviously in current market conditions these discussions are difficult and constantly changing which is why the share price is so low, despite this I am of the view that if Caza can work out a financial restructuring then the asset base is significant and will deserve a market cap well in excess of the £3.9m afforded to them at the moment. I will comment more after I have spoken to the company direct. - See more at: http://www.malcysblog.com/2015/08/oil-price-ithaca-ophir-caza-sundry-fraccing-iog-soco-and-finally/#sthash.TOokESPW.dpuf

For a start the management are all pretty well off. They dont have to sell. No company will be able to force a buyout. At worst I suppose the management could consider it, but I have faith that they wont. The market knows there has to be more funding, and until that becomes clear there arnt going to be many buyers right now.

Business as usual with the results of the general meeting just published. Most votes about 90% in favour, though the consolidation at boards discretion was quite a bit less for some reason. There is a lot of discrepancy between the sp recently and Mr Fords appraisal of Caza, 'robust', 'in a good postion to weather the downturn' etc.I know he has to fight his corner and remain positive. The big concern is oil price recovery loosing momentum against how long they can hold on for. Awaiting their London visit now

dont think it will do any harm. The capital value stays the same it just means ther will be fewer shares. Companies do this to try and stem volatility,loose the penny share stigma, and make them more attractive to shareholders. It has worked quite well for some companies, especially Anpario. They were at the same sp but only went for a 23 for 1 consolidation at 3p to 69p. They now trade £3.5. They had no debt and in a different sector. So caza would trade at£1.80 and brings the share count down to around 4,000,000. They could then raise some dosh presumably with a placing.which would probably be a better deal than going back to yorkville again. I'm sure Ford said $60 per barrel was profitable. So they should be able to get on with drilling. Not ideal but in present climate should keep them heading towards their objective albeit it at a rather slower than desired pace. I'm sure someone will correct me if wrong, but in the absense of any news I can only summise. The fact remains they have valuable assets. GL

Staying onshore but in the US is Caza Oil & Gas which has, for its size, one of the most valuable positions in the Bone Spring play which gives it flexibility and a strong competitive advantage. Also well hedged, Caza has already seen its costs falling and as its acreage is mainly held by production it has the ability to divert money to opportunities coming up, some of which have never been seen before in this play. - See more at: http://www.malcysblog.com/2015/01/oil-price-the-bucket-list-and-finally/#sthash.h8zLsazr.dpuf. SInce then not a great deal has happened, except a contract expired, took out another yorkie bar, and paid themselves in shares. Malcy went over to see them amd said he would look at them in depth shortly. That was about three or four weeks ago. Could mean one of several things I suppose. Most likely there isnt much to say until conditions are favourable to start drilling in earnest again.

Exon gyana find driving NOP sp apparently, but advises against chasing sp much further. If its worth anything, it will be worth quite a bit I would have thought. GL all!

But only 7% Faroe. hardly shattering, and the news has been leaking out over the preceeding days. Two wells to follow at Pil with 25% share wiil be slightly more important. In the old days this page would be overun with comments. Actually its always been quite subdued here now I come to think of it. Seems like painfullyslow progress, but no point in rushing things at the moment. Our bank govenor says 'enjoy deflation while you can!' Thats quite ambiguous in itself.

I like your excitement. The oil price is creeping up, which must help a little. But they have some major announcements to make to clear the air re funding and near term work schedule. I hope they have something to back up the inference that they were looking for acquisition still and not just wishy washy jesturing.

water off a ducks back. Particularly interesting the differences of opinion about nomads and Lenigas between the banker and Bell. I think Musgrove gave a useful historical background to the Weald basin and the licenses, and about the possible drilling requirements. I fear Mr and Mrs green wellies will not be best pleased, in the unlikely event it gets through planning. A total shambles, but what else does one expect these days. Whilst people should be wary of the risks involved here, AIm are letting investors get screwed by deliberately misleading information, ramping and outright lies, and thats not good for the very few genuine companies either. Aim has a crap reputation now and it will be a mountain to climb to restore any respect.

re the sale of nop's uk interests. A discussion with Derek Musgrove and Andrew Bell of Regency Mines on Horse Hill. Two commentators who have seen their own companies' share price collapse by 90% or more. Whoever is at fault Aim regulation needs sorting or in the long term it wont survive. https://www.youtube.com/watch?feature=player_embedded&v=LSN3c6ajEIM

Its quite possible that sum could be right. the problem to me is how much is it likely to cost to prove it. Keith has talked about monitising Gyan and walking away presumably, but I doubt they will get their expenditure back if anything. None of the partners are obliged to buy. canadas looking tight. Italy looks like it always does. why after all this time of saying they are sitting on great assets are shell only interested in the most recent licenses there, and how much is in it for NOP? After trashing the books the market is only interested in one thing, balance sheet.

lenigas is more gas than oil. One of the very few things TW has been right about is the hysteria by the media, jumping on the fracking bandwagon, which of course is being strenuously denied. Even if Horse hill turns out to be commercial they are talking about a ludicrously small amount being recoverable. No, even Mussie cant have been that dumb, can he?

Lets hope they are serious about 'robust', 'finance facilities' and 'opportune acquisition.' malcy seems to have gone very quiet on caza since saying he would be talking with them. Perhaps they just dont want to talk right now, but Canada seems to think the future is not over yet!

nothing ever seems to stack up with caza. The Beaufort note is indeed strange, also talks about large funding in place, which it is and it isnt, unless they are ahead of the game. Malcy maybe able to shed more light on this soon. Ford is one laid back cookie if this is going tits. They know they are on something big. They have a great operational team who I have met. Their families all have a stake too, not that makes it fireproof, but the Ford keeps saying Caza is robust and profitable in todays market. That would be misleading the market if it wasnt.

from the presentation, the majority of Caza's Permean acerage is derisked.

Tradenor has a point, and indeed backs up what I mentioned as per Fords presentation in December when he quoted acres in the Permean basin selling for between 20 and $30,000 and acre. I havnt seen much ramping here, just trying to stay positive when many are trying to go for worst case scenario. It s tough, but to call the management ass is a little disingenuous to put it mildly. As arminious's post states 'the decision to hedge 80% of the oil and gas production in a volatile commodity pricing environment, speaks volumes about the business acumen of the management. We believe Caza is likely to become a prominent energy player given its strong and diversified asset base and substantial funding facility.' I hope we can stay calm and not get like other boards when the chips are down, GL

They are looking at many options of refunding including replacing Apollo altogether, not least because the current environment may throw up opportunities to make value adding aquisitions. Apollogies for not being negative.

Verony. Even the Saudis cannot continue oil production at this price for ever. The price has to be above production costs eventually at the very least, otherwise who is going to finance this new production? Unfortunately at some point there is going to be a very sharp reversal in oil price as the western economies are based on idiotic wild swings of the free market.

Just in the Permean basin Caza have around 4,800 acres, for which new entrant bigger companies pay $20-30,000 per acre. That makes around $100,000,000 worth of licenses at the lower end, then there is oil production on top of that. Whilst its an uncomfortable time to get through, I think its a bit early to say there will be nothing left for shareholders. Malcy says he's off to visit Caza next month

He is an expert commentator, and I agree that it is up to us whether we take anything from his comments. I am glad he clarified his opinion, because the previous one (after supposedly having spoken to the company) was a little ambiguous, using a rather limp football analogy. I still fail to see why he would put Caza 'on the subs bench'. If its going to take longer to reach their goals so be it, but its no better for any other small explorer, and as he has often pointed out, Caza are in pole position when the oil outlook improves. So it was good of him to reinforce his support.