George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
Tony, I am sure you have better information than I have regarding well costs across the various types. Also, I didn't see any NGL hedging in their plan? Do you have a feel for the typical Gas/NGL split on these wells?
I think everyone was hoping for something more in terms of production / NOI but probably unrealistically so. I3E are sill undervalued versus peers and according to broker estimtes.
As the drilling is very much back loaded we will only see it reflected in year end production rate. Some will say even that is only +3% but then you have to remember that there was no new production coming on-line in Q1 24 due to the limited 23 capital budget so they have a full years decline to overcome.
Regarding the drilling of additional gas wells - I think if they did not drill some gas wells it would have been very difficult to show a headline increase in production by year end. The high BOEPD / lower capital cost of the gas wells relative to Simonette was probably a factor here. I know the economics would favour Simonette drills but not sure why they wouldn't drill them until 2025 other than for the above reason .
Just my opinion.
Sweepie,
"what else are they going to invest in?"
Remember they have loans to repay! They are repaying the first £500,000 since December on a monthly basis plus interest. I am sure part of the placing is for that purpose but of course they weren't specific about that!
TerryM1 / Notrex,
I like yourselves and probably many other LTHs bought into DEC for dividends and have a share price average in the £18 - £20 range. Now we can all have opinions on how the share price went from ~£20 to ~£8, but given that it got to the £8-£9 range the BOD had to do something. Painful as it was the dividend cut and pivoting to growth was almost certainly the correct decision as evidenced by the current SP trajectory. The listing in the US is now apparently having a positive impact too in terms of volume and leading the SP.
Its important to reflect and learn from history but to make a buy/sell/hold decision we need to look at current/ future prospects, which in my opinion look good for DEC. My POV is HOLD and maybe add. My strategy if the SP returns to close to its former levels will be to reduce and seek better dividend prospects / security elsewhere. Sounds a similar strategy to your own.
I don't understand however how your recurring negative posts will aid in any way in achieving it? We know what your position is and many of us share that position.
Vista.
Seen this article on the Yahoo Finance US site yesterday.
Interesting despite all the FUD being spread, DEC has a Zacks Rank #1 which equates to a Strong Buy.
Also listed as a "Best Momentum Stock" in the article yesterday.
https://uk.finance.yahoo.com/news/best-momentum-stocks-buy-april-140000496.html
Nobody said it was an accounting standard, it's a metric and perfectly valid as such, waste of time conversing with you any further, you are the type that argues black is white and I don't have time for a "30 minute argument" .
Gregeorge, really surprised you don't know what PV 17 is! It's the current value of future profits discounted at 17% to arrive at the purchase price of the asset. The higher the number the better the deal / lower the risk.
Chinch, there were no difficult questions put to Brian in my opinion, he just blathered for the hour without providing really any additional information. Promised to do a better job of keeping shareholders informed and tried to make
"piston core sampling" and a little "seismic reprocessing" sound like really impotant future newsflow! All tailored IMO to try and make sure shareholders approve the recent raise at next weeks GM. Even tried to suggest the 4:15pm RNS announcing the bookbuild was to enable PIs to participate in the raise!
I have criticized the Board before for lack of communication previously but it looks like they just did a copy and paste from the February 13, 2023 Project Update.
Could have been much more concise and just said no progress!
What are these people doing to earn their salary?
Alavib, I am sure you realise that 56% of those BOE are gas. At current gas price of 71p / therm the BOE price for the gas is $52.3 giving an operating margin of $33.3 per BOE for the gas.
Then of course SG&A, CAPEX, interest, dividends, tax, DECOM, etc have to be paid. The number you quoted is certainly not net income.
Ameen, if you were on the call today would you like to summarise what you heard? Did Larkin allay any of your legitimate concerns?
Do you know if Larkin plans to communicate with his wider shareholder base via the normal "Investor Meets Company" platform or similar?
Regards.
GH, Who says the asset is worth $3.8MM? Larkin was prepared to sell it for $2.05MM effective November 1.
Don't be surprised if we see an injunction on EGPC to block any further payments of the $0.8MM owed.
This whole episode, how would like play out in farm-out discussions? It makes UOG look an even more an unreliable partner.
GH, did you get this direct from BL? If I was the operator I would be looking for UOGs share of the revenue since they stopped paying their share of the costs. I would be surprised if there is not a legal case after the 30 day period has passed.
Its seems to me that UOG have shafted the operator here and have not been paying their share of costs for quite some time.
Now that there is no revenue or money, who will pay BLs salary as god forbid we couldn't leave the poor man's efforts unrewarded! I think he needs to take a haircut the size that we shareholders have taken!
I am shocked that Jamaica would extend a license with a company that hasn't delivered (a farm-out)and has no funds to deliver anything in the future. A placing at this current price wouldn't be supported.
Fair play to GingerHippo for at least showing up today given how many of his predictions have turned out to be worthless.
GG, I showed my workings and my source of data, I didn't boost it as you imply. My reserve life index was based on PDP reserves. (Proved, Developed, Producing)
You know but may not choose to acknowledge that DEC could drill on many, many locations on their acreage if that was their choice to increase production and PDP reserves.
I haven't recommended anyone invest in DEC. That is for individuals to decide and hopefully based upon their own research. What I have posted today was merely in response to a question from simplyme. My other post was to highlight an error on the annual interest charges that was posted by Lampedusa from an article in IC that was quoting an analyst from Investec. I am following up with IC / Investec.
I am quite happy to retract any post / apologise if you can demonstrate anything that wasn't factual.
GG, you see that is the difference, I don't resort to name calling or insults. I try to argue my POV with facts from named sources. The fact I can't get you to accept what I am stating doesn't mean I am wrong and you are correct.
I don't take everything a company states as gospel or believe that DEC is disclosing everything BUT you don't accept ANYTHING that DEC reports at all, you obviously know better, or so you think.