Petroneft Resources Share Discussion Threads

[steelwatch] 24/4/2014 00:33

Acid Queen.

[coscos] 24/4/2014 00:31

Dbarron's glass is always half full even when there's no Guiness in it at all.

[telegraph1] 23/4/2014 23:18

Db did you expect the price to be much higher by now or do you think it will not rerate until after the egm

[dbarr0n] 23/4/2014 23:01

bmw.....

Reservoir Characteristics MET Relief Grace Period
Permeability < 2 mD, net pay 10m 60% 10 years
Bazhenov, Abalak, Khadum, Domanic Formations 100% 15 years
Tyumen Formation 20% 15 years

[bmw30csl] 23/4/2014 21:35

MET is zero on Bazhenov production as far as I am aware

[dbarr0n] 23/4/2014 21:22

Trawl .. Of course there is value in it ,
2P reserves on licence 67 are 14 million bbls.
P3 & P4 are estimated at 110 million bbls, all net to Petroneft.

And dont forget about the potential the bazhenov might have on licence 67,


Presentation 11/09/2013

Mineral Extraction Tax (MET) Relief for Tight Oil becomes Law
On 23 July 2013 an amendment to the Russian Tax code was adopted. Under this amendment,
effective from September 2013, a reduced mineral extraction tax (MET) rate will be applicable
to tight oil produced.
Due to the characteristics of the Company's reservoirs we see the most potential for
application of the Law in Licence 67 where the J14 Reservoir at Cheremshanskoye would apply
for the maximum low perm and Tyumen Formation relief.
The Bazhenov Formation exists in both Licence 61 and Licence 67

[trawl] 23/4/2014 21:02

is there any value in lic 67
with Arawak as partner they surely see some value
why else would they have loaned money to ptr

[dbarr0n] 23/4/2014 18:54

Denis.. Their jobs are not guaranteed, they are still subject to shareholders voting them in each year.

PetroNeft will remain as Operator of Licence 61, but OIL will have the right to second certain technical experts into PetroNeft's Tomsk team. OIL also has the right to become the Operator of the Licence should there be a substantial change in the management team of PetroNeft within the first three years.

[bmw30csl] 23/4/2014 16:42

I think to be fair that the farminee would have asked for such an assurance as to them its better to have continuity with the people they have done a deal with and thus apparently trust as operator and want to run with this. These guys havent done much wrong apart from develop linenoye 2 and produce water with a leveraged balance sheet!

[denis black gold] 23/4/2014 15:44

Lots of blogs express dismay at how our BOD have somehow guaranteed their cushy seats on the board for 3 more years as contingent on this deal been fully green lighted...!! Seems odd, or is it...??? I would have thought that some new heads "not a total clear out" on the board would have been broadly welcomed and cheered on by the markets..!! No point in new money, and no new ideas..!! Lets hope that Oil India will have some form of major input on the ground on L61 from now on...!!

[rcturner2] 23/4/2014 15:33

I do hold some shares in GKP, but it is in a terrible downtrend at the moment, so I won't be adding there. They need some decent drill results and to get the CPR sorted out.

Right now I am quite cold on the market, nothing is grabbing me. I still have probably 20 different holdings of shares and investment trusts. I don't mind holding a bit of cash to keep an eye out for an opportunity.

[bmw30csl] 23/4/2014 15:23

RCT - where you putting the money to work? GKP?

[rcturner2] 23/4/2014 14:03

lol, sellers do tend to hang around like ghouls, don't they?

[steelwatch] 23/4/2014 14:01

RCT - so is it fatal attraction?

[rcturner2] 23/4/2014 13:53

Yes sean all sold yesterday.

[seangwhite] 23/4/2014 13:44

RCT

I thought you had sold up your holding yesterday, anyway the share price shows little enthusiasm for the company and as details of the deal get looked at it may get better or worse.The three year tie in for the BOD does not sit well with a number of people due their past errors. Lets hope with the EGM out of the way the share price does move up and then it is just a waiting game for the production figures to hopefully rise.

GLTA

[steelwatch] 23/4/2014 13:33

Different yesterday when the rises were all choked off. No need today.

[rcturner2] 23/4/2014 13:14

Volumes are pretty thin, they look like normal PI trades to me.

[dbarr0n] 23/4/2014 13:09

Steel...
I agree, I think the share price will be much higher once the farm out gets voted for and Natlatas proposals rejected.

[pwilk47490] 23/4/2014 10:11

Does anyone recall what ever happened to all those Russian Oil Tax reductions that were supposed to be introduced?

[steelwatch] 23/4/2014 10:04

Let's see where the share price goes AFTER the two EGMs. Current price bound to be affected by geo-political uncertainties and it is not beyond the wit of man to imagine a certain large holder daytrading on his position to keep the share price down! Sell some (a lot to us mere mortals) and buy back when the price drops to maintain his position.

Meanwhile:

All the little birdies on Jailbird Street
love to hear the Robbers go tweet, tweet, tweet...

[gavinbell] 23/4/2014 09:50

not to mention, what people keep forgetting is that all this while, profit generated from selling the oil were used to pay off debt. But from now onwards, profit generated from 50% stake on 2400bopd will be used to develop the production field much further and will then in turn generate more profit and cash.

refer back to this presentation.


first 2000bopd:
revenue per day after oil tax and opex = 16.74x 2000 = 33,480

next 400bopd:
revenue per day after oil tax and opex = 23.24x 400 = 9,296

total revenue for the first 2400bopd per day = 33480+9296=USD 42,776

so, per mth = 42,776x30= USD1.283 million
so per year = revenue after oil tax and opex = 1.283x12 =USD 15.399m

ie
value attributable to PTR per year = revenue after oil tax and opex = USD 15.399m x 50% stake = USD 7.7m


if we are producing for at least another 20 years, so, total profit to PTR will be 7.7mx20 = USD 154m revenue after oil tax, and opex.



for additional 100bopd (after 2400bopd), PTR will generate revenue after oil tax, opex and debt, PER YEAR = 23.24x 100 x 360 days x 50% stake = USD 0.42m


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Dbarr0n 23 Apr'14 - 08:30 - 25618 of 25624 1 0

The facts are that after the farm out Petroneft will own 50% of and be operator of licence 61 & 67.
Have 2P reserves of 72 million barrels.
Total potential resources of 300 million barrels
Be debt free.
Have approx $ 8 million in cash.
Be producing 1200 bopd.
OIL will be investing $ 45 million into licence 61 to develop Tungolskoye & Sibkrayevskoye after which all costs will be shared 50/50.

Now, Someone put a value on the above ?.

[dbarr0n] 23/4/2014 09:48

Denis ..
PetroNeft (AIM: PTR) owner and operator of Licences 61 and 67, Tomsk Oblast, Russian Federation, is pleased to announce that it has entered into a binding agreement in respect of a 50% interest in Licence 61 with Oil India Limited ("OIL") (the "Licence 61 Farmout").

The transaction is subject to shareholder vote and regulatory approval. In this regard, an Extraordinary General Meeting of shareholders will be held at 10.30 AM on 9 May 2014 in order for shareholders to grant their approval. A formal notice of this EGM will be circulated to shareholders and placed on the website (www.petroneft.com) in the coming days. Regulatory approval is expected around the end of May. The transaction is also subject to the rejection by shareholders of all resolutions at the requisitioned EGM due to take place at 11:15AM on 9 May 2014.