Global Energy Development Share Discussion Threads

[hyperboreus] 04/12/2014 23:02

I suspect her reply will be very brief and contain anything that you didn't know already but I cannot fault you for trying paleje.

[paleje] 04/12/2014 22:44

I called Anna Williams this afternoon but answerphone was on, I left message and emailed, you can guess my question, FD should know what state of play is, if I get a reply I'll post it.

[hyperboreus] 04/12/2014 09:39

Yes paleje, you would have thought they wouldn't have done that today had they been aware of any glitches in the deal, but they may well be in the dark like the rest of us, who knows?

[paleje] 04/12/2014 09:24

Northland reiterated their buy advice this morning with 181p target, can't fault them for consistency:)

[paleje] 03/12/2014 18:36

You're not the only one underwater Salpara, I hold for the same reason Bolivar and Bocachico are virtually in for nothing with free carry drills to boot after this sale has completed. And the share price can move smartly on the right news.

Apart from completion, I'd like to see a bit of luck with Catalina1 and timetable for some further drilling, a modest return of capital wouldn't go amiss either unless they've got some compelling use for it which will seriously and conspicuously accelerate shareholder value crystallisation.

[salpara111] 03/12/2014 17:10

I am a holder who is down roughly 40% so I very much hope the deal goes through but given the recent issues at petroceltic and salamander I am not counting on this being a done deal until I see the RNS.
I am very much in favour of them refusing a lower price for the asset as I don't expect the current oil price softness to last more than about 6-12 months and they are not a distress seller.
The only reason I am still holding here is for the potential of the other assets.
I will give it another 3 months as they should have more drilling results in that time frame.

[paleje] 03/12/2014 16:37

I don't know the legalities of this type of commercial contract so I don't know.

But if I enter a contact to sell my house and pull out after signing because the market's gone up and I want a bit more, I think I'd be in trouble.

Or buy a greengrocery business but pull out last minute because the price of fruit has dropped and I've changed my mind, same thing.

Its what contracts are for.

[onjohn] 03/12/2014 15:34

modified to zero as has not completed?

[paleje] 03/12/2014 14:55

Salpara, on what grounds do you think the sale price could be modified?

[dlku] 03/12/2014 09:22

It would pay not to count ones chicken. The cash may suddenly disappear, esp if it is a credit note from Banco Brasilia like langbar ;))

[wooster4] 02/12/2014 20:38

Dlku - not tanked since they have sold off the generating assets in exchange for cash way in excess of the market cap. Are you as stupid as your posts infers??

[dlku] 02/12/2014 19:54

surprised this hasnt tanked to 20p with falling oil price

but one thing is sure, a low oil price = lower sales = lower profits = profit warning

[salpara111] 02/12/2014 14:23

Still not overly confident that they will get the sale through at $50M, lets face it they have failed to deliver anything for shareholders since the day they listed and that was quite a while ago.

[on target] 01/12/2014 17:20

Nice bounce in crude prices.

[paleje] 30/11/2014 18:05

The video was one view, Hpb, not everyone shares it, I've spoken with managers over the last few weeks who supply O&G firms in the US with equipment and, whilst there's undoubtedly an effect and risk of more to come, they reckon the number of drillers under threat is lower than some are predicting.

It also seems there are innovations brought about by necessity which are lowering US shale drill costs continually, lower than the Saudis are calculatiing perhaps.

There may be some temporary relief provided by US govt via tax rates, concessions are being called for here already and lets face it the US govt doesn't want to be seen to have its new found vitual independence in energy status destroyed by Saudi.

Then there are the other OPEC members interests to consider. Many of them can't stand the oil price this low unless they're getting support from Saudi/and or others. Something has to give imo, its why I said the price war won't go on forever.

BUT my original question was......does anyone know if it would likely that there could be a get-out-of-jail clause in the sale contract. I personally doubt it but I'm not familiar with such deals.

(I do share your disappointment with management but still think there's room for a pleasant surprise)

[hyperboreus] 30/11/2014 14:37

I fail to see how a potential oil price of $50 a barrel as suggested in the video can be deemed to be a positive for any oil or gas exploration outfit On Target.

My posting was purely in response to paleje who stated 'the oil price war won't go on forever'.

GED have taken 'forever' in attempting to realise some value from their assets and this major fall in the world oil price is a nightmare for the likes of GED who are quickly running out of time to develop them.

I haven't been comfortable with this investment for a long time as I do not feel that the guys running the show are transparent, competent or even trustworthy and on top of that they seem to be dogged by bad luck, not a terrific combination really, in fact a bag of .....!

I will stick it out to the bitter end with GED whatever happens as the capital loss I am likely to acquire will come in handy for offsetting against some of my more 'sensible and prudent' investments:-)

[on target] 30/11/2014 12:24

Hyperboreus,

A major drop in US shale oil activity = better, not worse. Typical cost is something like $70/barrel which should underscore the price.

[hyperboreus] 30/11/2014 12:17

Might get seriously worse :-(

[paleje] 30/11/2014 12:08

The deal was ..."subject to the satisfaction of certain customary closing conditions and adjustments..."

Anyone familiar with these type of transactions, would 'customary' closing conditions include a get out clause related to oil price? I wouldn't have thought so, sounds more like normal formalities being tied up but I'm no expert. But in any case why would they want to get out, the oil price war won't go on forever.

[on target] 28/11/2014 13:54

That's definitely a concern, but I can't see them pulling out. They may try to renegotiate the price.

[salpara111] 28/11/2014 13:21

Oh, thanks.
My big concern is that they have pulled out due to the calamitous drop in the price of oil in the last month.
I am well underwater so not in a hurry to sell but if the deal does fall apart we will drop back to 40p again.
I guess if we don't see confirmation of the deal closing in the next week I will probably sell as it probably means that they are getting cold feet.

[on target] 27/11/2014 16:21

From the Platino Energy release:

[salpara111] 27/11/2014 16:09

Where did you pick up on the closing date for the transaction?
I can't see any reference to a date.

[on target] 27/11/2014 12:26

Expected closing date for the Llanos disposal is 'on or about' tomorrow. Suspect we may see a bit more action here once confirmed.

[anangf] 24/11/2014 23:55

Yes of course, but I have been burnt by cash balances at miners before, management can just waste it away so I can see why this trades at such a discount to implied cash value. For me, the real potential asymmetry here and what attracts me to the stock is the reported reserves.