Rockrose Energy Share Discussion Threads

[jungmana] 19/3/2020 11:39

The cash pile will be significantly reduced over time if oil price stays this low for this year.What's important is the price of oil and that's dependant on the economic outlook

[divmad] 19/3/2020 11:22

I would put it another way. Most smaller N Sea oilies until very recently had a high internal value assessment of their own worth, and were not distressed sellers. Will that now change as rre waits patiently to pick off one or more basket cases? Or will AA still end up with an amicable, negotiated transaction?

[fardels bear] 19/3/2020 11:17

I wish you Best of British.

[danawinner] 19/3/2020 11:02

AA is currently facing a real dilemma. Should he use the cash pile to buy out the 70% of the shares that he doesn't own or should he use the current depressed market to take over another weakened oil co?I suspect that he will do the latter and once the cash resources have built up again he will then do a management buyout. Either way it can only be good for the share price.We don't have to wait long to find out what the short-term strategy is, I for one am looking forward to an extremely good week next week.

[d1nga] 19/3/2020 11:02

Fuji
Problem is big oil is running as fast as they can from the n sea.
So who has the cash to buy?
Not any of the minnows!

[russiaguru] 19/3/2020 11:01

maybe marathon will buy us to reverse last years transaction and this time they benefit from our cash pile.

:)

[charlesjames1] 19/3/2020 10:57

Yep. That is why I'm buying. One might expect AA to take the lot for £20. Easy money. Get it for cash plus he then has the assets. I'd certainly be thinking it.

[fuji99] 19/3/2020 10:55

RRE has 4 times its capitalisation in cash. Any savvy oiler will take it at £20 per share, which is equivalent to its cash pile, thus taken over for peanuts !

[anley] 19/3/2020 10:10

FUJI99.........sit on the beach outside Singapore and count the oil boats......then add the other areas of the world and all recent tanker deals and the world is awash.

Nevertheless I agree that once the oil market gains its posture again then 30 to 40$ will be sustainable so long as world growth gets going again.

As for RRE @ £5............looks OK but as I said in a recent post wait for more info from the management.

[russiaguru] 19/3/2020 08:59

as long as they cut capex down to something like $50m then we are good to go otherwise it will eat away at their cash pile whilst also bringing online non-profitable assets.

Fingers crossed

[simplemilltownboy] 19/3/2020 08:58

Thanks for update, surprising however I assume some contracts have been signed and agreements made. Given the price of Brent and the fact that there will be a plethora of distressed assets coming to market soon, it will be cheaper to buy rather than develop IMO. I have reduced my holding here, however very tempted to buy before the results. GLA

[onceatrader] 19/3/2020 08:43

Repsol Sinopec pressing ahead with Tain development in #NorthSea partnered with RockRose Energy #RRE who holds the remainder. Fellow North Sea operator i3 Energy #I3E hopes to collaborate unitising its neighbouring Serenity discovery.

[simplemilltownboy] 19/3/2020 08:40

A blue day, Hopefully it will last? I think they will announce a reduction in capex probably relating to Arran, can see Shell slowing down the whole project. Think the infill wells might also take a hit and deferment of Tain. Guess we'll find out on Monday

[fuji99] 19/3/2020 08:32

Once this virus is overcome and China, the locomotive of the world, on the growth track, there will be a stampede to buy oil to sustain huge demand. In fact it is during these type of recoveries that many industrials go bankrupt as they cannot sustain the sudden high demand. The market will anticipate this situation well before it happens, meaning this is one opportunity of a lifetime to position oneself in here. A few weeks ago RRE was trading at £17 - £18 and what we see now is like if the share price was "adjusted for the worst" that can happen. Happy to hold a cash rich company.

[dhb368] 19/3/2020 08:28

5chipper :)

[5chipper] 19/3/2020 08:26

Fairly new to stocks and didn't realise prices could go up

[74tom] 19/3/2020 07:50

Talk of potential negative oil prices ahead, yet some on this BB claim it’s business as usual! Very interested to see the results next week, be good to get confirmation on % hedged, operating costs etc to be able to calculate the potential impact on the cash balance of a 6-12 month oil shock.

[letmepass] 18/3/2020 23:52

If nobody wants oil then how can they get higher prices

[mikro1] 18/3/2020 23:39

Interesting. One could argue the reverse ie only senators in big shale producing states would push for higher oil prices. Most states and indeed the President would want lower oil prices for the benefit of most of their citizens who are oil consumers. I’m sure OPEC and Russia will sooner or later cut production but it will be due to their own budgetary problems not external pressure

[theprovosts] 18/3/2020 23:17

Lots of pressure on Saudis to cut the rhetoric. Senators sending letters etc. Saudi's who are the current chair of the g20 have announced an emergency meeting to “put forward a co-ordinated set of policies to protect people and safeguard the global economy”. Bets are on they will stop playing games. There credibility has already been shot to pieces with their ill-timed dummy throwing.

[mikro1] 18/3/2020 22:56

There is a very good reason to reduce CAPEX. Let’s say it costs $50 million CAPEX to increase production by 5,000 bopd. In today’s market you could probably buy a company producing 10,000 bopd for the same money.

[jon123] 18/3/2020 22:23

i can't see any reduction in the dividend or capex its business as usual the share price will sort itself out over time