Diversified Gas & Oil Share Discussion Threads

[pro_s2009] 01/9/2020 08:05

Indeed, the column for FI was missing off the edge, I was looking only at the stock in the first column. Should get a wider screen.......... lol

[lab305] 01/9/2020 08:01

Pro I read it the other way and understood they had sold half a percent .

[pro_s2009] 31/8/2020 22:49

Everything goes in waves.

Covid produced the Pharma stock boom - but when Covid dies, so will Pharma stock again.

Covid killed oil stocks - but when Covid dies, so oil will regain strength.

Tech stocks and Green stocks boom while oil dies, but when oil strength comes back people chase the money, not the ideology, and will pour out of tech and green and back into oil.


End of the day, its all about making money. Dollar weakness means also oil and gas prices rise, so oil ultimately is well hedged to dollar weakness. Pound ahead still has to go through "No Deal" Brexit shorting before recovery. Lots of things ahead which will move things one way or another and back around again.

[rhuvaal2] 31/8/2020 19:57

keep a watchful eye on the dollar/pound rate though. Gold is edging up for fear of a weakening $. ps I am a holder here

[spangle93] 31/8/2020 13:40

Dunders - well, I don't really like to invest in exploration-only oil companies (unless there are plenty of old legacy wells to improve the odds), so I didn't follow it too closely.

The lesson to remember is that an appraisal well is drilled to reduce subsurface uncertainty. However, in the investment community, the view seems to be that appraisal wells will increase reserves. The two are not incompatable, but a positive result is not the only outcome.

That's what make DGOC special, if not unique in the E&P world, at least for UK private investors - it doesn't explore new prospects or drill production wells, it maximises production from existing wells.

[tim000] 31/8/2020 11:36

Today's the day for tips! Another for you. I invest in ASX and TSX as local PIs seem soporific in comparison with AIM. Hence opportunities. The cheapest copper & gold miner bar none that I know of is AIS.ASX, and it's my largest holding of 35 stocks. Roughly half its output was hedged for 12 months very recently, and it's trading on a forward p/e of about one. A more risky stock is DME.TSX, but it has explosive upside within a month. More upside than any stock I know. It's exploring for helium in Arizona. Its first two wells have struck commercial quantities of gas, but they are awaiting a lab report on whether it's helium. The more cautious investor need only wait a few days for the lab report before deciding whether to invest. Both are tradeable on ii.

[spangle93] 31/8/2020 10:38

Tim000 - sorry to hear that you lost out - it was a big shock and disappointment to many, I know. Thanks for your suggestion, I'll have a look

Ref the loan, I've not followed the company closely in the past, so it's probably a question that is better asked of some of the competent posters in I3E.

However, I believe that the conditions around the outstanding loan were re-set in June, to reflect the Liberator outcome, such that the proposed Canadian purchase would provide the basis for an RBL


edit - SMTB - I almost bought into CAML around 145p a couple of months ago, after watching their presentation one evening, but was concerned from my Kazakh colleague that CoVid was rampant in her country. However, since the announcement that the mine is unaffected, the shares are 20% higher, so sadly the ship sailed. Good luck.

[simplemilltownboy] 31/8/2020 10:34

Another off topic share is caml, they suspended dividends earlier this year and the share price was hammered with both the suspension and price of copper, zinc and lead. All 3. Metals have recovered above pre COVID prices. The share price is still lower then pre COVID, it's guidance on production is unchanged and its interims are due in 3 weeks where it is expected to reinstate the divi. Debt is low and will be paid off in a year. DYOR but worth a look on a BH if you have the time. GLA. Apologises if people think I'm ramping.

[tim000] 31/8/2020 10:24

Incidentally, I have a small tip for you. The AIM market is so volatile at the moment that it is sensible to be a short-term trader on some stocks, as well as a longer-term investor on others. DGOC falls into the latter category. Wrt the former, Myles McNulty has a large and growing following on twitter, and his shares almost always go up substantially once he announces he has taken a position. Whether all of his tips are good long-term investments is debateable in some instances, but I agree with most of his analysis. He seems to be a fan of Gervais Williams of Premier Miton, although I don't think he has admitted it.

[spangle93] 31/8/2020 09:31

I think you're right, Pro. I also believe that it should be pretty defensive should there be another downswing in the markets, as we get to see more clearly the damage from CoVid


This is more intended as a FYI for investors on the board here, rather than to spruik the stock, since I'm only a small beer player. But if you've got time on your hands on this UK public holiday, it might be worth having a look at I3E. Yes, that outfit that lost a lot of investors money in the North Sea, when Liberator'a appraisal well came up dry.

If you haven't followed the story, they've just executed an RTO of two companies in Alberta, transforming the company from being a North Sea explorer to a producer and developer through gaining >9,000 boepd of medium density oil and gas. The metrics of this acquisition are quite impressive, e.g.58 MMBOE of 2P reserves at <$0.5/bbl, or a purchase price of 1 years' cash flow, or a large tax recovery pool.... They intend to grow organically through development drilling if oil is above $60/bbl or through further acquisitions if lower than this. They identify that while Alberta is currently disadvantageously on the end of one long pipeline to export its oil and gas, other outlets will reach fruition in the next couple of years, allowing more of a price parity with WTI, and that they are buying a "maximum pain" in the market.

To use their words, they are
"targeting long life and low cost PDP assets with robust PUD inventories, with a focus on distressed, overleveraged or non core asset packages of high API/BTU production streams with low sustaining capex and decom exposure"

With this strategy, they expect to
"Begin issuing annual dividend between 20-30% of free cash flow (increasing to 40% alongside growth), reinvesting residual in PDP assets or low cost PUD reserves development"

Why I'm posting here is that it feels that their direction of travel is much more towards the DGOC end of the E&P spectrum - a north American-focused company generating free-cash and with a dividend quoted on a recent presentation to be 6% rising to 10% based on current prices

Of course, if they do manage to farm out their discoveries Serenity and Liberator in the North Sea, that could be a very tidy addition of upside value, but that's probably far less of interest to investors here

Anyway, just thought I'd mention it

[pro_s2009] 29/8/2020 23:55

I might grab another 10K on Tuesday morning. Just feel that this is one stock that is going to become very popular ahead, being gas, being growth, being high dividend yield.

[simplemilltownboy] 29/8/2020 10:10

Yep, considerable interest recorded yesterday at close of play. Think the next few weeks will might see a rise in share price AIMO. Bought some more last week so now my largest holding, however might swap some into TXP after divi record. GLA.

[pro_s2009] 29/8/2020 00:47

Q1 2020 dividend of 3.5 US cents per share

Ex-dividend Date: 3 September 2020
Record Date: 4 September 2020
Payment Date: 25 September 2020


Q2 2020 dividend of 3.75 US cents per share

Ex-dividend Date: 26 November 2020
Record Date: 27 November 2020
Payment Date: 18 December 2020

[pro_s2009] 28/8/2020 23:05

I can see a considerable amount of strong buying coming in for DGOC in the immediate future.

Many things are in favour, a rising gas price, gas being considered a much "cleaner" investment than oil, a strong dividend when fundies are looking for companies with a strong and stable divi......the list goes on and on.

[fardels bear] 28/8/2020 18:12

Well, you can't have it both ways. It didn't go down when the gas went down, because the gas production was hedged. Now it's going up, it's not going up.

[lord gnome] 28/8/2020 14:02

lab350 - not just fund managers suffering. Most pension funds rely on dividends to pay monthly pensions. The whole of local government for one. How long before they start to run out of cash? I hope they all have good reserves. It could get nasty if they have to pay out of caopital.

[pro_s2009] 28/8/2020 12:06

September should be good

[gary1966] 28/8/2020 09:39

Appreciate UK markets have been in decline but surprised this hasn’t reacted to a 50-60% increase in gas prices over the last month. I know most of current production is hedged but current strength in prices must be opening up the opportunity to lock in higher prices further out. Anyway as a consequence of the price holding up well while the RSI drops I have re-entered today. Thankfully made some money on BUR with the money that I took out of here.

[lab305] 28/8/2020 08:36

New analysis from ETF provider GraniteShares, which offers a range of 3x short and 3x leveraged ETPs on popular UK and US stocks, reveals that between 1st January 2020 and 24th July 2020, a staggering 445 companies listed on London Stock Exchange cancelled, cut, or suspended dividend payments.

The majority of these were AIM stocks – 139 companies – but the findings reveal 50 FTSE 100 companies have done this so far in 2020, as have 108 FTSE 250 companies.



That's incredible , 108 of the Ftse 250. Fund managers must be scratching around for good dividend paying stocks . Maybe the reason that this one is underperforming is that it is not in the 250 yet and has to be to qualify for investment.

[simplemilltownboy] 28/8/2020 08:27

Gas at 2.73, highest price this year, should help with future hedging. Expect share price to respond in September when DGO start the charm offensive on Wall Street institutions. GLA

[lab305] 27/8/2020 21:36

Natural gas 2.580 +0.119 +4.84% A stream of good news and favourable broker coverage with imminent ex dividend and ftse 250 entry. Around £1.40 would be a more realistic price .