Amerisur Resources Share Discussion Threads

[kaos3] 13/2/2019 16:25

cash maturity tells me their activity plans
UK or Colombian banks
what currency is cash stored in is important
are they making short term commercial lending to the non banking sector
etc

follow the cash they say if one wants to know what is going on in real life

[11_percent] 13/2/2019 16:25

Looked at the Malcy interview again...….JW does not mention a figure...…..Just "substantial sum".

[sogoesit] 13/2/2019 16:23

Not you kaos.
Anyway, if AMER didn’t have enough cash you would hear about it PDQ from the Operator (of CPO) who, under a JV Agreement, is the entity responsible for spending the cash and calling for it under the accounting regulations.

[kaos3] 13/2/2019 16:17

me ????

I was not rude (but saying lucy is slow) - just saying cash issue it is important imho and in agreement with my friend lucy

[sogoesit] 13/2/2019 16:10

Yep, I have no idea.
Why haven’t you put me on filter in that case?
(Slides of latest presentation Feb 2019 should be read, in their entirety).

[thegreatgeraldo] 13/2/2019 16:02

I don't lose sleep over whether the cash pile has increased since the interims or if it's fallen as they build drill pads, access roads to drill pads & clear lines to shoot seismic......

[11_percent] 13/2/2019 16:01

Lol...…...yep no idea.

As al101uk, JW mentioned cash in the bank...….but I think he refered to June 18.....and looked very shifty and evasive.

I will have a look at the presentation again...…̷0;.as it is an important issue.

[lucyp00p] 13/2/2019 15:53

So you really have no idea then.

[thegreatgeraldo] 13/2/2019 15:45

With an E&P company, I tend to assume the cash will be spent on drilling or dev.....it's a big plus to have it, as it gives the company great operating leeway... currently in CPO-5, doubling this year's drilling programme by bringing in a second rig on an extended contract wouldn't lead to a rush to the markets to raise capital, for example.

[al101uk] 13/2/2019 15:38

Lucyp00p,

JW mentioned the cash balance in one of his recent interviews. I updated the header to reflect his comment.

[sogoesit] 13/2/2019 15:35

I’m not sure that the market puts a positive value on cash on the balance sheet.
After all, it’s sittng there doing nothing so earning no return so it has no value to the share price.
(If you use EV as a valuation metric cash is subtracted, debt added, confirms this concept. Although, when cash is returned, there is a short term hit to the share price )
On the other hand, for an E&P company that is short of cash, that probably does raise valuation issues.
So long as the market has a reasonable view of the forward cash position against capex plans I don’t think it will be concerned about the short term position... as post 17235 notes.

[thegreatgeraldo] 13/2/2019 15:30

Lucyp00p
13 Feb '19 - 15:25 - 17236 of 17236
0 0 0
Where did you see any of the actual cash numbers for either income / cap ex etc of which you speak?

...I gave up splitting hairs decades ago, it's a rather pointless exercise. Production numbers are out there, as you well know, as are capex plans.

[lucyp00p] 13/2/2019 15:25

Thanks for the response. Where did you see any of the actual cash numbers for either income / cap ex etc of which you speak? I sure can't see any. Furthermore, absent any meaningful public disclosure, every director trade must benefit from insider information.FYI half year numbers were published 11 weeks after close of play, so they aren't available or meaningful at all.This wouldn't be an issue for a company that maintained a working level of liquidity, but here it is a massive part of the valuation.

[thegreatgeraldo] 13/2/2019 15:15

Ms Poop, can't see any compelling reason for 1/4ly reporting. As you point out, we knew the cash postion at the interim stage, we have full disclosure about production & capex since.......

[lucyp00p] 13/2/2019 14:59

I have a question, and by all means shoot me down, but here goes.The Q4 reserves & production update omitted to disclose the cash balance, which is historically substantial, and has been touted as such by JW.Production of 423k in the period yields, say, net cash of say $15mm before capex, whatever that is, but most of the work was already done by end q3. So the cash pile could be as high as say, $75mm at the end of q4, but probably closer to $55mm. The current share price gives a valuation of £206mm.Here's my question. If the cash balance is only disclosed twice a year, and yet it can represent around 25% of the market value (or zero), how on earth can any investor get an accurate valuation? Given the material size of the balance, surely some form of indicative disclosure makes sense.

[xxnjr] 13/2/2019 14:31

New ONGCV Tender tittle-tattle, this time for security
"..... For security, it has maintained surveillance posts (guards) in the Lotto and Mariposa locations as well as the entrance to the Carolina. In the same way, surveillance posts (guards) must be established for future operations that include the Indico, Sol and Águila locations.

a. Provide 9 surveillance posts (guards) without a weapon. Additional points might be required considering necessity of the Operation and in such cases the service charge will be proportionally increased at the same rates, terms and conditions of the current contract." etc etc

[lucyp00p] 13/2/2019 13:41

H1 has still got 135 days to go, don't hold your breath.

[kaos3] 13/2/2019 13:33

first will be the 2nd rig I hope. OBA - it will be not contracts as they will ship their own oil (bought one). Just increased capacity.They are not allowed to ship third parties oil yet as far as I get it. but I do not know

[foiledagain] 13/2/2019 13:07

Next news likely to be agreement for Amerisur to use spare capacity of OBA to transport other companies product.

Follow that by news on latest CPO-5 with DST they will know if contact with moveable oil

[laptop15] 13/2/2019 11:35

https://twitter.com/AmerisurResourc/status/1095594810675773442?s=19

[lbrokes] 13/2/2019 11:32

Venezuela under US control very soon

[sogoesit] 13/2/2019 11:18

Thanks xxnjr... my memory still working ;-).
Chart looking solid for a push upward from this consolidation.

The bulk of the booked reserves for AMER still on the other blocks.
But in my play for this company I discount all other assets and just look to evolution of CPO-5. I think in, say, 3 years, the reserves on CPO will dominate.
All depends on how fast they get going on the block.
In my view another 2 rigs are warranted. Can they/ONGC move that fast as cash shouldn’t be a hindrance?

[xxnjr] 13/2/2019 10:55

that's correct sogoesit. 6.82mmbo net 2P for Indico. With another 3.18mmbo net 2P upside from "a conservative +40 ft pay below current ODT" as per the McDaniels report.