Member Info for VistaMan

All the way through 2019 as per company and NOMAD statements!

1750mk1, I don't know where you got the P/E of 21 for DGOC, probably historic. Their mkt cap is £635MM and their trading update post the Core Acquisition highlighted a monthly EBITDA of $23MM, this would calculate to a P/E of (635 / (23 *12 / 1.29) = 3.0.
I like DGOCs target dividend policy of 40% of FCF . Current dividend is ~9%. Like RRE I think its undervalued.
RRE is where I have my largest O&G holding.

With the SP currently well short of the risked NAV of 1460p in the Whitman Howard broker report, I see this primarily as an insurance policy against significant SP depreciation. With a company of this size news flow in my opinion is what will drive the SP higher. We are due, possibly overdue a number of items of news flow:

1. Report on the life extension / replacement of the Bleo Holm FPSO from 2024 to 2029. Would add 500p to NAV
2. FDP for Tain field. Adds 269p to NAV
3. CPR for ex DYAS NL assets - could provide further in-fill development opportunities
4. Potential farm-in to I3E Liberator field
5. Potential dividend? (£1.50 capital return last February)
6. Other potential acquisitions?

Lots of potential RNSs to come, lets hope some soon.

trout, first time I have seen you on this board. Are you invested in Tern?

Hello Colonel, could you advise how to read the numbers after the II names in your list in your list?
Thanks, Vista.

How the f**k does a company with this market cap need 8 directors? Looks like lots of funding required just for them!

I haven't always been happy that the board was serious about cash conservation and their effectiveness in deal making BUT I do want them to succeed. That's why I applied for double the shares in the open offer, hopefully giving them longer to crystallise some contracts.

David, I agree with your thoughts on the dividend, even an initial 50p (8%) annual dividend will help attract additional investors to RRE. Like yourself I am also invested in DGOC (9%) for that very reason. If we want the SP to re-rate we need additional investors/investment and this would definitely help.

Soberman, have been invested here for some time and this is the first time that someone has mentioned an "Austin Factor". Could you elaborate as to what this refers to?

Handy,
I assume you are referring to 2017 data? If so the gain was on acquisition of Idemitsu Petroleum. The primary reason for the gain was the extension of field life on the Blake / Ross field from 2019 to 2024 which had not been recognised in the Idemitsu accounts.
Actual revenue in 2017 was low as the acquisitions were completed in December 2017. Revenue in 2018 has been very healthy (RBITDA of $100MM - $120MM expected) as it included a full year for the 3 acquisitions completed in 2017 plus the DYAS acquisition whose effective date was Jan 1, 2018.
Hope this helps.

adv11, I have them in an ISA also and got 1.86p per share which is 2.36c per share and when grossing up for 15% withholding tax is 2.78c per share which is close enough to 2.8c.

David, RRE has no hedges on gas price as far as I know. Most of the gas RRE produces is in NL and the Dutch TTF gas price is what they receive. See Dutch TTF gas prices this past 2 years. Current prices are much higher and also much higher than when RRE decided to buy the DYAS assets.

https://www.theice.com/products/27996665/Dutch-TTF-Gas-Futures/data?marketId=1660911&span=3

Regarding DGOC they have hedged to protect their dividend whilst benefiting significantly from the current much higher Henry Hub gas prices. An excellent dividend choice IMHO.

https://ycharts.com/indicators/natural_gas_spot_price

Surfi, I am a big fan of RRE and have topped up frequently. Their value story is compelling in my opinion.

I notice a number of people when working up EBITDA based on production and prices are quoting that 25% of total production in terms of BOEPD is hedged at $68. This is incorrect. Andrew Austin states in his recent interview on Core Finance on December 11 that whilst as much as 40% of oil production was hedged at $68, the hedging has mostly rolled off and there is only a limited amount currently.

See reference to hedging in excellent interview at 14:30

https://www.youtube.com/watch?v=OYm_IgAg2fQ

Surfi,

Foe those who haven't seen the broker report from Whitman Howard, the unrisked NAV if RRE don't do any developments in existing assets is 1122p.
If the BleoHolm FPSO (Blake / Ross field) life is extended from 2024 to 2029 is adds 500p to the NAV.
If the Tain field is developed and tied back to the BleoHolm it could add 269p to the NAV.
The successful development of the Arran field adds 90p to the NAV.
A CPR is anticipated shortly for the ex-DYAS NL assets which will also hopefully present some development opportunities.
News flow for several of these is anticipated before year end.

DYOR.

No chance, even your friend predators has a support at 14p. Have looked back at all your predictions to date, all wrong without exception. Haven't seen you post anything positive about any share.

Why should anyone pay attention to your rear view comments.

With a dividend policy of 40% of FCF and October's FCF being the annualised equivalent of $0.50 per share there would appear to be plenty of upside to today's announced $0.033 quarterly dividend. October was the first month that included the Core Acquisition and local natural gas prices were strong.

shareaction, can't say my holding is generating half my salary in dividends but I have been accumulating in expectation of this announcement. A 9.2% dividend (within a SIPP) is very healthy indeed and it comes with a high degree of security from this company. Who knows they might increase again next year as FCF on an annualised October basis was ~$0.50 per share whereas dividend is $0.132 annualised. They might want to wait until the winter months are over to see if the FCF run rate has been sustained first.

Made my third top-up here today. Great news on Indico-1. When do we expect flow testing results from Pintadillo-1?

zebbo, good interview I agree but please post what was said:
EBITDA is $100M not £100M.
Oil hedge, it was as much as 40% but most of the hedges have run down.
No need to "extend" the facts here, the story is already very compelling with P/E again below 1.
I am glad he mentioned credit is available as I would like a large deal and wouldn't like the size to be limited to the cash balance plus FCF. Would have liked some more details on the current pending items but I guess these need to be covered by RNS.