Global Energy Development Share Discussion Threads

[hyperboreus] 05/12/2014 16:46

Cash Offer of 72p per share made by by HKN and concert parties in June 2011 which at the time was LESS than current share at the time of 78p



Followed by announcement re acceptance levels in October 2011



Cash offer of 72p was made as that was the highest price that HKN etc had paid to acquire shares in GED during the last 12 months.

I am not saying that will happen again but these guys have form and have screwed HKN shareholders into the ground over a period of many years in the US, in my honest opinion it is one of the reasons that GED is trading at such a discount to net asset value.

[paleje] 05/12/2014 14:43

I've thought about it a few times Hpb, but wouldn't they need at least 75% votes to do that and, assuming it was their intention, wouldn't they be better off doing it when value wasn't so conspicuous?

Why sign up to the drills, why not do their best to scupper the recent sale and let things drag on trying to make ends meet in a tough market (I don't think our management's forte is efficient operating) it didn't seem like the cavalry was anywhere in sight when we were looking for farm-ins.

So while I accept it's a risk, I don't think events are supporting the likelihood and even if they did want to make an offer it would hardly be with us in a distress situation, it would have to be a decent one, that's my thinking anyway. I know we've touched on this before.

[wilk1] 05/12/2014 14:24

Maybe the market needs to see the cash in the account first ?

[on target] 05/12/2014 14:21

What form would that take Hyperboreus? Presumably that would involve offering a large premium to the current shareprice?
When was this attempted before and why didn't it go ahead?

[hyperboreus] 05/12/2014 14:11

Have you ever taken into consideration when considering risk that the 'owners' of GED might attempt once more to take it into private ownnership at or around current levels?

[paleje] 05/12/2014 14:08

We should get an announcement soon with spending plans, I imagine they might want to tie it in with other news.

"...The proceeds after the expenses of the Transaction will be used to completely eliminate the Company's outstanding debt, which has an outstanding balance of approximately US$7.5 million. The application of the remaining net proceeds will be determined following the closing of the Transaction..."

Analyst consensus for oil next year is average $82.50/brl (admittedly that can't be relied on), still highly profitable for efficient companies with good assets, our remaining P1 and P2 assets are multiple times the value of Llanos which we have just sold in a bad market. The outlook is good although the day traders may have helped cause share price volatility and left it looking a bit sad under the circumstances, well below where it should be imo.

[loverat] 05/12/2014 14:01

Looks that way. Anyway the buying price is close to what you could have bought first thing so would have thought buyers will be back.

[on target] 05/12/2014 12:59

Seems like a lot of the buying this morning was very short-term punters now taking their few % or closing at a loss, having not really known what they bought.
We need the considered money to come in now to take it to where it should be.
A 40% discount to net cash is more than ridiculous especially considering the strength of the assets and near-term prospects here!

[on target] 05/12/2014 12:50

I was expecting something more like 70-75p on this news then rises from there towards £1+ on further newsflow, so am very surprised to see this barely reach the levels it was at a few weeks ago. Hopefully we will see a sustained rise from here as more people see the opportunity.

[salpara111] 05/12/2014 12:37

I consider myself pretty risk averse.
80% of my holdings by value are in FTSE 350 stocks.
I only bought a relatively small holding here initially due to the risk/reward profile but the situation is now very different.
The net cash position effectively underwrites the share price which means that there is now more risk on the upside than down.
Nothing in life is ever certain, I play the risk margins and that usually works pretty well.
I also hope that they will declare a special divi of around 10-15p which should help the share price
As I mentioned before I am looking at this as a 3 month holding. If there are no positive drilling results in that time frame I will exit

[hyperboreus] 05/12/2014 10:31

Blimey Salpara are you feeling ok? Brave man but you would think it should pay off, they have to get on with it now surely, if only for Alan Hendersons sake (attended Eton 1947-1952), I reckon he must be at least 83 although his website age has remained at 80 for the last few years at least :-)

I haven't the appetite for messing around with GED anymore although I will continue to hold come what may, but good luck to you, fortune favours the brave and all that..

[salpara111] 05/12/2014 09:27

Just taken the opportunity to double up at 55
Not sure why it has fallen back so far but happy to take some more given how it is now underwritten by a nice big bag of cash.

[scyther] 05/12/2014 08:42

I suppose people will only wake up to this once it's doubled.
Ah well

Early bird and all that

[scyther] 05/12/2014 08:38

I'm in

Very good deal and should provide cash for the rest of the portfolio

[yorgi] 05/12/2014 08:36

Well done with all your research and hard work on this one Paleje :-)

[salpara111] 05/12/2014 08:35

Well I still need 82p just to break even so I will keep the champagne on ice but having said that I am very pleased that they have actually managed to deliver on something after so long.
If you do the sums adjusting for debt etc then the net cash value is about 84p a share so still way below that point, having said that, there are plenty of bigger oilers out there that are trading around or even below cash value.

[anangf] 05/12/2014 08:35

Is this really speculative? Surely reported reserves have monetary value. Or is there a risk it is all uneconomic black stuff?

[liarspoker] 05/12/2014 08:17

70-80p cash, debt free, partner paying for next few drills. A no brainer for a speculative buy imo.

[loverat] 05/12/2014 08:11

On target -

Thanks - just doing some quick research.

[loverat] 05/12/2014 08:03

Morning, just looking at this one.

See they received 50 million dollars from the sale. Market cap 15m?

Is that right?

[on target] 05/12/2014 07:46

Brilliant news.

[hyperboreus] 05/12/2014 07:41

It was never in doubt paleje :-)

[paleje] 05/12/2014 07:18

Her reply was very satisafactory, by RNS :)

[wilk1] 05/12/2014 07:17

I'm pleased for the long term suffering holders here, unfortunately I have no funds to buy in today.