Rheochem Share Discussion Threads

[longshanks] 28/9/2010 13:12

MMs are happily hoovering up stock at 9.5p and whilst LIBC joined SING on the offer this morning, CANA has just moved back onto the bid bringing it to 4v2.

Looks to me like we have another impending announcement.

[husbod] 24/9/2010 13:49

You and me both longshanks. I've bought a few Ithaca as well, although I prefer "penny shares" on the whole for speculative purposes, as there seems to be decent mileage for both companies in this oilfield.

[longshanks] 24/9/2010 13:07

sound advice Husbod - taking profit is generally a prudent thing to do.

mind you if I hadn't taken some profits out of RKH at £3, I would have been significantly richer today.

I don't think this will do the same - but if I look at the price and look at the NAV - there is still a huge disparity so I will be keeping my shares firm for a while yet.

[husbod] 24/9/2010 11:23

Never wrong to take a profit. If I had taken more of a profit out of my last Aussie minnow (Albidon) I would be materially richer than I am now!

[longshanks] 24/9/2010 10:09

lol duc.

inevitable technical correction - if it plays according to form it means the next wave will be even stronger (he hopes)....

[ducatiman] 24/9/2010 10:02

women and children first lol, not used to this red colour recently. Even more undervalued now!

[longshanks] 23/9/2010 10:09

golden cross forming today: 50d m.a. crossing 200d m.a. and with 200d m.a. on an upward trajectory!

I am not a chartist - and discount much of their value in these volatile low caps - but it is still a very bullish signal.

[ducatiman] 23/9/2010 09:44

Did not sideshowbull, the acclaimed chartist, say minor resistance at this level then major resistance at 15.5p?

[rivaldo] 23/9/2010 09:42

Thx for that longshan - as you say, quite some way to go :o))

Good to see the share price not only consolidating at these levels but continuing to advance.

[longshanks] 22/9/2010 11:33

I estimate that NPV of Athena to Zeus (RHEP) is close to £30m. Add in the other prospects and I reckon Zeus is worth £35 to £40m.

You then have the muds business which is probably worth £20m on current trading but add in growth potential and that could could grow to £30m and possibly - to the right buyer if there is one sniffing around - as much as £50m.

Therefore I would say total enterprise value of RHEP is somewhere between £50m and £80m though litigation going the wrong way would knock of about £15m.

On a conservative basis I would say there is quite some way to go before this is at a fair price.

[rivaldo] 22/9/2010 11:02

Nice mention for RHEP in today's FT - though isn't Athena's value to RHEP more than its m/cap?



"Rheochem, an exploration company and drilling fluids supplier, added 5.3 per cent to 10p after securing a $14m loan to finance its share of the development costs for the Athena field in the North Sea.

Ithaca Energy, the operator of the field, yesterday said that it had received approval to begin production in the third quarter of 2011. Reochem has a 10 per cent stake in the field, which traders reckon is worth as much as the company's market capitalisation. Ithaca ended 5.1 per cent higher at 114p."

[lr2] 22/9/2010 10:17

Such imagery LS. I must buy your next book.

[engelo] 22/9/2010 08:27

ducatiman: thanks.

[longshanks] 22/9/2010 08:08

Also note that RHEP are fighting the action strongly as they feel it is unjustified.

I expect they will be producing oil from Athena before the case is concluded!

[rivaldo] 22/9/2010 07:12

Up 3.5% in Australia to 0.15.

Patboy, go to post 1754 and read the long piece about RHEP in the link - it explains that any loss to RHEP is likely to be non-cash, i.e merely a write-down.

[patboy] 22/9/2010 00:01

of course take into account the high court action against Zeus. what is
the case about ? cant find eny links news about it

[ducatiman] 21/9/2010 20:42

engelo, all imo but yes rhep could be considered a geared play on iae`s progress. Look at the other north sea assets and ask if rhep will be able to develop them, also look at the muds business then look at the mkt cap, then ask yourself why this co` continues to undervalue its assets. Good luck with your research and please let us know the results of your research. of course take into account the high court action against Zeus.

[engelo] 21/9/2010 19:10

New here: advice please.

I hold IAE atm, thinking of adding. Worth investing in RHEP instead? Is a RHEP a geared play on IAE's progress? Or have I missed the boat?

tia engelo

[lr2] 21/9/2010 15:09

May the power be with you, DarkLord.

[darklord2] 21/9/2010 15:08

I can confirm yes!!