Harbour Energy Share Discussion Threads

[steve73] 27/7/2018 08:48

Looking very perky today.. picking up some of the BP sells perhaps..?

[steve73] 27/7/2018 01:11

You can usually find the sabres at your local Chinese market...although they're the 'elf & safety approved ones with the plastic sheathing over the "blades".

Agree with your comments about the pot holes though - they're next on the councils list after all the black holes get filled.

Nice finish yesterday.. Always good to wake up to see a rise.

[mercer95] 26/7/2018 09:35

Light sabres, I’m still waiting for a working version, I’d settle for the pot holes being filled in before messing around with cold fusion.

[steve73] 26/7/2018 09:12

I doubt we'll have mastered fusion (either cold or hot) by 2120.... or even if humans will still be here by then.

[phowdo] 26/7/2018 09:05

teleportation?

Thanks, but no thanks.
I've seen "The Fly" and thus what happens when things go wrong.

[deanroberthunt] 26/7/2018 08:25

and we'll have teleportation...and have terraformed mars

[fireplace22] 26/7/2018 08:07

I was told in the late '60's that nuclear fusion was coming it may take another 30 years but it'll be here.... 50 years on and we're still 30 years away.

[phowdo] 26/7/2018 08:00

2020?
We'll have cold fusion powered cars by then. Just pour an eggcup of water into the tank for 1000 miles of range.

;)

[deanroberthunt] 26/7/2018 07:57

even today in 2018, the mega oilers still aren't investing, these projects are still on hold....XOM, BP, RDSA/B..et al...the oil crunch will come it's just a waiting game...it's simple math

[deanroberthunt] 26/7/2018 07:54

wait till all those canned projects from 15/16' due to the oil bear market kick in, around 19'/20'.....then the last high will be nothing...$147 per barrel...$1-1.2tr of non investment, needed to maintain the supply from natural depletion....

[mpclag] 25/7/2018 20:16

Leon-Sorry but your plain wrong on this. Deleveraging is NOT contingent on oil price staying high as every week PMO hedge another chunk of forwards-Dont ask-I just know this as a fact! They have hedged a couple of months of 2018 and now 2019 at a much higher lvl ($appx70).
Of course the long term oil price will have an impact. Also consider their other future assets-Sea Lion and Mexico. Could be huge. You cannot value an oil play just on current output. If you were to uses this as a basis of valuation, then others who aren't producing would have a market cap of zero-how crazy would that be?
If OP stays above $70, then I reckon forward pe closer to 6.5

[marvin9] 25/7/2018 19:20

If you want a dancing Monkey Stevebore, then go speak to Jabba the puppet!

[mercer95] 25/7/2018 15:22

Thanks for the info Steve, feels like a tough market in general at the moment, oil inventories out later, come on Premier, gives us an afternoon bounce GLA

[asa8] 25/7/2018 11:06

Games still being played here good job the oil price is holding steady

[steve73] 25/7/2018 09:13

Thanks BG.. My motto is never trust a fool!!

Talking of which where Marge today..?

[bgwesley] 25/7/2018 08:39

Steve73, here you go:

[steve73] 25/7/2018 07:07

Humm....

There wasn't an "emergency fund raising"... merely a renegotiation of it's debts (plus a few warrants, which one could argue will be a small fund raise)... although the original shareholders did get screwed somewhat by the very low renegotiated CB pricing.

Do you have a source/link for that Leo..?

[steve73] 25/7/2018 04:36

WTI is based in Cushing OK, which is totally landlocked. With limited pipeline capacity across the US, it's price can vary significantly depending on local (and pipeline linked) production supply/demand.

Brent OTOH is based on a basket of NS Crude oils "similar to Brent crude", although there is actually very little oil produced from the Brent field nowadays. Since "these" oils can be shipped anywhere in the world with relative ease (although obviously at a cost), it tends to get used as a reference price for much of the worlds seaborne cargos, although there are other reference grades in some areas (Arab Light or Heavy in the Arabian Gulf, Mayan in SE Asia). If there's an increasing demand for oil in Asia, then the Mayan reference price will increase against Brent (which would represents the additional cost of shipping European crude to Asia).

But each particular cargo is priced separately as a premium or discount to one of these reference prices depending on it's particular properties (principally density/API, Sulphur, acidity, and "distillation").

There are also seasonal variations... In summer (the "Driving" season) lighter crudes usually carry a higher premium since gasoline is in more demand. In winter (when there is more demand for heating oil) then heavier grades carry a higher premium (or, as is more likely, a reduced discount).

Finally, each refinery has a slightly different processing configuration, and may be better suited to a particular type of oil. Some refineries might offer a slightly increased premium for a particular source of oil, and during a maintenance period that oil will need to be sold elsewhere - and at a slightly lower premium to Brent (maybe only a cent or fraction of).

Catcher is a fairly light, low S crude, so will tend to be priced at a premium to Brent.

Incidentally, the WTI "reference properties" are actually significantly "better" than Brent's RPs (ie. API, Sulphur, etc), and so it should trade at a premium to Brent. It doesn't (at the present time) since to transport it to "Brent's" marketplace would entail significant additional transportation costs.

[leoneobull] 25/7/2018 04:04

Few would have guessed a year or two ago that Premier Oil (LSE: PMO) would go from dangerously close to insolvency to the third best performer in the FTSE 250, with an annual return of over 110%. But thanks to an emergency fund raising, a big new project coming online, and Brent crude prices now above $70/bbl, here we are.But does that mean investors should rush to buy Premier Oil stock in hopes of further significant gains in its share price?Well, bullish investors have a few points to make in their favour. One is that Premier's production levels are ramping up significantly thanks to the Catcher field in the UK. In 2016, the company produced 71.4k barrels per day but is now guiding for 80k-85k for this year. And with operating costs per barrel down to $17/$18, the company is kicking off positive cash flow with oil prices where they are today.The bad news is that this increased cash flow will be flowing directly to creditors instead of shareholders since net debt at the end of June was still a whopping $2.65bn. Management is confident that it will be able to bring net debt down to 2.5 times EBITDA by the end of March 2019, when its recently-amended covenants require a net debt to EBITDA ratio of under 3x.However, this deleveraging is contingent on oil prices staying where they are right now, which is far from certain. Also, while Premier is making progress, its forward P/E ratio of 10.5 is no screaming bargain considering its balance sheet woes and lack of dividend. With oil prices unlikely to rise by 50% or more in the near future, as they have in the past year, I see no great catalyst for Premier's share price to rise as rapidly as it has over the past year.

[marvin9] 24/7/2018 19:30

Petroteq has reached an agreement with Mareton Alliance LP with a view to acquiring leases and resources within the Utah Oil Sands Region. These assets meet all of the criteria set by Petroteq’s Management and Board.

The Company believes that growing its asset base is crucial at this juncture. It is in the process of bringing its new facility in Asphalt Ridge up to its nameplate production capacity of 1000 bod.

David Sealock, Chief Executive Officer stated, “Growing our asset base is a key initiative that I have been pushing since my arrival at Petroteq this year. I know that our valuation will be driven by our production and technology, as well as our assets in the ground. The discussions with Mareton Alliance have the potential to significantly increase the resource assets on our balance sheet.”

The pricing and structure of the transaction have yet to be finalized, but Petroteq Management is confident that an attractive transaction can be structured. The Letter of Intent is non-binding and the transaction contemplated is subject to board and exchange approval.

[fireplace22] 24/7/2018 18:26

They are just marker prices, Premier often states it has sold Catcher oil at a premium to Brent.

[mercer95] 24/7/2018 17:36

Cheers hoper2, as long as the price of it stays stable, good day for Premier today, hopefully same again tomorrow.

[hoper2] 24/7/2018 17:17

MERCER - All oil is crude oil, but there are different types of crude. The two major benchmarks for pricing are West Texas Oil (WTI) and the UK's Brent. The differences between WTI and Brent include not only price but oil type as well, with WTI producing crude oil with a different density and sulfur content. As far as I know all PMO's oil and that of the North Sea is classed as Brent.

[mercer95] 24/7/2018 13:32

More out of curiosity than anything but does anyone know if Brent Oil or Crude Oil is more relevant to Premier or are PMO involved in both, thanks in advance.