Falcon Oil & Gas Share Discussion Threads

[kim_clay] 21/11/2003 11:43

Extracted from Today's SEY release.

"Can Fusion realistically extract value, particularly now they are on their own? Can they really find an alternative solution within the licence deadlines or will they need to commit to very expensive deepwater wells or drop the acreage?"

Equally I would add:

Can STERLING realistically extract value, particularly if they were on their own? Can they really find an alternative solution within the licence deadlines or will they need to commit to very expensive deepwater wells or drop the acreage"

If Sterling need to commit to wells where will THEY get the money?.....oh yes I forgot, print more paper.

If they feel that Fusion will have to drop the acreage, why not wait and pick it up that way?.

Just what would Sterlings alternative solution be...come on Mr Wilson its about time you gave us some answers about YOUR strategy for these assets, I presume you have one?

I would prefer a team that has extensive African experience and contacts rather than one that has not. I understand Mr Wilsons recent trip to a conference in South Africa was his first business trip to Africa...hardly inspires confidence if they were to succeed.

[rayrac] 21/11/2003 11:11

I would think it does, Sterling's friends would snap them up.

As I say, I'm suspicious of Amerada's motive for dropping out of two deals, but I also don't like the directors of FOG 'feathering their nests'. But then again, think about it. What is so darn attractive about FOG for Sterling to be so desperate to buy?!!

They say themselves, Premier have the best of the Mauritanian blocks, so like that they must know the value of the blocks further down the African coast?! They don't tell you more than they have to. Just dig up dirt on Fusion's directors and keep mum about their real intentions. But will small investors think about that?

No! just the supposed dirt!

Good income FROM Premier btw! At NO cost!

[rbonnier] 21/11/2003 10:57

If peeps sell onto the open market such as todays 45k does this help sterlings cause ?

[gerry2] 21/11/2003 10:50

If a pig had enough feathers ?
Could it Fly ?
LOL

[rayrac] 21/11/2003 09:18

Ah, that could be true. The US has been hit by massive 'feathering of the nest'. It occures here also, just look at Glaxo!!

If I were a director of FOG and a bid came along from the like's of Sterling, why not grow a few more feathers? It's just skin off our nose's. :))

[absolute returns] 21/11/2003 08:54

Not the same as CMR are they ?

[currypasty] 21/11/2003 08:52

Look at the 'quality' of these FOG directors...

"LONDON (AFX)
Meanwhile, as Fusion shareholders are left waiting, certain members of
the Board of Fusion have increased the notice periods of their service
contracts, raised their salaries and been awarded bonuses," it said.
It questioned, without the Sterling bid premium where will the Fusion share
price be? "

[rayrac] 21/11/2003 08:38

I have that article loaded, ready to post on here :) What a concerted scam! No mention to shareholders about the latest massive oil finds in Mauritania? How strange! Wonder what kind of 'drop' was involved here?!

I hope Sterling do walk away, there are huge amounts of oil down that West African coast, but Amerada could afford to walk away in support of its American friends!

One BIG conspiracy :(

[mctavishscot] 21/11/2003 06:11

Sterling Energy firm on Fusion offer
Steve Hawkes, Evening Standard
20 November 2003

AIM-LISTED Sterling Energy was today expected to stand firm in its £39.5m bid battle for Fusion Oil and offer a take-it-or-leave-it ultimatum to shareholders holding out for a better price.

Analysts said they believed the group, which has already won the backing of shareholders accounting for 47.5% of its target, would pass up the opportunity to increase its offer by 3pm today.


Sterling launched a hostile bid in September, offering three-and-a-half of its own shares for each Fusion share, or a part-cash alternative. Both were rejected out of hand

Fusion chairman Peter Dolan has consistently urged shareholders to wait for a better deal from a white knight but two potential suitors have since backed off. The group, which has a string of exploration assets off the West African coast, suffered another blow this week when US giant Amerada Hess pulled out of a joint venture to drill for oil near Cameroon.

One industry insider said Amerada's decision would cast a cloud on the value of Fusion's portfolio. He added: 'As far as opposing the bid goes, I think it's all over bar the shouting now.' The two-month bid tussle has split the City's buoyant oil sector down the middle, with numerous financiers and corporate advisers tied in one form or another to either camp.

Sterling's main interests are in US offshore gas fields and it wants to balance out its portfolio by acquiring Fusion's oil assets, which include stakes in Mauritania, The Gambia and Senegal.



After an informal approach earlier this year, Sterling had an indicative all-share bid rejected as 'opportunistic and poorly timed' at the start of September. It went hostile two weeks later after buying a direct 20.4% stake in the group from Westmount Resources, headed by Fusion non-executive director Derek Williams.



While Fusion would interest the likes of Dana Petroleum, Premier Oil and Tullow Oil, analysts believe the nature of the Fusion portfolio makes it difficult to value in such a short space of time.



The group, which hopes to drill between six and 18 wells over the next two years, relies on striking it lucky and then farming out to larger firms with the necessary financial muscle to develop the fields. Sterling's offer valued its target's shares at 42 1/2p. They closed last night at 38p.

doesnt look like its over yet....

[rayrac] 17/11/2003 14:19

Investec buying and then selling on to the bidder? Does that make sense? Buy 100,000 and sell 150,000.

[flyingbull] 16/11/2003 23:20

As long as the drill bits keep on discovering significant oil, fund is easy to come by. Poune is the next test. The chance of discovering oil in this one surely must be pretty good. fb

[rayrac] 16/11/2003 15:48

Read Edmond J in the Sunday Telegraph today, he holds a yen for Fusion!

I like the way he presents his column, very analytical and gives out his reasons for looking at shares from all angles. Yes, he's a good read and my first port of call Sunday mornings.

He also has a y for Hardman ReResources. If he wasn't so heavily into Dana Petroleum, he would consider investing in HNR. At 35p he may be missing something by avoiding them, he states! I think he very much is. Just one tidgy drawback at HNR, they may be looking for access to a considerable number of £'s, somewhere in the region of £200m I thought has been mentioned? Or was that $Aust?

Anyway, it's beginning to look as though raising money will be nearly as easy as it appears finding oil off the W coast of Africa has become.

Oh, and Dana he thinks, could be open to a bid if they stay moribund shares price wise, lot of oil lacking market value via their shares!

[rayrac] 14/11/2003 19:10

Extends the offer, that's all. Lost cause for Sterling anyway!

[djalan] 14/11/2003 18:25

On 13 November Fusion announced a development in relation to a Mauritanian joint
venture in which Fusion has an interest. In these circumstances the Panel has
ruled that "Day 39" will be deemed to be 13 November

[rayrac] 13/11/2003 10:23

Good for Hardman, so I bought a few more this morning. That's my 6000! :) Along with my FOG holding, I'm still looking to buy more of both.

[djalan] 13/11/2003 10:15

................. "Pressure measurements in the oil and water zones indicate that the
oil-water contact may be at or below the water sand," the statement said. "This
could indicate a potential gross oil column thickness in excess of 100 meters."
The statement continued: "On the basis of a possible inferred oil column of
over 100 meters, Hardman Resources' technical staff have estimated that the Tiof
field has the potential to contain in excess of 200 mln barrels oil
recoverable."........................

[scoobydoo99] 12/11/2003 07:54

Link to the official TIOF well update on Fusion's web page

[scoobydoo99] 12/11/2003 07:47

From Oil Barrel.com - and I'm still holding...

It Is Time For The Putative White Nights In The Sterling Energy/Fusion Takeover Tussle To Stand Up And Be Counted
If the Sterling Energy hostile bid for fellow London AIM listed Fusion Oil & Gas were a game of poker, then the latest announcement from Fusion would appear to be an ace which transforms the situation.

Fusion has announced a new oil and gas discovery in the Tiof well, offshore Mauritania. Fusion is a pure exploration play. It has interests in six west African countries. It has exposure to six plays, possibly fifteen over the next two years, which gives the company considerable upside potential in value.

Sterling Energy is a low risk producer with gas interests in the Gulf of Mexico, which gives it cash flow of around US$1 million a month. It wants to marry these assets with the exploration potential of Fusion. Sterling has made an all paper bid for Fusion which values Fusion at around 40p a share. Fusion says this seriously undervalues the company and has invited a number of other groups to come in and evaluate the seismic data of its portfolio.

Mauritania is important because Fusion has been involved in an exploration success. Fusion holds six per cent of the Chinguetti field where Hardman and Woodside (the operator) have made major discoveries, which could mean at least 240 million barrels of oil recoverable plus large amounts of gas. This would translate into about 6p a share at least for Fusion, but first production is not until 2006.

The latest discovery at Tiof might be significant. Preliminary wireline logs indicate a gross 38-metre column of oil and a gross 48-metre column of gas. But even if this were the first sign of another discovery along the lines of Chinguetti it would not be a company maker for Fusion. The best estimates would indicate a further value of 6p a share, and production - and thus cash flow - would again be a long way off. The discovery is nice, particularly for Hardman and Woodside, but not really key to Fusion in its present conundrum.

Sterling has almost 47 per cent of Fusion shares under its belt. It has extended its offer until November 30. Fusion has said that a number of companies are looking at its portfolio and could come up with an overall valuation which exceeds that which Sterling has offered. What Fusion shareholders needs now is one, or all, of these companies to break cover and tell them what they think the company is worth.

[djalan] 10/11/2003 09:29

More Oil

SYDNEY (AFX-ASIA) - Woodside Petroleum Ltd said preliminary drilling results
at its Chinguetti 4-6 exploration well indicate a gross gas column of
approximately 48 meters and a minimum gross oil column of 38 meters.
In a statement, Woodside said the well, which it operates through its
Mauritania Area B Joint Venture, was drilled to a final total depth of
approximately 2,870 meters.
Woodside holds a 35 pct stake in the well, while ENI SpA's AGIP holds 35
pct, Hardman Resources a 21.6 pct interest, Fusion Oil & Gas a 6.0 pct interest
and Roc Oil a 2.4 pct stake

[flyingbull] 09/11/2003 01:40

According to the Independent Evaluation, the rest of FOG's exploration portfolio that PMO does not have an interest is hugely significant even on an EMV basis. fb

[benchmark] 07/11/2003 14:20

Premier has acquired Fusion's Mauritanian offshore interests ... Fusion will receive a production royalty

[djalan] 07/11/2003 13:54

flyingbull

Gotcha!

[flyingbull] 07/11/2003 13:15

djalan,



Sorry, go to the link above which is a slightly more detailed version. The paragraph that I found interesting is near the end of the article and is quoted below. I'd not be surprised if offshore Western Africa is a potential new growth area. Years of work can be speeded up by acquiring FOG. fb

"Buckee also said that his financially-strong company is interested in "new-country development" and exploration and is currently looking at six to eight potential new growth areas."