Soco Share Discussion Threads

[nigelpm] 19/3/2018 09:32

Fine - not going to get too hung up on it - we are all here for the same purpose - except the trolls so let's stick to it.

[extrader] 19/3/2018 09:30

Hi nigelpm,

I must be misremembering then - I'm sure you've been making the case for a tie-up (Soco/Ophir), even quoting the Salamander overlap, for some time.

I recognise that the last post - suggesting takeout of BLVN etc - was defo 'tongue in cheek'.

ATB

[dunderheed] 19/3/2018 08:11

Don't worry Nige has probably just got his spread sheets confused again.
I find it is one rule for Nige and one rule for everyone else.
He asks me clarification questions around my identity then ignores any I asked of him.
It appears that a lot of avatars who post on sia suffer from the same narcissistic type disorders?
All very strange but there you go!

[extrader] 19/3/2018 07:24

Hi nigelpm,

I was making ironic reference to your 'jocular' ramp of one possible tie-up when you yourself regularly refer to another.

Another tie-up that, for the avoidance of doubt, I thought had more merit.

ATB

[nigelpm] 18/3/2018 19:14

No idea - not sure what point you are making to be honest.

[extrader] 18/3/2018 13:48

Hi nigelpm,

This isn't a pop : what is the difference between somebody pointing out the commercial logic of a tie-up between Kuwait Energy and Soco and somebody pointing out the commercial logic of a tie-up between Ophir and Soco > ;->

The common factor, of course, is that Soco has cash and the counterparts don't.

FWLIW, I think a tie-up with LNG prospect is more interesting than tie-up with oilie...

ATB

[nigelpm] 18/3/2018 08:14

Think it was posted on here at the time. I very tongue in cheek asked Gary if he could 'ramp' soco again sometime:)

[lauders] 18/3/2018 00:53

FWIW - I received a free share tip in my inbox about SIA from "Five Free Share Tips" ( ) on 15th February which I have just noticed! The author/"tipster" is Gary Newman. Interesting to read it now the news on Kuwait Energy is known:

When SOCO International (SIA) announced a possible merger the market seemed to take the news well, but ever since then the share price has been on the slide and it looks like this could be a good buying opportunity. The announcement in early January that it was considering a possible merger with privately owned Kuwait Energy – which would constitute a reverse takeover - caused the share price to rise to around 130p, but since then it has dropped dramatically and is now trading at pretty much a 12 month low at just over 90p to buy.

Any deal was still very much at the preliminary stage and the announcement was triggered by press speculation, and as yet no details have emerged of exactly what terms a merger would entail. But for it to go ahead it would have to be in the best interests of shareholders. Kuwait Energy certainly looks interesting though, as at the end of 2016 its 2P reserves stood at 810mmboe and it had net daily production of nearly 27,000boepd from its producing assets in Iraq, Egypt, Yemen and Oman. It is though also carrying quite a lot of debt on its balance sheet, and at the end of September 2017 it had a convertible loan of $155 million as a current liability, as well as longer term borrowings of $246 million. It is at least now profitable though, having made nearly $12 million over the nine months prior to that date, and having recorded losses previously. The size of the reserves, plus the additional potential from exploration and further appraisal, does suggest large future upside potential though, and the company has just agreed a $100 million farm out of 15% of its Block 9 in Iraq to Dragon Oil, reducing its interest to 45% overall. There is little point going into great detail on all of its assets though at this point, until there is further news as to whether a deal is even being seriously considered.

Potentially though it would seem to be a good fit with SOCO, which will be looking to boost its production and is currently debt-free and with cash in the bank – at the end of 2017 cash stood at over $137 million. Production averaged just under 8,300boepd during 2017 from its assets in Vietnam, but isn’t forecast to be much higher during the coming year – although that will depend on further drilling at these producing fields (Te Giac Trang and Ca Ngu Vang) and is enough for the company to continue to perform well in a climate of higher energy prices. It does also have assets in the Congo and Angola but these are still at the exploration and appraisal stage, and although they have plenty of potential any production will be further down the line, especially in light of the recent decision that the Congo is no longer a core priority for the company.

The company is doing well from its existing producing assets, with cash costs of under $14/barrel and having achieved an average sale price of $56/barrel last year, so if the oil price stays at current levels this year should be even better. It has also been paying a dividend – 7p in total for 2016 – and the level for 2017 will be announced in March when it publishes its preliminary results. Any similar sized dividend for 2017 would give a very nice yield given the current share price. This is the type of company that I would be prepared to take a chance on at the current share price, as even without any merger it looks to offer good value and plenty of future upside. Should a merger go ahead and be on good terms – I doubt that it will be accepted otherwise given that SOCO has the cash and listing, which Kuwait Energy needs – then I would expect things to work out well for holders at the time.

[dunderheed] 16/3/2018 16:39

20774 blimey how astute, correct me if I'm wrong but that's called a market isn't it?

[nigelpm] 16/3/2018 16:39

ha ha - thought you might flag that one. I was watching - huge buy order at 105 for c.1.7m but also plenty of sellers happy to oblige.

[emptyend] 16/3/2018 16:37

......interesting.......

[nigelpm] 16/3/2018 10:08

As soon as the buying dries up the small order book trades take it back down - same pattern over the past six months or so.

[emptyend] 15/3/2018 19:56

Since around 70-80mn or more shares will have traded since the FIL announcement last May, they would have had a lot of opportunity to sell since then - indeed perhaps the supply tap had encouraged the drift? Who knows? No doubt we'll get the list of major holders in the AR.

[minesapint] 15/3/2018 19:43

Yep and still no shortage of stock.
At least it doesn't seem to be coming from the short side of the market. My guess is that it may still be FIL who announced on 4 May 2017 that they had gone below 5% but were then holding circa 17m shares.
Anyone asked to see the Register of Members?

[emptyend] 15/3/2018 16:08

....biggest volume day this year, other than the day of the "Kuwait merger" RNS.....

[dunderheed] 15/3/2018 15:10

Oh bloody hell I do apologise rich. My reply was (honestly) tongue in cheek as Well!! 😁

[stepone68] 15/3/2018 14:51

D, don't know if you noticed, but there was a smiley at the end of rich's post :-)

StepOne

[dunderheed] 15/3/2018 12:45

29767, ah of course good strategy he's got it so right (obviously based upon his years of 'experience' working on e&p and being the only person truly able to really understand the sia 'model') over the last 5 years! Well done you! 😁

[richalert] 15/3/2018 12:19

For god's sake give up you lot. About the only person Ive not filtered now is EE.:-)

[pumph] 15/3/2018 10:08

You have to laugh at the web address for that article - 'new economics' my a*se.

[deld] 15/3/2018 04:16

It’s time to own the National Grid - Calum McGregor hxxps://www.opendemocracy.net/neweconomics/time-national-grid/

A little light reading by a most confused author.

Starts with.......

“The failure of privatisation is more apparent in the energy sector than perhaps any other. A small group of companies are profiteering from an essential public service, failing to provide sufficient social goods or play a fair role in the meeting the most pressing challenge of our times: climate change. For the most part, the ire has focussed on the biggest energy supply companies – collectively known as ‘the big six’ – and rightly so.”

And......

“It’s time we brought the whole grid network into public ownership.”

But now the vacuous contradiction....

“The grid was designed for an age of coal, oil and nuclear. It is centralised, monolithic and privatised. The future of energy is decentralised, flexible and diverse, with community generation and local energy playing as vital a role as large offshore wind or tidal projects. “

Calum been spending too much time sampling the amber liquid.

[turbocharge] 14/3/2018 14:31

failed test

[nigelpm] 14/3/2018 10:05

If you are responding to me Isaac you are wasting your time - I filtered you.