Member Info for restingpilgrim

Genghis I thought SB said around 20 million dollars to built a small plant on site to prove the process , I cannot remember where I saw it

SB confirmed in the interview that the find held billions of tonnes of titanium bearing material but one of the first things to do is to establish in what form it comes in. If the material cannot be extracted on a commercial basis then it does not matter how much of it is on the ground as it is worthless. I expect in the short term we will get reports of the make up of the titanium oxide. He said that he expected the extraction to come in the form of gravitational and magnetic extraction and then processing to make a sellable product and he did not think the sellable product would be a t the lower end but more to the upper end of the price range, It is with this in mind that the recent hires with their expertise were made. Laboratory work will take place until they can come up with an idea to make a production plant in situ to prove it all works before moving to large scale production. I assume that they are confident enough that this can be done hence the further drilling so they can start in a place with higher concentrations . It is also good they are doing this with proper care and not just charging in spending the money they have raised in my opinion.

Anyone who listened to the interview knows that the Saudi Investor does not represent any interests other than his own and indeed it was said that he was one of the initial investors in the company and was an existing shareholder.

As a matter of interest where do you think this share will go if it can be proved that the find can be proven to be commercial @LoveHandles.

Surely if Marathon were that interested in the lands they would have put up the capital for the deal we are getting after all it is quite small considering their valuation.

When one goes back to the directors talk interview with David Sturt in January 2022 and the optimism for the future of this license it is heartbreaking to see where the situation is now, I long ago viewed my investment as a write off but so wish that things had turned out differently (not least for the Ukrainians because all I have lost is money) for all the effort that the management put in to turn the company around. Now we have a trading company on license 61 applying for bankruptcy and a good looking license being sold off for peanuts compared to the predicted reserves and potential revenues

License 61 is 50 % owned with OIl India and I am sure they would have taken it on if it was worth anything do not forget that the license has struggled to make any money for some time and although it has potential it is currently in a position that no oil is being produced due to the pipeline dispute. Licence 67 looked to be a game changer for the company with the potential to build many producing wells over the next few years but again this has all stopped due to financing problems because of Russia's Invasion of Ukraine. The company could have had a very profitable and successful future with the current management who I feel vey sorry for as well as the Russian staff who have put so much good work in to turn the company around. Now it is likely that the company will get suspended as we have no auditors. Many brokers have suspended all trading in the share so your expectations of a multi bag are very unlikely and those of use that have been here for years find a slow and painful erosion of value.

Sale of Licenses involves big payouts to lenders as well as loans being repaid

Rather looks like the company could be heading for a suspension because there has been no news about the appointment of an auditor after the previous ones resigned due to the Russian connection

Yes it was interesting to hear if decisions go in their favour the Russian companies could be in a healthy position but Petroneft itself could end up suspended

The problem with selling the fields is that not only the loans have to be paid off but also the 5 million that Petrogrand is entitled to if the licences are sold before the end of 2024.

Not nice to see ones hopes disappear due to the actions of Putin but I cannot see a way out if we cannot even raise funds for the development of licence 67 .
Best hope is that Oil India decides to take it over based on the Miller and Lents reports as that showed massive potential even at 65 dollars a barrel and it is likely that only Indians Chinese or Russian interests would consider it

I expect any buyer to play hardball and expect shareholders to be wiped out

Russia invading Ukraine means all assets in Russia are out of favour. PTR is in partnership with Oil India on on lease and also has Russian shareholders. At the end of the day it all depends on how risk averse you are @small-time-chap. If you do not like the risk you may be better off taking your losses and move on. If you stay you could lose it all. I am prepared to stay long term and have already had shareholdings for many years. Remember most production was sold on local markets and those prices are still above the figures used for the Miller and Lents report which suggested good cash flow and profits . All we do not know is how well the production is going and what difference sanctions are making to maintenance. It is understandable that the board are not giving updates currently and one assumes if things were materially different from earlier news given they would be obliged to issue an update. Also the board here are large shareholders in the company so have a similar interest to us "normal" shareholders.

I would have thought that we should be due an update on the Reservoir Stimulation programme very shortly as I imagine it should be complete by now. It would also be good to get an update on production figures and confirmation that the production is being sold. The current prices even though lower in Russian markets would mean plenty of cash generation. Current prices are still well above the figures used in the Miller and Lents report.

I am trying to buy some more of these but I am being told that I cannot due to Russian restrictions applying to the share. Is anybody else having this problem ? The share still seems to be traded on both London and Dublin exchanges.

I know that Russia is finding it hard to sell oil on the markets but a lot of this is due to the fact that ships will not go in to the Black Sea as it is not safe. Also you cannot get insurance in a war zone. I feel that decarbonisation policies will hold back the opening off new sources to replace oil from Russia. Also banks are not financing a lot of oil projects as policy.
Oil has already breached 110 dollars and could run rapidly towards 150 dollars a barrel. If pipelines in Ukraine are damaged then surely the price of energy in Europe is going to increase to a level that will cause a leap in inflation.

The Russians are still selling hundreds of millions to Europe and gas supplies jumped enormously through Ukraine in the first couple of days, UK does not rely on any of this and so I have a feeling many European states will not agree because OPEC has already said it cannot replace much of it.

If you are risk averse then this is not the share for you punt on

There have been some chunky trades over the last couple of days. Hopefully they are buys from close holders.
It is amazing the way the shares have fallen though because even though heavy sanctions are in place it is not like the assets are in the Ukraine, they are in Russia and we have some big Russian holders of shares.
I think I will look to take a gamble soon at these prices because if things work out they could be a bargain but I guess one has to be prepared to lose it all

Hopefully this will not end up in a full blown war between Ukraine and Russia and the loss of life will be minimal.
As a long term holder of Petroneft I hope this is just another bump in the road because we finally have a management team to take advantage of the assets we hold.
As I posted in an earlier post as our assets are in Russia I would not expect any interruption in the planned programme providing cash flow has been solid over the last 6 months or so.
I believe the share price is just being punished because of where the assets are rather than anything else.
I will keep holding for the hopefully long term benefits

I doubt that sanctions will have any effect on the programme or the plans. Russia will still be able to sell oil even if sanctions take place. It would possibly make transfers of money between Petroneft and the operating companies a little harder but I would hope that with the recent hike in prices it will have improved cash flow and thus the operating companies will have sufficient capital to proceed with the planned programme on both licences. The company has a good team in Tomsk and also we have several large Russian shareholders and board members who would be well able to keep an eye on the ground.

I understand that a directors buy inspires a bit of confidence but the reaction to Mr Jersing buying 20 grand of shares seems a little over the top when the directors currently own over 27% of the company . I hope it is more than this which is causing the share price to recover a little.

Once the board show they are capable of upping production and the market accepts that their plan will work with regards getting the oil out of the ground I expect this to get the rerating it deserves, Fingers crossed for a nice ride over next couple of years that make long term holding worthwhile