||EPS - Basic
||Market Cap (m)
|Oil & Gas Producers
Real-Time news about Valiant Petrol. (London Stock Exchange): 0 recent articles
|red ninja: Well I hope IAE share price will recover once takeover complete and unhappy VPP shareholders have exited.
At the moment many in the market believe IAE is paying too much for VPP.
However, is the market crediting the tax losses that VPP is bringing to the party.|
|ed 123: The answer is, of course, that they could give an update, without compromising any negotiations. For instance there is production information available from Enquest and Antrim that VPP could rns.
The problem I have is that the private investors are probably the only group outside of the information loop. The directors of VPP, the parties they are talking to and the major shareholders will all be insiders to what is going on.
Being outside the loop, though, can have its advantages. The directors of VPP went in the market and bought shares at various prices above the current level (344p). Perhaps they would be buying now, if regulation permitted?
I have been buying on the way down and I'm keeping some powder dry to buy at under 300p.
For the past 3 weeks (ie. after the Fionn drop) the share price has been falling at about 10p per week.
If it takes more than another 4 weeks to get the review result out, then I could be in for more of these in the 290's.
I recall my buying shares in Nautical Petroleum down to about 270p, then smiling when the 450p recommended offer was announced. Maybe I'll be lucky again?|
|ed 123: Thanks, frazboy. :-)
It confirms my own view - that Valiant's share of the Dons, alone, has an npv more than the present market cap of Valiant. Additionally, it gives 174p per share npv of tax losses. Got to be worth 500p+ in a takeover?
We need that update. In a normal year we would have had one in December or January.
(Had a little grin at Morgan Stanley's stockpicking. Looking at four oil companies, they expected Enquest's share price to fall, but it rose. Conversely, they expected Excite, Faroe and Valiant's share prices to rise, but they all fell.)
utrecht_00. It should get snapped up, but the market usually gets wind of such a move and Valiant is in the doldrums.
Bought a few more today.|
|ed 123: That's encouraging, sludgesurfer, but something else is apparently on the mind of the market. Share price down 8% currently. 10:21 saw a sale printed of 50,000 shares at 370p. Why?
Still no reply to my email. I phoned Valiant this morning. Someone will ring me back.
hpcg, re: Antrim Energy, agree with your reasoning. Wouldn't discount it entirely though. Perhaps that's why the share price is being hammered? ;-/
ohisay, Premier's option was to acquire 39.9% of Fyne in return for paying up to $50 million towards Antrim's costs. Appraisal drilling disappointed and Premier walked away. First Oil Expro also walked away. Antrim ended up with 100%. Now trying to find a partner.|
|ed 123: It's true that Antrim do have a 'poison pill' capability. However, it is worthless, imho. The idea is, in the event of a perceived hostile shareholding building up, Antrim gives new shares (free of charge) to the non-hostile shareholders, and thereby dilute down the hostile group's holding.
1) It may not be legal, if challenged in a court of law.
2) It would be totally ineffective in the case where a bid for all the shares in Antrim were to be submitted.
Call me cynical if you like, but my view on the poison pill is that it is management's way of telling the industry that they will fight hard to hang onto their jobs. It is sold to Antrim's shareholders as protecting their investment against a low takeover bid. But, whom has it really helped? The management have retained their well-paid jobs and the share price is now around 35p - ie. more or less where it was 10 years ago.
I'm not at all anti-Antrim, nor anti-Valiant, for that matter; I am a shareholder in both Antrim and Valiant. What I want is for private investors to be treated as the part owners of the businesses that they actually are.
Coming down off my soapbox, the directors of Antrim Energy hold around 1.85% of the shares, whereas Hedgehog hold around 25.49%. Clearly if Hedgehog want a combination with Valiant (or anyone else) then that has a good chance of happening. I should add that any link with Antrim is only speculation on my part.
The combination has some appeal to me. Antrim needs to avoid a cash shortage in developing Fyne, hence walking away from Fionn. Valiant could provide the cash needed to develop Fyne comfortably, and the combination would not have all of its eggs in the Fyne basket. For Valiant, Antrim's share of Causeway and CE would give Valiant an immediate increase in revenue. Then, in two years or so, Valiant would get an extra 11,000 bopd from Fyne. Also, Antrim's exloration licences look interesting and offer more geographical/political spread for Valiant.
I've had no reply to my email. If there's no reply and no update in the morning I'll phone Valiant. I don't want to be told anything sensitive, but I do want the market (ie. private investors) to be kept properly informed.
I think we're all agreed that there's more value in Valiant than its current market cap. We'll see what the non-execs come up with.|
|ed 123: GoG. There's a lot to take in.
Curious, out of all the shares you could have looked at, why choose Valiant?
As for a normal level for the share price, I'm not sure what that should be.
The result of the strategic review may (should, or else why do it?) have a big (positive) impact on the share price.
I think today's episode may speed up the announcement.
Info on the bids should be known by the board of directors, their advisers, the bidders, their advisers, the close relatives of the above, and their friends, and the friends and close relatives of the those friends and relatives, etc, etc. Oh dear! I am in a bit of a mood today.
Feeling like I'm kept in the dark by Valiant.|
|ed 123: They've probably been infomally batting prices back and forth. I do think the US deal may crystallise an acceptable offer.
I think PB and party could do very nicely out of buying Valiant at 600p. It's a case of how quickly the major shareholders in Valiant want to get value out. If they can wait three years, then why take less than 600p? On the other hand, if they want to get out of Valiant without delay, then they might have to accept nearer to 500p?
A while back I guessed at 540p. That would be about 35% above today's close. It would be a good uplift for existing holders and a good price for the offeror.
If there's no recommended offer, then the share price is likely to fall in my opinion; the opposite of what the strategic review aimed for. That, combined with the downward pressure on the share price since the announcement, should (I think) conspire to produce a 'low' recommended offer - guessing 540p.
(As an aside, I'd like to know who's been doing the selling since the announcement of the review - but I very much doubt we'll ever be told.)|
|ed 123: Thanks, ohisay and frazboy. :-)
Dons news from Enquest today.
Daily average Daily average
1 Jan' 2012 1 Jan' 2011
31 Oct' 31 Oct'
Thistle/Deveron 7,845 5,246
Dons/Conrie 10,203 13,145
Heather/Broom 3,521 5,553
Total 21,569 23,944
-- The up-dip sidetrack of West Don Well W2 (now designated Well W5) came on line on 8 October at an initial rate of 2,000 Boepd
-- S10 is anticipated to come on stream soon at Don Southwest
Still waiting on the Causeway production news here. Both AEY and VPP share prices seem to have settled and at an unenthusiastic level. Market now anticipating a 'below expectations' result?
After saying early November for first oil, Monday merits an rns or one sort or another.|
|ed 123: PCI's shareholders today voted to approve the merger with MRS.
PCI share price now around 7.1p, compared to around 8.1p before the proposed merger was announced.
Would VPP shareholders be happy with a merger and 12% drop in their share price.
VPP currently stands at 450p. What's the choice? £4 for a merger of equals or £6 to be taken over by a bigger player?
I know where my vote would go.
(Sale of some assets is possible. But what's the point in that?)|
|aleks_atanasov: --Hopes to conclude review by end of 2012
--Believes Company isn't fairly valued
--Ideally looking for merger to create value
--Has a $271 million tax rebate on U.K. production
(Rewrites throughout. Adds chief executive's comments and updates share price in the last paragraph)
By Iain Packham
LONDON--Valiant Petroleum PLC (VPP.LN), a North Sea-focused oil company, prefers to seek a merger partner as part of a strategic review to grow the company and maximize shareholder value, its chief executive said Thursday.
"We decided to make this a formal process with a specific timeline to evaluate all the options that are open to the company, firstly to find ways of closing what is a substantial gap between our share price and the real intrinsic value of the company and secondly to use the platform that we've built to seek further growth opportunities," Chief Executive Peter Buchanan told Dow Jones Newswires in a telephone interview.
He said the company would like to see the review concluded by the end of the year and hasn't taken any options off the table, including acquisitions, or a sale or partial sale of the business, but would prefer a merger. "By the end of the year, we would like to have had a range of conversations and hopefully an opportunity to realize where we can see that that will further increase and improve the strength of the company and may well mean that we go into another geography," Mr. Buchanan said.
He said the company isn't valued fairly and there are many other companies in the same boat.
"If you were to combine one, two or three of those companies, I think you would end up with a stronger company. Bigger companies tend to trade at a fairer value, as such, so by becoming bigger, you tend to trade at a less of a discount or in fact potentially a premium,"
"Unless we do get a very, very compelling cash offer, our preferred option would be to merge with another company to create a stronger portfolio and there are all sorts of other options, including strategic alliances," he added.
Mr. Buchanan said that often a company starts a formal process like this due to a weak financial position, but noted that Valiant launched a formal process to open the company up to a wider market and potentially to companies and offers it wouldn't otherwise have heard of. He said that due to its strong financial position, Valiant is likely to receive a lot of various offers.
"We have a lot of production, we have a lot of cash flow and we're obviously looking at... maximizing value for shareholders."
"We basically wanted to broaden the net and look at all the options and obviously, hopefully, come out with a transaction that will lead to a company that's in a stronger place," he said.
He also noted that Valiant has $271 million in U.K. North Sea tax losses that puts it in good stead for potential deals, as any potential acquirer or partner could be able to offset the losses against past or future taxes on production. "We have a huge amount of tax losses, which just in terms of the share price, is a significant amount of value per share," he said.
At 1240 GMT, shares were up 18.25 pence, or 4.0% at 478.25 pence, in a slightly higher AIM index--up 0.1%.|
Valiant Petroleum share price data is direct from the London Stock Exchange