focusIR May 2024 Investor Webinar: Blue Whale, Kavango, Taseko Mines & CQS Natural Resources. Catch up with the webinar here.
Been waiting on this stock for a while, recent pull back from near 25p appears to be an opportunity and with broker target of 28p and potential divi's being considered, reduced debt, decent FCF and a solid outlook, I'm in.
https://twitter.com/surprised_trade/status/1790666125966970934
Fot those who were not follwing the story in the last year, production was reduced early due to falling gas prices etc as the company cut costs, protected reserves and ensured very good fiscal management....hence broker has raised target to 21p from 16p on the forward plans and ramping up production. Hope that helps.
Free cash flow (FCF) for Q1 2024 was $15.0 million compared to $9.9 million for the same 2023 period, elimination of all bank debt...broker has increased target to 21p.
https://twitter.com/surprised_trade/status/1790635709444792792
Slater Investments accumulated in #I3E last year - amongst other noted fund managers.
https://twitter.com/edcroft/status/1790009918356869358
Hi @surprised_trade
I've been taking a closer look at I3E over the last few weeks.
Given the $50 million drilling budget, I see the company exiting 2024 at a much higher boepd rate than is currently forecast.
There are some signs of life in the NG market as well. All promising for the company.
Hope to cover it in an article one day
https://twitter.com/KeelanCooper7/status/1789995580384493705
Stockopedia ranking increased to 90 as it joins a few others in the pf on 90+..........broker has 21p target..
https://twitter.com/surprised_trade/status/1789989860566094246
''For not a great deal of money invested, this acquisition serves up a useful synergistic add-on to the existing production from the Bretana field, but make no mistake it is for its almost immediate plans for development that has such potential upside.
In summary this is a perfectly good acquisition which is meat and drink for PetroTal who can add a combination of the production and upside from this deal and participate in the upside which could be substantial. I would expect more of the same if they were available.
This was a cracking quarter for PetroTal who have yet again delivered the goods across the board and added a ‘strategic asset’ which shows that the company are ready willing and able to add to the portfolio at this stage.
Production was in line and revenue and EBITDA was a highly creditable $71.5m both significant increases on 4Q 23. The acquisition looks most interesting and as I wrote yesterday give plenty of upside potential in many ways.
Whilst the shares have risen 25% from the years lows I am convinced that there is much more upside that the market has by no means taken account of.
My long running Target Price of 150p should have been reached and crossed by now and I could easily upgrade it based on the upside at the company. Accordingly the shares are amongst the most attractive in the Bucket List and deserve a significant rerating. ''
PetroTal is acquiring Block 131 onshore Peru including the Los Angeles field from CEPSA for US$5 mm. The field produces ~900 boe/d from 4 existing wells and holds 4.9 mmbbl of 40-45 deg API oil 2P reserves. We estimate that 3 new wells (at ~US$12 mm per well) could increase production to 2-3 mbbl/d. There are also opportunities to develop bypassed oil with horizontal wells drilled high on the structure.
We view this acquisition as very accretive on a standalone basis. It also offers important area of synergies that will boost the value of Bretana, ......This has positive impact on overall average netbacks as the Iquitos route commands US$6/bbl premium compared to the Brazil route. The location of Block 131 is of strategic importance, as it is connected by a 130 km highway to the company’s Block 107. We have increased our target price from £1.45 to £1.50 to capture some of the impact of the acquisition.
PetroTal also engages in significant local social programmes in order to help reinforce its local licence to operate. The company has a strong balance sheet, holding US$85.2m of cash (zero debt) at the end of Q1 2024, supporting ongoing CAPEX investment and returns to shareholders, with PetroTal establishing a regular annual dividend of 6.0c/share from Q1 2023, implying a 10% yield at current levels. As such, PetroTal offers investors regular drilling news flow, strong and growing production based on a material asset, significant cash flows underpinned by the variety of export routes, an increasingly established dividend, and a strong balance sheet.
On PetroTal’s Block 107 exploration asset, permitting activities are ongoing, in support of a potential farm out in due course. Overall, this is a further statement from PetroTal demonstrating the company’s significant existing production capability, higher potential on further drilling and export route availability, strong cash generation to be had from this, solid funding position that this creates, and capability to take advantage of this via operational execution. Going forward we expect more of the same – cash generation supporting both growth CAPEX and shareholder returns.
The 18H well is now approaching completion and expected onstream in mid-May.
Pilot exports via the OCP pipeline through Ecuador continue, with the potential for this to add 5mbbl/d of capacity over time. Efforts also continue to establish a new route via Yurimaguas later this year – a further potential 5mbbl/d. We await further news on these and any other new export routes, including potential greater use of Iquitos post completion of the Block 131 acquisition
'' In terms of the Q1 dividend, this is today announced at 1.5c/share (ex-dividend date of 30 May), in-line with the company’s established base dividend level. This further demonstrates management’s confidence in the forward cash generating capability of the business, and its ability to continue funding both growth CAPEX (even allowing for the increased CAPEX programme) and returns to shareholders. ''
''The erosion issues around the Bretana field site are more extensive than previously assessed meaning the cost of the remediation programme is now expected to be higher (US$15m of the increase). These issues are also expected to hinder.the demobilisation of the current drilling rig (otherwise planned for Q2 2024), meaning this will now remain with PetroTal and be used to drill an additional oil well and an additional water disposal well, in H2 2024.
while it is inconvenient to see the erosion CAPEX increased, the balance of the CAPEX revision is more of a rescheduling, bringing drilling forward. Irrespective, the new budget remains well within the company’s funding capabilities. ''
I have i3e in my pf too, re earlier post, i3e have capital costs too, have reduced their divi due to cash flow, drills halt last year etc and situated in Alberta Canada they are located in the wild fire zone that occasionally affects operations.
PTAL has risks, all stocks have risks, unlike many stocks PTAL are seriously cash generating, excellent divi with oprtion of special divi when cash exceeds $60m, well managed financially, adding growth, and no debt....a lot to like
With respect if river erosion is not dealt with their is no river and its a vital part of the business, all businesses have 'outside' costs as it's part of business, hard to find one that doesn't, many have debt costs, etc etc
Lets try this again -
Dividend has not dropped, it was raised last time -
''Maintaining a return of capital program consisting of quarterly dividends at US$0.015/share and share buybacks of approximately $1.0 million/month in accordance with the Company's return of capital policy;''
''10. Dividends are assumed at the base dividend level of US$0.015/share and buybacks are assumed at $1.0 million per month''
The base dividend is USD 0.15 as clearly stated, the previous slightly higher dividend was due to extra liquidity as staed in the rns and PTAL have just bought a new producing asset as of yesterday -''Based on the Company's current liquidity exceeding USD$60 million, PetroTal confirms that a cash dividend of USD$0.02 per common share will be declared and paid in Q1 2024. ''
All stated clear;ly in previous rns for shareholders
Dididend has not dropped, it was raised last time -
''Maintaining a return of capital program consisting of quarterly dividends at US$0.015/share and share buybacks of approximately $1.0 million/month in accordance with the Company's return of capital policy;''
''10. Dividends are assumed at the base dividend level of US$0.015/share and buybacks are assumed at $1.0 million per month''
The bas dividend is USD 0.15, the previous slightly higher dividend was due to -''Based on the Company's current liquidity exceeding USD$60 million, PetroTal confirms that a cash dividend of USD$0.02 per common share will be declared and paid in Q1 2024. ''