Magnolia Pet Share Discussion Threads

[r g fletcher] 12/1/2015 23:55

Oil 'will plunge to $40 a barrel': Goldman Sachs warns that price will continue to fall in 2015 as price of brent crude crashes to six-year low


Goldman Sachs - slashed its forecasts and said prices need to remain low in order to curb production. Analysts at the US bank, led by Jeffrey Currie, said it now expects Brent to fall to $42 a barrel in the next three months - nearly half the $80 it was previously predicting. It cut its six month forecast for WTI from $75 a barrel to just $39 a barrel.

[r g fletcher] 09/1/2015 16:17

Brent now $49 lol have a great weekend ostriches lolol

[lord gnome] 08/1/2015 10:45

Yawn, yawn...

[poacher886] 08/1/2015 10:14

MAGP recently mentioned turning profit at sub $30 barrel so no panic just yet...add to that recent very profitable land sells and a £1m revenue via consultancy work (which was a surprise) and i see them weathering the storm better than others.

[lord gnome] 08/1/2015 09:01

I agree ygor. The cash flow generated will be the critical factor. The fall in oil prices will be hitting them hard. Can they still pump a profit? The PoO doesn't seem to have stopped their investment in new wells.

[ygor706] 08/1/2015 08:05

Difficult to glean too much from this update but at least it was positive so far as the production side is concerned. It will be interesting to see the revenue figure when the 2014 numbers come out. Overheads should be modest here and production activity should also be low cost.

[lord gnome] 05/1/2015 22:05

Yawn…..

[r g fletcher] 05/1/2015 17:01

What's production now less than 100bopd ?

IF YOUR LUCKY ?

At the discount to Brent of say $40/$45 dollars a barrel net to magp ?

OH DEAR!!

[r g fletcher] 05/1/2015 16:59

OH DEAR!!!

[r g fletcher] 05/1/2015 16:59

I wonder how the oil price is doing ?

Anyone ?

[failedqs] 31/12/2014 18:06

Is 2015 going to be the year magnolia get back on track?I was an investor in the IPO but sold out a good while ago at a decent profit. I'd thought that an entry point under 1p was impossible just a few months ago, but now, the current price still looks too expensive for now.....It's still on my watch list though, a recovery in the oil price might drag Maggie up with it.

[r g fletcher] 24/12/2014 10:24

Investors are being warned about putting money into fledgling firms as nearly one in ten have seen their share price drop by 90 per cent.

Small, new businesses are attractive as their low share prices have the potential to rise quickly. However, companies are more likely to fail in their early years.

"Could have been written with MAGPISH in mind!!"

[r g fletcher] 24/12/2014 10:19

Oil has already slumped by nearly 50 per cent to under $60 a barrel since mid-June but could drop further following astonishing remarks by Saudi oil minister Ali al-Naimi.

He is arguably the most powerful figure in the Arab-dominated oil cartel OPEC – the Organisation of Petroleum Exporting Countries.

He has insisted that production will not be cut back to restrict demand and push the price back up. ‘It is not in the interest of OPEC producers to cut their production, whatever the price,’ he told the Middle East Economic Survey

Whether it goes down to $20, $40, $50, $60, it is irrelevant.’ He added that the world may never again see oil at $100 a barrel.

The Saudis want to keep their large market share of the oil market by keeping down the price

[r g fletcher] 23/12/2014 17:46

Don't know if its escaped your notice but all of MAGPS tenuous assets have just decreased by around 50% in value lol.
If you think their lenders have not noticed this then you are more deluded than your 7pence per share estimates make you out to be lol.

4.5 years MINIMUM for MAGP to JUST breakeven on Woger lol.
4.5 years before woger makes one single dollar in profit for MAGP lol

[r g fletcher] 23/12/2014 17:46

"The accounts – cost capitalisation. I stress that the accounts of Magnolia are totally legit it is just that you have to look through them to see what is happening. Let’s look at results for the half year to June 30th 2013. The headlines boast of sales zooming ahead by 223% to $910.271 and how that generated a positive EBITDA of $237,552. Hmmm so it is throwing off cash right? Wrong.

You see Magnolia capitalises all its drilling costs. When a well is not yet flowing it treats it as an intangible asset and when it is flowing it becomes a fixed asset. Assets are reviewed annually for impairment. Thus in H1 last year $421,000 was spent on drilling but this does not show in the P&L. There was even greater expenditure on buying in new leases. Thus:



The accounts – cash outflows. In the first half of 2013 the company showed an $855,000 cash inflow from operations. But if one strips out an increase of almost $1 million in trade payables (you know you have to pay your bills in the end) there was a net cash outflow. Then chuck in the net $3.652 million spent on drilling and picking up new assets and there was a staggering outflow. And that is not something that Magnolia suffered just in the first half of last year. It has been a constant feature of life for Magnolia since flotation and that has been funded by placing after placing after Darwin Death Spiral and now by a $5 million revolving credit facility. Actually it is not $5 million yet since the amount drawable is linked to production and so is currently less than $2 million."