Portland Gas Share Discussion Threads

[eacn] 18/10/2009 15:30

I hear that the interims will now be on 26.10.2009 not the 19.10.2009. I don't know the reason for the delay, but given that it is highly unlikely to relate to the accounts I can only assume that the board want to make some announcement on progress with funding and have yet to complete some deal or other.

[eacn] 18/10/2009 15:26

bones30,

I posted my views on E&G on the EO. thread a while back: in the current climate I very much doubt it is commercial. Offshore costs are high, and in E&G's case that is compounded by the presence of an active acquifer in the lower reservoir, which accounts for the majority of the capacity. Even with the tax breaks for off shore stroage provided in the 2009 Finance Act, I can't see EO. realising anything for E&G in the foreseeable future.

That said I have hold some EO. on the grounds that: (a) the share price takes no account of the non-cash assets; and (b) the board have effectively hoisted the "for sale" sign. I expect the company to be sold / wound up or the assets to be distributed in specie within two years.

I expected the Egdon deal (it was pretty ovious from the RNSs and EO.'s existing realtionship with Egdon) but don't expect much upside from that in the near term. I suspect further assets sales and swaps are in the pipeline.

[bones30] 17/10/2009 23:58

eacn - I'm not here to stir, but what's your opinion on Esmond. You are clearly a very knowledgeable type.

[eacn] 12/10/2009 21:04

I suspect many PIs will be dissappointed by the IMS. At best PTG will announce that it has received expressions of interest from half a dozen or so prospective investors, and at worst there will be nothing concrete to be said.

Q1 2010 remains the target date for completion of this funding round, and I doubt that funding will be secured before that date. European development funding could change all that, but I would be surprised to hear of any firm committments at this stage.

The share price performance is a response to speculation about funding, press comment and the recent Ofgem energy review. The problem remains that without greater certainty from HMG on future UK energy policy, returns from investment in gas storage remain uncertain. Although, imo, Portland offers greater security of returns than virtually any other proposed or planned UK gas storage project, investors remain nervous that HMG will change the rules and wipe out their prospective double digit IRRs.

What is becoming clear is that if PTG do obtain funding on competitive terms, then the market may value this stock at nearer 400p than 200p. If that is true, then imo the risk reward ratio for PTG even at 130p remains attractive.

DYOR, etc.

[mina123golf2] 12/10/2009 20:38

ADP Do masses of people really go out and buy a share (in this case PTG) on the strength of a recommendation from Moneyweek?? I really doubt it. Some will I am sure but not sufficient to drive the share price up as today. As posted before the track record in the tipping dept of Moneyweek could at best be described as appalling. I hope that you are wrong in your assumption - I guess the next few days will provide the answer. I feel sure that there is a widespread believe that funding will be secured and an announcement to that effect will arrive soon - hence the steady rise of the share price over the past few weeks.

[adp] 12/10/2009 16:40

From iii


PTG tipped in Moneyweek today;could account for a surge in buyers late morning and pm.Usual stuff re funding...'shares could soar if company secures funding to complete Dorset project'.
Let us all pray!!

[diamond1] 12/10/2009 11:13

Bought Friday, sold just now for a small but quick profit.

[semoy] 11/10/2009 21:46

Hi all .. did PTG not need to lay a pipeline by 'about now' to save it interfearing with the Olympics?
Cheers

[scruff1] 11/10/2009 18:34

mina
It won't be positive it will be astronomic - back to £4. This is a major project. It's why I got involved. I got in at70p years ago. Should have sold at £4. But I am a mug. Like Nathan Rothschild ounce said when asked how he made his fortune - I always sold too early

[mina123golf2] 11/10/2009 14:41

It is fair to say that almost all posters on this board have a better insight as to what is going on at PTG. Frankly I would always go with my own research backed up with info from the likes of eacn and others, as opposed to Moneyweek. It is most certainly true that a positive update especially on the funding will have a very positive effect on the share price

[kooba] 11/10/2009 13:56

if we get a positive statement regarding the level of interest in the scoping group with the results especially if there is the muted european investment bank backing then moneyweek might well be on the right track...chimpanzee's typewriters and all that.

[diamond1] 11/10/2009 13:33

You may be right mina but I'm only in for the (Hopefully.) short term rise as the MMs also read the tip sheets.

[mina123golf2] 10/10/2009 18:37

This is not good!!!!!!!If PTG have been tipped by Moneyweek then we all have cause for concern. This wretched rag has an appalling track record in the "share tip" market. As I have posted before I for a long time kept a note of their "tips" - and watched their progress or otherwise. The list of disasters is endless. One which was in the news recently following a BBC2 programme was LANDKOM. Moneyweek tipped as a great buy at 99p - today it is 8p. There are countless others. I stopped buying/reading Moneyweek ages ago.

[diamond1] 09/10/2009 12:21

Reccomended in "Moneyweek" today. "It trades at £1.23 but could retest £4.30 if it secures the £450m financing it needs to finish the Dorset project."

Picked a few up this morning ahead of week-end readers buying on Monday. (Touch wood.)

[eacn] 09/10/2009 08:57

The Ofgem report is worth a read:

[didierdrogba] 09/10/2009 08:11

Cheers eacn. Thanks for info

[eacn] 08/10/2009 21:41

I understand that the interims will be out on 19.10.2009

[didierdrogba] 08/10/2009 18:34

I only say that because someone on iii mentioned interim results due this week by which I assume he means preliminary y/e results. Also, they came out on the second friday in October last year.

[bigman786] 08/10/2009 18:08

Yes, if anyone can confirm Didier's Q that would be great thanks.

[didierdrogba] 08/10/2009 11:39

Is it true the preliminary year end results are out tomorrow? More importantly, they will hopefully come with some kind of positive funding update.

[scruff1] 08/10/2009 08:00

An update on the construction wouldn't go amiss. Anybody heard owt?

[eacn] 01/10/2009 10:50

The fast track could assist PTG with its Larne planning application, but not materially.

[scruff1] 01/10/2009 09:45

And there you go. Whilst I wrote that last post the bid dropped by 3.25% for no reason. Crazy movements.

[scruff1] 01/10/2009 09:42

Planning for Portland has already been granted

[eacn] 01/10/2009 09:31

Ptolemy,

The fast track system is only relevant to onshore gas storage projects of which there are a limited number awaiting planning, and none of these are of a similar size to Portland.

PTG's projections assume that these projects will go ahead anyway. Furthermore since Portland will generate at least half its revenues from short cycle storage (extrinsic value) the major competetve threat to Portland is from short cycle facilities, of which there are few. None of these projects faces significant planning issues.

Most of the recently announced storage projects are offshore and only require planning where the pipeline infrastrcutre comes onshore. These are long cycle facilities (similar to Rough) and rely on intrinsic value to generate revenue. Intrinsic value is under pressure at present due to low gas prices and it remains difficult to make a case for these projects unless you are fairly bullish on gas prices going forward, particularly given the rise in the importance of LNG as a global source of gas.

LNG gas storage has to be short cycle to make sense, and Portland scores on this count. As you will be aware PTG recently issued a study on the potential role of Portland in the UK LNG storage market.