Pinnacle Staffing Share Discussion Threads

[ein] 03/8/2012 09:17

Moving up again, looks like people are getting ready for the Apache drilling mid August,should be very exciting?

[royaloak] 23/7/2012 16:39

nother interesting east african deal.

[shutittrev] 19/7/2012 22:15

The following narrative is taken from Michaelwalters.com. with his permission.

(I subscribe to this site and following Mike's success with Cove Energy, a 10 bagger, and Ophir Energy, also big gains, this is another recommendation for an East African play.)...Well worth the subscription fee.

Punting East Africa


In olden days, British enthusiasm for Australian resource stocks turned out to be little more than a device for funneling money from the wallets of unsophisticated Poms straight into the pockets of bonzer Aussie blokes. That was then, and this is... well, let us hope a little different, especially when it comes to looking at Pancontinental Oil & Gas (PCL).

This time, at least, we are not talking about investing in fairy tales of digging holes in the Australian bush (remember when one claimed to find gold when digging a latrine?), but in holes in the hottest current hydrocarbon area in the world – East Africa. This, be clear, is a gamble, one I have hesitated over for months, simply because if Pancon does not strike lucky with the drill bit, the shares will take a hefty hit. On the other hand, if they do get lucky, we could be up, up and away.

More hesitation also attended this report because it is not normally my idea to put money into companies which are not quoted in London. Such companies are often ruled (I did not say manipulated) by diamond geezers in their home market, and the action often takes place before word reaches Britain. But there is a decent market in Pancon over here, and checking in the early afternoon today (Thursday) some three million shares had traded with the price at Aussie cents 18.5 to 19 cents, equivalent to about UK13.5p.

Pancon is one of the few smallish independent companies (market capitalisation quite chunky at about £120m) which has decent exposure to the remarkable East African offshore drilling boom, which has seen something like 19 winners out of 21 wells. Star, of course, is our good friend Cove Energy, currently a ten-bagger plus for subscribers as it enjoys being target of a bid battle. But others have scored heavily in the area, with major discoveries by ENI, BG and Statoil.

Our first choice gamble to succeed Cove is Ophir (OPHR), and there is much more on the area in the reports which can be found by entering OPHR into the search box on the left at the bottom of the front page. Pancon does not offer anything approaching the opportunities of Ophir, but carries a much lower value and is barely known in the UK market, which gives it greater attraction as the story begins to get around.

That ought to happen in the weeks ahead. Drilling should start next month on the giant Mbawa prospect on the L8 permit offshore Kenya. This is the first of four wells offshore East Africa where there should be drilling in the next 12 months. Success at any of them could transform the company's rating.

Pancon has 15% of L8, along with Tullow, and the operator is Apache. It also has 15% in blocks L10A and L10B to the south, where Cove has a stake and where BG is the operator. And it has 40% of block L6 (operator FAR) to the north of L8, with the southern section adjoining L8 in a crucial area.

The big excitement is over Mbawa, where, encouraged by the presence of oil slicks, the boys are betting on oil, with perhaps some gas. Apache says 'The Mbawa prospect is situated in the L8 License offshore Kenya ...The Deepsea Metro 1 (UDW drillship) is slated to drill the Mbawa prospect. The well is expected to take about 45 to 60 days to complete to a planned total depth of 10,662 feet (3,250 meters) subsea in a water depth of 2,821 feet (860 meters). It is estimated that Mbawa has maximum potential to contain 4.9 billion barrels of oil-in-place at the main Tertiary/ Cretaceous level with significant additional potential also to be tested by the well at the deeper Upper Jurassic level and shallower Tertiary levels.'

(MW resumes here. Sorry I don't know how to change back to my normal type) The structure runs north/south on a ridge, and 3D seismic has helped identify several prospects, with prominent possibilities to the south stretching into block L9 where Ophir has a 60% stake and plans for a drilling programme in 2013. Pancon is carried for the first $9m on Mbawa, and could have to contribute a further $4m or $5m to the drilling.

Last month Pancon announced the start of the Kifaru offshore seismic survey in the L6 exploration block, to the north of L8. This should finish this month, with Pancon's share of cost at $5.5m. The area is in the Lamu Basin and within the Tana River delta, and appears to carry similar structures to those which have brought the massive gas finds by Anadarko (Cove) and ENI in the Rovuma Basin off Mozambique to the south. There are plans to drill in 2013, all being well.

The other offshore Kenya blocks, L10A and L10B to the south of the Ophir-operated L9, have 2D and 3D seismic and have been fast-tracked by operator BG with the possibility of drilling in the fourth quarter of this year or early in 2013. Once again, these blocks display similar qualities to the Rovuma Basin with numerous leads and supplemented by oil seeps at Pemba Island, just across the border into Tanzania.
The offshore Kenya licence portfolio holds out prospects of considerable action this year and into next, and is the main centre of excitement over Pancon. But the company also holds 85% of three large blocks offshore Namibia in South West Africa. There are oil seeps in this little-explored area, and it is attracting growing attention.

Nearby, BP has farmed in to Serica acreage, Chariot has started drilling and Eco Atlantic Oil and Gas has come up with an independent estimate of potential resources of almost 8bn barrels in an adjacent area. It could be something – or nothing.

After rising to about 23c earlier this year, Pancon shares slipped almost to 15c as the company moved ahead with a financing, raising A$45m by issuing shares at 17.5c. Counting cash already in the business at March 31, that means Pancon has maybe A$58m, and is well financed for the year ahead. The share price settled for a while and has just started to move ahead again.

So far, it is little known in the London market. Dublin broker Dolmen produced a brief report late in March, calling it a speculative buy with a price target of 30c. If you go to the company website at www.pancon.com.au, there is a very full report from company broker Hartleys, and I have drawn upon that in this report.

Once again, this is an unusually speculative recommendation, and it depends massively upon what happens with the drill. There is never any guarantee of that, but those who understand such things are optimistic about Mbawa, and there are three other interesting licences in a prolific area. As drilling results approach, and more wake up to what is going on, the shares could move usefully higher.

And, of course, the phenomenal success the majors have had offshore East Africa means that the big boys are looking to buy into anything which has reasonable assets. And Mbawa could have oil, more valuable than gas. If Pancon gets lucky, the chances of a bid before too long must be high.
Good luck.

[royaloak] 19/7/2012 09:55

Agree, pro-rata puts the value of the block for PCL's interest at $38M.

[norman115] 19/7/2012 09:25

PCL now has 95% of EL 0037 for an initial payment of US$2 million.



IMHO a very smart move on the part of the PCL board who have played their cards brilliantly.

With regards to East Africa, it will only be a matter of weeks before we get an announcement about Mbawa drilling.

[royaloak] 13/7/2012 15:56

Courtesey of Chart Trader TIAE thread.


Subject:



DJ Kenya Leases All Oil Exploration Blocks-Newspaper


NAIROBI--Kenya has leased out all existing oil blocks to exploration companies, the Daily Nation newspaper reports Friday citing Energy Minister Kiraitu Murungi.

The government has given out the remaining four blocks to international companies, including America's Apache Corp. (APA), France's Total SA (TOT), Anadarko from the U.S. and China's CNOOC, the daily cites Mr. Murungi as saying.

"All our 46 oil blocks, including the nine in the deep sea are now contracted out and our offices are currently busy signing production-sharing contracts. The role of the ministry now is to follow up to ensure that the work programs are implemented," the daily quoted Mr. Murungi as saying Wednesday on the sidelines of the launch of the Oil and Gas Summit scheduled to start in November.

It wasn't immediately possible to obtain a comment from the Energy Ministry.

Apache Corp. is expected to drill Kenya's first deep-water oil well in three months, the daily said.

"We are going to deep-sea drilling again from September with Apache about 60 kilometers east of Malindi. We are witnessing significant interest since we struck oil in Turkana," Mr. Murungi said.

In March, London-listed Tullow Oil PLC (TUWOY) announced it had encountered oil in its Ngama-1 well in northern Kenya, which it expects to be the largest oil find in East Africa so far.

Newspaper website:

[ein] 11/7/2012 09:00

Good article in an Aussie paper which should make the punters there a lot more aware of what the company is doing over the next few months, exciting times ahead?

[royaloak] 11/7/2012 08:57

Chart looking very interesting now, makets weak and this moving ahead a good sign hopefully.

[rdfdr78] 26/6/2012 17:29

OK cheers for the response Norman115

Thanks

[arsene5] 26/6/2012 13:10

If you want to give me an email address, I can send it there. I cant paste it here.

[arsene5] 26/6/2012 13:06

This is one I've dug up. Apologies if its been posted already. I should have the BN in the next 24 hours.

[euclid5] 26/6/2012 12:52

broker Note

[arsene5] 26/6/2012 06:54

BN euclid ?

[norman115] 25/6/2012 23:45

The total number of shares in issue is 1.1 billion or 1,123,444,094 to be exact.

[rdfdr78] 22/6/2012 18:13

Hello,

Can someone tell me how many shares are in issue for PCL

Thanks

[euclid5] 18/6/2012 16:34

have you seen their BN on this please?

[arsene5] 18/6/2012 15:36

I think Nomura have this as their top speculative pick.

[euclid5] 14/6/2012 13:36

latest presentation:

[keya5000] 12/6/2012 13:18

Off topic but general area so maybe of interest--

Simba Energy Receives Sproule's Resource Assessment Report For Block 2A - Onshore Kenya
June 12, 2012, Vancouver, B.C., Canada. Simba Energy Inc. ("Simba" or the "Company") (TSXV: SMB, Frankfurt: GDA, OTCQX: SMBZF), is pleased to announce that independent petroleum consultant Sproule Associates Limited ("Sproule") has completed a technical report compliant to NI 51-101 and CPR (Competent Persons Report) standards in respect of Simba's holding, a 100% interest in the PSC (Production Sharing Contract) for onshore Block 2A, Kenya, comprising 7,802 sq.km within the Madera-Lugh basin, near the juncture with the Anza basin and Lamu Embayment/Basin.

Utilising the existing 500km of 2D seismic, Sproule's report has defined three prospective leads at four representative seismic horizons. Five horizons have been carried in the interpretation. For this initial assessment, the Gross Unrisked Undiscovered Petroleum Initially In-Place, (Mean) was 1,927.1MMboe and the Gross Unrisked Prospective Resources (Mean) was 445.3MMboe. The Total Gross Risked Mean Prospective Resources was 26.9MMboe. See also table below.

Table: Initial Resource Assessment of Block 2A - First Three Leads

(Source: Sproule and Associates Ltd.)

[ein] 12/6/2012 13:13

Great report out and price up to 19c, a lot more to go?

[cashandcard] 06/6/2012 12:42

ein,

Agreed. This is the time to accumulate before drilling Mbawa begins. Excitement will keep it a decent levels whilst drilling so now is the real chance to tuck some away. As long as markets are half-decent and Greece or one of the other Piigs do not raise their ugly heads again.

This and Agta are the ones to be in for a potential large reward towards year end.

Cash

[ein] 06/6/2012 07:19

I believe some holders who partook of the last two placings have unloaded, Australians in particuler, now are buying back in for the drilling excitement. There is also the chance of an oppurtunistic bid by a major ?

[royaloak] 05/6/2012 23:14

ein

Think the report was out the 1st June, so doubt any further move up for this reason, however I am guessing there could be a move up before August as long as markets do not completely fall apart, hence the reason I am drip feeding my buys.

[ein] 05/6/2012 20:04

Should be some buying tonight?