Global Energy Development Share Discussion Threads

[salpara111] 28/3/2014 10:27

Back at multi year lows again....not happy.
I think I will take my loss and move on, it will be quite a while before they show any real fruit from the farmout.
I was really disappointed in the cash they got from the farmout and am now really disappointed in these results.
They have not gained any real traction in the last 3 years so I don't feel like holding in the hope that they can get their act together in the next 12 months.

[philo124] 28/3/2014 09:31

Hyper- fair comment; I won't mention it again.

[winsome147] 28/3/2014 08:53

Lets hope the huge discount to NAV underpins the current share price until the farmout project makes progress. Result not as good as predicted but then the share price has already dropped quite a bit in 6 months so already factored in. On balance I see much more potential upside than downside.

[hyperboreus] 28/3/2014 08:43

You are obsessed with Director Buys if you don't mind me saying so PHILO124, I would much rather they invested in some decent pumps that stopped breaking down :-}

[philo124] 28/3/2014 08:40

Director Buys soon imo.

[hyperboreus] 28/3/2014 08:38

Link to the 'not so excellent results'.



Incredible how the board do not feel compelled to warn the market in advance of 'production issues' and hence profit shortfall, despite costs being driven down.

Having said that you could now argue that is history, and there should be plenty of scope for good news going forward but you just cannot predict anything with GED can you?

PS I see eric76 beat me to it regarding results link whilst I was trying to think of something constructive and positive to say :-}

[philo124] 28/3/2014 08:37

Thanks eric; on Digital Look. Hold for ANOTHER year I think.

[eric76] 28/3/2014 08:32

Results are out, just not on advfn. They seem to be moving ahead on the farmout but not up to speed here so not sure on market expectations?

[alanrussell] 28/3/2014 08:25

Is this a case of bad numbers taking longer to add up?

[philo124] 21/3/2014 20:20

Wouldn't be surprised to see more Director Buys in due course.

[hyperboreus] 21/3/2014 19:32

I am not a fan of the current board as anyone who has followed this thread for any length of time will realise, however excellent 2013 Annual Results (in comparison to 2012) are likely to be announced next week and joint venture news re spudding of re-entry well will follow in the next month or so therefore anyone prepared to take the contrarian view right now could well be sitting on a multi bagger within the next year and beyond.

It doesn't matter in the long term what Simon Thompson thinks as no share tipster on earth will propel this share price northwards without GED providing the market with news to suggest that they are or have finally delivered on their stated development plan.

Incidentally political uncertainty with Russia at the moment is good news for the likes of GED (WTI price currently around $USD 100 a barrel)

Finally absolutely pointless post dewtrader.

[loafingchard] 21/3/2014 18:10

The value proposition has improved though for buyers , it maybe worth taking a few as a punt on these JV wells . A lot of the news spike has been retraced . It already is cheap on paper imo , the resources quite large , we just needed assistance moving them forward . We've waited forever now they announce a partner and the market doesn't seem to notice / care.NIA DYOR

[fillipe] 21/3/2014 15:07

Not much wanted at the mo', despite ST's best efforts which may have been heard too many times now to have any effect.

f

[hyperboreus] 12/3/2014 11:43

Just had yet another email from IC extolling the virtues of investing in GED, hence another raft of buyers piling in even though the article was publised yesterday afternoon, now that is smart!

Simon Thompson's smart farm out deal

Simon Thompson has written another online exclusive, this time covering a farm out deal at a small cap oil and gas play he has been following for some time.

Markets have been volatile recently and in a risk-off day yesterday investors missed a major farm-out announcement from a small cap oil and gas company. Our eagle-eyed stock picking expert Simon Thompson didn't. In an online exclusive, Simon notes that with the shares trading almost 40 per cent below book value and on less than half very conservative risked estimates, not to mention on only nine times current year earnings, there is obvious value on offer.

Moreover, with the first well due to spud in the next six weeks, and full-year results due out in a few weeks time and ones that will show a near trebling of profits last year, we are guaranteed positive newsflow. So with at least 63 per cent share price upside to Simon's very conservative target price, now is the time to buy and take advantage of this anomaly.

[hyperboreus] 11/3/2014 17:33

God bless ST as Fidelity continue to reduce their holding, once they are cleared out(only another 1,779,718 to go as of yesterday} the MM's will be desperate for stock given any positive newsflow going forward.

I reckon they have probably dumped quite a few today so if the IC punters pile in for a few days they could be out of GED fairly soon.

[protean] 11/3/2014 16:49

ST - "I am very comfortable reiterating my previous buy recommendation on Global Energy's shares and I still believe that a target price of 140p is not only feasible, but is likely to prove very conservative."

[bigdazzler] 11/3/2014 16:36

T.A. wise I have the top of the main trading range as around 130p and recent resistance of 110p so some good targets to aim for.

The main trading range that we have been in is around 7 years duration.One of the principles of a break out of a long term trading range is it will be followed by a major price movement. (Breakout above the trading range the major move would be to the upside). Working on a log scale long term chart the depth of the trading range added to the 'roof' of this trading range gives you a price target. This gives me a price target of around 260p.

At this stage a breakout of the trading range is clearly a long way off and is only food for thought. The reason I mention it is the fact that hopefully news will now start to flow following the farm out and also the fact prelims are due the end of this month.

[philo124] 11/3/2014 16:21

Good 106p possible.

[bigdazzler] 11/3/2014 15:24

Now that's what I like to hear target of 140p and conservative in the same sentence thought the response yesterday was a little muted.

[paleje] 11/3/2014 15:18

ST just posted an article on these, expecting good results soon on top of cracking farmout deal, target 140p which he says could be very conservative.

[hyperboreus] 11/3/2014 12:26

Agreed xxx

[hashertu] 11/3/2014 12:19

Hyperboreus.

I think you will find that proposed operations refers to:

"(1) within one year of completion of the agreement, to re-enter and hydraulically fracture potential formations in two existing wells within the Contract Area; and

(2) within two years of completion, to drill and complete one new exploitation well in the Contract Area."


Later in the RNS, Mr Voss comments "This agreement not only provides us with the funding for a three well progamme but it also allows us to share the risks as we jointly develop..."
For risks read costs.

As to funding, this is what was stated in the Bolivar Development Plan, page 5:

"The development program as shown herein can be implemented and carried out using internal cash flow generated from Global's Llanos Production Base, vendor financing and/or farm‐in partners."

I suggest we just agree to differ on this subject.

[hyperboreus] 10/3/2014 19:50

hashertu, with all due respect to you I am not too keen on assuming anything based on your past experience.

First of all in post 2146 you clearly state that 'Everest WILL pay 50% of the drilling program, which might well be 6 rigs, 252 wells' and then in post 2150 you state 'the 50% is an ASSUMPTION, based on the working interest given in the RNS and having seen how other farm-in agreements operate'

Please explain to me why the RNS states that 'Under the Agreement, Everest commits to undertake the funding of a work program with respect to the Contract Area (the "Work Program"), including an obligation to pay ALL future costs and expenses incurred with respect to the proposed operations' and yet you think Everest will only pay 50%.

If your assumption turns out to be correct where exactly are GED going to find the capital sums then required for funding their 50% of the agreement?