Global Energy Development Share Discussion Threads

[on target] 15/1/2015 16:39

Anangf,

Using that logic/model of companies all the oil companies out there with reserves but very little cash would be worth 0 now. They have something like 75p net cash now this shouldn't be 44p whatever the reserves may be - currently - worth.

[anangf] 15/1/2015 16:09

Plenty of other miners have been cash shells + some optionality before. Path of events is they bleed the cash and optionality becomes worthless. Never understood whether GED reserves worth anything or not, whatever they were worth it is 50% of the value a few months back. Want to believe there is value here and I will see my 75p again, but can't see a route to that with the macro for oil and likelihood of cash burn over time.
Oh well.

[mdara] 14/1/2015 16:08

@salpara

I'm guessing that your final sentence pretty much sums everything up.

[salpara111] 14/1/2015 16:00

the last thing I want them doing is buying more sodding assets, they already have a large play and money to drill it!
If it was not for the net cash position I would be long gone, as it is I still hope that they make a large special divi of at least 10p which would still leave more than enough cash to start a drilling campaign.
I doubt my ultimate dream of them winding up the company will come to fruition as the management have no intention of killing their own golden goose.

[paleje] 14/1/2015 14:10

Irrational isn't it, oil's dropping again - our share price drops but we're not producing any! Instead we're sitting on a pile of cash.

The drops are in our favour because we're looking to buy distress opportunities, which will get cheaper so our situation is improving NOT deteriorating.

Only our share price is deteriorating. Crazy.

[on target] 09/1/2015 15:58

Interesting conclusions. Perhaps the large holders would welcome an opportunity to liquidate their investment?

"The transaction was completed on 5 December, meaning that GED is now effectively a large cash shell trading at a very substantial discount to its cash.

GED might ‘go dormant’ and wait for the Brent price to recover while
holding on to its licences, which should have value on the recovery of the
Brent price, although less than before (for reasons of timing).

Or, it could become a predator with the cash to support the acquisition of distressed E&P companies.

A possible course of action would be either a liquidation of the company or a return of cash to shareholders.

In all of these cases we would expect value to become evident for shareholders."

[paleje] 09/1/2015 15:24

Equity Dev issued an upbeat note yesterday but, to be honest, they don't have much better idea than the rest of us and note the cash value they are attributing.



I personally think we're in for a wait, best hope of decent news being if Catalina were to de-sludge itself. Otherwise a period of inactivity save for for keeping an eye open for distress 'bargains' which might or might not work out.

If this has already been posted apologies.

[bwanad] 09/1/2015 13:17

So they got 6 million in cash, got their greasy hole fracced, and doubled their reserves. Doesn't sound bad to me.

[salpara111] 09/1/2015 09:35

Well, if they got to hold onto another $6M why the hell didn't they say so in the termination note!
That would have turned a negatively viewed statement into a potentially positive one as that adds another £4M to the kitty and lifts net cash to over 80p a share.

[bwanad] 08/1/2015 18:53

Do you get to keep the cash?

Under the terms of the Agreement, Everest will acquire a 50 per cent. interest in the Contract Area, including any and all rights, obligations and duties in respect of the Contract Area in exchange for payment of the work commitments stipulated in the Agreement and the cash payment of $5 million.

Under the terms of the Agreement, Everest will acquire a 50 per cent. interest in the Contract Area, including any and all rights, obligations and duties in respect of the Contract Area in exchange for payment of the work commitments stipulated in the Agreement and the cash payment of $1 million.

[wilk1] 08/1/2015 14:44

Nice recovery, I rounded my holding upto 15000 this a.m with a buy order left for 1496 at 45p luckily for me it got filled at 44p.

[wilk1] 08/1/2015 13:08

Totally agree, GED is the only oiler I'm in - mainly for the cash. Lots will default and there will be bargains galore in the next 3-6 Months as the price hits $40. Cheers

[paleje] 08/1/2015 12:03

MoneyWeek take this morning on the opportunity presented by the oil crisis:-

Oil prices are continuing their epic slide. Brent crude even dipped below the $50 a barrel mark yesterday.

This is the sort of catastrophic price plunge that makes lots of investors nervy. Their brains are still ‘anchored’ to the pre-crash price. Regardless of what logic tells them, they still think oil is ‘worth’ $100 a barrel.

So they’re watching a drop like this and thinking: “There are potential bargains here and I might miss them. I need to DO SOMETHING!!!”

You might recognise this behaviour in yourself. I know I do. I’m only human, after all.

But don’t fret. There will be big opportunities in the oil sector. But you’ll have plenty of time to pick them up.

In the meantime, relax – prices could be falling for a while yet......

[on target] 08/1/2015 11:12

The company has only placed a tiny % of shares in those 13 years, unlike most, yet has a very healthy balance sheet with over 76p net cash/share. They must deserve some credit for that?

[salpara111] 08/1/2015 11:05

Not sure why management deserve any fairness!
The company has been listed for almost 13 years and the share price is a few pennies off its all time low.
If it had just tracked the index it would be around 135p today.
I still think that the best outcome for shareholders today is to realise the remaining assets and distribute the cash but that will never happen as the management have no desire to stop their gravy train and are not working is shareholders interests.
I have learnt a valuable lesson here which is never to invest in a small cap where the management team have a controlling interest in the business as it will never be run in the interests of anyone other than the management.

[wigwammer] 08/1/2015 09:36

In fairness to management, it is no accident there is cash underpinning this.

[paleje] 08/1/2015 09:07

Northland dutifully reiterated their Buy this morning.

[spob] 08/1/2015 08:12

Don't expect Simon to tell you about a get out clause

[paleje] 08/1/2015 08:06

Well I think this morning's news knocks any idea of cash payout on the head, nearly choked on me cornflakes.

Didn't know there was a 'change your mind' clause, bit like take-back John Lewis policy but with a longer timeframe, very cosy, what's the point of having an agreement.

So who are the shrewd guys here? Us for getting half our assets back now that we've got the cash to drill, or them for weedling out of the agreement because the future looks grim?

[paleje] 05/1/2015 16:19

Somebody tell the sp:)

[on target] 05/1/2015 15:36

That 73p/share net cash is now over 75p/share thanks to the weakening pound vs dollar.

[wilk1] 31/12/2014 11:49

We need a share buyback, just half a million quids worth would inject some life into the share price. Hope the management aren't too dopey to see this. Hope they read these boards ( unlikely though )