Jersey Oil And Gas Share Discussion Threads

[cashandcard] 26/10/2015 12:16

Nothing has changed then, going after small, high-cost offshore assets in NS, a recipe for failure if only one of a number of things go wrong.


Cash

[knicol46] 26/10/2015 12:05

+7% NEW RNS out

[comet5d] 24/10/2015 12:34

@BloombergTV: Why crude oil prices may hit $130 a barrel in 2017 https://t.co/Dl162WvFSM

[comet5d] 23/10/2015 15:44

Big winners APC Technology (APC) And Jersey Oil & Gas (LON:JOG) took place to little fanfare over the summer.By AIM Stock MarketOctober 23, 2015....The transformation of Trap Oil to Jersey Oil & Gas (LON:JOG) took place to little fanfare over the summer.Those who invested in Trap will probably be glad to see the back of the company and its management after it blew through tens of millions of pounds with little to show for the largesse.It has, however, bequeathed a legacy to the AIM-listed successor company's new team, led by Andrew Benitz: £25mln of accumulated tax losses.These are not the sort of things usually bragged about - but they are worth around £12.5mln in actual value to a North Sea producer looking to mitigate the 50% tax on output.To say there has been scant recognition of this opportunity by the wider investment community would be understating things. JOG is currently valued at £1.5mln – just £500,000 more than the cash it has in the bank. So the market ascribes little or no value to those tax losses or the rump assets.Not much has been said by Benitz, or his team, on JOG's plans. However the company set out its strategy in black and white in a corporate presentation – which I'll come back to in a sec.First it is worth noting JOG seems to have cleaned up the mess left by the former Trap team.Most notably, it looks like it has ring-fenced the business from losses being incurred by the ill-fated Athena oil field in the North Sea with a one-off payment to its partners. Trap paid £34.5mln for 15% of Athena back in 2012.As mentioned earlier there is also £1mln on the balance sheet – which should be enough to meet the company's immediate needs.Now to that presentation - and if you have the time flick to page six you'll see the money-shot.It sets out plans for the next two years or so that would see JOG take working interests in six to 10 fields with the target of producing 10,000 barrels a day.These would be non-operated stakes in sub-sea tie-backs, which are much lower cost than traditional platform-based operations and therefore have much smaller abandonment liabilities.Now, in this oil environment there has been a very public stampede out by the big boys - most recently Shell, which has placed the 'for sale' sign above theGannett Field, which sits 110 miles east of Aberdeen.Meanwhile, the small and mid-cap players are struggling under the weight of debt working on projects that were economic at US$100 oil, but are hugely loss-making as crude has halved in price.For problems, read opportunities for companies nimble enough to pick off the more economic projects.There are assets that still deliver a decent internal rate of return in the current environment for Brent and work even if the price crashes below US$30.Private equity has spotted this, as has Jim Ratcliffe, the billionaire owner of chemical firm Ineos, who is bidding for a clutch of North Sea gas fields owned by the Russian oligarch Mikhail Fridman.The challenge for a company like JOG looking to play this game of pass-the-parcel is finding the finance. It certainly isn't getting US$100-$150mln from the AIM market, though there will, no doubt, be some form of equity backing required.Debt funding looks a real possibility. While there's little or no appetite to back exploration, the banks are happy to lend money against proven reserves and production.This means it is possible to fund a deal at LIBOR plus 4-4.5%, I'm told; the process is a little like taking out a mortgage. There are tangible assets and cash flow backing the investment.JOG describes its acquisition plans as an accordion-type strategy.I don't quite know what that means. It strikes me that JOG could act more like a buy-to-let investor, borrowing against hugely undervalued assets, in this case stake in an oil field rather than a flat.The first deal then would be a platform to re-mortgage and create a decent, yield generating portfolio.According to the JOG presentation, it is looking to build a reserve base of around 15-20mln barrels.Word has it that the Benitz team may already be running the slide rule over a couple of opportunities. When approached he wasn't available for comment.JOG does have an advantage over the other financial buyers - those accumulated tax losses should allow it to bid slightly higher than an opponent for the best assets and still have a slice in an economic project.Forgotten in all of this is the fact it has exploration acreage in the form of the Romeo licence, which in all likelihood it will look to vend out and get a free carry to first oil on Liberator.History, meanwhile, tells us success is often forged from adversity.Take, for example, the early noughties, when Brent was trading well below its current level. We saw the emergence of a number of entrepreneurial mid-caps: names such as Dana, Enterprise, Lasmo and Bow Valley, which took advantage of the downturn to pick assets on the cheap.Will contrarians such as JOG win this time round? Only time will tell.Looking at the make-up for the company's technical team there is the expertise to create the sort of value enhancing opportunities I have outlined. It will be interesting to see just what Benitz and his colleagues do next.

[bones698] 21/10/2015 12:33

Known many companies have huge tax losses but never get used or worth anything tbh the problem is the size of the companies with losses are small and would only be of interest to other small loss msking companies in which case there is no point buying an outfit like this and with so many oil companies in trouble the market is very small if not none existent . First you need to find a very small operator which is producing millions in profits , then they have to have used their own tax losses , then you have to make sure the losses can be transferred . A lot are confined to the project or country they operate in so again limits their usefulness . Either way they won't get much for them imo and it would take a long time to sort anything out by which time this may well have gone under

[cinques] 20/10/2015 14:54

Ah, but they have those tax losses! :)

[bones698] 20/10/2015 14:17

Oil write it off , they have about 400k and nothing worth a damn , in the North Sea they are in the wrong place at the wrong time . Just collecting wages will eat the cash and produce nothing

[oilretire] 16/10/2015 12:24

So what's been going on since TRAP days? Have JOG got any money? I too need a multi bag to recover my punt.

Looking back a few posts, I find it laughable that Gannet & JOG are mentioned in the same sentence.

[impvesta] 16/10/2015 11:24

Yes, now up to 22%:

hxxp://www.investegate.co.uk/jersey-oil---38--gas-plc--jog-/rns/holding-s--in-company/201510161117145220C/

[oilretire] 16/10/2015 11:20

And again for PG

[impvesta] 15/10/2015 11:51

"peter gyllhamer ups his stake he is one very shrewd guy follow the money"

Like all shrewd guys not everything he does is successful. I hardly think he will be patting himself on the back for all the earlier purchases he made when this company was called Trap!

Fingers crossed he has got his timing right this time. If it 100 bags from here I will be in profit again!!!

[bones698] 15/10/2015 11:44

Lmao yes a very shrewd invested he is only down about 90% in this so far along with PC. Another so called shrewd investor . They have no money and nothing of note , they can't develop anything and the little money they have left will only pay wages for a year before more funds are needed . Anything they get in the North Sea is undesirable and very risky and almost certainly won't be profitable until oul hits 80 plus again . This is a screaming sell and avoid at all costs share . Mark these words as it was me who said trap would fail .

[tez123] 15/10/2015 11:31

This is a screaming buy for me now.

[sigora] 15/10/2015 11:27

peter gyllhamer ups his stake he is one very shrewd guy follow the money

[richie32] 14/10/2015 11:05

Sorry wrong board

[colin12345678] 13/10/2015 16:39

Gavster_NBC ‏@Gavster_NBC 19m19 minutes ago

# JOG # Jersey Oil and Gas ( JOG ) Acquiring Shell North Sea Assets !!


Price sensative and they have been asked to remove it ha ha

LUCKY I COPIED IT



Royal Dutch Shell is selling two assets in the North Sea and one is rumoured as being the target of Jersey Oil & Gas who are in the market for North Sea assets.

Shell’s stake in the Gannet field, a complex of ageing oil production platforms and pipelines 110 miles east of Aberdeen, is being marketed to potential buyer believed to be Jersey Oil & Gas.

A new management team is set to take charge of loss-making Trapoil in the belief the company can still prosper in the North Sea in spite of the crude price plunge.

Oil and gas veterans Andrew Benitz and Ronald Landsell plan to change London-based Trapoil’s strategy to focus mainly on buying into existing producing assets rather than trying to find and develop new fields.

“There is still an opportunity to make money at current prices,� said Mr Benitz. “Where you can’t make money is in the exploration and development stage.�

Mr Benitz said the fall in the crude price has created opportunities to buy assets at attractive prices.

He noted Trapoil has amassed losses the company could use to boost returns from producing North Sea fields.

The losses were incurred while Trapoil worked on an exploration portfolio that included assets acquired through the £30m acquisition of Banchory-based Reach Oil & Gas in 2011.

Trapoil acquired a 15 per cent stake in the Athena oil field before it entered production in May 2012, for around £35m.

Mr Benitz noted the company had reached an agreement with creditors in June.

He and Mr Landsell have agreed a deal under which they will sell the Jersey Oil and Gas E&P business they founded to Trapoil for shares in the Aim-listed company worth around £500,000.

Trapoil has arranged to raise around £800,000 working capital from new and existing investors.

The deal left shareholders in Jersey Oil & Gas with around 27 per cent of the shares in the enlarged Trapoil, which raised £60m when it floated on Aim in 2011.

Trapoil’s chairman Marcus Stanton said: “We believe that the proposed acquisition of JOG, refined business strategy and injection of new capital, presents a welcome opportunity to enable the Company to resume a growth strategy.�

[colin12345678] 13/10/2015 15:46

riddler
Posts: 76,312
Premium Chat Member
Off Topic
Opinion: No Opinion
Price: 17.75
JOG did hint
Today 14:53
In results RNS they had the BOD to pull off massive deals. .. £7mln tax losses to carry forward and government took north Sea assets of Russians this week ; )