Conder Environmental Share Discussion Threads

[johnyee7] 23/3/2006 12:13

The field has
been evaluated by Miller and Lents Ltd, a firm of independent petroleum
engineers based in Houston, Texas, and contains an estimated 20 - 30 million
barrels of crude oil under the categories of Proven, Probable and Possible.
Additional reserve opportunities have been identified.

I like the last bit.

[leesonlookalike] 23/3/2006 12:05

thats why i bought this, to get it under the AIM players :-)

[greatfull dead] 23/3/2006 12:04

wassapper,

I will see what happens when its on AIM.

LoL,
GD

[wassapper] 23/3/2006 11:39

Around $1 per barrel? Seems OK to me. What about the bit that says "We think that the Pechora purchase is an excellent start in building a large E&P company"

Stop moaning, you are in at ground level. I think this is very exciting. They will be doing other deals.

"There are currently 172 oilfields in the region with an estimated reserve base of 15 bn bbls, although Lukoil believes that this figure could double." - and we will be part of it.

[sranmal] 23/3/2006 11:16

errrr.....check the corrected news release, rather better I feel :-)

Since 1965 all four wells drilled on the field have been oil discoveries, with current production of around 250 barrels of crude per day from one well.

However, IMO, the Company will possibly be at fair value when transferring to AIM, HOWEVER, there will be nothing in the price for additional development of the field or further acquisitions. It is also possible that the other 3 wells could be worked over with Western technology to establish production from them as well at a few hundred bopd each.

[andy] 23/3/2006 10:51

drewz,

Perhaps not, but it's a company STARTER! (IMO)

You have to start somewhere, and whilst I would have liked to have seen a tad more immediate production, presumably as someone else has already mentioned, CDE could improve the rate with the use of modern western technology.

I did read that they were looking at adjoining blocks, so this maybe the start of what could become a much larger production facility.

[leesonlookalike] 23/3/2006 10:19

i think its ok...... just need a bit more time to elapse.... mgmt are prudent enough

imo

[drewz] 23/3/2006 10:15

Not a brilliant deal, imho. Certainly not a company maker.

[deeker] 23/3/2006 09:31

thought we would have seen some positive action this morning,post announcement.

[leesonlookalike] 23/3/2006 08:23

thanks Zengas

[zengas] 23/3/2006 08:22

probably cash and shares for the field i believe.

A lot of sellers take shares and recieve much more value and return as the assets are developed. Possibly need around $10m minimum for new wells.

2 wells producing and possibly 2 that could be restarted. Production at 250 bopd. About 125bopd/well but could possibly be better with western drilling/completions/workovers etc

$35m in funds/or part share issue/share dilution would add about £20m to the current market cap. Would equate to £40 - £45m mkt cap possibly so fairly in line with similar valuations for a field of this size and production already underway.

[matt] 23/3/2006 07:54

I guess a placing but I was just speculating at the dilution and price for the cash required for the deal.

[hard work] 23/3/2006 07:54

Mat,

I understand that if they sell at $60, anything in excess of $25 is taxed at 90%.
However, the real upside in production is their statment that they want to deplete the reserves in 3 years. Even if they can only get at 5m barrels, that equates to over 4000 barrels per day

Edit: Sorry - thay want to significantly increase production over the next three years, but at the same time fully deplete the reserves

[boonboon] 23/3/2006 07:53

Matt,

you assuming a rights issue and not a placing?

[boonboon] 23/3/2006 07:52

"the Company will purchase these reserves for between US$20 - 25 million subject to verification and closing asset valuation."

also "and Concorde expects to start an aggressive development plan soon after acquiring the assets to fully deplete the existing crude oil reserves."

[jackohelp] 23/3/2006 07:50

sorry found it

[matt] 23/3/2006 07:44

Shares in issue: 180,822,235

If they did 1 for 1 they would get £18m if they did it at 10p, a discount to current mid of 13.5p

[Abuse team] 23/3/2006 07:43

Post removed by ADVFN

[matt] 23/3/2006 07:42

Current markek cap around £24m. They need around £15m for the $25m. Plus working capital? Will they pay all cash or cash and shares?

[leesonlookalike] 23/3/2006 07:40

maybe at a discount yeah - but the growth potential of this company will shadow any dilution in due course....

imHo

lee$on

[boonboon] 23/3/2006 07:39

what will this do to the shareprice? They need to raise at least $25million will this be at a discount? if so how much?

[leesonlookalike] 23/3/2006 07:37

Zengas - if your reading this, are you pleased with the deal details so far ?

Looks good return on their deal, for USD25m

Thanks

Lee$on

[matt] 23/3/2006 07:31

Wish I had $25m to buy an oil field. Seems a bargain.

250bopd = $5,475,000 reveune per year at $60/b

And upside, "contains an estimated 20 - 30 million barrels of crude oil under the categories of Proven, Probable and Possible. Additional reserve opportunities have been identified."

[hard work] 23/3/2006 07:26

Concorde Oil and Gas plc - Conditional Aquisition


Thursday 23rd March 2006

Concorde Oil and Gas plc
("Concorde" or "the Company")


Conditional acquisition of Pechora Energy


Intention to transfer to AIM

Concorde Oil and Gas, the Ofex quoted company seeking to acquire operational
oil and gas assets in the Russian Federation, has signed a conditional
agreement to acquire the Pechora Energy Company ("Pechora"). This follows the
announcement in December 2005 that it had signed a Memorandum of Understanding
with Pechora, which might lead to it acquiring 100% of that company.

The acquisition is conditional on Concorde raising the necessary funds to
conclude the deal within the next 60 days, which the Company expects to do by
way of a fundraising and is now intending to transfer its shares from Ofex to
the Alternative Investment Market ("AIM"), subject to the usual requirements.

Pechora, a private Russian company, owns the Luzskoye Field situated in the
Timan-Pechora Basin in the north-east of the Russian Federation. The field has
been evaluated by Miller and Lents Ltd, a firm of independent petroleum
engineers based in Houston, Texas, and contains an estimated 20 - 30 million
barrels of crude oil under the categories of Proven, Probable and Possible.
Additional reserve opportunities have been identified. In total this matches
Concorde's stated acquisition objectives and the Company will purchase these
reserves for between US$20 - 25 million subject to verification and closing
asset valuation.

Since 1965 all four wells drilled on the field have been oil discoveries, with
current production of around 250 barrels of crude per day from two wells. The
field is close to Pechora's export rail terminal, and Concorde expects to start
an aggressive development plan soon after acquiring the assets to fully deplete
the existing crude oil reserves. The field consists of a number of Devonian
reservoirs, which have tested high grade, low sulphur 40 API oil, with some
paraffin. The field extends over an area of just under 21 square kilometres,
with the producing horizons found at depths of around 2000 metres.

The Timan-Pechora oil province, where the Luzskoye field is located, spans the
administrative regions of the Republic of Komi and the Nenets Autonomous Okrug,
and extends into the Pechora Sea reaching Kolguyev Island. There are currently
172 oilfields in the region with an estimated reserve base of 15 bn bbls,
although Lukoil believes that this figure could double. The prolific Timan-
Pechora basin has attracted interest from such western companies as
TexacoChevron and ConocoPhillips amongst others. The primary source rocks of
the basin are late Devonian, known by the Russian name of Domanik, but oil is
also found in the Carboniferous and Early Permian layers.




PETER HUGHES, CONCORDE'S CHIEF EXECUTIVE, COMMENTED:

"Since joining Ofex last September, Concorde has assessed a large number of
possible acquisitions both in the Russian Federation and the Former Soviet
Union. We think that the Pechora purchase is an excellent start in building a
large E&P company. Concorde will now seek an AIM listing so as to gain greater
access to the financial markets in order to fund this purchase.

Pechora is a very exciting acquisition for Concorde which gives us immediate
cash flow as well as the potential to increase production significantly over
the next three years."

ENQUIRIES:

CONCORDE OIL AND GAS 0783 660 7637
Peter Hughes, Chief Executive
John Rigby, Chief Operating Officer
VSA RESOURCES 020 7628 3989
William Voaden
COLLEGE HILL 020 7457 2020
Ben Brewerton / Nick Elwes