Eland Oil & Gas Share Discussion Threads

[don777] 02/12/2014 20:38

duke,
sorry I did not ask this question.

ELA is on my watching list for long time, but not buy yet, so did not look it in details like that.

I like GM. he is a very programmatic and solid guy. I met him first time, trust he is the man you can bet on. I go to OB very often, he is the few of CEOs I feel good.

will buy when my new fund is available.

VGLA.

D

[dukedosh] 02/12/2014 18:45

Don, with OML40 drilling due to start Q1 2015, have they acquired a rig for that yet?

[dukedosh] 02/12/2014 18:40

Thanks Don. Here's the link to OB presentation:

[don777] 02/12/2014 13:54

GM did a very good presentation today at the OB.

[don777] 10/10/2014 16:54

15:42:55 1.7M@79.88
15:43:49 1.7M @ 80.00

two big sales or one rollover.

[dukedosh] 08/10/2014 10:34

New presentation out today makes very good reading. Management present a very strong and compelling investment case. Well worth a look.

[loading] 05/9/2014 12:09

Eland Oil & Gas: Canaccord repeats 'buy' after Opuma resumes production
- Today, 12:07 PM

The broker Canaccord repeated its ‘buy’ and 185p a share price target for Eland Oil & Gas (LON:ELA) following the resumption of production from its Opuma licence in Nigeria.

[plastow] 04/9/2014 07:14

Back on track.. Opuama field has recommenced, with gross production stabilising at an average rate of over 3,500 bopd.Hopefully the share price will start moving north..

[rupert1] 03/9/2014 11:49

I followed IC's recommendation to invest, and have been in negative territory ever since. As we stand today I'm glad I did not follow their recommendation to sell, now up 10% in 2 weeks.

[dukedosh] 28/8/2014 13:24

New Ubima Presentation

Http://www.elandoilandgas.com/~/media/Files/E/Eland-Oil-And-Gas/pdfs/Ubima%20Presentation%20-%20Investors%20220814.pdf

[dukedosh] 20/8/2014 22:52

Strange time for Investors Chronicle to post a sell rec when there's significantly more upside than downside risk at a depressed 88p share price here, cementing a circa 40% loss for their flock. Along with the recovery of the oil price tonight on the back of falling US oil inventory numbers posted earlier, this should prove to be yet another bad rec by IC.

[dukedosh] 18/8/2014 14:39

It would appear so swooped.

Davy Research: We are maintaining our 'Outperform' rating with a NAV per share of 278p per share.

Full document:

[swooped] 18/8/2014 11:01

Dukedosh

Have you mixed up your $ and £ the reported nav is £119m and the mkt cap is £123m

[dukedosh] 15/8/2014 18:31

There's plenty of value and this is a strong buy from here.

MC 122m. NAV 173m. share price circa 30% disc to NAV.

Additional value not included in the H1 results:

Completion of the loading and sale of 46,022 bbls of crude through two cargos to
Shell after the reporting period in July and August.

Receipt of £2m cash proceeds (of the £4m outstanding at 30 June 2014) in July in respect of the exercise of the Solstice share option agreement.

As announced today Eland, through a wholly owned subsidiary, Wester Ord Oil and Gas Ltd secured a 40% economic interest in the Ubima marginal field within OML 17 in the Niger delta.

Then you get all the E&D upside on OML40 and OML17 for free at current share price

[swooped] 15/8/2014 10:09

Duke serious question, just looking at this but from what I can see the mkt cap is currently quite above their net asset value and considering they report only have $21.6 million after receiving $30 million from the Solstice Option Agreement and the Helios Option Agreement plus the US$11.8 million they had in June 2013, I make that $41.8 million, so thy have spent over $20 million this past year. Not sure where the value is?

[dukedosh] 15/8/2014 09:49

I didn't expect an acquisition so soon specially as the company previously stated they would concentrate their efforts on sorting OML40. A pleasant surprise nonetheless.

The Forcados terminal and TF pipeline had big problems 1H14. The company should progress if this delivery system is kept reliably operational.

At last now we have a morsel of muttering from our broker.

Northland UK:

This looks to us to be a sensible diversification that could add significant value to the Eland offering. With financing to put in place and a 2C resource as opposed to reserve there is significant work to be done to advance these assets. However, this is exactly the type of marginal field development we hoped Eland would take advantage of and should play directly to managements skill set. In this instance, as effectively technical operator, management will have greater power to progress the development at its own pace compared to OML40 the operator is the national petroleum company. As a marginal field, it will also benefit from the enhanced fiscal terms of such developments. Overall an attractive looking diversification that lessens reliance on timing aspects of OML40 that have been somewhat of a source of frustration.

[dukedosh] 14/8/2014 11:36

This sudden drop after the steady slide was to be expected as the company and it's brokers have remained silent for far too long which of course breeds investor uncertainty. We haven't received an ops update since May; the presentation on the website is over 10 months old and we had no feedback from the June agm at all. Are we on track or not? Who knows, the company needs to improve investor relations for sure. As usual private investors will be the last to know, for sure.

[danboris2] 13/8/2014 16:31

What is going on here with the share price decline? Anything company specific?

[dukedosh] 30/6/2014 10:41

Following RNS this morning confirming 5 years tax free Pioneer Tax Status on OML40, this very bullish note from Davy Research:



Eland Oil and Gas
Confirms Pioneer tax status

June 30 2014Morning briefing1 page(s)
SECTORS: Resource
COMPANIES: Eland Oil and Gas

DAVY VIEW

Official confirmation of the granting of Pioneer tax status to Eland Oil and Gas on OML 40 significantly increases the value of the oil and gas reserves and resources on the licence to equity holders. We estimate that it increases the valuation per share from 189p to 260p. Although it was expected to be granted, the confirmation is very good news for shareholders.

Pioneer tax status adds material value

The approval of the Pioneer tax status by the Nigerian development authorities has the effect of reducing the tax charge on oil and gas production from OML 40 from a PPT charge of 66% to 2%. The status is provided for five years and is intended to be a general benefit to start-up business. It is not specifically designed for the oil and gas industry, but several other indigenous companies (Heritage, Afren, Seplat) have achieved the status.The tax 'holiday' begins immediately and terminates in Q2 2019.

Immediate pick-up in valuation

On the basis of our production profile for the group at present, we estimate a 38% increase in NAV to 260p per share from our current 189p – this is equivalent to a circa $200m uplift in 2014 dollar terms (discount rate is at 10%). Clearly, the more rapidly the various fields, prospects and leads on OML 40 get redeveloped or developed for the first time over the next five years, the greater the valuation impact and uplift will be.While the group has been and remains subject to a number of delays chiefly related to ramping up production, we think the underlying investment thesis is still very much intact. Clearly, the Pioneer tax status makes it more compelling; we maintain our 'Outperform' rating.

[don777] 23/6/2014 10:08

duckdosh,
sorry I did not go.

I even booked hotel for a nice weekend there ( few excuse I can use to take breaks :) ). family reasons, I had to cancel it.

D

[dukedosh] 20/6/2014 21:09

Any one here attend the AGM today? If so, any feedback would be appreciated..

[dukedosh] 30/5/2014 12:11

I'm in the camp that says most junior resource companies have been hammered this last year or so and are very much under valued by this market, ELA included. With the challenges of new oil discoveries in extreme places getting harder to find and with rising costs, there is a very strong case indeed for oil rising to the $120 - $150 bbl range. Logically then, there should be a sharp upward correction in oil stocks, but who knows when this fickle market will apply fair value?

The ELA AGM is in Aberdeen on June 20th. I would like to go but it's not logistically possible for me. Perhaps you would be so kind as to post your notes here from the AGM. That would be very useful.

I am not planning on attending any others but it would be good to meet and catch up on our travels.

[don777] 30/5/2014 11:45

Dukedosh,
I agree with you ELA has great potential, i set to buy in summer is because i think the general market FTSE 100 is very high at the moment, it might have 10% correction this summer, plus the O & G section is high favoured when several of the t/o were announced.

when the market cools off, most of the share price will down as well. i expect 10% correction here.

i am going to attend ELA AGM this year, are you going to go?

any other AGM you plan to attend this summer? we might meet again.


D