Deo Petroleum Share Discussion Threads

[steve73] 21/4/2012 02:36

Excellent link there greyingsurfer - I dont recall it (or anything even remotely as comprehensive) being posted previously even though it's dated 2nd Feb - or maybe I just missed it....

Off topic -
Rhu, this clearly indicates the level of drilling, facilities, and engineering required for what is really a fairly small accumulation, and makes you realise what a mammoth task developing XEL's Bentley field will be - a fact that many over there don't yet seem to have grasped - too many short term traders there - which is why I'm not saying anything over there.

[rhubarbe] 20/4/2012 23:54

The ship's name is on the link posted by greyingsurfer...

This has always been about funding. The oil is sour, with Sulphur and H2S, so it needs to be scrubbed. The ES Statement submitted to DECC deals with the waste products by flaring (it's heavy going). FDP was submitted last September and ES at end march this year.

I make IIs holding nearly 90% (or they were but CS reduced - though their holding has been mopped up by Paul Curtis now holding 7%).

I bbelieve that even the 10% or so in free float are tightly held by PIs who are not looking for a gee whiz five minute return. I hold at 39p and my wife at 40p in SIPPs.

I think share price has dropped on funding concerns and to some extent DEO is in the shadow of Tom Cross (ex Dana) and his PMG, afloat on enough shares to paper Buck House and a MCap I cannot begin to understand.

DEO has some good assets and value will out, IMHO.

[crashball] 20/4/2012 23:16

Just realised I should probably edit my last post.

Rhubarbe, I have remembered the name of the vessel but I'd rather not put it up here. Details are;

Ship Type: Oil products tanker
Year Built: 1992
Length x Breadth: 251 m X 42 m
Gross Tonnage: 53772, DeadWeight: 96920 t

Maybe some of you guys can fill me in on why such little volume with this share regardless of the large II holding. They are about to start a drilling campaign of a scale which dwarfs most others in the north sea.

[rhubarbe] 20/4/2012 23:04

Well, it's nice to see something happening after all this time. Will the faithful be rewarded I wonder?

And special thanks to crashball for choosing us for his inaugural post after four years of ADVFN membership.. ;)

[greyingsurfer] 20/4/2012 22:55

See:

Here's a piccy of it. Built in 1992. Doesn't look too rusty (at least when that pic was taken!)



The planning's all done. There a small matter of DECC approval outstanding, and I'd guess the biggest sticking point there is showing how they are going to fund the project, which is going to cost multiples of mcap. Still, if they can sort that out, by farm out, selling the whole company to someone bigger, or winning the Euro lottery jackpot there should be some decent upside.

[rhubarbe] 20/4/2012 22:22

You paint a picture of an ancient, gnarled old ship fit for nothing but lying at anchor, rusting to the bones...

Tell us it isn't so.

[crashball] 20/4/2012 20:32

6 subsea wells, 4 prod and 2 water injection tied back to a manifold. They also have there eye on some old tanker for the FPSO, can't remember the name, but its currently sitting in Malaysia.

The project timelines indicates engineering works will run paralell to the drilling campaign i.e. they must be confindent because its a massive workscope.
Final commissioning and hookup looking like Q1 2014, with first oil following soon after.

[rhubarbe] 13/4/2012 22:31

It'll come good some day. Hopefully.

[rhubarbe] 13/4/2012 22:23

I've been here getting on for two years..

[the marlboro man] 13/4/2012 22:22

True, just buy and hold.

Will bore you to death for a while, but could go bang all of a sudden.

[rhubarbe] 13/4/2012 22:13

You'll srtrugle to buy any on positive news. Sadly, the only way to get in here is to buy in anticipation of positive news and sit tight.

[the marlboro man] 13/4/2012 22:04

Very tightly held alright. Should be some fun buying on positive news.

Paul Curtis remains positive as from reading one of his tweets recently.

[rhubarbe] 13/4/2012 21:44

Oh, and Paul Curtis holds a lot, too.

[rhubarbe] 13/4/2012 21:44

But the reason it's illiquid is because 90% are held by IIs and BoD. With a bit of demand this can fly. And, as yet there has been no dilution.

[the marlboro man] 13/4/2012 21:06

Good question Rhubarbe re. LOGP Vs DEO.

I went for LOGP with my sterling money as 40.5p seems (to me) to be an excellent entry point. Will see how it plays and then might top-slice for some DEO.

The problem with DEO, is that it's so illquid the investment will have to be medium to long-term. Large spread and hardly no daily volume. With 'news' this should all change.

Just think with oil prices, something will have to be done with Perth. High COS and good size of field. Keeping an eye on it daily.

[rhubarbe] 13/4/2012 20:51

Well the tick up on the bid only gae us half back what it ticked down yesterday - and that before any trades had gone through.

This will come good - 21.5% of the amalgamated block containingthe Spaniards discovery and upwards of 20mmbo to DEO, plus, what 58% of 41mmbo at Perth Field.

It's taken a lot of patience but I see this being a major earner for holders as and when funding is announced. Funding does seem to be geting slightly easier recently.

But does one top up here, or at LOGP currently stupidly cheap.

[cb7] 13/4/2012 17:24

the tick-up in the bid...however I checked online this aft and I could only sell 5k, but buy 100k....so I decided not to top-up yet.

[rhubarbe] 13/4/2012 13:42

Based upon?

[red dog] 13/4/2012 13:32

DEO about to turn.

[rhubarbe] 06/4/2012 23:47

We'll see soon, I expect...

[the marlboro man] 06/4/2012 23:43

Better than losing the licence though. Brent is trading @ $121 a barrel.

If XEL got a 5% interest rate, and Brent was $90 per barrel, then folk would be saying it was great.

Sometimes it's best just to take a higher rate, and take advantage of high oil prices. These companies (DEO, XEL etc.) are only oil minnows, we have to remember. It takes a lot to get up and running.

[rhubarbe] 06/4/2012 23:36

What? At 16%?

[the marlboro man] 06/4/2012 23:35

Maybe DEO should give West Face Capital a bell?