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Real-Time news about Pinnacle (London Stock Exchange): 0 recent articles
|norman115: Tullow is working at a cracking pace.
A good result from drilling in the adjacent block by Repsol and Tower should wake up the Aussies and put a rocket under the share price.|
|shutittrev: The following narrative is taken from Michaelwalters.com. with his permission.
(I subscribe to this site and following Mike's success with Cove Energy, a 10 bagger, and Ophir Energy, also big gains, this is another recommendation for an East African play.)...Well worth the subscription fee.
Punting East Africa
In olden days, British enthusiasm for Australian resource stocks turned out to be little more than a device for funneling money from the wallets of unsophisticated Poms straight into the pockets of bonzer Aussie blokes. That was then, and this is... well, let us hope a little different, especially when it comes to looking at Pancontinental Oil & Gas (PCL).
This time, at least, we are not talking about investing in fairy tales of digging holes in the Australian bush (remember when one claimed to find gold when digging a latrine?), but in holes in the hottest current hydrocarbon area in the world East Africa. This, be clear, is a gamble, one I have hesitated over for months, simply because if Pancon does not strike lucky with the drill bit, the shares will take a hefty hit. On the other hand, if they do get lucky, we could be up, up and away.
More hesitation also attended this report because it is not normally my idea to put money into companies which are not quoted in London. Such companies are often ruled (I did not say manipulated) by diamond geezers in their home market, and the action often takes place before word reaches Britain. But there is a decent market in Pancon over here, and checking in the early afternoon today (Thursday) some three million shares had traded with the price at Aussie cents 18.5 to 19 cents, equivalent to about UK13.5p.
Pancon is one of the few smallish independent companies (market capitalisation quite chunky at about £120m) which has decent exposure to the remarkable East African offshore drilling boom, which has seen something like 19 winners out of 21 wells. Star, of course, is our good friend Cove Energy, currently a ten-bagger plus for subscribers as it enjoys being target of a bid battle. But others have scored heavily in the area, with major discoveries by ENI, BG and Statoil.
Our first choice gamble to succeed Cove is Ophir (OPHR), and there is much more on the area in the reports which can be found by entering OPHR into the search box on the left at the bottom of the front page. Pancon does not offer anything approaching the opportunities of Ophir, but carries a much lower value and is barely known in the UK market, which gives it greater attraction as the story begins to get around.
That ought to happen in the weeks ahead. Drilling should start next month on the giant Mbawa prospect on the L8 permit offshore Kenya. This is the first of four wells offshore East Africa where there should be drilling in the next 12 months. Success at any of them could transform the company's rating.
Pancon has 15% of L8, along with Tullow, and the operator is Apache. It also has 15% in blocks L10A and L10B to the south, where Cove has a stake and where BG is the operator. And it has 40% of block L6 (operator FAR) to the north of L8, with the southern section adjoining L8 in a crucial area.
The big excitement is over Mbawa, where, encouraged by the presence of oil slicks, the boys are betting on oil, with perhaps some gas. Apache says 'The Mbawa prospect is situated in the L8 License offshore Kenya ...The Deepsea Metro 1 (UDW drillship) is slated to drill the Mbawa prospect. The well is expected to take about 45 to 60 days to complete to a planned total depth of 10,662 feet (3,250 meters) subsea in a water depth of 2,821 feet (860 meters). It is estimated that Mbawa has maximum potential to contain 4.9 billion barrels of oil-in-place at the main Tertiary/ Cretaceous level with significant additional potential also to be tested by the well at the deeper Upper Jurassic level and shallower Tertiary levels.'
(MW resumes here. Sorry I don't know how to change back to my normal type) The structure runs north/south on a ridge, and 3D seismic has helped identify several prospects, with prominent possibilities to the south stretching into block L9 where Ophir has a 60% stake and plans for a drilling programme in 2013. Pancon is carried for the first $9m on Mbawa, and could have to contribute a further $4m or $5m to the drilling.
Last month Pancon announced the start of the Kifaru offshore seismic survey in the L6 exploration block, to the north of L8. This should finish this month, with Pancon's share of cost at $5.5m. The area is in the Lamu Basin and within the Tana River delta, and appears to carry similar structures to those which have brought the massive gas finds by Anadarko (Cove) and ENI in the Rovuma Basin off Mozambique to the south. There are plans to drill in 2013, all being well.
The other offshore Kenya blocks, L10A and L10B to the south of the Ophir-operated L9, have 2D and 3D seismic and have been fast-tracked by operator BG with the possibility of drilling in the fourth quarter of this year or early in 2013. Once again, these blocks display similar qualities to the Rovuma Basin with numerous leads and supplemented by oil seeps at Pemba Island, just across the border into Tanzania.
The offshore Kenya licence portfolio holds out prospects of considerable action this year and into next, and is the main centre of excitement over Pancon. But the company also holds 85% of three large blocks offshore Namibia in South West Africa. There are oil seeps in this little-explored area, and it is attracting growing attention.
Nearby, BP has farmed in to Serica acreage, Chariot has started drilling and Eco Atlantic Oil and Gas has come up with an independent estimate of potential resources of almost 8bn barrels in an adjacent area. It could be something or nothing.
After rising to about 23c earlier this year, Pancon shares slipped almost to 15c as the company moved ahead with a financing, raising A$45m by issuing shares at 17.5c. Counting cash already in the business at March 31, that means Pancon has maybe A$58m, and is well financed for the year ahead. The share price settled for a while and has just started to move ahead again.
So far, it is little known in the London market. Dublin broker Dolmen produced a brief report late in March, calling it a speculative buy with a price target of 30c. If you go to the company website at www.pancon.com.au, there is a very full report from company broker Hartleys, and I have drawn upon that in this report.
Once again, this is an unusually speculative recommendation, and it depends massively upon what happens with the drill. There is never any guarantee of that, but those who understand such things are optimistic about Mbawa, and there are three other interesting licences in a prolific area. As drilling results approach, and more wake up to what is going on, the shares could move usefully higher.
And, of course, the phenomenal success the majors have had offshore East Africa means that the big boys are looking to buy into anything which has reasonable assets. And Mbawa could have oil, more valuable than gas. If Pancon gets lucky, the chances of a bid before too long must be high.
|norman115: I decided not to buy any shares in the SPP for the same obvious reasons as you. A positive result from Mbawa drilling will work wonders for the share price.|
|purav: The results did not affect the share price so they must be close to what most people expected. What did you estimate?|
|trackerjack: Its a very strange one. I was hoping a bid would surface for the company but it would appear a price couldnt be agreed that suited PCL. Agreed there is a £8m t/o business left but their entire strategy going forward hinges on acquisitions - at the current share price they would be diluted to hell. Schroders/Andy Brough has a big stake (20% odd)....perhaps he can bang some heads together here|
Sorry off topic. Evolutec (EVC) may interest you (I see you did well out of PIX). Its another cash play (in talkover talks with several parties). Share price 18p to buy, cash of 30p at end December. Its basically a failed biotech. Cash burn was very high last year but it was outsourced so easily stoppped when 2 drugs failed.|
|nickcduk: Recently demerged from Nestor, Pinnacle is a healthcare recruitment company. With recent cutbacks in NHS spending the last year or so has been pretty tough for Pinnacle. Trading statement out on the 19th January says trading is in line and the market is stabilising. The finance director put his hand in his pocket and picked up 50k+ shares at 9.5p less than a month ago. Since then the share price has fallen sharply because insitutions who held Nestor are selling out and repositioning their portfolios. This is buying opportunity as todays announcement shows they are making strong progress against difficult market conditions. An idea of the potential recovery for Pinnacle is a glance at the profits it was making in 2004 and 2005. In those years it made a profit of 1.7m and 4.3m respectively. Now conditions have stabilised and cost cutting has taken place i wouldnt be suprised if it was in a position to make 2m+ a year in profits in the near future. That against a market cap of 7.1m makes this a very attractive risk reward situation.|
|energyi: DISPOSITION of Golden zone and South Estelle
Old number.. : 16,255,167
Extinquished :. 4,100,000
New number.. : 12,155,167 x C$0.20 = C$2.3mn MktCap
x Ratio .... : x 1.75
HIF shares.. : ??
Each PCL share will be backed by 1.75 shares of HIF
Thus: 1.75 x 10p x C$2.00approx = C$0.35 approx.
of backing for each PCL share|
Pinnacle Staffing share price data is direct from the London Stock Exchange