Circle Oil Share Discussion Threads

[steelwatch] 14/12/2015 15:26

Anyone got access?

TAKING AIM: Circle Oil Could Sell Assets Or Consider Merger - Investec

[bengal1] 14/12/2015 15:06

My 75k purchase...shown as sell

[pineapple1] 14/12/2015 14:13

Well i didn't see the fateful "doubt as to be a going concern" phrase so i suspect they'll get some breathing space and raise sufficient amounts to satisfy the creditor. But existing holders are going to be diluted as we know, but by how much is the question .More info required but i guess they don't know for sure yet either....
There's gonna be a lot of shares issued whatever happens....
imho

[captain_crash_and_burn] 14/12/2015 14:04

Do you think a rights issue could actually plug the funding gap now though? With the mcap at this level the amount of funds which could be raised from a rights issue seem somewhat limited.

[pineapple1] 14/12/2015 14:03

Why is it that BOD's seem to wait and wait and wait until the equity price is on its ar-se and THEN decide to raise funds. What is it with these idiots who run the common equity holders into the ground.
I don't have a position here but its been on the watchlist. I agree with the blog above that the finacing may not be as bad as the market is indicating. Oil likely to finally bottom Q1 2016 sometime.
A really good bounce in oil is due any day soon as this oil glut ,over production etc etc is being pumped in all news channels so its gonna bounce big time very soon and likely b4 xmas. Plus its in a leg D in my techs which signals caution for a change in short term trend.
imho

[gerry hatrick] 14/12/2015 12:53

I have had to give in and sold 25% of my holdings at a massive loss so that I can take up any rights issue.
Sad sad state of affairs for such a promising company.

[captain_crash_and_burn] 14/12/2015 12:31

Thanks for your kind words guys.

Really hope this does work out for everyone, hard to believe what has happened to this company! Really hard to make a strong case for investing in AIM!

[billy_buffin] 14/12/2015 12:16

Malcy's Blog:

Circle Oil An operational update from Circle this morning which is better in the detail than at first glance. Operationally the two Moroccan wells are onstream and gas sales appear to being paid for in Egypt while the Tunisian farm-out is progressing, slowly I expect.

The headline discussions regarding funding looked a bit more frightening than I suspect they are, talking about debt restructuring and an equity issue to ‘right size’ the balance sheet. The RBL re-determination is under way and it is not surprising that there is some shortfall given current oil and gas prices and production levels. Although times are tough in the industry and the market may not have expected an equity issue, the work being done by the new management team should ensure long term survival for COP.

[keya5000] 14/12/2015 12:16

Love RNSs like the one here today, just an open offer to be shorted and sold down prior to the event happening.

Poor planning and communication by the BOD.

[gerry hatrick] 14/12/2015 10:27

Sorry to hear that Captain.
I am also sitting on an 80%+ loss but will hold in the faint hope of some miracle .....it is Christmas LOL (that is hard to do at the moment)

[steelwatch] 14/12/2015 10:26

C_c_&_b - sorry to hear that. I'll keep the lights flickering here and, if a rights issue comes along, will take the opportunity to average down

[captain_crash_and_burn] 14/12/2015 10:18

In the ineterests of full disclosure I have now sold out from COP. Albeit it at an 80% loss. As such, the share price may now start to rise significantly.

For a long time I did not want to admit that the share price was reflecrtive as at the end of it all I always thought that the underlying assets were stronfg and the companty had cash flow. The ridiculous drop in oil price knocked one of those fundamentals out and now the fact that there is a potential equity raising has made me question the future of the companies strong assets.

I hate it when the market is right but too often now I have seen that when a share price is crazily low and stays low, it turns out there is a reason for it :(.

[captain_crash_and_burn] 14/12/2015 09:55

Well there we have it then I guess, turns out the market may have been right :(

[steelwatch] 14/12/2015 09:37

Davy comment this morning

Circle Oil
Operational and financial update
December 14 2015 | Job Langbroek | Morning briefing | 1 page(s) | Read Important Disclosures

Circle’s statement demonstrates how even a company with good performing assets can struggle in the conditions in which the oil and gas industry currently operates. Circle has properly drawn attention to the actions it feels will be required to satisfy lenders. We suspect that in the world of small-to-medium-sized oil and gas companies its frankness will be mirrored by many others.

[jotoha2] 14/12/2015 09:11

Am sure they will get funding , but massive dilution for current holders, ouch .

[gerry hatrick] 14/12/2015 08:51

All becomes clear now why the BOD did not put their hands in their pockets to buy shares.
Mitch's interview was smoke and mirrors and what is this about Egypt payables, nothing was mentioned previously ?
I can't see much uptake in an equity raise and as for Madia, this is looking just as elusive.
Learned a very expensive lesson here abut AIM listed company's !!

Last one to leave turn the lights off.

[coxsmn] 13/12/2015 09:16

I watched Malcy's interview with Mitch and the high gas price (~$8) Circle is achieving was mentioned. My question is whether this is really sustainable? (and what's their break even price).

[jotoha2] 11/12/2015 13:44

marunam2 , for every £ of your cost at the pump , the treasury takes 74.89 pence in taxation , hence the marginal change in the cost of fuel since the collapse in oil price .Now in spain the treasury only takes 34 pence equivelant , hence the lower cost of fuel there.

[marunam2] 11/12/2015 11:15

All around EVERY oil company has slashed their e+p budget, even more cutbacks will take place in the next few months as the lower price starts decimating balance sheets.
There will be a monumental shortage of ANY new oil or major projects coming onto the market for a minimum of 2 years AFTER the poo starts recovering strongly to over $60.
Who in their right mind is going to lend oil companies ANYWHERE any money for exploration ???
On top of this we have a time bomb waiting to be set off around the world, an egomaniac fascist wanting to be President of most powerful nation in the world, his possible future counterpart in Russia/ Turkey playing with fire and the Saudi's alienating the other opec countries to reach their own objectives only.

Off now for a lie down in a dark room.

[captain_crash_and_burn] 11/12/2015 10:46

Gerry, that was pretty much my understanding too, bt as you say the market seems to disagree, it has disagreed for a long time now as well.

No idea what will happen to the oil price, I think the saudi's are morons to think they can choke off supply by crushing the price, surely as soon as prices rise again, then production would just pick back up? really don't see there angle on this.

Never thought we would see oil under $40 and I do now wonder whether those predictions about $20 oil could conme true in the end. I expect first of half of next year to remain bleak but who knows after that.

Keeping my 2 oil co's as I think they are so cheap now no point in selling, wish I had sold 6 months ago though!

[marunam2] 11/12/2015 09:16

Keep it tight, no reckless spending, even in Egypt as whats the point as the oil price is so low. IF the drilling cost are also very , very low then ok.

IF the much promised gas sales increases in Morocco then we can ride this storm out and still be in business.

Mahdia farmin , I can wait for a year as the reward will be better and I don't see it being appraised for at least a year, even two. Better to wait to deal when the poo is above $80 at least.

Are most all of this world going to be happy at the poo being $40pbo, importantly can they afford to drill for more,I think not.

IMO we have now got to where the Saudi's wanted to go, an overall unprofitable oil price for anyone long term. Sustain this for a few months and the damage to new oil exploration will be felt for at least 2/3 years or more .

My new year prediction is that by March/ April we will see poo recover to above $60.