Global Energy Development Share Discussion Threads

[hyperboreus] 16/10/2013 13:13

I don't know how far you have delved into the murky world of GED controlling interests but the following link might enlighten anyone that hasn't!

www.investegate.co.uk/global-energy-dev---ged-/rns/cash-offer/201106160907415514I/

[protean] 16/10/2013 13:07

Not sure either mdara. Although GED operates in Columbia the company itself is incorporated in the UK, so I thought it would have been subject to UK takeover rules.

[mdara] 16/10/2013 12:48

@protean

Residency test? Though I think legislation changed that in September. Not 100% sure though.

[protean] 16/10/2013 12:30

I thought a company had to make a mandatory bid as soon as they held more than 30% of the shares of a company. What is the difference here?

[mdara] 16/10/2013 12:28

@Hyperboreus
Have seen it before. They grind the private shareholders down. Walk the share price down to a ridiculous level then offer a small premium and most just want to get out by then.

Hopefully that doesn't happen here but who knows?

[hyperboreus] 16/10/2013 12:20

Absolutely mdara, I could be completely wrong and I obviously hope for all Global UK shareholders, myself included that I am.

[mdara] 16/10/2013 12:10

@hyperboreus
Nervous because of a low take out ?

[hyperboreus] 16/10/2013 11:58

I don't know if there is an accompanying note protean, I just picked up the info from an updated Broker Views webpage.

The whole HKN situation makes me nervous to be truthful, what with their holding and Lyford Investments Enterprises owning a further 25.26%

In my opinion HKN have treated their own shareholders with disdain over the years with share consolidations therefore anything is possible with GED.

Finally according to Simon Thompson's latest article on GED (23 September) the major shareholders are:
Shareholder Holding
HKN Inc 34.16%
Lyford Investments Enterprises 25.46%
Fidelity Worldwide Investment 9.99%
Millenia Asset Management S.A 4.00%
First Eagle 2.84%
Mr D Worley & Mrs M Worley 3.51%
Clariden Leu UG 2.69%
Goldman Sachs 2.12%
UBS Global Asset Management 1.57%
Total 86.34%

[protean] 16/10/2013 09:34

I hadn't noticed the reiterated buy recommendation Hyperboreus. Is there an accompanying note?

I view the purchase as a sign of confidence. If you already own a major chunk of a company you only buy more of it if you are confident of a profitable outcome. And since HKN will get information directly from Faulkner & Voss, I see the purchase in a positive light.

[philo124] 16/10/2013 09:28

Yes, 130p possibly, with the rest of the upside for themselves.

[fuiseog] 16/10/2013 09:26

I am pleased to see Harken adding. IMO this is likely to be in anticipation of progress on the farm in or corporate action front. But wtfdik!

My only concern is that they may take us out, a risk I'll take as it will almost certainly involve some premium.

[philo124] 16/10/2013 09:22

Thanks a lot.

[hyperboreus] 16/10/2013 09:12

HKN Inc have acquired 234,999 shares recently to be precise lowflow.

Both Faulkner & Voss have been associated with HKN for eons, as indeed have all the constituents of the 'Executive Managment' protean.

Personally I would prefer another instituion snapping up the shares currently being offloaded in the market rather than HKN, however you could argue that most of the key players in Global will also benefit one way or another via HKN's increased holding IF they ever succeed with their plans.

It would be interesting to know who the seller is, it could be that First Eagle are still reducing their holding as they still held 2.84% in December 2012.

Northland Capital have reiterated their 'BUY' recommendation on Global this morning with a target price of 186p for the sixth time since March by the way.

[protean] 16/10/2013 09:04

If the majority stakeholder already has 33.86% and its happy to increase its holding still further, that's got to be seen as a sign of confidence.

Mikel Faulker is clearly very confident of upside. He's been buying shares in the open market himself but he will also probably have had input into the decision for HKN to top up its already very large stake.

[protean] 16/10/2013 08:42

Mikel Faulkner, the director who purchased shares recently is also a director of HKN, Inc.

The purchase reduces the already lower than average free float, so any positive news on a farm-in and these will move very quickly upwards indeed imo.

[lowflow] 16/10/2013 08:35

Seems to have bought app. 100k shares.

[protean] 16/10/2013 07:54

HKN, Inc increasing its stake to 34.51%.

[salpara111] 13/10/2013 19:03

Don't forget that you can buy a FTSE 250 oil company for its cash value CNE.
As someone who owns 2 oilers it has become abundantly clear that "assets" in the ground are given little/no value it is all about production and having strong enough cash flow to finance future exploration.
Recently looked at the numbers here and they are decent, a good farm out could well give them a substantial lift.

[protean] 03/10/2013 16:11

Decent buying today.

[protean] 03/10/2013 11:57

Investor presentation well worth watching:

[protean] 30/9/2013 09:53

Seller still offloading by the looks of things with the offer lowering. Plenty of buyers willing to take the stock though.

Just re-reading the recent Northland UK view and it's certainly very positive:

"The company remains inexpensive on the basis of earnings and given robust cash generation. On reserves metrics, the shares are exceptionally cheap and the Magdalena assets remain potentially high impact. We await further news as to the appraisal and farm out prospects in Bocachico and Bolivar respectively that could be transformational. In the meantime, the welcome return to robust profitability should allow the shares to appreciate from these low levels."

With phrases like "exceptionally cheap", "potentially high impact" and "transformational" it's clear that there is significant upside.

[lowflow] 30/9/2013 08:02

More M&A in Colombia, Pacific Rubiales to acquire Petrominerales for $1.6bn, 57% premium to last 20 day average share price.


TORONTO, Sept. 29, 2013 /CNW/ - Pacific Rubiales Energy Corp. (TSX: PRE; BVC: PREC; BOVESPA: PREB) is pleased to announce that it has entered into an agreement with Petrominerales Ltd. (TSX: PMG; BVC: PMGC) to acquire all of the outstanding common shares of Petrominerales (the "Arrangement Agreement").

Under the Arrangement Agreement, Petrominerales shareholders will receive Cdn.$11.00 cash for each Petrominerales common share held, for a total value of approximately Cdn.$935 million in cash, plus one common share of a newly formed exploration and production company ("ExploreCo"), and the assumption of net debt estimated at Cdn.$640 million, including convertible bonds.

ExploreCo's assets will consist of Petrominerales' Brazilian exploration assets and Cdn.$100 million in cash.

The total purchase price on a fully diluted basis, including assumed net debt, and excluding funding of ExploreCo, will be approximately Cdn.$1.6 billion. Financing of the acquisition will be accomplished by cash on hand and bank credit facilities including a committed U.S.$1.3 billion short term bank facility, which the Company expects to refinance after the acquisition is completed. The cash consideration per Petrominerales share represents a premium of approximately 56% to the 20-day volume-weighted trading price on the Toronto Stock Exchange of Petrominerales as at September 27, 2013.