Petroneft Resources Share Discussion Threads

[steelwatch] 30/6/2015 12:23

Natlata ups stake by another 6m to 20.63%

[seangwhite] 24/6/2015 14:21

Well we just hae to wait now until we get news on the Tungolskoye horizontal whihc is a longer run than the first to prove what can actually be produced.A decent flow on this will transform the outlook and hopefully the share price in time for a good Xmas.
The BOD will no doubt be quick to claim the glory if this drill works out- but will they buy any shares!

VGLTA

[rockin robin] 24/6/2015 11:09

The Euro's at 1.41 this morning.

[kevjones2] 24/6/2015 09:49

Potential Grexit seems to be causing lower sps all over the place.

[woodpecker25] 24/6/2015 09:40

I don't think there's much to comment on. The strategy and finance are in place - lets see what the drillbit brings. And in the meantime lets hope the Russsian policitical situation improves...

[seangwhite] 23/6/2015 22:24

No comment from DB today even if only to say how pleased we all are with the BOD getting something done before time for a change.The brokers seem nonplussed by the numbers and the slight drop in share price reflects this. Lets hope the news on the horizontal drills is a lot better received and we might even have a few directors buying if it keeps drifting lower.VGLTA

[scallywagkid] 23/6/2015 09:52

PANMURE GORDON view...

Petroneft Resources – Final Results (PTR LN, Mkt cap: £29m) – Neutral/Positive

2014 highlights included the farmout of Licence 61 to Oil India for up to $85m leaving the company debt free and funded for the drilling campaign. Total production from Licence 61 in 2014 was 728,826 barrels. The 2015 work program follows the success from the Tungolskoye No.5 horizontal well earlier this year providing the company with the confidence to develop the Tungolskoye Field. The pipeline and utility line from the field to the central processing facility at Lineynoye has been constructed and an 11 well drilling campaign has commenced. A successful result at Sibkrayevskoye well in May resulting in 100bopd of stabilised natural flow bodes well for a positive development decision later in 2015 following interpretation of further 2D seismic data in the Northern end of licence 61. Loss for the year was $8.4m, revenue $19.2m, gross profit $3.9m, and $5.6m loss on the disposal of the subsidiary which was mainly driven by transaction costs from the farmout and the currency translation reserve which was a write off of $9.3m.

In our view the completion of the Licence 61 farmout and the funding package for the 2015 drilling/development campaign marks the start of a new chapter for Petroneft from a far stronger position. With debt taken out the risks are reduced and the success so far with the drill bit looks encouraging at both Tungolskoye and Sibkrayevskoye.

[scallywagkid] 23/6/2015 09:51

CANACCORD view...

PetroNeft Resources (PTR, Spec BUY, TP 7p) - FY '14 financial results
Financial reporting complicated by last year's farm-out impacting accounting method, but operational activities and outlook on track and +ve. The farm-out of 50% of licence 61 (the producing asset) in Tomsk region of Russia has changed the reporting process from consolidation method to equity method mid-way through the year (so H1 production was consolidated at 100% to PTR, but from 3 July that is represented only as the 50% interest in the JV with Oil India). As a result, the financials are in transition and comparisons with '13 or the outlook for '15 are complex.

Nevertheless, the key operational planks as outlined in recent previous updates remain in place. Gross production in '14 declined to 2,000 bopd (c.2,400 bopd in '13) reflecting the company's restricted financial resources and slowed pace of operational activity in the run up to the farm-out, and bedding in of the JV immediately after. However, PetroNeft continues to anticipate YE '15 production of 3500-4000 bopd as the benefits of the Arbuzovskoye full field development are realised and through the build-up of production from the Tungolskoye field (where development drilling began recently).

Crucially, PetroNeft is carried under the terms of the farm-out for the first $45m gross expenditure from July '14 and so we expect the company to have no capital expenditure requirement until end '15/into '16; thereafter cashflow should provide further investment financing.

The outlook for reserves is also encouraging after the recent Sibkrayevskoye appraisal (which flowed 100 bopd without stimulation) and the company estimates that over the next few years it could re-approach the c.130 mmbbls 2P reserves attributed prior to the farm-out (end '14 2P 72 mmbbls).

[woodpecker25] 23/6/2015 09:32

Not too much more patience required hopefully. Should start to see increased production over the next 6 months.

Bit it is unfortunate that we are located in Russia - this would be a screaming buy otherwise.

[steelwatch] 23/6/2015 08:57

DAVY VIEW

The pivotal change in the structure of Petroneft’s Russian oil investments during the year makes for a complicated set of results. However, this does not alter the fact that the group is in a far better position now than prior to the India Oil investment. As a consequence, the rest of this year will see a high level of activity and increased production of oil.

[steelwatch] 23/6/2015 08:53

ravin - I had the impression from Denis's oilbarrel interview they might offer to sell 67, all or part.

Was more intrigued by:

Oil India appreciates the potential of the asset and has a long-term view with respect to Licence 61 and business development in Russia. This should enable PetroNeft to expand its reserve base both through exploration and delineation in current licence areas and through business development opportunities in Tomsk and further afield in Russia. We look forward to working with Oil India for many years to come.

[ravin146] 23/6/2015 08:41

interesting bit on --"At Licence 67 we acquired 156 km(2) of 3D seismic in 2014 to better define the three oil pools discovered at Cheremshanskoye and the two oil pools at Ledovoye. This data has been processed and interpreted and we are currently discussing future plans with our partner, Arawak."

Will read this eve for any other forward indicators...I assume that means they are either looking at plans to invets their, but who will fund it? time to offload to Oil? Or Arawak to sell its stake?

[seangwhite] 23/6/2015 07:55

Wonder what Db will have to say on the results and the BOD never buying!VGLTA

[rockin robin] 23/6/2015 07:49

Yes, BOD buying would be good here.Not just 'jam tmw' here, it's 'sumptuous, mouthing-watering' jam tmw...

[seangwhite] 23/6/2015 07:28

Results out a week earlier than last year this shows that the PTR BOD are really motoring after the farmout.Let's hope the new urgency gets reflected in raising output as five years of embarrassment caused by its slow progress on that front should make the company keen to grow and quickly.I hope the BOD can soon show some belief in the strategy and finally purchase a few shares.VGLTA

[seangwhite] 22/6/2015 18:47

Rav our BOD are in a permanent state of closure by that I mean they never open their wallets!VGLTA

[ravin146] 22/6/2015 15:32

RR I genuinely thought you meant UEN loll...so I went to have a look. But then I spotted a director holding RNS lol, the irony! We cant get directors to buy and they can!

[rockin robin] 22/6/2015 13:04

Here comes the rise to the Results..

[ravin146] 21/6/2015 16:55

^^^lol I wouldn't touch UEN. It's good to see/compare their reserves etc, but results etc can't be compared as that down to how business is run, decision, contractors etc. Ptr now have a partner who should to know there stuff I.e expertise, experience.

[seangwhite] 19/6/2015 10:22

UEN is nothing like PTR in that it is going nowhere fast - hang on though where was the share price before the farm out - same place as now!!Hope our results do not have the same reaction as URNs todayVGLTA

[ravin146] 19/6/2015 08:03

I would not touch UEN, double exposure to Russia! Stick to ptr with a large corporate backing.

[rockin robin] 18/6/2015 12:40

Need to watch UEN, results due tmw.Not the same, but similar, be interesting to see 'how they fare'..

[rockin robin] 17/6/2015 17:17

If the slow down is the U.S. continues, who knows, a certain Russian oiler paid in Dollars, with expenditure in rubles, at the current exchanges rates, may just prosper?

[rockin robin] 17/6/2015 16:26

The slow down in the deployment of rigs seems to be having an affect on US oil inventories, at a greater rate than expected...

[kevjones2] 17/6/2015 12:31

Sean, we do not all agree on that point. PTR is not some tiny AIM like company trading at sub 1p whose shareholders scream out for the bod to buy shares. Besides which DF is hugely invested in Ptr and is losing a small fortune.

If they buy some more shares well and good. If they dont I seriously couldn't give a toss. PTR will either succeed or fail based solely on bopd.