Plutus Res. Share Discussion Threads

[alexandrews] 21/6/2005 14:48

They sound Scottish 8-)

[bomfin] 21/6/2005 14:35

Anyone know where Brechin, Farnell, Montrose and Arbroath are?

[wywcu1] 21/6/2005 14:15

or is it Palladex?

[sagem] 21/6/2005 07:29

Yes apparently epic code PDN is also a Palidin Resources but in OZ, ALL VERY CONFUSING I have just checked it out on the OZ market and nothing to do with PLR uk

[alexandrews] 20/6/2005 23:17

Maybe he's confused with Palladium Resources?

[diogenesj] 20/6/2005 22:42

I think you're right, GB. Never seen any mention of uranium in connection with this one.

[greatbear] 20/6/2005 22:33

SAGEM,

I think you've got the wrong Paladin Resource. Confused me when I read an article a few weeks ago. I think the Uranium Paladin Resource are on the Australian Market.

GB

[alexandrews] 20/6/2005 20:17

Inititally there were more buyers than sellers, but then the tables turned and there were more sellers than buyers?

[sagem] 20/6/2005 19:53

So why was it up 11p first thing this morning only to dive 7p by time of close

[diogenesj] 20/6/2005 18:52

Should have kept quiet myself. :-)

[monty burns] 20/6/2005 18:28

Blimey, some fall.

Erm, sorry about that.

I'll shut up next time....

[sagem] 20/6/2005 18:24

DIOGENES...Its because of URANIUM POTENTIAL.....Check out Uranium which is rising in price and is at a premium. Uranium if the real bull market of the now and future

[monty burns] 20/6/2005 10:23

Haven't been in PLR for a long time (berk...) but was actively involved back in the 30-70p range.

When I'm not hitting myself over the head with a hammer, I do think that PLR is showing bubble-ish tendencies. It seems to be valued more as an exploration company, whereas their bread and butter is buying proven reserves that the big boys can't be bothered to work on and just farming it. They have a little exploration, but nothing serious, and the price seems to reflect the possibility that something big may come of it.

On a PE basis (earnings are noticeably clobbered by tax charges), it seems significantly overvalued. But then I sold in the 70's, having waited far too long for the market to recognise it's worth, only to see that recognition finally arrive.

[diogenesj] 20/6/2005 10:15

The price just goes higher and higher. Any theories as to why it is going up so much faster than most other oil companies? Takeover interest? (But that seems unlikely at this price.) Perhaps just that it is highly geared to the oil price? (But aren't they all?)

[bomfin] 10/6/2005 09:28

PLR being helped by high oil prices today.

Researching it appears that the Norwegian assets are in the balance sheet at a significantly lower valuation than their real value.

The share issue and sales of Blake/Ross and Njord along with cash flow from operations this year should be outstripping development spending and costs of Australian acquisition leaving PLR in a very healthy financial position.

In terms of value the current share price may well be close to real value if you consider actual NAV and potential P/E. The latest announcement of projected production for the year suggests operations are going well.

Newsflow could tip things in balance of further share price growth though with likely Brechin start up shortly and the key well North Petalonia said to be drilled in 2nd quarter 2005. Approval of Blane and Enoch development plans also can't be far away. Also BG have farmed in to the Hummer prospect in Norway for 2nd half 2005.

All imho dyor

rgds bomfin

[bomfin] 08/6/2005 12:24

For now though.

Remember this?

LONDON (AFX) - Paladin Resources PLC said its wholly owned subsidiary
Paladin Resources Norge AS will buy an 18 pct stake in the Veslefrikk Field in
the Norwegian North Sea from TotalFinaElf Exploration Norge AS, increasing its
overall stake in the field to 27 pct.
Paladin Resources said it will pay 110 mln nkr (approximately 15 mln usd) in
cash for the stake, subject to adjustments for working capital as at the
effective date of Oct 1 and for cash flow movements between then and completion,
expected during the first quarter of 2003.
The Veslefrikk Field, which is operated by Statoil, came on stream in 1989
and is currently producing approximately 30,000 barrels of oil per day, with
production forecast to continue until at least 2014, the company said.
Proven and probable oil reserves acquired as at the effective date are
approximately 15 mln barrels.
The planned 2003 work programme includes an active infill and exploration
drilling programme. In addition, Statoil has recently initiated a field-wide
project targeted at boosting production and reducing operating costs.
On completion of the transaction, Paladin's net daily production is expected
to increase to approximately 38,000 bpd from 33,000.
Roy Franklin, chief executive of Paladin said: "This interest was no longer
material for TotalFinalElf and provided Paladin with the opportunity to treble
our interest in the field on attractive terms and with no incremental overhead
costs."
The acquisition is subject to the approval of the Norwegian regulatory
authorities and to Norwegian State pre-emptive rights.



This I reckon is still in the balance sheet at that ridiculously low acquisition price.

How good does this make the price they got for the Njord sale look?


rgds bomfin

[bomfin] 08/6/2005 12:18

Hello all,

Researching PLR again this morning. I do think it's still got further to go but am checking my figures at present. Will post more later.

imho dyor

rgds bomfin

[bumpy dog [new]] 07/6/2005 12:45

Well, PLR got through the 200p level ! Just looking at today's news, $90m for 16 million BOE is $5.60 per barrel, which does not seem particularly high. OK, the fact that it's gas rather than oil, in a high-tax zone, and sales don't commence until 2007 will detract from the price. But it will be interesting to see if any useful industry comment emerges.

[sandbank] 07/6/2005 12:42

I've been in and out of PLR since it was at 70p . It's always been a reliable performer for me, but today's price does seem very high. However I'm always impressed by BOMFIN's expertise in this area. If he reckons it's still got further to go it may yet be worth a further punt - even at these dizzy heights. However it would surely be normal for there to be a bit of a retracement following the huge rise in recent days.

[skirbell] 07/6/2005 12:37

North Sea gas reserves are currently flavour of the month with both producers and suppliers. There is a current shortfall in gas production for Northern Europe at present and companies are scrambling to secure supplies. DONG recently paid a fortune for BP's share in the large Orman Lange field which was heavily bid for by a number of the producers, particularly Norsk Hydro.

The suppliers, Centrica being the main UK company, have also been concerned about security of supply to their customers and have been looking to purchase upstream production. Eon have clearly got involved here.

This recent clamour for gas has come about from the recent record high gas prices. Producers are obviously looking to cash in, suppliers to provide some security of supply and to hedge future price rises.

Interestingly, there a a large number of import projects planned for the UK and Northern Europe over the next couple of years. Personally I suspect that this will actually push down gas prices, particularly in the UK, and make the reserves less valuable. I therefore think that Paladin are being very shrewd here in selling off the gas reserves.

[alexandrews] 07/6/2005 11:38

Fair point bomfin, I hadn't considered the tax differentials.

[bomfin] 07/6/2005 11:14

e.g.

Field 1 is in Norwegian waters and clearing £15/barrel profit after tax that's a profit of £3.30/barrel.

Field 2 is in UK waters and clearing £15/barrel profit after tax that's a profit of £9/barrel.

So I reckon UK reserves are worth at least double Norwegian reserves.

[bomfin] 07/6/2005 11:09

Alex,

Norway is high tax. 78% government tax take. So it's a very good price for Norwegian assets.

UK assets are worth more as the new additional fields to MONARB, Goldeneye and Bittern are 40% government tax take. It's a big difference while oil prices are at $50/barrel.

rgds bomfin

[alexandrews] 07/6/2005 10:48

bomfin,

If your production and reserve figures for Njord are correct (post 250), I make that field ~10% of each for Paladin (as per finals), so by extrapolation gives a value for the company of ~£500m.

By my calculations, at a share price of 205p the company currently has an enterprise value of ~£850m.

Hmmm...

Alex

[thegreatgeraldo] 07/6/2005 08:57

Oops! Only skimmed the RNS & saw the target production date of 2007. No position , interested only in the price paid for what I thought were undeveloped reserves