|With WTI now at $51 and natural gas at $3.5, PPC might be making a profit from the US operations again.|
|Thanks for that update, I've been adding all the way down. My view has always been Levine has the track record and skill set to be able to steer the company to become a significant player. Chopper/brasso appreciate you frustrations and yes there has been unbelievable bad luck over the last 5 years. Some will say mismanagement but in honesty I don't know enough about the decisions made impacting on outcomes. However at this point would I invest in a company valued at £60m with £20 m in bank, their assets , recent agreements which will result in oil settling at $52-58 range and Levine at the helm (who's interests are totally aligned to shareholders) the answer is a resounding yes. I believe acquisition of depressed companies shouldn't be underestimated either. I've now got more than a million shares so I've put my money where my mouth is. Some will disagree but you pays your money you takes your choice.|
|50p (£500m mkt cap) looks a million miles away from here. Lets hope we can have some luck now as technical ability will not help us going forward.|
|I am basing the new valuation on the One billion shares issued.
Any mega oil find would propel the share higher
Unfortunately we have now 250 million shares more issued at 6p
due to the GROSS NEGLOGENCE OF THE DRILLERS contracted in Sept 2016
These in my view, should be sued by private investors
they are responsible in the price share divided by 2 in the long term
with 400 million shares at 50p you would get 200 million market cap
with near one billion at 50p you have 400 million and at 1£ one billion
you would need a sequence of fantastic news, chances and luck to get there
so it s time to buy everything below 6p
5p to 50 is a ten bagger
sorry for the ones who paid 80p like myself for some
the road is now a hill
for new comers and averagers
this will be the chance to make up for the losses and make decent returns
the 100 million USD loss in previous drillings are losses, 6p reflects that
there is hope, but .... to win means having a very low averging price
good luck to all|
|Thanks for your post, disappointed about your share price prediction, or does it change if some new fields are exploited, with a reasonable size find??|
I just (literally now) returned from the EGM of PPC at Riverside, 2 Swan Lake, Cannon Street
I was the only shareholder present. Also attending was a Director, a second one arrived later due to traffic congestion, a few familiar faces from the company, as well as a couple of Financiers. Mister Levine was on speaker phone, life from Argentina.
I arrived just on time for the opening of the meeting at 11h01. The Board asked for any questions.
I was glad to be able to ask 2 questions:
1- what is the 20 millions for?
Peter Levine rightly said « it is well explained in the Notice » , however he took a few minutes to explain (see below for overall response)
2-the only question that mattered : « Dear Mr Levine, after spending over 100 million in the last 7 years, the only question I have for you today is « where is the oil? »
I ll summurize with a z his response
Mr Levine wakes up everyday with that question in mind. Despite all the setbacks, the unfortunate drillings etc, he is resolute in turning this company into a success, whatever it takes. He also invested and is down millions of his personal fortune, so his interests and determination is the same as the shareholders and his backers.
Credit to him for that. It is the same Levine as I met in 2011 when we shook hands and he said exacty the same thing.
The unfortunate series of bad luck is really that : bad luck , political, drilling, some recent contractors and political context and oil crisis etc
All the resolutions were pasted by a show of hands, although I abstained as standard (I really hate private placements and this is the last investment I do in such a company), this fills the pockets of City advisers, mega dilutes shareholders and the last one to get in gets all the benefits, profits etc…
I use to have 1 percent of this company with 100.000 shares, nox I have more (for which I paid) but hold 0.0000XXXXXXX well something like hat, like the depth of accumulated well write offs.
The interest of attending a meeting where no one else attends (new location, midday and the writings on the wall)… is that you have exclusive access to the decision makers. And what they say is invaluable!
Unfortunately I will be unable to transcript here what was said to me today, as that would be a terrible breach of trust and confidence.
However, I can certainly write the following:
Having asked a few questions, I now have a better understanding of the key dates for 2017
None of this is really new except… a few things
The truth is that I only new a few things about the current program due to extensive multi projects around and stocks to follow. I understood that the catastrophic results of September results of the drilling really made the company loose 1 year in its planning and ask the market for funds at the lowest of possible prices 6p . So it was good to have a good explanation of what is going on now and 2017
1- expect work-overs to bring 1400 bop by the end of the European summer of 2017
2- the dispute with the major contractors regarding the gross negligence from their part in 2016 is being discussed as we speak and the outcome « could » be a resolution. This would mean a restart of the drilling of 2016 My comment is , current shareholders should sue the contractors themselves and ask massive compensation against them as their errors cost this company to issue 250 million shares at 6p
The program will be late 2017 what it should have been now, if the big big name contractors had not messed up!
3- PPC is back full circle to Argentina , as we are doing now what was going on in 2012 before Mrs Kirchner used a bit of the Argentinean karsher to wash out the oil industry in her country… Prospects are good and PPC is looking for new producing fields and opportunities
4- Paraguay , massive reserves there, unfortunate past drilling , Government support, more time given to PPC with the license and 2017 farm out. Cons: terrible oil industry context, costs from all sides, no exploration , low oil price and very low mood in the industrie, job losses etc etc
5- PEL 82 Australia, same as Paraguay: support from the Government with extension of licence ,
PEL 82 is completelyy written off in the books and PPC is looking for a farm out
Overall, with the 20 million in the bank , the work overs production to come and the drill, PPC will be ready to jump start where it was supposed to be all along…
Any share drop below 6p should be taken as a massive opportunity to buy discounted stock.
The objective is now 30p within 3 years and if things go well 50p within 5 years
All I hope is that the Management travels in South America in planes full of PPC oil
And I have a special thought for the Brazilians , my cousins, who died in that awful crash where the plane had not enough oil. A tragedy ! But typical I would say
Regards to all and good luck this time to all involved in PPC
Best season’s greatings too :+)
Victor from Portugal
Ps: excuse any errors in the spelling of Anglicisms not 100% mastered. LOOOL|
|Not much Rizz. Just enough to make the game interesting. Seeing QPR lose is worse than losing a few quid. They're just a bunch of boys in need of a leader at present. Should never have let Clint Hill go off to Glasgow Rangers.|
|Hope you didn't punt too much LR2|
|I remain unconvinced as to how PPC will achieve production of in excess of 1200 BOPD from this new 10 well workover campaign. The statement from the 15th November RNS was as follows:-
-- The proceeds of the Fundraising will be used as follows:
Approximately US$10.0 million will be used to fund the Group's initial 10 well workover programme of shut in wells in Argentina in order to increase Group production.
In the placing circular it states the 1200 BOPD target:-
The Concession contains 36 wells which still have undrained oil and have been shut in over several years without benefit of the types of new stimulation technology and re-completions that would typically be deployed in onshore wells in North America. These wells are located in the same reservoir formations that are currently producing in the Concession and the Directors are confident that they will yield significant incremental production and value when worked over. As a result, the Group is planning a rolling workover programme in 2017, initially of 10 of these shut-in vertical wells targeting increased production from the Puesto Guardian Concession of up to 1,200 bopd by the end of summer 2017.
I think in the last 18 months PPC has done 12/13 workovers in Argentina. The best result (increase) was around +60 BOPD and the average is below 25 BOPD. The last 5 workovers do not seem to have offered any new production. I would be very interested to know how these next 10 wells can therefore average >70 BOPD to take us to this magical 1200 BOPD figure being quoted. Based on the historical evidence it would suggest this figure is not achievable without drilling. Furthermore I would guess that the workovers already been done were on the best well candidates which would be logical so I cannot see the latter workovers being better than the historical ones.
As usual with any PPC communication it should be what they don't say that should concern us.|
|Thanks. Going to need it - QPR right back sent off on 34min.|
|GL tonight - LR2|
|C'mon U R's.
6/4 odds to beat Wolves tonight. Worth a small punt.|
|Long live the PFJ!
|There is potential for the resources held by President Energy in Argentina and Paraguay to eventually be worth multiples of the sum IEC was sold for back in 2008, Wayne.
I'm sticking around to see the whole story develop.
For sure PL has made a lot of money out of PPC over the last 6 years in salaries and interest at between 12% and 15% on his loan facility. He will still be down overall though at 6p. I cannot see the other big investors tolerating the poor operational performance much longer and surely they will want an oil man running the show. PLs reputation from the IEC days is over.|
|Good post chopper.|
|I wonder how much PL takes as salary and also syphons off we seem to burn cash certainly not contributing towards drilling so where is the revenue from the wells going?!|
|Good post Chopper (12061).
With oil looking like its on the turn maybe this will take some pressure off the PPC share price. Really bemused about the recent 5 well workover campaign in Argentina as I was starting to think we understood these old shut in wells.|
|There are some clowns on her but Chopper or Brasso are not one of them. I believe this company has some good acreage, their issues for me are on the operational side and thats why i sold at a major loss, saying that, i still have some in a SIPP so will continue to monitor.|
I have remarked on a number of occasions that I've been foolish hanging on to these at various times when I would have been better off selling. And I'm sure I'm not the only one on here, including a number of those that continue to view everything about this company with rose-tinted glasses.
As regards talking the company down from 30p: you make me sound like a shorter. In fact my negative posts are always as a reaction to events and news which have caused the share price to fall from 30p and higher. Nobody needs to talk the share price of this company down, even those that would want to for ulterior financial motives. The company does it all for them.
A few examples which inspire negativity among the company's shareholders: Jacaranda and Lapacho were so successful (according to the company) that two years down the line not a drop of oil or gas has been commercially extracted. And these successes have set us back tens of millions of dollars. If they were so successful why hasn't the company been back in the meantime to exploit these riches?
The DP1002 well is (if you believe the wording of the RNS concerning it) just a workover rig away from successful completion. Well, where is this workover rig? World-weary PPC shareholders know that we will never see any commercial revenue from Jacaranda, Lapacho or DP1002.
And now we move on to the next venture: the workovers in Argentina, for which we've had to endure some heavy dilution to raise an amount significantly less than that raised for Jacaranda and Lapacho and the third well in Paraguay (which they ran out of money for after over-spending on the previous two successes).
Where is the revenue going that is coming in from the production which we do have and which is often so positively referred to in RNSs? Wasn't this meant to fund a rolling programme of workovers? So why the need for the recent heavy dilution to basically fund the same thing?
So you see, Super Y, the company are providing enough ammunition for the likes of me to pull them up. A few others appear to be willing to do the same. Good luck to those of you who can see no wrong in this company and the way it's run. If you're happy with the current number of shares in issue compared to two years ago and are happy with the current share price and are happy with the current level of production compared with the money spent operationally and are happy to be continually fobbed-off with regular promises of enhancing shareholder value and are prepared to just accept it, then fine. But have a bit more patience with those that aren't.|
|Chopper then do you not feel like a clown as you have been constantly talking down the company from about 30p. That is if you are really a holder of the stock.|
|At least he is still putting his money where his mouth is. That must be an informed vote of confidence that he is thinking they will get this out the ground eventually.|
|The only clowns on this thread are those that think Levine has done a good job and that the current share price and level of production are worthy of all the money that has been raised and spent in recent years. Not to mention the severe dilution consequently suffered by shareholders.|