Resaca Share Discussion Threads

[half man half codpiece] 15/5/2009 15:06

seymour pierce have worked out NAV to be 120p here. Check further back.

[half man half codpiece] 15/5/2009 15:05

seller cleared out.

howdlep
Who is Evil?

[m5] 15/5/2009 14:57

I'm in for a few of these.

[howdlep] 15/5/2009 14:48

A break above 27p on the chart and we are away

[howdlep] 15/5/2009 14:46

28-30p offer by the end of the day?

[targatarga] 15/5/2009 14:36

howdlep - yep got in yesterday at 22p. Was told earlier seller nearly finished. Enjoy the ride....

[howdlep] 15/5/2009 14:31

Seller just needs to be cleared and this could move very quickly. Just remember a lot of the apparent sales at 22p are buys. So the first bid tickup to 23p is an indication that the mm's are beginning to square their books.

Evil has also announced today he has bought so once the daytraders appear here...........

[half man half codpiece] 14/5/2009 13:02

bigger buys now.

[half man half codpiece] 14/5/2009 11:02

more buying

[half man half codpiece] 13/5/2009 22:44

great looking chart

[half man half codpiece] 13/5/2009 08:09

However, applying valuation metrics derived from industry M&A activity would value Resaca at anywhere between 150 and 200 pence per share.

[orinocor] 12/5/2009 14:50

"Resaca is currently trading at an enterprise value per proved plus probable barrel of $1.60. This compares with an industry benchmark of $10.00 and a peer group average of $7.50 per barrel."

That is from the note above and says it all!

[orinocor] 12/5/2009 12:57

ASSET VALUE OF 120P from a note dated April 2009


I had to pay 25p with TDWaterhouse

[ghhghh] 08/5/2009 08:56

Resaca listed 17th July 2008, raising £42m at 130p and was oversubscribed although market for small oils overheated at this time. Can buy today at circa 22p.



From above Seymour Pierce Note:

It has not changed our asset value estimate which remains at 120 pence per share assuming an oil price of $55 this year and a flat $65 per barrel thereafter.

However, applying valuation metrics derived from industry M&A activity would value Resaca at anywhere between 150 and 200 pence per share.

Market cap is £21m and net borrowings of £14m, hence EV £35m.

Resaca has independently assessed proved reserves of 17.3 million barrels and proved plus probable reserves of 31.6 million barrels, in oil equivalent terms. In January of 2008, Haas Petroleum Engineering Services valued Resaca's reserves. Utilizing NYMEX commodity price assumptions of $95.98 for oil and $7.48 for natural gas and discounting at 10%, Haas valued Resaca's "2P" reserves at $423 million.



Resaca refinancing its current senior credit facility but had headroom of $32.0 million available at YE. Not sure whether re-financing to increase facility for acquisitions or breached covenants because of falling commodity prices . Will find out.

December net production averaged approximately 720 bopd - approx 65% of current production hedged with a crude oil price floor of NYMEX WTI circa $62/bbl and a natural gas price floor equivalent to NYMEX Henry Hub index price of approximately $7.30/MMbtu


From recent Interims:

In the area of acquisition, we believe there are unique opportunities for benefitting shareholders by a significant acquisition or merger.

Evidently they implied at recent Presentation that in advanced merger talks.


There is large US seller holding price down - although spread 22p to 25p I bought in reasonable size at 22p. For smaller size don't pay more than 22.5p max.

Seymour Pierce the Broker to deal with.

To sum up, I'm nervous about any company renegotiating it's credit facilities in current market, hence wouldn't bet the farm on it. However it has not bounced with the sector recovery and the discount to proven reserves compelling.

Has anyone researched/met Resaca? I'd be grateful for any feedback, especially re quality of directors.

[matt123d] 19/1/2009 20:46

Getting some decent volume in over the past couple of months and starting to push higher now moving above the 20dma.

Have taken a position here over the past couple of weeks.

[spurberry] 12/12/2008 13:49

Why the large drop here?

They seem to have around $32mill with acquistions etc..

What news is expected short term and what share price based on possible news?

Just strange that this fell from £1 to 12p currently!

Thanks for replies in advance

[mdchand] 07/10/2008 16:47

based on today's price action, one can only assume that the fund raising has now fallen out of bed....but perhaps an RNS from the company will help clear things further.

[mdchand] 26/7/2008 17:51

Resaca Exploitation - Speculative Buy

Background: Texas based oil and gas business, Resaca Exploitation, has announced its intention to join AIM. In conjunction with the listing the company is looking to raise up to $100 million in an institutional placing to fund an increase in production at its properties and the potential acquisition of further assets. The first day of dealings is expected to be on 17th July when the company should be valued at around $250 million.

Conclusion: Using a net present value model with a 10% discount rate Resaca's reserves have been valued at $423.7 million after tax . On that basis the shares will be trading at 41% discount to NAV on the first day of dealings. If the fundraising is successful the the company will be well funded to reach its production targets and to acquire additional projects. There remain risks over the success of the recovery techniques but with oil and gas prices remaining near to all time high, on balance we rate the company as a speculative buy.

[mdchand] 26/7/2008 17:50

New AIM Float Resaca Exploitation Reckons To Greatly Increase Oil Production from Its Texas and New Mexico Acreage Using Secondary Techniques Including C02
Based in Houston, Texas in the US Resaca Exploitation which, recently successfully floated on London's AIM at a time when shares all around it were crashing, is at pains to describe itself as focused on exploitation – production of known oil and gas reserves through low risk, proven engineering techniques, not exploration.

[papalpower] 22/7/2008 00:34

Oil price could reach $250 by next year, says AAA-rated manager

By Danielle Levy | 10:34:39 | 21 July 2008

Citywire AAA-rated Nicolas Komilikis of Amiral Gestion believes it is incredibly unlikely that the oil price will go down and says $250 a barrel by next year is not beyond the realms.............

[papalpower] 21/7/2008 03:45

Resaca Chairman on AIM Debut

Shares of Resaca Exploitation gained Thursday on the company's first day of trading on London's Alternative Investment Market. Chairman JP Bryan explains that Resaca uses technology to get more oil and gas out of old reservoirs.Last Update: Thurs. Jul. 17 2008



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