Jersey Oil And Gas Share Discussion Threads

[mesquida] 24/1/2017 07:27

wisecat2, any views on my previous post ? rogerlin thinks that I am wrong ( see his post 167 ) so I would really value your input. Don't be a shy cat !

[mesquida] 19/1/2017 18:12

The company will retain an 18% interest, of which 10% will continúe to be carried by CIECO......this surely implies that 10% of all drilling costs will be paid by CIECO regardless of whether JOG's share of costs is being covered by a third party or not. Certainly, if costs exceed $25 million then JOG will have some exposure, because STATOIL are capped at $25 million, but any amount less than that and JOG will not only have nil exposure but will in my view be in receipt of monies from CIECO equivalent to 10% of total drilling costs.

I may be wrong here, but if I am right then this is a big plus for JOG, particularly as the same arrangements apply for a second well.

[rogerlin] 19/1/2017 17:12

"On completion of the Farm-out, Statoil will hold 70 per cent. as operator, the Company will retain an 18 per cent. interest (via Trap Oil Limited), of which 10 per cent. will continue to be carried by CIECO pursuant to the pre-existing arrangements between the parties, and CIECO will retain a 12 per cent. interest.

Highlights
-- Under the terms of the SPA, Statoil will acquire an aggregate 70 per cent. working interest in the P.2170 Licence from the Company and CIECO, and will be appointed the designated operator for a total up-front cash consideration of US$2 million, of which US$1.2 million will be payable to Jersey Oil & Gas (the "Initial Consideration").
-- The P.2170 Licence area contains two medium risk independent oil prospects identified with unaudited estimated mean in place volumes of 300 and 212 million stock-tank barrels ("Mmstb") respectively.
-- Statoil will fund all costs up to US$25 million in respect of the first exploration well to be drilled on the P.2170 Licence (the "Exploration Well"), with any cost over-runs to be satisfied by each party in proportion to their working interests."

I think this means that if there is a cost overrun, CIECO carry 10% of JOG's 18%, leaving JOG responsible for 8%. I don't see that CIECO would otherwise pay anything to JOG?

[mesquida] 19/1/2017 14:05

wisecat2, you seem to be reasonably well informed here, so I am wondering if you have heard/read anything about the implications of the 10% carry that CIECO are committed to in respect of the forthcoming drill. What is certain is that STATOIL will be paying all exploration costs up to a maximum of $25 million, but what does not seem to be universally recognised is that CIECO - as I understand it - will then be reimbursing 10% of all exploration costs direct to JOG.
So if ,for example, drilling costs total $25 million, then STATOIL will pay all of this, and then CIECO will pay $2.5 million direct to JOG even though JOG has not actually had to pay anything out in respect of the drill. Almost seems too good to be true, and it is possible that I have misinterpreted the situation, BUT if it is true then we are very nicely positioned indeeed ! With our market cap being what it is , $2.5million is not an insignificant sum, so full marks to our Board for engineering the situation. Any comments/views ?

[mesquida] 16/1/2017 13:36

210p is their target as things stand at the moment, but they make the point that once the rig date is confirmed then there would be an immediate add-on of 20p, and obviously if there was a deal to purchase production assets then this might also lead to an increased price target. And of course if the drill was ultimately successful then they would most definitely be upping their price target significantly !!!

[wisecat2] 16/1/2017 10:24

someone said with a TP over £2. Is that right ?

[mesquida] 16/1/2017 10:12

Broker W.H.IRELAND initiating coverage today with a BUY recommendation.

[mesquida] 11/1/2017 07:34

Sudden spike up late yesterday afternoon, although admittedly price did not hold best levels. Chart looks poised for break into new territory. Sector as a whole is in bullish mode with high volumes. Suspect that we might see 200 p before the month is out !

[keya5000] 27/12/2016 10:26

I think when PG gets down to zero (if thats is the goal) this will be on a strong run again, question is will it fall back to the PP prior.

If it does I would say it will represent a decent short term trading opportunity.

[mesquida] 20/12/2016 22:11

Interesting mark come through tonight, two deals of 190k at 132p. Business was actually done on Friday. Presumably the sale side will prove to be Gyllenhammar again. 190k shares represents 2 percent of the equity, so he will have to disclose. More interesting will be the identity of the buyer. They will only have to disclose if they already have 100,000 shares (approx).
So should see at least 1 RNS tomorrow, if not 2 !

[mesquida] 08/12/2016 09:30

The trade of 60k @ 146.5 was done on Monday. I am thinking it was a sale done when the price spiked up to about 150 during the morning. Would not be at all surprised if it turns out to be Gyllenhammar selling again, but if it was then he will not have to disclose until he goes through a 1% level ( i.e.when he has sold another 40K shares ).

[sorrento06] 07/12/2016 22:37

Are those delayed buys?

[keya5000] 05/12/2016 08:43

Strong,placing shares now on market and no sign of weakness.

[keya5000] 01/12/2016 08:09

I believe c £300,000 was the figure including BOD.

Only a 'guess'.

[cyan] 30/11/2016 12:51

Positive comment

[cyan] 30/11/2016 10:43

A fund raising at this time is a smart move. Little dilution and at a good price.

IF the STATOIL drill come good we are in for some real excitement.
Do we sell out all our interest for an enormous cash pile or, may be, raise further funds at , say, £5 a share to pay for our un-carried interest towards full field development?

Nice to dream. About time a clear cut success came our way.

[keya5000] 30/11/2016 08:04

mesquida, believe it was quite a bit scaled back

[mesquida] 30/11/2016 07:39

Over subscribed placing, with limited dilution. Seems sensible in the circumstances. Will be interesting to see if the placees who were scaled back now try to building their holdings in the open market. If so then presumably Gyllenhammar will prove to be a source of stock, but once that is exhausted then we could see a move above the recent peak ( 140,145 ).

[toptrump1] 21/11/2016 16:03

Don't get your knickers in twist, I was only curious as have seen many a P&D over the yrs
And was Wondering why a major investor and one that's "been around a long time" would be selling if such a great prospect. I have found the answer to now re the price of 900 actually equates to 9p as they consolidated 1:100 Pity you couldn't let me know but guess you can't rely on anyone on these boards!

For the record, Having a small punt and will prob increase at later date

[mesquida] 21/11/2016 15:48

Top trump, it is obvious that Peter Gyllenhammar screwed up big time with his initial investment in TRAP. But he was not the only one. And the crucial point is that he then made the best of a bad situation by subscribing in a big way to the JOG placing at 22p. Incidentally, he has been around a long time, and I have never ever heard anybody else suggest that he is a pump and dump merchant! Perhaps you should do your homework before casually throwing out sound bites like that!

[toptrump1] 21/11/2016 15:34

Who is he?

[baner] 21/11/2016 13:46

toptrump

i do not believe you are right re Gillenhammer - he took up a large slice of the placing at 22p and then bought large volumes at below that price. so he made a terrible deal on Trap but an even better one when supporting Benitz/Jersey - my reading.

[toptrump1] 21/11/2016 13:34

Why is this Gyllenhammar getting out?

[cyan] 21/11/2016 09:48

There is an arguable case for management exploiting the strength of the share price to raise some funds ahead of the drill.
JOG can not solely be about the Statoil drill.
They have to continue with the already planned strategy of buying into some producing assets. JOG's weakness , at the moment, is it is a little weak on the cash front.
I would actually welcome a fund raise now as being a smart prudent move.
A fund raise now could indicate that they have identified a worthy asset.