Soco Share Discussion Threads

[nigelpm] 05/3/2018 10:27

Dunderheed,

I don't share your anger I must be honest. Clearly, they've tried to do a deal with Kuwait but couldn't agree on price - there's other stuff going on in the background meanwhile their assets are churning out cash - save additional capex required.

As ever if you have lost faith it is always better to sell up and move on - the market provides thousands of opportunities.

[emptyend] 05/3/2018 10:26

...nope. I'm merely pointing out that - after a full 12 months under the new management team during which zero useful IR effort has been possible, due to lack of clarity over strategic direction - things have now changed. Nobody would make such an appointment if there wasn't a reasonable near-term prospect of them having some material work to do. Heaven knows there is a need to get the story out there, once they have finished writing it!

Of course the usual suspects will suggest this of no consequence....as at least one already has! Most of these people have no idea at all about running E&P companies - they just sit in their bedrooms whingeing away because the share price hasn't done x, y or z........

.....the reason the shares have drifted down is that there has been no news for many months (other than some pre-deal deck-clearing). That is now, very clearly, changing.

[dunderheed] 05/3/2018 09:45

Yes and how the f is that going to stop the external share price performance of this company lol?!
What an amazing development!! I'm assuming the share price hasn't doubled because the market is still either working out the impacts of this or hasn't noticed this subtle 'message'.
Ffs talk about grasping at straws lol!

[nigelpm] 05/3/2018 09:04

Ah yes. I spotted that but didn't think anything of it after a quick look on LinkedIn.

[greyingsurfer] 05/3/2018 08:52

Too early for me to spot the interesting development....

I think he's talking about this, Nigel:

Sharan Dhami, Group Investor Relations Manager

I only spotted it after reading EE's 2nd post. They appear to have appointed an internal IR person. It's not a name or title that's appeared before.

Peter

[nigelpm] 05/3/2018 07:44

Can't say I'm too upset about it - political risk in those regions would have required a severely discounted price. I suspect a merger of equals was far too much for Kuwait to give and Soco to risk given the cash position etc..

Too early for me to spot the interesting development....

[emptyend] 05/3/2018 07:12

.....ps....the announcement also contains another interesting development......

[emptyend] 05/3/2018 07:10

No surprise....https://www.investegate.co.uk/soco-international--sia-/rns/statement-on-discussions-with-kuwait-energy-plc/201803050700076460G/....I said all along that Kuwait Energy wasn't likely to be the favoured deal. I suspect we won't have very long to wait to see which is.......:-)

[nigelpm] 02/3/2018 18:52

Ha - the buyer is £4k down already - not much fun this one when sentiment is against it.

As PeterGray (a good poster and fella I respect - albeit we completely disagree on Brexit) put it "this is one frustrating share" - perfect words!

[buywell3] 02/3/2018 16:49

OIL coming off the BOIL

Who woulda thought it

[emptyend] 02/3/2018 00:00

Unlikely to be the "endgame" under the new strategy (and with share prices here) but it may well be the endgame for the company as we've known it. I expect a genuine transformation with the "second leg" (which they tried to develop organically in Africa) being a development project/company with near-term production. That might be Kuwait....but perhaps more likely not?

[chessman2] 01/3/2018 19:16

Quite surpised to see a 4p jump on a fairly moderate turnover. I wonder if some investors know something!!??

With a strong buyer yesterday it could possibly mean we really are approaching the endgame.

[just joined whetstone] 01/3/2018 18:23

sorry wrong chat

[just joined whetstone] 01/3/2018 18:22

i can only see Asiamet fly again tomorrow 25% in 2 days soon 15p tomorrow then wow 30p

[nigelpm] 01/3/2018 14:29

Yeah, must be plenty out there sat on cash who will struggle to see many better opportunities out there.

[emptyend] 01/3/2018 13:16

Certainly against the overall (risk off) trend.......lets hope there is substance to follow. At present, sentiment and worry are dominating markets - quite unnecessarily, IMO, for companies with no EU exposure!

[nigelpm] 01/3/2018 11:42

Was a strong buyer on the order book yesterday at 95p and had their 100k matched. Might be signs of a turnaround here.

[emptyend] 28/2/2018 10:59

Re asset values, there are two points to make:1) Producing assets are always subject to testing their remaining carrying value.....so as long as the carrying value is less than the NPV of production, there is no impairment to make. It makes no difference whether the NPV exceeds the carrying value by 20% or by 800%......it is still in the books at depreciated historic cost.2) Non-producing assets are subject to a number of tests, including whether work is planned for the licences and whether there is sufficient information to determine a value for the assets. Oftentimes the answer to this second question is no, because they are still being appraised. In the case of Marine XI there is no work planned, sale is not imminent or being actively chased at present, so an impairment is always probable. If they hadn't completely written it down, I suspect it would have been difficult and/or counterproductive to pick another figure....so they just went for the prudent worst case. Doesn't mean they won't get a big chunk of the $200mn back in due course though...

[salvorhardin] 28/2/2018 09:58

Hi tradingplaces85.

Accounting rules require that assets are valued in a particular manner. The problem is that in some cases the value placed on assets in the balance sheet bears no relation to the market value of these assets. This is one of those situations.

For oil companies the intangible assets are meant to represent the value of oil in the ground; the problem is that the value given to these assets is the amount spent on discovering them which is often wildly different from that which they would fetch in a market sale. Then there's the Soco-specific problem that a couple of years ago the accounting rules required that the oil reserves be downgraded - the "missing" oil is still there it's just that the accounts don't really reflect them.

As to eggbaconandbubble's comments, you need to be aware that a lot of us on here made a ton of money on Soco during the period from 2000 to 2007 (some made more than 100 times their original investment). Some of us have sold most or all of our holdings and we're fairly relaxed about what happens now because we've already made our money.

The "end game" in the thread title refers to the situation in 2007-08 when bidders were circling the company. Then came the financial crisis and the oil price crashed, which is the main reason why Soco's share price is down so much since then.

[ed 123] 21/2/2018 22:07

So, it must be Half Term.

Before the days of the internet it would be paper rounds or playing out.

[nigelpm] 21/2/2018 13:14

Indeed it is. However, at some point a stopped clock tells the right time ;-)

[lauders] 21/2/2018 12:15

Yup, a lot of "ifs", "whens", "maybes" still. Par the norm for SIA unfortunately!