Dominion Pet Share Discussion Threads

[oiht] 26/9/2011 13:53

Hello - what's woken this up!?

[joestalin] 22/9/2011 11:42

Could we have that in English please?

[joestalin] 20/9/2011 14:08

Then do not invest in O&G. Go somewhere else - like FUM where you are always welcome!

[drambui] 15/9/2011 23:17

Nicked from LGO board (doing the rounds anyway I would hope)....

High pay, low quality
This is one of the central problems for deep-value investors: is a share with a low P/E, low price-to-book, low price-to-sales, and so on, at a low price because of factors that might be temporary (say, poor trading or a one-off mistake), or is the low price a reflection of the company being run by mediocre directors that are taking the true owners -- you and me -- for a ride?

AIM-traded oil and gas explorers have one of the worst reputations for board competence and greed. In fact, there are a few of these companies where the only drilling going on is into shareholders' pockets, so the directors can keep their Mercedes and their fat salaries.

Two reports on corporate governance in this sector give hard confirmation that investing only in squeaky-clean operations gives better returns.

Is Oil Well?, by Opus Executive Partners, looked at the 70 oil and gas explorers which had a continuous UK quote throughout the last five years.

Opus compared the composition of the board and its sub-committees against best practice (the June 2010 UK Corporate Governance Code), and produced a score from 1 to 8. Companies having several non-exec directors, correctly formed remuneration, audit and nominations committees, plus a separate chairman and chief exec, scored highly.

The average score from the 70? Just 2.9.

Indeed, AIM companies managed a miserable 2.3 and actually lost investors 12% during those five years. And let's not forget that this was a period in which Brent crude rose from $70 to $114 a barrel. Main-market companies did better, though, rating 4.1 and returning 37%.

More striking, the best ten shares by governance rank gained 49% and the worst ten lost 55%.

What about management experience and conflict of interest?
It can be tricky to score subjective factors, but Richmond Energy Partners considered many more tests in its report, Corporate Governance of Mid-cap Exploration and Production Companies.

A thirteen-point checklist (including conflicts of interest, management reputation, quality of reporting and pay) was applied by Richmond to mid-cap oil and gas explorers listed in five countries. Only 30 shares quoted during a period of three years appear, so the statistical significance is weaker than the first report. The headline result is that the top fifteen companies (by score) gained 54% in three years and the rest only 8%.

It's worth using the thirteen tests as a checklist when you are stock picking. Some criteria will apply only to oil and gas outfits:

Clear goals and strategy
No conflicts of interest
Clear board roles and responsibilities
A majority of independent non-execs
Non-execs have sector experience
Management has demonstrable relevant track record and international reputation
Overheads are not excessive (board pay and bonuses compared to sector average)
Financial reporting is segmented by country
Informative presentations available
Operational plans -- regular reporting of drilling programme
Operational results -- frequent and detailed data on key wells
Reserves are reported in detail
Reserves have independent audits

Relevant here, I certainly think so but DYOC?

I daresay the self serving boyz here are lining up the next 'drilling' as I type and I would imagine it's likely to be a lot more painful than the last debacle but as they weren't kicked out then (as they should have been), shareholders really can have few complaints? All in my humble.

[oilbuy] 15/9/2011 23:13

cos up 20% excellent stuff , guyana part 2

[bluemoonpattaya] 15/9/2011 11:35

Block 7 Tanzania Alpha prospect: COS up to 20%....
from latest presentation today

Alpha Prospect* – Scoping Economics
Block 7 Tanzania – Dominion (100%)
•Block 7 economics based solely on
–Alpha Prospect only
–Dry gas case only
–liquids case & other all prospects considered upside
•Scaled economics off deepwater Nile Delta Deep (i.e. Egypt) type developments
•Assumed 7tcf recoverable
–25% sold to local market ~$3-4/mcf
–75% LNG ~ 4-6$/mcf to liquefaction plant (post processing)
•Approximate NPV/boe of $2
–CoS of 12% (as per CPR, 3D & recent drilling have increased this to >20%)
–Implies risked value of $264mm (1100 mmboe * 12% * $2)
•~88p "un-risked" for Alpha Prospect alone. Gas case only
•~10.5p "risked" for Alpha Prospect alone. Gas case only



GLA

[encarter] 15/9/2011 08:17

irrelevant once they find oil.

[poo bear] 31/8/2011 06:13

My view is that they need to be paid back

[goodboke] 19/8/2011 08:01

what are peoples view on the 36 mill liabilities which i found in results report.I am looking to get into these but worried about the liabilities

[nash81] 16/8/2011 14:41

any idea when expected CPR ?

[jsbach123] 16/8/2011 13:51

Would be nice to have some (good) news here and recover the share price that we enjoyed before the failed consolidation, Malta etc

[oiht] 15/8/2011 12:12

Pretty solid here, despite recent market turmoils. Onwards and upwards from now on? Hopefully!

[rockhopper989] 06/8/2011 05:52

Oiht, I feel your pain as I also have a BPC holding, am quite surprised at the very sharp drop even considering curreng market conditions.

As for DPL, the BoD are worrying me a bit lately. Why are they frantically looking for additional licences when they are supposed to be on the verge of unveiling the seismic glory of their crown jewel and working on a farmin partner. Did they see less positives than anticipated? I have no idea, but I'm really looking forward to a 3d-based CPR. Also, to be fair (and touching on Rayrac's point), these small oilies are at a tremendous disadvantage when negotiating deep see drilling partners, consequently much of DPL's future is out of its hands.

[oiht] 05/8/2011 14:10

Still not too much damage. My BPC holding is getting hammered though! :(

[oiht] 04/8/2011 11:33

Not doing bad considering the wider market hammering!

[supercow] 03/8/2011 13:07

bound to fall below 5p imo

[johncraven] 02/8/2011 23:37

shame about wall street looks like a blood bath across most markets tomorrow. If it falls below 5p im in for another 100k here.

[encarter] 02/8/2011 22:47

I just have, SLURP!!!! HICK.
Rayrac, deep water wells can cost 100s of millions of dollars so we have no choice and what do we have to lose if we get a free carry?

[philo124] 02/8/2011 18:14

Come on guys, let's at least open a can for today's rise amongst all the red.
Today's 2ND highest % riser.

[rayrac] 02/8/2011 10:38

Anyway, it appears to be a long saga in the making. I shan't be touching it for many a mth/year.

[rayrac] 02/8/2011 10:36

I've come to the conclusion that deep water drilling/sites, should be left to the big boys. Why? Because they, DPL, then try to farm it out to those 'big boys', who then have the likes of DPL, over a barrel (pun).

CHAR comes to mind, although they have done quite well with their link to Petronas!

[oiht] 02/8/2011 10:16

Just looks like a squiggly line to me. :)

[juju43] 02/8/2011 09:12

nice cup & handle forming or double bottom - take your pick . either will do

[encarter] 02/8/2011 08:22

Some 1m buys soaking up any sells.