II Editor
05 Mar 2018
NEW ARTICLE: The Oil Man: President Energy "LSE
PCresident has announced new, independent certified Argentine reserves with the Neuquen Basin 2P number increased by 66% to 8 million barrels of oil equivalent, giving total in country net reserves of 26.6 million barrels of oil ..."[link]
Hub
23 Feb 2018
Re: Criminally undervalued?? Michu,50% rise certainly possible but they'll need to deliver significant news to bump the market cap up to a lofty £160m+. That's chunky.If you want a decent 50% opportunity trade then I think you might have better luck with CERP.L as any upside / good news on that stock is likely to see the cap move up by 50% or more without looking expensive.Both have risks but that's down to the investor. Plenty of stocks out there that have 50% or 100% growth opportunities ahead of them in a small period of time. High growth comes with high risk. PPC looks lower risk assuming PoO performes but can't see it growing faster than the likes of CERP or MATD. Will keep an eye on them and revisit in a couple of months time.HUB
Nice to Michu
23 Feb 2018
Re: Criminally undervalued?? PS: If he wanted to, PL could cut debt - it's all/most all owed to him too I think so very flexible anyway - by half or more this year.. but I expect he'll put the profits towards an acquisition and /or a Paraguay drill instead though... and the debt is not a big number anyway.. also as the chairman of Amerisur pointed out recently the s/p premium for no debt that existed 2 years ago has gone away now anyway.
Nice to Michu
23 Feb 2018
Re: Criminally undervalued?? Good feedback Hub and Mike Thanks and the best BB are balanced ones imho.I'm seeing WTI averaging around $60 this year which makes me bullish here. Also as production grows - and it will grow from existing assets and perhaps another purchase funded via operating profitability here too - then the cost per barrel will incrementally come down.. indeed the scope for bringing it down to the 'norm' means profitability can readily enough be increased further here.. and all that is tax free profitability for a good while forward here too. Generally, I have a 15p target here in reasonably short order here and don't see that as unreasonable at all.. but I have been somewhat wrong - it has gone up meaningfully to even 10p though - so far and may of course continue to be somewhat wrong or fully wrong going forward.... These are the games we play..
Mikemine
23 Feb 2018
Re: Criminally undervalued?? As far as I can make out PPC is on a P/E of 7.8. Its likely to go down a bit as the year goes on if what PL says comes about. Thats undervalued somewhat but not criminally so IMHO. As HUB points out, it has debt and the OPEX is higher than the average but it has potential for deals and higher production if Paraguay comes good. Unfortunately potential is given little or no value these days. Look around and you can see lots of companies with great potential and low Mcaps. I think PPC should be higher but not in multibag territory atm.Only my opinion. Good luck to all LTHs.
Hub
23 Feb 2018
Re: Criminally undervalued?? Malcy really ought to flag up the $21m of debt and the high cost per barrel. Most companies out there are working on a much lower cost per barrel of $15pb in South America or $25pb at worst case.PPC's cost per barrel is closer to $34pb. Should PoO slip back to mid $50's, they are net $14pb down a barrel which would change the picture entirely and brings debt reduction into the picture.All in all, I think circa £100m market cap looks fair and is not criminally undervalued at all.When debt reduces a little and production edges up to 3000bopd and or if PoO remains in the $60's, then yes, another leg up is warranted.But history shows that Mr Levene and PPC have promised a great deal and delivered not a lot considering all the capital raises via equity placings and loans.Finally, the IFC (International Finance Corporation) are well known for selling out their investment positions as tend to be short term investors.PPC has promise but long way to go. Market is in no mood to price in 'optimism' on producers just yet.HUB
forwardloop
23 Feb 2018
Criminally undervalued?? According to MalcyPresident EnergyPresident Energy (PPC) has announced record results in January with each of their concessions making good returns and contributing profits.In the month the Argentine assets generated $1.3 million (£940,000) after opex, G&A and finance costs.Positive cash generation was higher at $1.8 million due to continued utilisation of tax credits which I alluded to here a few weeks ago. This is likely to continue and PPC expects to pay no CT this year due to utilisation of tax losses carried forward.Sales prices were $63.50 pb for Puesto Flores and $53.70 for Puesto Guardian last month and are running at around the same level this month.At PG the concession is now making a significant contribution to overall profits in Argentina which should increase through Q1.At the Neuquen Basin, work has commenced to test the long shut-in Estancia Vieja field which if it came in would be a massive bonus for the company.It is worth noting that Vista Oil & Gas in its recent deal was struck at a significant premium to that paid by PPC.Reports indicate that Vista paid $12.57 for 1P barrel of oil equivalent compared to PPC's $6.22 price in the Puesto Flores/Estancia Vieja and on a production basis Vista paid $25,480 per flowing barrel whereas PPC paid only $18,667, a healthy discount.PPC continues to act as a consolidator of assets in Argentina and I wouldn't rule out another deal after this recent success which would provide more production growth with excellent net backs currently $33 per barrel.Peter Levine says that the company is "making excellent progress in every concession in Argentina and also has free cash flow of $200,000 per month from Louisiana" accordingly President is in 'its strongest ever position'.With change from 10p a share this is another share that is criminally undervalued and I'm sure patience will be rewarded by wise investors at this level.
Nice to Michu
22 Feb 2018
Re: Update Described by Malcay today by 'criminally undervalued' I see... that made me smile.. and I agree.. but it is what it is..Also I'm pretty sure he'll have it in his 2018 bucket list .. which will be out soonish I expect .. ridiculously late as is in fact .. so hopefully that gets this more noticed.....At least, off the back of the update, it went up a little today, for a change.. a ridiculously little imho but with Brent going well this evening hopefully the rally here continues tomorrow and indeed gets some momentum going generally..
Ohtaxes
22 Feb 2018
Re: Update Yes, a nothing update;Monthly "Op" updates about $1.3m cash and 1200 0r 1800 bopd will not shift so.New acquisitions won't, bopd to 3000 won't, - God knows what willOh well - wait and wait some more - what's another few years
poor_teacher
22 Feb 2018
Update $1.3 million after costs sounds good for a month but without further supporting info it also looks like a bit of a nothing update. Time will tell.
Dillbert
21 Feb 2018
Re: Very Surprised by extent of weakness I'm surprised too. I seem to remember, in an interview, that Mr Levine could not understand why the share price was so consistently low when he felt the assets alone made the company worth .50p per share.Here's to dreamingDill
Nice to Michu
21 Feb 2018
Very Surprised by extent of weakness here and very disappointed that there is so little buying happening at these levels, towards mopping up the still regular selling... but such illiquid small caps are often volatile and often that volatility is not in a good way.. nature of the game betting on stocks like this, alas.. and this can of course go decently lower still .. but if/when the tide turns it can equally go up quickly too.. So i'm continuing to hold tight. (I'm kinda fully loaded here already ...would only consider adding more to bring down my average and that would require this going 8p ish and that is absolutely not what I want)What Mr Levine can do, beyond strong recent progress, to get this going up is not an easy one for me.. buy more himself perhaps, but he's trying to get wider ownership involved here.. so drum up further institutional interest seems to be way to go.. and/or Paraguay drill go ahead perhaps..with farm in partner ideally.. but may need to do anothe drill themselves to have better chance of good farm in etc ... and or another good value Argentinian asset purchase.. but that's getting harder and harder to find such opportunities in this now very decent Poo price envirnoment, I expect. Any thoughts here welcome ? I'm not going to sell any at these levels as I feel s/p too low now by most measures .. would sell a small amount at 11p plus if /w hen gets back there twoards diversifing away from this a bit.. one of my top 5 positions
Ohtaxes
15 Feb 2018
Gossip from S.A - You'll need to Google translate;[link]
poor_teacher
15 Feb 2018
Re: Presentation Thanks for the correction on the Chinese pumps.One thing we do agree on is the likeliness that PG is relatively disappointing. Hence all the focus on the new area.However, no upside is again all relative. This share could easily test the 52 week high on good news flow which is approx 25 % upside.
Ohtaxes
15 Feb 2018
Re: Presentation Disagree,From the Interims' of the 29th September;''The five Chinese pumps intended to replace the old system have not yet been put in commission by the Chinese manufacturers, six of whose engineers having flown in from China are in the field attending to the pumps. With due application, the issues SHOULD be solved and the wells then able to deliver to their optimum. ''Also from the Interims;Whilst the 1,200bopd target of production from the Puesto Guardian Concession in Salta Province has NOT been achieved by the time of this Report (29th September) etc, etcPG is probably at circa 600bopd, insted of 1200 bopd- 1800bopdWhy is there no mention of PG since the 29th September, they've had 4 'operational update' RNS'sI was around and holding this share back in 2011, when we had a raft of RNS's about how PG was going to produce xxxxbopd - didn't then, doesn't now.- I wish you were right,- I wish they'd have done what they intended to in 2011 (read the old RNS's from back then)- I wish they'd have got an adequate rig for Paraguay and not fekkked up the drilling- I wish they could resolve the court case with the 2 US Co's- I wish they could find a farm-in partner for ParaguayIMO the sp is going nowhere on 'Op' updates about 1200bopd, or 1800bopd or $2m/$3m monthly cash flow.IMO sp will only shift on 6kbopd and huge cash positives or a household name farm in, a $10m+ settlement re: drilling legal case or say 3 more deals - plenty of investments out there.Wait and wait some more, i'm afraidatbOht
