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BLO Bullion Res

0.00
0.00 (0.00%)
Last Updated: -
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Bullion Res LSE:BLO London Ordinary Share ORD 1P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% - 0.00 -
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Bullion Res Share Discussion Threads

Showing 326 to 350 of 400 messages
Chat Pages: 16  15  14  13  12  11  10  9  8  7  6  5  Older
DateSubjectAuthorDiscuss
07/3/2005
21:29
wonder what tomorrow will bring,
2 days is usully the norm for good news

macca28
07/3/2005
21:16
hjx. You have no funds committed to BLO/Nautical Holdings and are not interested in serious research IMO .... just confirming your own opinions. In such circumstances what is the point of any conversation?

btw.
The price of heavy crude IN EUROPE is given on the company website (hint: nothing like $20 that you quote).

I quoted $3/barrel in the ground as a normal valuation metric for sale of oil assets, not $30/barrel as you misstate. The $30/barrel figure was used in an earlier post and used to arrive at a notional value for the oil estimated to be in place in the whole field but not confirmed yet by drilling. Since we are now at $50/barrel levels for light oil, $30/barrel is conservative, even for UK heavy.

Field development is a one off cost and can be depreciated over the life of the field. As a cost, in relation to the potential value of the assets, it's like a flee on the back of an elephant.

stevea171
07/3/2005
20:03
hjx
ho-ho-ho
ask the old man of the mountain,, he knows

macca28
07/3/2005
19:47
Ho Ho Ho

What a load of old garbage. I know no more or less than you do about the company.

So let me ask you some specific questions:

1. What are you predictions for the price of heavy crude over the next two years - a hint the Mexican government is working on around USD 20.

2. Why do you chose to quote values of oil at USD30 in the ground. Does that not mean no fixed upfront capital costs (let alone exploration and deveolpment costs), no ongoing extraction costs, no management or head office costs

3. What is your current NPV of the oil in the ground and what discount factors do you use for risk factors such as, exploration, extraction, currrency, oil price?

4. Why not state that the new BLO will only own 75% of the licence holding, how will the shareholders divide up the costs?

5. Why do you simply cut and paste rather than consider the whole scenario.

6. Why do you think that exploration schedules are fixed?

My considered view is there is a likelyhood that you might be right that you will make some money. My equally valid view is that if I was sat on a 500% profit in six or so months I would say - many thanks - and sell out.

hxj
07/3/2005
19:39
yes its shown as sell but 3 small sells prior about the 9.80 mark
he got a bargain

macca28
07/3/2005
19:34
A lot of information about Nautical Petroleum is available on their web site.

This includes maps of their licences offshore the Shetlands, and the following presentations/documents, and a lot more besides:

RTO Bullion Resources 7/3/05 (presentation)

Competent persons report 9/2b Reserves Evaluation

Report on Processing Equipment

Heavy Acidic Oil Marketing Presentation to the DTI Heavy Oil Seminar

stevea171
07/3/2005
17:14
hxj. You obviously have a problem with the truth .....

You say 'No drilling until 2007 at the earliest either, ....'

You don't read the RNS, (it's the second drill that is forecast for 2007), now you set yourself up as an authority on when the first drill will take place and claim to know more about this than the company, 16 months ahead of time!

There are many approaches to the valuation of an oil exploration/production company. One of them (for sale purposes) is to value oil in the ground at say $3/barrel proven reserves, even though the oil is worth a lot more in production.

Funds have to be spent to bring the field into production ie drilling, pipelines, etc. This is early days yet, the point of the listing is to add value to the existing discovery and licences, and as this occurs so the appropriate valuation will increase.

You obviously have your own agenda. I still think you work for the MM's.

Macca .... that 600,000 'T' trade is likely to be a buy by the way (shown as a sell on ADVFN).

stevea171
07/3/2005
16:45
Sorry no deramper me, I was simply being realistic.

I have seen many many plans extended for a few months that would easily take second half of 2006 to 2007 with no problems at all.

Maybe you deal with the other issues now please?

hxj
07/3/2005
16:23
hxj. Rather than deramp, suggest you take the time to read the RNS, and digest.

You say 'No drilling until 2007 at the earliest either, ....'

The RNS says (of block 9/2b):
'The volumes in place will be refined and optimal well location identified, leading to an appraisal / development well being drilled in the second half of 2006. It is expected that this will initially be a vertical well which will be converted into a horizontal well which will be tested and retained as a future producer.'

Like I say, suggest you read the RNS before spouting disinformation!

stevea171
07/3/2005
16:14
600,000 trade, so expect another busy day tomorrow,
with one or two highlights in the papers

macca28
07/3/2005
16:08
No I have a not insubstantial interest in TIR.

So reserves are worth £7.4 billion yet the company is worth £22 million, just a minor discrepancy then ...

Maybe you could explain why the previous owner wanted to spin the 75% holding out then?

No drilling until 2007 at the earliest either, so plenty of meaningful cash flowing in then.

I admire your beliefs, but simply don't see this one making any further progress upwards in the next year or so, sorry.

hxj
07/3/2005
15:26
Licence P1077 contains the 9/2-1A oil discovery and is contiguous with Licence P1203, both located on the East Shetland Platform in the vicinity of the well-documented Bressay and 9/3 heavy oil discoveries.

In block 9/2b and surrounding areas Nautical has purchased and interpreted 772 km of 2-D seismic data, purchased 192 square km of 3-D seismic data, purchased and interpreted the digital well data for 9/2–1A and completed an extensive assay of a sample of oil from well 9/2–1A.

The programme to date confirms that there is an oil column of at least 33 metres (the base was not encountered in the well and is probably located down dip) in the Heimdal Sandstone Member of the Lista Formation (which is Palaeocene, Tertiary in age). This member consists of a major sandstone unit (15 metres thick) with 2 shallower, thinner units (3 metres and 1 metre thick). Only the thickest unit was tested and this flowed 15 API oil on a drill stem test (DST) (confirmed by assay).

The area has the potential for a large structural closure up to 18 km long and 5 km wide which could contain up to 490 mmbo, as evidenced by the Equipoise 2D seismic interpretation and published literature.

Immediate plans are to reprocess the 3-D seismic to better image the reservoir before a detailed interpretation is carried out. The aim will be to confirm the large structural closure and define the distribution and architecture of the reservoir. The volumes in place will be refined and optimal well location identified, leading to an appraisal / development well being drilled in the second half of 2006. It is expected that this will initially be a vertical well which will be converted into a horizontal well which will be tested and retained as a future producer.

Licence P1203 (Block 3/27a) is contiguous to the north with Block 9/2b. 476 km of 2-D seismic and the data on wells within and in the vicinity of the block were purchased by Nautical Petroleum AG. The interpretation of these data generated several leads at the Heimdal Sandstone Member level and one significant lead at the Upper Jurassic Humber Group in the north east corner of the block.

Encouragingly, one of the Heimdal Sandstone Member leads is analogous to the 9/2b–1A discovery and reservoir thickness at this location should be thicker than at 9/2b–1A since the Heimdal Sandstone thickens to the north as evidenced in wells 3/27–2 and 3/22–2. Hydrocarbons have migrated into the block since oil shows were recorded in the Heimdal Sandstone in well 3/27-2 in the north west of the block.

Deeper in the geological section at the Jurassic, Humber Group the seismic shows a potential pinch out of the reservoir. There are seismic anomalies at this location, which may indicate evidence of gas (gas chimneys) which can be an indicator of liquid hydrocarbons deeper in the geological section.
The Licence P1203 was secured with a small work programme which includes the reprocessing of some of the existing seismic.

It is the New Board's intention that the seismic be re-interpreted in 2005 to firm up the various leads and the New Board intends to farm out an equity share in the block prior to drilling any well (which will be in 2007 at the earliest).

The third asset currently held is specialised process equipment specifically designed for the Mariner discovery extended well test (EWT). The equipment is suitable for use in testing of heavy oils down to 10° gravity and will be used on the testing of 9/2b discovery and on any other Nautical development programmes. When not being used by Nautical, the equipment will be hired to third parties for well testing in order to generate revenue. The equipment is easily deployed since the 12 skids can be transported in 6 x 40 feet containers and it is fully compatible with most semi submersible drilling rigs.

Minimal refurbishment is required which will reduce lead time in a deployment to a few months (a new build normally has a lead time of up to 12 months). The equipment can handle up to 40,000 barrels per day of liquid production of which 25,000 barrels per day can be oil. The resultant export stream has 0.5 per cent. BS & W.

Full details of RNS:

stevea171
07/3/2005
14:32
the worst that could happen is tir sell off a few million
and let the rest ride,they are not that stupid

macca28
07/3/2005
14:04
hxj. Never seen you on this thread before. Work for the MM's do you? Not short of stock by any chance.......?

'Nautical's licences and equipment. These assets have been evaluated by
Landmark EAME Limited (a subsidiary of Halliburton). Their estimate of the
reserves for UKCS licence block 9/2b is 51 mmbo, with risked upside
potential in block 9/2b of 395 mmbo in place.'

1. Reserves are 51 million bo.
2. Risked upside potential 395 million bo.

Value of 1. @ $30/barrel is $1530 million. Stg £805 million.
Value of 2. @ $30/barrel is $11.85 billion. Stg 6.6 billion.

Market cap @ 10.5p is approx £81 million. This gives massive upside potential if you look at the value of the oil in place and possible reserves.

I for one am not selling, thank you very much!

stevea171
07/3/2005
13:38
About time to sell then, or at least I would.

Assets independantly valued at £20.3 million exchanged for a 90% shareholding, so assume company worth say £22 million at 3p/share, now worth £73 million.

Why? Given the original value is a risk adjusted one, that's an awful lot of hope value.

Nothing fundamental has changed. If I held 9 million shares like TIR I would be selling.

hxj
07/3/2005
11:19
Nice deal and reward for those that have been in this for a while. Nice to see patience being rewarded. I bought 18m ago. Bought too early as it happens, but now into profit.
topvest
07/3/2005
11:12
also agree on tir i looked at them this morning
macca28
07/3/2005
11:08
wole
very nicely put thanks!

macca28
07/3/2005
10:42
The new shares will form 90% of the issued shares. The new holders are locked in for 12 months therefore there can't be much liquidity in the stock for a while. That said they may issue shares to institutional investors to improve liqidity.
At 3p the new company will be valued at roughly £23m. At 10p the mkt cap will be something like £78m.
If they stick to the proposals and start drilling and producing 25000 barrel per day the share price would probably be above the £1 mark.

wole
07/3/2005
10:22
yes its worth waiting,
the amount of shares they will be bringing into issue
is quite large,so there should be no dramatic falls
once the deal is finalised,
anyone care to comment on that

macca28
07/3/2005
10:17
One of the real winners in this story if Tiger Resources (TIR).
TIR bought 9m shares in BLO at 2p a couple of months ago. After RTO, that will be 1.1% of the shares in the new company. I'ld consider holding TIR which is massively undervalued in respect to it's NAV, and also somewhat underestimated with respect to the business acumen of it's chairman Bruce Rowan.

wole
07/3/2005
10:02
another tick up
linslader
07/3/2005
09:19
Having waited this long for something good to happen I'm certainly holding.
linslader
07/3/2005
09:13
There is 200,000 sell from one holder in 8x 25,000 parcels IMO.

This is worth holding Macca! Read the full RNS!

stevea171
07/3/2005
09:12
yes I think we're just warming up now.
linslader
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