Member Info for surprised

The economics of Labours North Sea tax grab simply do not make sense, it's likley to be vote catcher for their greenies, but reality of UK business reducing output and tax take, moving Uk business away from UK, job and skill losses and a fight with the unions and maybe not just in the oil and gas sector (health service is rumbling at their plans!) whilst their plans also ensure increased imports and greater emissions it would seem a huge reality check will be needed by Labour, the Tories policy is half baked the Labour 'plans' are simply destructive and based on a complete lack of understanding of business, economics, energy security or of how to generate income from tax !

Labour can say anything in opposition, figures and facts matter more when actually in government and economic/market factors usually win.

Interesting interview below as Fund Manager states Premier Inn generating very decent profits etc and is clsoe tot he Holy grail of top quality and value with only The Hilton marginally ahead on customer rankings with Premier Inn ranked multiple times higher than the competition. Germany building and once brand is recognised should be off to the races with prudent management of costs.

Fund Manager Michael Ulrich of J O Hambro Capital Management invested in WTB

https://www.youtube.com/watch?v=XEmF7KYjOE8

The UK’s biggest trade unions is launching a campaign calling on the Labour party to reverse its policy to ban new North Sea oil and gas licences.

Unite the Union said its ‘No Ban Without A Plan’ campaign is calling on the Labour to implement a “viable plan for the replacement of North Sea jobs”.

Labour leader Sir Keir Starmer announced in 2023 the party would block new oil and gas exploration in the event of a general election win.

In addition, earlier this year Labour also proposed raising the windfall tax on North Sea oil and gas firms and removing investment allowances.

The policy has raised fears of thousands of job losses and the political uncertainty has already impacted North Sea gas projects in development.

‘Don’t push North Sea workers off a cliff’

In its campaign, Unite said the Labour policies will “push North Sea workers off a cliff edge” and lead to the UK importing more oil and gas.

According to the Herald newspaper, the campaign will cost more than £100,000 and involve billboards, paid advertising displays and canvassing residents.

Unite general secretary Sharon Graham said Labour needs to “pull back from this irresponsible policy”.

“There is clearly no viable plan for the replacement of North Sea jobs or energy security,” Ms Graham said.

https://www.energyvoice.com/oilandgas/north-sea/553747/union-launches-north-sea-no-ban-without-a-plan-campaign/

Final batch scaled in @ 19p.. considered it a buy at 20.7p it's now 19p with improved outlook, FCF increase, debt reduced,divi and buy backs under consideration(AGM 5.06.24) and near 25% pull back from highs

https://x.com/surprised_trade/status/1791392004984721665

OK , final batch scaled in at 19p, ...now behave 😀

Added more @ 19.65p

Good luck with your investment elswhere blablabla1,you've looked at cvsg, it's not for you, but it is a buy for others. We all have various takes and views on stocks, it 's what makes a market.

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.

Auctus broker note out tonight in addition to Zeus notes earlier- ''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