Rockrose Energy Share Discussion Threads

[duckdown] 09/8/2018 09:06

And another acquisition this morning - 20% of the Arran field.

[croasdalelfc] 16/7/2018 21:50

The new Dyas acquisition was about £40m net and added 5kbopd

[croasdalelfc] 16/7/2018 21:49

Yep but they have a large chunk set aside for decommissioning. And decom has been deferred by at least a year for largest field and will probably be extended . Uk gov wants to extend field life , depends on poo of course

[divmad] 16/7/2018 15:42

...but for how long? These are short lived assets with huge potential abandonment costs in the early 2020s.

[croasdalelfc] 19/6/2018 09:59

The recent acquisition was backdated to 1st Jan. So production over 10000 boepd @ 70 dollar oil means large profit and large dividend

[cartonet] 30/5/2018 10:47

Decommission liabilities from Idemitsu acquisition are awfull and reason why stock looks so cheap on market cap / production basis. Anyone know if abandonment liabilities for Dyas adquisition have been disclosed anywhere?

[divmad] 29/5/2018 22:10

Why no interest in rre after this latest asset purchase?

[5chipper] 17/3/2018 14:00

Apologies for all the posts but for someone not up to speed with developments here there is a lot to digest!

In a nutshell:

- They have a portfolio of minority interests in N Sea wells (all passive interests) acquired over the last couple of years

- These interests to give about 6,000 boepd

- Cost per barrel of $30 - approx £45m ebitda pa

- All acquired with cash and there is still a cash balance (though not sure how much)

- No debt, but a de-commissioning obligation of max. c$150

- Some cash already set aside to cover de-commissioning, rest to come from fcf over following few years

- Currently working towards upgrading the reserves at their major investments which we will find out more about in a few weeks

[uen_investor2] 19/2/2018 10:55

Dont miss UEN, no more than 5,000 shares avaliable online.. They are already asking the full amount again to be filled

At 13m quid its hard to see a downside.

3 - 4 million shares available to the market. This on its own means there is very little available for large chunks. No warrants, no dilution

This will keep rising,

Here is why.

This ticks every box:
Excellent revenue.
Rejected takeover at 250p per share
Debt wiped shortly
Dividend. (5p per share paid in November)
Proved reserves.
2200 bopd production.
Bod have plenty of skin in the game.
Cpr due.
Drilling underway on high cos prospect.
Very small free float of shares.
Few shares in issue.
Well underpinned at a mcap far exceeding what we're currently at.
Exponential upside.
Not on the radar....YET!
Fabulous entry point
Own their own refinery - 30 million US conservative valuation on its own
UEN oil sold at a PREMIUM to brent


Worth reading this over and over again..

hxxp://www.uralsenergy.com/archive/presentations/Urals_Inv_Presentation_20_11_2017.pdf?v=231117

Urals remains one of the highest ranked E&P companies (4th) on the AIM market by 2P Reserves
Russian 2P Reserves volumes dominate the AIM E&P sector and continue to trade at a significant discount
to the market average
Urals generates more operating cash flow per barrel produced than its AIM listed peers
Urals 2P Reserves trade at a discount to the market and its regional Russian and FSU peer groups
Urals have continued to outperform its Russian peer group during 2017

[croasdalelfc] 19/2/2018 08:20

Only 5m shares in free float

[gersemi] 19/2/2018 08:07

This stock is so illiquid it's ridiculous

+175%

[croasdalelfc] 16/2/2018 17:59

I have no idea at what price this will trade on Monday other than higher than 127p

[croasdalelfc] 16/2/2018 17:58

I think they have factored in 12.5 m over the next 18 months which would make 55m in total.There is a formula mentioned in the admission document to work out the yearly amount set aside. The biggest ( boepd) have longer life too 2022 and beyond . I guess the near term decommissioning of fields has already been paid by the sellers.I think they are hoping that some fields will get extended life if the tax history is transferred as the asset is transferred - new policy.Also one of the acquisitions comes with tax assets they hope (will) use.I think pages 42 to about 50 are the most important with rationale for purchase of each asset

[chestnuts] 15/2/2018 16:33

croasdalefc

Why do you suppose they are only allowing $6.5m a yr for decommisioning they are pressuming the wells have over 20 yrs of life in them which seems extreme, this needs a little explanation.

[croasdalelfc] 15/2/2018 14:46

From the Admission document: Opex 2018 $53.3m Capex 2018$6.5m G&A $3 a barrel = $5.7m from RNS Decommissioning provision $6.5m Income $105m @ $60 Brent minus $5 discount (assuming 5250 boepd) PBT = $33m = 24m pounds After tax approx. 15m pounds or 100p a share. (I dont know tax rate but assumed 33%) With a PE of 10 should give a share price of 1000pAm I missing something??

[croasdalelfc] 15/2/2018 11:49

Decommissioning costs are estimated at £12.5m for the next 18 months.So with income after opex and g&a of 30 Dollars a barrel gives approx £40m pounds - take out tax ( though they have tax assets to use) and Decommissioning of £6m and it still gives profit of close to the current Mcap.If profit is 50p a share then with a normal PE of 10 gives a share price of 500p

[muddy_40] 15/2/2018 10:33

Thanks Croasdalefc,

[croasdalelfc] 15/2/2018 10:20

Reverse takeover - that's the rules

[muddy_40] 15/2/2018 09:35

Croasdalelfc,

Why did the shares suspend in the first place?

[croasdalelfc] 15/2/2018 09:18

As far as I recall the medium term strategy is to get to 15000 bopd . I only have £2k invested so will invest the dividend and double up . They are looking for acquisitions , to pay a dividend and still have $55m in the bank .Cash is worth £2.50 a share

[croasdalelfc] 15/2/2018 09:06

Yes but $40m already set aside and they reckon decommissioning will come in lower. They made a loss on last years oil price but should be making at least $10 a barrel since June 2017 .They will to produce results soon for June to Dec 17 .I'm guessing a relist share price will top £2.50.

[chestnuts] 15/2/2018 08:49

Just partly through reading the prospectus and the $158 m decomissioning cost is a mouthfull