ESTABLISH THE FACTS
14 Jan 2018
Re: DEAL OR NO DEAL? Peel Hunt suggest £1.30 on 11th January 2018 (yes they get it wrong), however, I personally would prefer Soco to go it alone, I.e. no merger. I shall attend the EGM (assuming that talks continue to a merger agreement), it seems a little early to speculate further.
researchassist
09 Jan 2018
Re: DEAL OR NO DEAL? From memory the projected revenue for 2018 for Soco alone is £175M and thats based on a lower oil price, the oil price has been steadily rising and i suspect, if production is maintained, the revenue will be significantly higher. The company is cash rich and pays a dividend of approx 5%. Just in the current oil price environment the shares should go above £2 (IMHO). With the merger it will only speed things up with access to greater reserves and stable sales, this will act as extra operational gearing if the oil price remains high. I hope this helps.If you take a slightly longer view, say 3 years, the increase in production could be quiet dramatic. Good luck!
ESTABLISH THE FACTS
09 Jan 2018
Re: DEAL OR NO DEAL? I'm not greedy, at £2 I will be very happy.
JRz
09 Jan 2018
Re: DEAL OR NO DEAL? Do you think the deal is at £2?
researchassist
09 Jan 2018
Re: DEAL OR NO DEAL? Location risks are widespread in the oil industry. The risks are normally managed. Generally, where there is oil governments act to make those areas safe for operations as a priority. Most of the big players have operations in Iraq and other high risk locations. Also, productions costs are amongst the lowest in the industry at these locations.
sage in the hills
09 Jan 2018
My position ..... ..... i have ADDED this morning .SAGE
sage in the hills
09 Jan 2018
Re: DEAL OR NO DEAL? .... One company is already successfully based in the middle east assets, and has the necessary connections and infrastructure there ........The other company is already successfully established and with its connections and infrastructure in its asset areas.......... in conclusion, no one is treading on anyones toes, and, these are already existing businesses , ie, not new start-ups ......Hence i am at ease with this scenario........SAGE
ESTABLISH THE FACTS
09 Jan 2018
DEAL OR NO DEAL? The Assets of Kuwait look encouraging, however, what sours the deal are the locations! Fairly dodgy countries to do business in.Your thoughts are welcome.
researchassist
08 Jan 2018
Kuwait Energy Kuwait Energy appears to have a much larger valuation according to FT, when it considered listing on the LSE April last year, it was valued at £780M, at a time when the oil price was much lower. This should be good for SOCO as its appears to be a merger of equals. Both companies have recently changed their management teams, I assume to ensure greater shareholder value. Good luck to those invested!
one4all
08 Jan 2018
£2 nailed on when deal ompletes BUY
bhoddisattva
08 Jan 2018
Re: Re: And now RNS - "preliminary"[link]
faddy10
08 Jan 2018
Re: Hi B,Also in the Mail:[link]
bhoddisattva
08 Jan 2018
"Merger with Kuwait Energy"? According to Paul Curtis on Twitter, Reuters report SOCO in talks with Kuwait Energy about a merger!And the rumour is true apparetly:[link]
Eggbaconandbubble
17 Nov 2017
Re: From Shares Magazine Be very wary here! The whole South China seas could explode into a war zone. Google 'Spratly Islands.
sage in the hills
17 Nov 2017
From Shares Magazine A recovery in the oil price has yet to be reflected in the shares of oil and gas producer Soco International (SIA), so get in quick before the market realises this anomaly.We think the improved commodity price environment, under a new executive team, can help switch focus from several years of managing decline to a renewed focus on growth, backed by an extremely strong balance sheet.In the last three months Soco’s peers Cairn Energy (CNE) and Premier Oil (PMO) have advanced 25.9% and 37.8% respectively and even sector juggernauts BP (BP.) and Royal Dutch Shell (RDSB) have posted double-digit share price gains as oil prices have firmed to two-year highs above $60 per barrel. Over the same period Soco is nearly 5% lower.Why? Investors seem to have lost patience as Soco’s production from its flagship TGT field in Vietnam has tailed off due to a lack of development drilling. The table illustrates how production has declined over recent years.However, in 2017 activity has been ramped up with five development wells drilled and new capacity being brought on stream which should lay the platform for production growth over the coming two years.Peel Hunt forecasts 10,000 barrels of oil equivalent per day (boepd) for 2018 and 14,000 barrels of oil equivalent per day in 2019. Guidance for 2017 is for between 8,000 boepd and 9,000 boepd.gi4Significant appointmentThis week’s appointment of Mike Watts as managing director (MD) could be significant. He was among the architects behind Cairn’s successful exploration strategy in India which for a time propelled the company into the ranks of the FTSE 100.Backed by net cash of $132m, Watts and fellow Cairn alumni Jann Brown, who is Soco’s joint-MD and chief financial officer, may add some exploration upside to the portfolio through acquisitions.The company said two months ago it was ‘vigorously reviewing… growth opportunities and options to maximise value from its current assets’.On 30 October the company announced that it had secured a 17% interest in two exploration blocks offshore Vietnam which it had been chasing for several years although any exploration drilling will have to wait until 2021 at the earliest.Earnings and cash flow are likely to be constrained by investment next year but a free cash flow yield of 16.6% and price-to-earnings ratio of 6.3 times based on Peel Hunt’s 2019 forecasts is attractive for those prepared to look that far ahead. (TS)SAGE
