Petroneft Resources Share Discussion Threads

[granto2] 19/11/2014 17:22

To be fair the share price has held up well considering the issues in Russia and the price of Oil,it's a little frustrating awaiting results, but lets all have some faith, the results will be with us soon, PYR will hopefully invite us out for Xmas drinks to celebrate..yeah..

[ravin146] 19/11/2014 17:13

Steel the fact that you actually counted to the end of the month explains investors minds here. I hope you haven't got that many in here or at least at low average price.

[steelwatch] 19/11/2014 16:42

Only 13 days to ob now ravin and I'm sure as I can be you'll have your update by then together with the forward plan, if any different to what the well researched already know.

[ravin146] 19/11/2014 16:29

Steel the reason I asked above for the cv's yesterday was because the current board are showing very poor investor relations. It must be raised at the oil conference in December. Even if the result may be good for the next RNS they must explain the reason for the delay or at least brush up on communicating with shareholders. Funny how natlata who wasted shareholders time in halting the farmout, are now very quiet when there is no money to make for themselves. Money talks I guess. Rant over

[jasper2712] 19/11/2014 13:39

Looks like they will get them the way this has been dropping!

[thetoonarmy2] 19/11/2014 13:28

someone is trying to bid for a 1 million at a shade over 6p maybe someone knows something!

[granto2] 19/11/2014 09:36

of course not, I asked for the time not for the result. nothing sensitive about that. I do it all the time and companies always reply.

[steelwatch] 19/11/2014 09:32

You wouldn't expect them to divulge price sensitive info to a pi, surely?

[seangwhite] 19/11/2014 09:14

Well granto that really is a surprise.It must be that the BOD and its cohort are all out hard at work watching the slow but sure testing of T5 -and praying like mad!VGLTA

[granto2] 19/11/2014 09:03

I emailed PTR a few days ago asking when might we expect results from the current drills and tests. i.e. the RNS. I have not received a reply as of yet.

[steelwatch] 18/11/2014 19:21

Kargasok is much nearer Licence 61 than Tomsk:

[steelwatch] 18/11/2014 19:17

ravin - the workers are used to the weather and get on with it. Temperature in the header is not extreme. Goes to -40°C when it gets really extreme.

[ravin146] 18/11/2014 18:51

Yh but that does not explain how long a test can usually take. Doesn't Russia at this time of the year have really low temp meaning working is harder, or provide the bod one of their usual excuse?

[steelwatch] 18/11/2014 18:22

ravin - we go round in circles, Db already answered that.

14 October: The process is expected to take approximately 3 to 4 weeks, after which the horizontal section of the well will be tested.

So they should be preparing to test, or already testing, now. Maybe they want to shift the rig first. Who knows?

[ravin146] 18/11/2014 17:44

Any oil specialist here? How long does it realistically take to test after drilling horizontally? If that test take time, fairplay, but it can't take 3 weeks surely. Either way, when it does get released lets hope it ok or oil conference in dec will be embarassing

[steelwatch] 18/11/2014 17:17

sean - I didn't suggest it was. What "ham strung" the company was drilling too low on the structure from Pad 2 and Pad 3 didn't come in to prognosis. That has nothing to do with "financial structures" which is what I was answering you on. As it happens, I agree the news post Xmas 2011 wasn't best presented in respect of the disappointing outcome on Pad 2. However, no one can go back and change that, only learn from it. DF has stated they won't make the same mistake of drilling production wells too low on structures again.

As to current news expectations, I will be amazed, without the benefit of foresight or inside knowledge, if we do not get updated on T-5 and A-106 within the next 14 days.

[seangwhite] 18/11/2014 16:57

Steel

The shares issued in 2008 were placed at 25p and the RNS at the time stated
'Current projections for the first two fields, Lineynoye and West Lineynoye, estimate initial production rates of 4,000 barrels of oil
per day in 2009, rising to 14,000 barrels of oil per day in 2012.'
We all know what really transpired and it was in no way only caused by the financial crash of 2008.The BOD as we know took debt from McQ and it was this arrangement that really hamstrung their options up until the recent OI deal.
Anyway the current share price being 25% of that 08 placing with P2 reserves actually having been increased in that period tells a lot.

VGLTA

[ravin146] 18/11/2014 16:48

Wow that was a thorough response ta. It's been a good day, fitb delivered! The longer the bod keep this wait for the rns, the negative effect on the share price will be greater, if, a disappointing number is released as some short/medium holders will walk away. Dbarron I hope the bod look at these threads lolGla

[steelwatch] 18/11/2014 13:59

sean - regarding "bad financial structures" - PTR was in the wrong place at the wrong time when Lehman Brothers went bust and took the world banking industry with it.

A finance deal had been arranged with Standard Bank to finance Initial field development and export pipeline and just when PTR were due to commence the Lineynoye field development and processing facilities, having already purchased the pipe, the 2008 crash wiped out Standard Bank's ability to supply funding. That was quite a setback and is how MacQuarie eventually came on the scene.



"Successful financing

The Group successfully raised US$17.3 million in July 2008 through a placing of new shares with international institutional and private investors, including a number of Directors of the Company. We have also signed a mandate agreement with Standard Bank plc for a facility of up to US$80 million. While the overall capital markets remain challenging the Group’s ability to source funding demonstrates, not only the quality of Licence 61, but also the capital markets’ confidence in our ability to continue to deliver solid operational progress and exploration success.

Business Development

In August we entered into an agreement with Arawak Energy Limited, a significant shareholder of the Group, to jointly pursue new opportunities in the West Siberian Oil and Gas basin. PetroNeft is constantly evaluating opportunities in line with our stated objective to expand our portfolio beyond Licence 61.

Conclusion

The Group remains on course to begin year round production in 2009. It has achieved further exploration success and identified potentially significant new exploration opportunities in Licence 61. Management will continue to work towards growing the assets of your Company through achieving production, further exploration and the identification of new projects for acquisition."



"Q.

FINANCIAL CRISIS:

Q. What has been the effect of the financial downturn on PetroNeft and what have you been doing to mitigate its effect on the Group?

A. Financial, operational and strategic flexibility are vital to small companies such as PetroNeft. When conditions in the financial markets began to deteriorate during 2008 PetroNeft was quick to adapt and the Board took the decision to delay Phase 1 of the development of the Lineynoye and West Lineynoye oil fields. This was not an easy decision at the time but it was the correct decision in the context of the Group’s long term strategy and ambitions. Since then we have implemented pay cuts throughout the Group and focused our work activities on further cost reductions and project optimisation of the Phase 1 development plan. We delayed our decision on winter production until late December when we were sure that oil prices had stabilised and we could make a profit on the production. These decisions have ensured that PetroNeft remains debt-free and has minimal commitments, thereby enabling the Group to look at a wide range of alternative development and value optimisation opportunities for its acreage and its business."

[crudde99] 18/11/2014 13:14

I wouldn't bet on any changes at board level in the near future. Oil India seemed happy enough to have left well enough alone and jumped into bed with DF and Co. The reason for this i feel is that perhaps OIL are pulling all of the strings now and are happy to leave the PTR board lurking around powerless in the periphery..!! Well at least they still have their salaries to console them..!!!!!

[steelwatch] 18/11/2014 09:46

sean - I would have no problem with a change of CFO, if it comes to that. Tom Hickey could be looking for a job if DGO don't want him.

[seangwhite] 18/11/2014 09:42

SteelThat was my point in stating the company has had a bad outcome in terms of shareholder value in no part due to fairly bad financial structures.Let's hope the next RNS marks a change in the company fortunes.VGLTA

[steelwatch] 18/11/2014 09:33

sean - just c&p from the website. I left PD out because he is CFO.

Chief Financial Officer and Executive Director, Age 42

Mr. Dowling joined the Company on 1 October 2007 and was appointed to the Board of Directors on 29 April 2008. He has 17 years experience in the areas of banking, accounting, auditing, taxation, financial reporting, AIM/IPO reporting, corporate restructuring, corporate finance and acquisitions/disposals. Most recently he was a Partner in the firm LHM Casey McGrath located in Dublin. Mr. Dowling has worked in a number of industries and has significant experience in the Natural Resources sector. He is a fellow of the Association of Chartered Certified Accountants (ACCA) and a member of the Irish Taxation Institute. He currently represents the ACCA with the Consultative Committee of Accountancy Bodies — Ireland (CCAB-I). He is also a non-executive Director of Moesia Oil & Gas plc, an unlisted Company, focused on oil and gas exploration and development in Romania and Bulgaria.

[seangwhite] 18/11/2014 09:15

SteelDF had a decent CV until he came to PTR.PD was left off your list and he is the FD!!Both have been at the helm during the period in which some fairly basic errors were made especially on the company financial structure.I am holding here and hoping that the new arrangement (with some input from O.I.) can finally get some real value put on PTRs already booked assets.VGLTA