What were those 2 apparent 5.6MM sells earlier. Never seen volume like that.
cf456, good post. Timely reminder that RRE will be mostly gas upon successful DYAS acquisition and Arran development. Hopefully RRE will be able to show increase in EBITDA upon DYAS acquisition.
jimmy00, Everyone is entitled to their opinion but I don't agree that this company is badly run. The company has received funding of £13MM through two placings (£5MM and £8MM). It has returned £23MM of "excess capital" to shareholders in FEBRUARY 2018. To me it seems like an extremely efficiently run company with low G&A costs. Yes we would all like some more clarity on decommissioning liabilities and future investment costs. Perhaps we will get these on completion of the DYAS acquisition and the filing of the FDP for ARRAN, all due to happen in September - not far away.
Someone has sufficient knowledge / conviction to make a 260k share purchase - Cavendish Asset management! Nobody chucks £1MM at a share purchase without having done some research.
See link to RRE reference on Malcy's Blog with promise of upcoming interview of Andrew Austin by Malcy.
https://www.malcysblog.com/2018/08/oil-price-savannah-upland-rockrosebahamas-petroleum-and-finally/
workover, had the same concerns myself last week until Mike15 pointed ne to HL RRE financials where liabilities are listed at $274MM. Might seem like a lot but if EBITDA is $100 -120MM pa then they should be able to cover them and there not due anyway for quite some years. Now I think this $274MM is before DYAS is taken into account. We don't know remaining life span of DYAS assets or RREs share of decommissioning. Still think there are good prospects for on-going capital returns from excess cash flow.
Olderandwiser, One of the RNSs quotes September 1 as an "example" for the closing of the deal, I haven't seen anything beyond that. Regarding abandonment liabilities for the DYAS assets I don't this this has been published. You wouldn't really expect that level of detail before closing I believe. Sorry can't help more.
Olderandwiser,
Mike15, thank you. I hadn't seen this number. They have stated they believe they can maintain the current production (11,500 boepd) for at least 5 years. At $100 - $120 MM ebitda per annum it looks like they can fund liabilities which will not occur for some time anyway. If they can fund the Arran and or Hain fields (or acquire others) then they look to have a prolonged positive future.
parisise, the company has stated an average of $30 / boe for OPEX and $3 / boe for G&A. Hope this helps.
Looks like a retrace to the pre-placement price!
Mike15, no expert here but am invested myself. They have acquired quite a lot of assets quite cheaply and its true if the DYAS acquisition completes in September they will be around 11,500 BOEPD. The potential issue is many of the assets are quite mature and approaching end of life and with the purchase of the assets comes the decommissioning responsibilities and costs! I purchased because thee P/E looked ridiculously low and they returned £1.50 / share of "excess capital" in February. This gave me some confidence that they had potentially sufficient cash flow to take care of decommissioning BUT I have to say I don't know what the size of the liabilities are. I like the latest acquisition potentially, depending upon field development costs but at least this field would have a good cash flow for typically 15 years.
When can we expect the next update from RRE?
I bought some of these less than a month ago and am shocked by the very low trading volume and complete lack of posts on here. Has anyone gone through the CPR and totalled up decommissioning liabilities? How does that compare with what RRE has put aside? How much of future cash flow will have to be set aside? Do we need to bring on a new field like Tain to sustain sufficient cash flow? Has anyone seen details of the DYAS assets / decline rate / decommissioning estimates?
Predator, IF shorts are closing then they don't see further SP downside and hence profit! However I know LTHs are topping up possibly much more than any shorts closing. Topped up myself. Seems like you are trying to manipulate even positive SP movement for your own predictions / ends?