Petroneft Resources Share Discussion Threads

[denis056] 18/4/2014 17:10

Oil are funding the entire exploration and all costs for next two years to rune if 45m dollars. That's the deal. We can build a cash reserve and see our production grow significantly. Oil will obviously be very keen to ensure a good return on the 45m spend so it's a win win for all if us on here.
Did we ever think we wud see the day with ptr debt free and fully resourced for two whole years.there had to be a big bounce from here. There will be short term gains obviously but next 4 to 5 years cud be massive. I presume OIL want to increase assets also in tandem with Ptr so acquisitions on the way.

[oilretire] 18/4/2014 17:07

They won't just leave them to it adam, its in the RNS....PetroNeft will remain as Operator of Licence 61, but OIL will have the right to second certain technical experts into PetroNeft's Tomsk team. 

[johnpt2] 18/4/2014 16:58

Its very unclear what the 45million on exploration means. Maybe this is what Oil is prepared to spend but Petroneft also have to spend 45 million to keep up their share of costs, if so its a bad deal.

[adamnw] 18/4/2014 16:19

Checks and balances, due diligence etc.

Hopefully OIL didn't give PTR 45M and say crack on like you have been doing. Would love to know what the terms and conditions are regarding drilling contractors etc. I'm thinking there's someone on the board who won't be too chuffed at conditions along those lines. However that's good.

I'm in this for the long haul - IMHO Sibkrayevskaya has always been the prize - should get to see soon!

[oilretire] 18/4/2014 15:51

Interesting way to read it katsy.Regardless, its $45M to spend on 61. Anyone got a stab at how much the new horizontal wells will cost each? Bearing in mind the equipment for this years wells has already been bought....All necessary supplies and equipment for this year's work programme have already been purchased and moved to the field by winter roads to allow for operations to commence upon completion of the farmout, thus ensuring that PetroNeft does not lose a year in its work schedule. It is expected that drilling will recommence in July 2014.And any guesses on the drill time to complete a horizontal?

[katsy] 18/4/2014 15:36

$35m to PTR, of the other $45m committed on exploration and development, I only include $22.5m to PTR as the other half of that money will be used to develop OIL 50% share that they now own. so I see it as $57.5m (+$5m bonus) to PTR for license 61 with an added commitment of $22.5m for development. So it depends how the market will value

$10-15m cash (depending on what debt they have to pay off), 66.5m p2 reserves for license 61, with $45m development, plus license 67 with 2300bopd production.

Current Mcap £.064 x 707m shares = £45m or $75m at current exchange rates.

[telegraph1] 18/4/2014 15:23

It means no further dilution and no debt going forward all future development funded by oil India to the tune of 45 million I think a very successful deal imho

[johnpt2] 18/4/2014 14:53

The terms of the deal are unclear to me. The 45 million on exploration and development - does the mean OIL is going to spend 45 million and Petroneft has to spend zero? Whats the timescale for this expenditure - is it 45 million over one year or 5 years.

[denis056] 18/4/2014 12:41

Sean I am saying 8.5 based on MM track record. I am also saying 30p by end of May

[seangwhite] 18/4/2014 11:13

Top price for Tuesday share price closeing price is currently 7.9pAnyone guessing higher?The long weekend gives everyone time to ponder,anyway it was nice timing by someone to put it out so late on a quiet day.GLTA

[rcturner2] 18/4/2014 10:15

bmw - too true, I was on the golf course all day.

[currypasty] 18/4/2014 09:54

fasterst finger first on Tuesday...lol


should be double where we are for a starters

[bmw30csl] 18/4/2014 09:44

The reason it didn't react more was most people checked out at midday be they private or professional investors. I think it's no bad thing to release it and allow digestion of news over the weekend. Easy to get to a target price of 20p now.

[talkman2] 18/4/2014 09:22

They are not going to cut off their nose to spite their face .

[carlo sartori] 18/4/2014 09:05

Nats selling their stake to keep a lid on the share price seems daft. They would be better off now cheerleading the OIL proposal, maximising the share price and then they could get out (if they desired) with a significant gain on their investment.

Carlo.

[telegraph1] 18/4/2014 08:36

Was it natlata selling yesterday to keep a lid on the price also I still think they will try to scupper this deal they want licence 61 they could dump some more shares on Tuesday but I am quiet sure IIS will snap them up lol rc are you happy

[cfccfc1970] 18/4/2014 08:22

I think Nats have said what alot of us have been thinking about this company, and fair play to them, as we have been dead in the water for 2 or 3 years.
They have raised the stakes and stirred up management and for that we should be grateful.

That said this is a good deal, and BoD have done well to get it over the line in this climate (Russia / Sanctions / Cold war...), it could even be an "inflexion / turning point" (remember that presentation some years ago now)and we should press on from here.

I think Nats will back it, but I also note that this deal is subject to all of Nats director proposals being rejected.
We have to remember that, so I will vote to reject Nats proposals,as I want this deal to go ahead, but I do think the BoD are now on notice regardless, and that should benefit all shareholders.

[rcturner2] 18/4/2014 07:25

A very simple calculation for the valuation of PTR:

130m P2 barrels at $1.40 = $182m

minus $25m debt = $157m

convert to pounds = £93m

current market cap is £40m

[trawl] 18/4/2014 02:08

when the debt is paid the co will have 10 mil dlrs cash
the 650k monthly payments are gone
so cash positive and hoping to treble production
oil will gladly pay the bonus if production reaches 7500 bopd
with a lot of infrastructure already in place
the potential is obvious
natlata can see it

[westmoreland lad] 18/4/2014 00:32

sean -- 7.9p for me. You giving a bottle of Dom to the winner ?

[seangwhite] 17/4/2014 23:31

Any guesses for closing share price on TuesdayMy first 1 - 7.2pGLTA

[denis black gold] 17/4/2014 23:15

Delighted with the news....!!!! Credit where its due, so well done BOD cause it couldn't av been easy in this geo political climate specially with NAT hoping to scupper the pending deal....!!! Obviously Oil India really wanted in and were not going to be easily deterred...!!! Great to have a MAJOR in with us,and that in itself is "priceless" to little old PTR..... Oil India must see MASSIVE potential in L 61 and L67 or a Co. like them wouldnt have given us a second glance.... Have a good Easter weekend all......

[maryhopkins] 17/4/2014 23:09

$650k per month NOT spent on debt but spent on developing more wells!!!!!!!!!!!! I think 20p is cheap! If Natlata had half a brain they would just swallow their pride and enjoy the ride to 20p+!!!!!!

[steelwatch] 17/4/2014 22:12

I'd be very surprised if Natlata bids now. Best for MK to sit back and enjoy the ride with his 15%. Should do well out of it.