Ruspetro Share Discussion Threads

[darcon] 06/2/2013 14:00

ntbb,

The operations update will be key to getting a handle on the company's operations, cashflows and capex.

The company in their 25/01 RNS said that they plan to drill 29 wells in 2013 and 48 wells in 2014. What is the capex cost per well? Approximately $2million according to the NY times article of 14 November 2012 ( If we take that number in good faith and assume the company plans only to drill wells (and not require significant capex for other facilities) then drilling capex required for 2013 may be approximately 58 million or 14.5m per quarter and 96 million or 24m per quarter in 2014. So perhaps not the $30m that TW suggests. There may be other ways in which the company may save money too.

The reserves update is important in view of the company's changed strategy to focus on condensate production and and revised drilling plans.

If people like TW are valuing purely on present cash-flows and on the basis that the company cannot do anything to raise further cash then that creates a potential valuation anomaly for those who believe in the potential of the underlying assets, new technology and/or potential to strike a deal with other parties after the company completes its heat exhange facility, which may only be a matter of a few days or weeks.

Or we might see a rights issue to all shareholders, which in my view would be a positive if it addresses the balance sheet issues properly.

[2bung] 06/2/2013 13:45

Ruspetro plc General Meeting, 18(th) February 2013

London, 6 February:

As announced at 7.00am today the conversion of the Limolines Transport Limited shareholder loan will not proceed as one of the conditions of the conversion, the successful completion of the Senior Secured Notes offering has not been fulfilled.

However as required by its articles of association, the Company will proceed to hold the general meeting of shareholders convened for 10.30 am on 18 February 2013, but intends to adjourn such meeting indefinitely and not to put the relevant resolutions to shareholders. All shareholders and directors having provided irrevocable undertakings in respect of the general meeting (as announced on 25 January) will be released from such undertakings.

[rcturner2] 06/2/2013 13:18

It doesn't make you think twice then?

You haven't seen this happen time and again on these O&G stocks?

[loverat] 06/2/2013 13:10

So, that means its probably a buy then.

[rcturner2] 06/2/2013 12:47

"Today's announcement is a hammer blow. Ruspetro has not said why "it" has decided to postpone the offer. I would love to know because by my sums the cash that it has on its balance sheet will be gone within a few months. I would suggest that this company needs a large scale fund raising to survive let along grow and that is going to be at a large discount to the current share price. At 50.5p this company is valued at £171 million. But it has net debt of at least £175 million and rising – the EV is thus circa £350 million. I noted before that if 2013 targets are met this company will generate cashflows ( after PLC costs) but before interest and capex of c£20 million. Given the dire historic track record, the issues over delivery and the potential need for additional funding that looks a very full multiple indeed.

But that is not the issue now. This is not just a case of saying that the shares are grossly overvalued ( which they are) on the basis of cashflow multiples. This is now a situation where the very future of the company is in doubt unless it can recapitalise urgently. As such, in the absence, of any further news the shares are a sell. Price target? It is hard to say but this company is now effectively owned by the banks and Limolines and as such it could end up as a penny stock or worse."

[ntbb] 06/2/2013 12:40

theres somthing bigger going on at the background, just why would the company release results and reserves?


"The Company will release an operational update on or before 18 March 2013 and will release its 2012 preliminary results and DeGolyer and MacNaughton's 31 December 2012 reserves' audit on 18 March 2013"

[zooshare] 06/2/2013 12:27

dohnot...my thinking. seems confident that 18 march will bring positive results. here is hoping. hanging to a much smaller chunk now.

[dohnot] 06/2/2013 11:47

this aint finishing blue - unless the heat exchanger is finished and the bod think with a higher share price a better funding deal can be achieved ?

[thevoid] 06/2/2013 11:29

A RTO from Zoltav would be out of the question, of course.

[ntbb] 06/2/2013 11:07

there must of been a bloody good reason for them to postponed

[ntbb] 06/2/2013 11:05

it would be funny if this ends blue, lol

[2bung] 06/2/2013 10:52

didn't have enough cash to add, in fact got a margin call on the back of the fall

[meijiman] 06/2/2013 10:42

As I said once before the Chairman of this company has a serious track record and a reputation to protect. He is one reason I invested here. clearly its not been a smooth ride to date. I'm inclined to hang on.

[rcturner2] 06/2/2013 10:10

There is nothing wrong with trading a stock, but this is a very risky long term hold.

[loverat] 06/2/2013 09:55

Good folks can laugh. One thing to remember the market always presents many opportunities. Miss them one day, catch them the next. When you see falls like this morning you just have to trade and ignore the doomsters. They themselves are too wrapped up in the negatives than thinking of trading.

[markycrispy] 06/2/2013 09:42

I was too busy being panic stricken to buy some though !!!!!!

[lmfao] 06/2/2013 09:34

marky - exactly

[markycrispy] 06/2/2013 09:33

Wish I had been brave enough to buy in the 20's - A good rule of investing is to buy when everyone is panic stricken !

[salpara111] 06/2/2013 09:25

In its bid to get new listings I feel that the LSE has allowed some very questionable companies to list over the last 5 years and most of them are resource stocks with very opaque ownership/governance structures.
This one is one of the worst in that respect and that is why I have always sat on the side lines.