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Operating fundamentals remain strong. Cash in the bank and good work program in progress. Big head wind here is the PoO. So many reports out there at this stage, no body really knows where oil price will be in 12 months. IEA paints a grim picture. Petroneft just need to stick with the program and increase production and avail of reduced costs now in the market. Would be hoping for update this week. Nerves starting to kick in... not helping share price
For high upside PTR offers a good bet I recover of PoO . It is up to you
I'm in at just over 4p so would like to be confident, but at the moment we are not making any profit, have little or no cash and the oil price keeps dropping. There doesn't seem to be any improvement in sight so why would anyone buy into a company that is already valued at £22 million. Even with the SP at this level it might be time to sell.
the PoO has really left this one in No-Mans-Land. However investors should count their blessings as this company would have gone under only for the FarmOut, or FarmIn. It managed to clear its $30m crippling debt, plus got $45 in Capex pumped quickly in. Ok, it's just about break even at the moment but it does hold huge assets in waiting….
Results from T-507 vertical and T501 horizontal where due to be reported end of October. Could do with some positive update to stem the SP Drop. No good new from majors last week not helping. Most oil companies positioning themselves for an extended period of lower oil prices.... I would expect some update this week. Fingers crossed for a good update and finally get over 3000 bopd.......
Looks like the gravy train has left the building for Mr Sobraliev and TBNG. I did not see that coming. Looks like he will not be getting many more drilling contracts from Petroneft, sorry meant to say his son and TBNG. Oil price is of course a major head wind for all oil companies, but Petroneft are in a good position if the can increase and maintain production over the next 12 months. Oil prices will make a recovery next year for sure. Both with the actions of OPEC and production drop off in the US shale. Oil prices recovered within months of the financial crisis in 09/10 from lows of $30. We may not see $100 plus but $70/$80 is achievable early next year.
Completely agree with you on some points. Petroneft are in a great a great position at present with lots of selling points that most AIM companies would die for. This is why the next 12 months are going to be so important for this company. Its no good having great reserves that you are unable to get out of the ground. This has been Petroneft main down fall since 2009. They have been unable to convince investor that their proven reserves can be exploited. Their initial business plan back in 2009 was to be producing 12,000 bopd by 2012. Slightly of the mark I would say. Financial crisis did not help of course. This is why I would like the fresh approach to be maintained. As a long term investor in this stock I believe that Old Russian rigs have been a complete failure in this companies development. Approx. 30 well drilled with conventional rigs which are now producing 1850 bopd ( this is todays production rate excluding the 2 horizontal well drilled with Top Drive rigs 2700-850=1850. I think the numbers speak for themselves. A lot of money has been wasted on a strategy that has not worked. Lets not forget who has a vested interested in keeping these rigs working for Petroneft. Non Execute Director Vakha Sobraliev was the principle owner of TBNG that has done all drilling for Petroneft from day one. He transferred his ownership to his son in 2011 in keeping with AIM rules....... I guess he is not overly pleased that Eurasia Drilling have now been awarded main drilling contract. I guess our only saving grace is that Oil India will be calling the shots going forward and I expect a proven oil exploration company to stick with proven equipment and technology going forward. Petroneft (we the share holders) cannot afford to miss year end production target as has been the case on so many other occasions before. Looking forward to AGM Statement tomorrow. Here's to a successful year.....
PTR have always used Russian drilling rigs, both for exploration and for development drilling, so it is difficult to make direct comparison between the price of Russian versus Western rigs. The point is that they can drill the one-off horizontal wells using an exploration rig instead of a production drilling rig... while the production rig with a top drive can drill longer horizontal segments than the more basic exploration rig. they have a number of locations near existing infrastructure that could be developed with just one horizontal well. The price would be somewhat lower using an exploration rig instead of the larger production rigs when you take into account the mobilization and demobilization costs. However, it is very unlikely that we would get a contractor for a one off well with a production drilling rig equipped with the top drive unit because mobilization costs would be too high and the rig would be stranded until the following winter. Russian contractors are used to using the more basic exploration rigs for drilling one-off wells in locations where they cannot then retrieve the rig until the following winter season. This is why it is so important that PTR have proven that we can drill these wells (like L-10) with the standard Russian exploration rig without a top drive unit. the license is marshy and isolated. the wells are limited too. There is however, huge reserves and massive potential. the key questions I ask when investing in Junior Oillies is 1: what are our debts 2 -what are we producing at break even at least 3 - what is our infrastructure like 4 what cash do we hold 5 are our JV partners strong 6 what are our reserves like. 7 are we making money. and the answers 1 No Debt 2 we are producing at break even, even in a low market. 3- huge infrastructure in place and paid for, but we will need more as we expand. 4 we are cash positive , just about, but soon we will be generating 5 Oil iNdia are very sound. 6 huge oil reserves 7 we are break even and will be making money next year. all told we are in a good position. The collapse in PoO ruined the party. we nearly made the big time…..but its not over just yet
Does not look too bad on paper. I think the board will have to made a wise technical decision on this one. A conventional Russian maybe cheap to operate but when preforming Horizontal wells with directional drilling required it may lack the technical spec for this operation. Are they equipped with MWD equipment to fully navigate the pay zone. It maybe a case of penny wise and pound foolish. Could it be the case that this well has not been as big as success due to the fact that it was drilled with a conventional Russian Rig? It would be interesting to see the results of this well had it been drilled with Top Drive Rig with enhanced control. With the potential to carryout work overs on up to 9 wells, I think it would be wise to consider correct equipment in a subdued oil market. Must be lots of rigs available at the moment in Russia crying out for work at very competitive rates. I think it will be a while until the make a decision on this. They will monitor performance of this well in the coming weeks to determine next step.
with L-10 this section of the license has low fluid pressure. while disappointing it shows that the local Russian rigs, which are cheaper, but also more flexible operationally, can be used throughout the license. look even as a back of the envelope calculation lets assume as a bare minimum. $10 a Barrel profit, by 130 Bopd, x 365 days a year and we have $475,000 profit per well annually. Not too shabby a return.
West Lineynoye L-10 well is currently producing at a sustained rate of 130 bopd, a drop of 100 from August 12th update. This accounts for another 100 bopd production loss. Will this impact their strategy of doing short horizontal sections on existing wells in West Lineynoye Field with conventional Russian land rigs?
Petroneft received notice yesterday from Natlata Partners, it has now increased their interest to 21% of issued share capital in Petroneft as of 11/9/15. One would have expected share price increase on the back of trading yesterday. strange... Should be an interesting AGM in Dublin next Friday. Might try and attend yet if work allows...
Natlata continuing to accumulate. Should be an interesting AGM.
Disappointing on the production front. Will this company ever break the 3000. Good results from T502, Hopefully it will maintain this flow rate. I thinks its safe to say that T5 is now completely shut in due to water content. This may account for 100 boqd production loss. Not sure where to account for the other 200. They need to make up lots of ground to achieve year end production target 4000/5000 boqd. Hopefully they have hired new Reservoir Engineers that have experience with this formation. Time for this company to be getting things right first time round. Approx. 30 wells drilled since 2008, poor return to say the least. Time to start learning from past errors.
I don't understand. Last rns production was 2600 boqb. Now T 502 has a flow rate 400 boqb. It is 2700 now. Where's the 300 boqb gone?
no word yet on the drilling, result was expected by the end of August.
Not at all. I didn't take it as rude.
sorry , didn't mean to be rude , was a bit .
Pretty clear for some. Thanks for providing the clarity.
seems pretty clear that's a RO trade.
looks like a rollover to me. 2 trades seconds apart and the second marked 'C' (conditional) on advfn.