Member Info for phil45

2p resources are 82.76mmbbls if they sold today would probably get $2 per barrel that would be $165 millon which would be £118m and we are currently valued at £30million.

Slowly starting to get noticed that this under the radar company is producing 1200bopd with a development programme to be announced soon which is going to be ramping up production. The company has 2p reserves that other oil companies that are valued higher could only dream of. This should be trading at least 3x its current value, the potential to grow the reserves is massive.

Why do investors wait for the price to start rising before buying ? This company was valued at over £200m the previous board wasted money and effort with no knowledge of how to get the best from a massive resource that sits next to the 6th largest oilfield in the world. The largest shareholder got the old board out and bought in the experience needed to move this company forward, that tells you everything the largest shareholder did not just sell and walk away they bought more and between the board and tr1 investors 80% of the company shares are taken. So now valued at £30m with oil prices rising and a board that has already got the company producing more oil and reserves to be growing with exploration. This should be trading at least at 6p currently with potential to be double figures in the near future.imo... It will not be this cheap for to much longer.

From another board
Natlata own 26% of Petroneft equity, they have been holding a very long time and supported the company through a number of fundraises. Having taken a look at their purchases it seems their average is in the 5p-6p ballpark.
There is no doubt in my mind that Natlata want to exit, they were behind the management changes forcing the old brigade out initiating the 'for sale' commentary from the new incoming CEO in 2019.
Any offer would have to be agreed, 10p a share would value PTR around £100m, I believe this would be acceptable to most stakeholders.

Not a time to be out.

significant update missed by the market today - Workover operations on the L-2a well at the Ledovoye field, also at Block 67, had been carried out successfully, the company added. That produced an oil flow through a perforated liner, which should enable PetroNeft to book Russian state reserves, leading to the creation of development options for the field.
"The production from the Cheremshanskoye field is extremely encouraging, and clearly demonstrates the quality and potential of this asset," said chief executive officer David Sturt.

"It is satisfying to now have a cased hole test at the Ledovoye field.

"This successful re-entry crucially enables us to be able to seek State Reserves Committee (GKZ) approval - a major necessary milestone before we can progress development of the field."

Sturt said licence 67 was continuing to deliver, following PetroNeft's successful acquisition of an additional 40% interest, taking it to 90% from 50%.

"The strong operational performance, combined with the improving oil price, has significantly improved the finances of the company, which has enabled us to fund construction of the road and re-entry of the Ledovoye L-2a well without the need to call down agreed financing arrangements which now remain in place should we need the capital in the future.

"While we remain at the early stages of rebuilding, this achievement is a tangible demonstration of our improved financial position over the last 12 months. "This progress has been based on a laser-like focus on reducing costs and harnessing local expertise to maximise the return from our assets."

This article dated May 2019 confirms the plan, note they target 2 to 3 years, well we are now into the final leg of the 2-3 year timeline ! Recent debt conversion into shares by directors and others close to the company should tell you all you need to know. Irish exploration company PetroNeft Resources looking to sell-up Https://www.irishexaminer.com/business/arid-30922828.html

It would have been great to see the oil flowing without the water content however for this field it will be about the size of the resource if they proceed. The current production levels and known resource in the other fields should have this priced higher and with the board & tr1 investors holding 80% of the shares having also swapped debt for equity it will not take much volume to see the price at 6p+. This company should not be valued at £30m imo when you compare to others this should be £60m +. They have also managed to develop asset and complete this drill from generated cash and not take up the loan that for me is the difference and going forward the cash will now be used to get more wells in production on the other fields.

Fantastic RNS with cash in the bank now that is going to increase to help develop the already in production fields. Really impressed with the board and management team the re rate continues.

I have slowly been building up a significant holding within Petroneft one of the major reasons is that 79.3% of the shares are held by the board and significant investors see link below -

http://petroneft.com/investor-relations/share-capital/

They also now have a board that is aligned with significant holders that know how best to create value for shareholders.

Find me another company that has such a low free float, 3p will soon be gone.

This is a 12-36month investment massive potential with great board but other options to make a quick return and head back to zphr in a few months are too good to turn down. I have been invested since 0.8 and will add further in a couple of months.

Posted on another forum worth a read -
Russian Domestic Oil price hitting 12 month highs once again, this is very beneficial for Petroneft. As a result of high oil prices Rosneft returned to profit recently. Https://www.themoscowtimes.com/2021/05/14/russian-oil-giant-rosneft-back-in-black-as-prices-recover-a73903 As others have pointed out I believe the next update will be very material for Petroneft shareholders, the remedial work on well L2-a is ongoing with results expected by end June. The well in question has the ability to seriously change PTR production profile, putting it close to the 3000 bopd attained in 2012. It is worth noting that the last time Petroneft produced 3000 bopd they were valued at £224m, appreciate things have changed but it gives an idea of future prospective upside. It is obvious the current market valuation of £34m is totally out of kilter to forward production plans, reserves, possible corporate activity and the rising domestic oil price. The new management team are not messing around either. I have not been so excited about PTR as a investment proposition since I was buying at 9p in 2009, sold at 55p 18 months later, I see a similar percentage move in due course. Took some more stock on Friday.

When mm's have to delay showing a trade for £7500 that was a buy and then move to nt after 2 trades next rise to 3.2 should be very soon. With less than 30% of shares available to private investors I am holding mine tight.

peers are valued circa £60m-£90m based on current production of 1300 bopd - would equate to 6p-8p per #PTR share - even allowing for 'Russia discount' the shares are miss priced by the market

This is looking strong at this level now and Zac has called this every time and looks to be right again with charts pointing toward 4-4.5p. Continue to re rate back to fair value still way undervalued.

Looks like sellers are done at 3p, with not many shares in free float this will move up quickly when investors do the sums.

your right Bhoys do your own research is always the best way to make money. Like you spotted this little gem just before 1p and continue to hold as its got a lot more to go.

Agree Don, like I have already said further down you do not see a board and large investors that have the majority of shares then going on to swap debt for more equity. I like to see confidence from the board. Also tidying up of L67 ownership!!

Yes Don I have added a few so they are in very sticky hands but looks like others are doing the same. My comment re sticky hands was about not many are wanting to sell.

Looks like more shares are ending up in sticky hands, with increased buying pressure this will climb quickly. I take a lot of confidence that the board and tr1 investors hold 70% of the shares.

Already producing around 1200 bopd they now have the roads and facilities to ramp up production which at current oil prices with known reserves has not been taken into account by the market. Also how many times do you see a board and tr1 investors who already own 70% of the shares swap debt for more equity. They must be confident of something happening soon !!!