Petroneft Resources Share Discussion Threads

[rcturner2] 16/12/2014 14:58

Russia and oil situation very bad at the moment, but I wonder if there are company specific problems too? No news on the Arb drill seems odd to me?

[dubhgeannain] 16/12/2014 14:56

This is getting hard to watch. Near my average buy-in price now. Not exactly heavy volume here but there doesn't seem to be much support.

Interested to see where this finally settles.

[spudders] 16/12/2014 14:54

Log, maybe so but it isn't helping here❗️

[granto2] 16/12/2014 14:43

disclosure I bought today, however one concern is the RF introduce currency capital controls and the money gets trapped in the country, we certainly took a step closer to it, but, this was be a drastic measure. all considered this is a good buy still Gla

[loganair] 16/12/2014 14:07

And Putin is very friendly with India having just signed nearly $100bln worth of deals with India.

[spudders] 16/12/2014 13:35

Cheers longhair/ steel

Got to tough this but, not pleasant watching share price erode. Longterm a good buy but with so much going on with Putin, enough to scare off many. I wonder if Nat will grab a bigger share or maybe a Director buy. 😈

[steelwatch] 16/12/2014 12:11

Thanks loganair. link to above:

[loganair] 16/12/2014 11:52

Dennis Francis, chief executive, a veteran of working on huge projects in Russia, says that rather being hindered the company has been helped by the savage decline in its currency.

Having received its farm-in money in dollars and paying locally in roubles, it is effectively getting at least 50% more than planned in its capex budget.

The former Marathon Oil man is also relatively sanguine about oil prices saying low production costs at 61 mean it can still make money at current levels.

All production is sold locally at an equivalent to about 42% of the international price and with PetroNeft paid in advance each month.

On a net basis, it is getting about US$20 per barrel against operating expenditure between US$11-12.

Infrastructure is already largely in place and the simple equation is that the more production it can push through the more it lowers its average cost.

In addition to Licence 61, PetroNeft also has Licence 67 at Tomst Oblask where its partner its oil trading giant Vitol’s subsidiary Arawak.

This is at a much earlier stage of development and PetroNeft is mulling its options for the licence especially as two Russian majors have fields nearby.

The company recently shot 3D seismic over 67 and a decision on how to move forward will follow the results of this which are expected at year-end.

What could it all be worth? House broker Canaccord says PetroNeft has been revitalised by the Oil India investment and has just put out a note with a 9.5p target price.

The development of Tungolskoye and Sibkrayevskoye on Licence 61 are the keys to this valuation with the current production worth 3p per share, said the broker.

Sibkrayevskoye, for example, has estimated gross reserves (2P) of 53mln barrels though little exploration has been carried out since 2011.

After its recent history Francis is careful not to overplay the potential, but generally is upbeat both on the current programme and on its longer term plans.

The oil price pressure has pushed more small operators in Russia into distress, he says, and as a result the opportunities for a company of PetroNeft’s size are rising rapidly.

At 4.5p its current market value is £32mln, but now that it is financially secure and with the backing of a second, very well-heeled partner, it may not stay at that level for long.

[corrientes] 16/12/2014 10:27

Since the vast majority have been shown to get it hopelessly wrong on share prices, particularly these days, DbarrOn is as likely to get it right as anyone else.

[granto2] 16/12/2014 09:37

telegraph1….perhaps they will move the money from stocks into cash…but I really am guessing

[seangwhite] 16/12/2014 08:33

It will mean that DF and PDs expenses bill will cost less but that will not really help them to give updates in a more cogent manner!VGLTA

[telegraph1] 16/12/2014 08:19

Will the big jump in interest rates in Russia have any effect on Russian stocks

[seangwhite] 15/12/2014 16:00

Could be a long wait for an share price in double figures.The lack of news is not doing us any good .VGLTA

[man1] 15/12/2014 14:52

Just back to 10 p will do me for starters thanks ..

[rcturner2] 15/12/2014 14:20

lollllllllllllllllll

lost touch with reality

[dbarr0n] 15/12/2014 14:13

Spudders.. Petronefts Sp went to 70 p at the end of 2010 from a low of under 10p in 2009.
And I wouldn't rule out the same kind of rise again over the next 12 - 24 months.

[spudders] 15/12/2014 13:34

Granto, I've been waiting since 2007 for things to look up 😤 anyhow I have been told I grumble to much about everything. New Year New Chapter ?

[granto2] 15/12/2014 12:16

spudders, the longer we wait ,the edgier the market gets about PTR, but surely things have got to be looking up. I think the news that the H well is pumping 400 BOPD will give some stability here.

[spudders] 15/12/2014 10:10

IF the market looks forward 18 months then the current share price represents no growth. I just hope any news we get is not over the Xmas break as there is a good chance it will be bad as most have their eye off the ball that time of year. Best of luck all 🎅

[granto2] 15/12/2014 09:15

indian dimension, interesting. at sub 5p PTR is looking like a steal, based on the price Oil India paid that is.

[grannyboy] 15/12/2014 09:09

LGO are looking very good, with more to come.....

[rcturner2] 15/12/2014 08:46

Not just E&P, but plenty of oil service companies too. PRES (70% revenue is O&G) raised money at much higher levels for acquisitions, turned in the best results they have ever seen and still the share price tanked.

[seangwhite] 15/12/2014 08:35

If one compares PTR to other E&Ps who raised money lately the share price being at this level !books goodFPM raised money at 120p recently and is now 59p!!!VGLTA - we need it and in 2015 some production increases to be shown for any move up in the share price from here