Amerisur Resources Share Discussion Threads

[thechurch333] 14/6/2018 17:42

Indeed, it is highly unusual for a company to have 3 brokers, but there will be a good reason for it

[mrx001] 14/6/2018 17:21

Sounds like more Jam tomorrow to me!

The question I'm left with though is how many other companies have 3 brokers? Why have 3 brokers when 1 would do? As mentioned by others - it's just another snout at the trough to feed. I would prefer them to focus on returning funds to shareholders through capital appreciation other than constantly missing oil production targets.

[thechurch333] 14/6/2018 16:49

I've not posted on this company before and rarely post on any BB's.
I established a position here about a month ago. I am close to my stop loss trigger. I usually close out my losers early and it is almost unheard of for me to add to losing positions, but I've added on today's appointment of Arden as brokers.
I agree with previous posts that companies add new brokers either to help raise new equity or to help defend unwanted predators.
To find out which it is I re-read the Arden note. The note would have effectively been written by the company. The bullet points on the front page of the note are basically as follows:
1. We generate cash
2. We have a strong balance sheet and can fund our capex
3. Remember we've got the OPA pipeline
4. We're drilling 14 wells (by the way, some of them are going to slip into 2019), which are going to materially increase our production
5. We are going to generate lots of cash flow in the future
6. Our shares are very cheap

Reads more like a defence document than a case for a fundraising.
Even if I'm wrong, I do think risk reward looks good from here (I fully admit I thought that at 19p also). That's why I've added today.

[juuunx2] 14/6/2018 16:34

They got cash on the hip no need for fund raising all drilling fully funded and even at current low production levels they are still making plenty of cash each month.

[jotoha2] 14/6/2018 16:11

New broker usually means raising cash for survival , which is most unlikely , or they are going to be raising cash for expansion / takeover or sale of company , no other reason likely.

[rollthedice] 14/6/2018 15:09

Surely the broker would be employed by the seller not the traded company unless you're suggesting they've bought shares into treasury which presumably they'd have to inform the market about?

[foiledagain] 14/6/2018 15:02

If another broker then imo it’s because there are still shares to offload.

As for 1000bopd Wells. The majority of wells worldwide produce far less than 1000bbls

[davwal] 14/6/2018 14:44

Plat-27 was the twenty-first Platanillo well drilled. Twenty-one friggin holes in the ground and yet the latest total output from the field was sub 4000 bopd.

I'd like to see an output chart of the wells in current production, but the company could really do with finding a few +1000 bopd wells beyond Mariposa-1..

[jotoha2] 14/6/2018 14:25

Bottom of trading range is 13p , see no reason for it to fall that low , should bounce anytime soon to 22p , unless of course the market is rigged , or bad news to follow.

[ladeside] 14/6/2018 13:51

There was talk recently about buybacks and dividend payments, so I hardly think we're about to fundraise, not unless we're about to take someone out.........

[rollthedice] 14/6/2018 13:49

lol I said it was said tongue-in-cheek :)

Why do you think AMER needed another broker... I see no evidence they're M&A hotshots.

[paradores] 14/6/2018 13:47

Ejole caballero, Dice!

"The Company's revenue, cash generation and profitability are significantly ahead of the same period last year and ahead of its internal budgets. The board views the year with confidence."

Have a lie down! ;o)

[thegreatgeraldo] 14/6/2018 13:43

"fundraise"?!? Grow up.

[rollthedice] 14/6/2018 13:39

Link "new broker - Platanillo screwed" explained (even though it was a tongue in cheek suggestion!)

We know for fact that Platanillo production has fallen (by approx 30% so far this year), there are water cut concerns / issues on at least four wells and maintenance costs are higher than expected. Add these to spudding delays on the 3 planned wells, decreased poo from $70 highs, increased costs for civil works and the decreased amount of free cash could potentially have an impact on funds available for capex at a time when AMER may need to accelerate same if Platanillo production in decline.

Why bring in a new broker (extra expense) at this point other than to promote company ahead of an fundraise or M&A action? Given direction of share price movement and that AMER has proven to be a leaky bucket when it comes to sensitive news why assume reason is positive? It'd be nice to know why AMER thought addition was necessary but in the absence of transparency we can speculate one possible reason!

Capex planned $61m, cash available $41m, minimal profits in last trading period without large tax credit.

[paradores] 14/6/2018 13:32

LOL Bryet. From Mariposa I'll take that jam today thanks ;o)

[vermilion1966] 14/6/2018 13:21

I thought Arden made dog food?

[bryet] 14/6/2018 13:12

Jam tomorrow chaps you know the drill.

[ladeside] 14/6/2018 13:07

I honestly don't see how taking on a new broker can suddenly lead to the conclusion of Platanillo being screwed.

There's de-ramping and then there's de-ramping............

[mad foetus] 14/6/2018 12:52

Maybe it is the quid pro quo for taking a corporate box at the Oval?

[davwal] 14/6/2018 12:42

Looking at Arden's history they don't seem a bunch to set the world on fire any time soon. They haven't yet bothered to post on their website the 'impressive' news of winning Amer's business.

Whatever Amer's purpose in taking them on, I cant believe it relates to either selling the company or baling it out financially (which it doesn't actually need anyway).

[davwal] 14/6/2018 12:35

Dodge - A case of pot, kettle, black given you disappear immediately there is an upturn...

[dodge city] 14/6/2018 12:31

Funny how the experts disappear when things don't go the way they were predicting.

[underhill2] 14/6/2018 12:26

Things not looking too good at present. Whilst Im a long term holder here looks like the share price is going below 15p. Maybe the appointment of another broker is part of the process of selling the company. Very depressing outlook at present. As always progress is so slow. Whilst foiled again remains very optimistic without a change of management the future does not look so great. We need some good news for once !

[dodge city] 14/6/2018 12:08

The dice is rolling down the hill.