Diversified Gas & Oil Share Discussion Threads

[sogoesit] 16/10/2018 13:03

Well, my guess is that folks are selling based on declining oil prices or forecaasts.

Unfortunately this demonstrates ignorance of (i) this stock which is basically a gas producer and (ii) the market structure and pricing of gas in the USA.
How long this herd ignorance goes on for is anyone's guess.

Meanwhile I'm happy not to miss out on buying a near 10% forecast yield stock, dollar exposure, gas versus oil, growth (limited probably by Rusty running out of acreage in the US to buy up Lol!).

[alotto] 16/10/2018 12:29

Two trades around lunch-time selling more than £500.000 worth of shares. 105p sounds more like an entry point than a selling price for this stock. Or am I missing something?

[sogoesit] 16/10/2018 00:48

And NG strong at 3.26, even climbing!
Possibly the end of the world is nigh....

[nimbo1] 15/10/2018 15:55

the drip drip here is nuts - are people allergic to 10% yields or something?

[alter ego] 12/10/2018 10:34

think you're right. topped up again.

[nimbo1] 12/10/2018 10:15

hxxps://www.directorstalk.net/interview-diversified-gas-and-oil-another-material-acquisition/

interview with rusty - seems to me investors missing a trick here.

[basem1] 11/10/2018 11:08

Not worth the paper there written aren't Edison reports. I believe the shares are worth considerably more than there note.

[yupawiese2010] 11/10/2018 10:46

New Edison note out this morning.

[zengas] 11/10/2018 08:18

They included the update also on PA well plugging - still in discussions. Given what they do in West Virginia and Kentucky, could they possibly bring PA wells that must be plugged, back into production thus deferring the need to decommission ?

"Decommissioning Liabilities

The Company estimates that the PV10 value of its assumed decommissioning liabilities on Core's wells, nearly all of which are in West Virginia and Kentucky, totals approximately $7 million based on a weighted average per well abandonment cost of approximately $25,000 and timing assumptions consistent with its existing portfolio.

Core has an existing agreement in place with the State of West Virginia that extends through 2025, which requires that Core plug or produce 24 wells per year. Since the inception of this agreement in 2017, Core has been able to satisfy the agreements by placing the required specified wells back onto production. This is consistent with DGO's own efforts to place nonproducing wells back into service, which not only defers the cost to decommission the well, but increases revenues from the well, often for many years to come.

Core has no wells located in Pennsylvania where DGO remains engaged in ongoing discussions with the state's Department of Environmental Protection to complete a long-term decommissioning agreement. DGO is committed to negotiating a long-term agreement with the Commonwealth of Pennsylvania that satisfies the needs of its citizens and those of DGO's shareholders."

[sogoesit] 11/10/2018 08:12

108 now.... what a bargain.
Must get my wallet out this morning! Geez!
With EQT i figured about 220p on a yield basis so this must add 20%, say 264p?

[lab305] 11/10/2018 08:09

Just topped up with 4500 shares @ 112p. They must be worth much more than this.Edison report already out of date.

[sogoesit] 11/10/2018 08:08

Yeah, well, what can you say...
The last one added 32k boepd and this one sticks another 11k boepd on top.
So we now have about 72k boepd proforma nett to DGOC.
Whats the yield going to pop to? 15% soon?

[nimbo1] 11/10/2018 08:05

I’m v happy holding focussed on the income!

[nimbo1] 11/10/2018 08:05

You might get it anything can happen in this market

[basem1] 11/10/2018 07:19

Was going for a final topup at £1.03 aswell.

[basem1] 11/10/2018 07:18

Bloody hell, another great deal, done on the cheap again. New shares at 115p What's not to like

[podgyted] 10/10/2018 10:59

I think this apparently subdued performance is not too bad given the background of what has happened to Aim over the last week or so.

[basem1] 10/10/2018 08:19

I agree, we just need to find a support level on the chart, they had chance yesterday to do that but they closed the price at unchanged when they could easily have lowered it a couple of pence.

[lab305] 10/10/2018 07:33

From the recent Edison research......

We provide a base valuation of DGO at 138.1p/share based on a long-term Henry Hub price of $3.10/mcf (2022). We see potential downside to 100.4p/share based on a 15% decrease in gas pricing and equivalent increase in costs. Risk/reward remains skewed to the upside with a valuation of 176.2p/share based on a 15% increase in gas price, and materially higher on inclusion of option value for further M&A and infill.

So they see DGOC at 176p if gas gets to 3.565. Today gas is 3.324 so it is already half way to their higher valuation . A share price of around 154p would probably be fair value therefore. There is a massive disconnect here.

[podgyted] 10/10/2018 00:38

H Hub 10th Sept $2.8

H Hub 9th Oct $3.3

Promising

[nimbo1] 09/10/2018 13:00

i really can not see interest rates going up much in this country...housing market would be even more caput than it already is.

[sogoesit] 09/10/2018 12:37

Yep, the market is fearful of interest rates... NG continues to climb, up 2.5% today, while DGOC falls.
Who knows we might see $4/mmbtu...
Good value here imo.

[lord gnome] 08/10/2018 19:13

Everything was being hit with the ugly stick today. DGOC was hit more than most, but is just returning to the long term trend line again. Once the panic is over, this will rise again.