Genel Energy Share Discussion Threads

[cyan] 28/7/2016 19:46

Good evening Swiftnick.
Nothing is simple with accounts and reports.
Page 10 in this link shows that after production costs there was a profit in H1 when we had some very low POO. Other costs pushed us into that loss.



Here is the number from the horses mouth;


Low-cost asset base

Our oil reserves are being produced at some of the lowest costs in the industry and are cash flow breakeven at a Brent oil price of less than $20/bbl. The KRI gas development will also benefit from an industry leading cost structure. Our gas resources have been independently certified and are already committed by the KRI for export to Turkey, which will both diversify and lower the cost of energy imports.

[swiftnick] 28/7/2016 19:28

Cyan,A naive question, but if break even is around $20 per barrel then why has the company just reported a loss for a financial period during which the average price of oil was roughly double that?And this on top of what we thought were kitchen sink provisions made last time around?

[cyan] 28/7/2016 19:12

Good evening orinocor.
I read the results and the CS_12 was a disappointment and, no, i did not see any result posted prior.

"The CS-12 exploratory appraisal well on the Chia Surkh (Genel 40% working interest) licence spudded on 30 March 2016, with a view to refining the resource potential of the licence after the successful CS-10 and CS-11 wells in 2013. Genel was carried on its share of the CS-12 well costs by its partner Petoil.

The well was drilled to a measured depth of 2,500 metres ahead of time and budget. The primary Oligocene and Eocene objectives proved to be water bearing. A testing programme is underway with hydrocarbons tested in the previously proven Miocene section. The Chia Surkh partners will fully evaluate the results of the CS-12 well once the test programme is complete and incorporate them into a review of the licence potential ahead of discussions on further activity."

[cyan] 28/7/2016 19:06

GENL has one of the lowest costs in the industry. Break even is around $20 per barrel.
As oilers go GENL is in pretty good shape compared to its peers.
Short term the price may slip. Its the long game here where the rewards are; gas.




"The development of the fields is a unique opportunity, and promises to deliver significant value for shareholders. The fields are 300 km from Turkey, one of the world’s fastest growing major gas markets with expected demand growth of 3% per year until 2020 at least. Turkish gas demand makes the KRI’s gas reserves of far greater strategic importance than oil, and they provide Turkey with the opportunity of materially reducing their gas import costs."

[orinocor] 28/7/2016 19:05

Has anyone actually read the results?

I say again that GENL should cut capital expenditure here. Net debt has hardly budged the last 6 months despite buying back bonds and the cash from production. They need to lean on the KRG. They want us to spend $100M in capital expenditure. Well let them take that off the $370M they owe us.

Chia Surkh was a duster. was this announced before today?

The CS-12 exploratory appraisal well on the Chia Surkh (Genel 40% working interest) licence spudded on 30 March 2016, with a view to refining the resource potential of the licence after the successful CS-10 and CS-11 wells in 2013. Genel was carried on its share of the CS-12 well costs by its partner Petoil.

[milliecusto] 28/7/2016 18:38

Cash in bank will start disappearing with running at a loss,if poo drops to the $30's then a new year low past 72p is on the cards,all this high five buying under a £1 is a little premature,still high possibility of it falling further,zero good news on the cards.

[cyan] 28/7/2016 16:34

And GKP is still UP on the day. crazy

Brent $42.96

[grsl] 28/7/2016 16:23

The 18 companies that took a look at GKP must be looking at us with some interest, especially today.

[cyan] 28/7/2016 16:13

Opportunities like these do not often come along. Some will buy whilst others are fearful.

Brent $42.80

[alem54] 28/7/2016 16:05

the moves on this one can give you a heart attack if you're overleveraged

[grsl] 28/7/2016 15:56

Courtesy BTFATH1 on LSE
235 million
You can buy a company which has:
$400 million in cash
$365 million owed by krg
$2600 million of net assets
One of the worlds largest gas reserves
Low cash burn and one of the lowest net debts in the world.
The ability to bid for huge acquisitions
Any bidders would not be surprised if we see a red light soon

[tsmith2] 28/7/2016 15:56

Quick 20-25% on offer..

[tsmith2] 28/7/2016 15:55

Yep...good opp

[nodoe] 28/7/2016 15:51

Quick smash and grab.....they just sucked the last bit out of the share price.....heading back up now

[ozzmosiz] 28/7/2016 15:48

I'm in for a few at 86.5

[alem54] 28/7/2016 15:45

debt is 3 years away and its manageable - they could most probably renew it for another 10 years when its due - this is all market sentiment - the market tends to overshoot - I expect a few rough days here.

See how it went down to 85.75 and bounced back. You could smell the fear/panic with stops being hit.

[grsl] 28/7/2016 15:44

The company will be looking into this, just one simple announcement we know of no reason, will pull their pants right down!

[newswseller] 28/7/2016 15:42

Here comes the simpleton shorters... Kinda impossible for this to go bust given the cash pile, no massive debt that needs to be paid and oil price unlikely to be $20 for years on end

[willoicc] 28/7/2016 15:39

Shorters have destroyed GKP.

Maybe Genel is their next victim.

[ozzmosiz] 28/7/2016 15:34

hah. They do the big drop and my broker suddenly can't fill an order.

[grsl] 28/7/2016 15:27

Best they break ranks as the bounce up could be just as hard

[ozzmosiz] 28/7/2016 15:23

news, that's why I have taken a position here. It's way too low currently, the "madness" may take a while to unravel but sanity will prevail

[newswseller] 28/7/2016 15:21

Madness in the markets as usual, nothing new in that update to cause a falls, this is one of the most solvent oilers around, look at PMO, IAE etcJust shows what happens when a shorting crew turns up

[grsl] 28/7/2016 15:05

27th July 2016 Numis Securities Limited was appointed as Corporate Broker to the Company to work alongside J.P. Morgan Casenove
Numis has a £210.00 target price on Genel

We can expect an upgrade by Numis soon also