Member Info for VistaMan

shareaction, thank you for the new information. I currently hold DGOC in my ISA. I'll check with my broker (HL) and let you know if they say anything different.
Cheers.

shareaction,

Yes this is correct. with a W8-BEN in place the withholding tax is 15%, 30% if you don't have one. The 15% is the rate for UK citizens, different countries have different tax treaties with the US.

I must admit I was slightly surprised that the dividend was considered US Source given DGOCs UK listing.Still a decent dividend even with the 15% tax. Also with the recent rise in Henry Hub gas price there should be some SP upside for DGOC.

workover, their EBITDA is also larger than their market cap. Quoting ratios based upon a market cap with a P/E of 1 is hardly a compelling reason not to buy. They had shown decommissioning liabilities in the annual report before they purchased DYAS. They provided guidance what the decom liabilities will be over the next 5 years as a % of EBITDA, I assume including the DYAS assets in the interims. They are trying to extend the life of fields so an accurate long term view of decom liabilities by year would be somewhat cloudy.
Personally the interims significantly de-risked the investment for me and I expect further de-risking as the company provides investment details on Arran / Tain / Blake etc.
But if its not for you then don't invest.

Madeofmoney,
I assume you hold your DGOC shares in paper certificates? If you held the shares in a nominee account like HL your dividend would be converted from dollars and paid as sterling directly in your account. Also I assume you didn't get the full 1.725c per share? If you complete a W8-BEN you will get to keep more of the dividend versus paying higher US Tax withheld at source.

Excellent Interims with further upside now with larger share of Arran, some details on decommissioning liabilities and date for completion on DYAS. This share deserves to re-rate as uncertainties are being replaced with some details. Cantor have share price target of 641p which only equates to a P/E of 1.3 with EBITDA at ~ $100MM pa.
Snapped up some more this morning.

Jonew, you should have completed a W8-BEN form via your broker before purchasing the shares. This means that the US Government will withhold 15% of your dividend as US Tax. If you haven't completed a W8-BEN then you will have a higher percentage withheld.

cf456, thanks for the link to the presentation. Contains some more details on DYAS acquisition once closed. It would have been nice to show a FCF projection, CAPEX and decommissioning spend by year. Would really help the PI to adequately value to company.

See article by Motley Fool. Not normally a fan of Motley but could help attract additional investors to DGOC. Stonking dividend and more to come perhaps as acquisitions continue.

https://uk.finance.yahoo.com/news/energy-growth-monster-completely-thrashed-155502284.html

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.

With our new Advisor in place, what we need now is News Flow. New contracts, Trading Update and maybe even a Research Note from the Advisor.

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!