Soco Share Discussion Threads

[yasrub] 18/10/2018 12:53

There is no doubt the company are currently far more active - social media, recent interview. I welcome this activity in that they obviously believe they have something tangible to say and compared to its peer group SIA still seems low profile.

[emptyend] 18/10/2018 10:59

Hi Peter,Yes that is the way it is going. Companies will have different approaches to this but I think that (in an industry where speculation plays such a big part in investment) there is a real need to put out facts that, otherwise, investors would never get to know. When it comes to dealing with the same news in the context of the full year results, the well outcome will get much less attention (and certainly no comment of the economics).It is my belief (based on some recent exchanges and some knowledge of the way their advisers operate) that Soco have changed their approach to putting out small items of news, so keeping an eye on the website and the Twitter feed seems sensible.What will be interesting is whether the CNV sidetrack outcome merits an RNS or just a tweet.....rgds

[nigelpm] 18/10/2018 10:53

Fair points. Starting to look very good for some upside here.

[nigelpm] 18/10/2018 10:50

It's not insignificant to soco so should be RNS'ed IMHO.

[emptyend] 18/10/2018 10:50

It is a matter of materiality, Nigel. Basically this is a positive piece of "ordinary course of business" news but it isn't a needle-mover.I am 100% behind getting such info into the public domain and, if advisers deem that such news (in isolation) doesn't warrant an RNS, then Twitter at least gets it out there instead of leaving people wondering whether the well was a failure. I'd much rather there was some hard news for people to follow instead of a vacuum filled by conspiracy theorists.One striking point here is the payback period for the well costs. I hope that PV take these economics on board and raise their drilling rate in the 2019 capex budget when they set it in a month or so.

[greyingsurfer] 18/10/2018 10:47

I think they could probably argue that as one more production well it didn't need RNSing. However, it does seem a little strange they think it's worth tweeting, but not doing an RNS for. Perhaps that's the modern world? Use social media for small news that's not seen as regulatory? I don't mind that, but perhaps some guidelines need establishing? Musk might have benefited from that!

[nigelpm] 18/10/2018 10:41

Shouldn't they have put out an rns?

[greyingsurfer] 18/10/2018 10:18

From twitter:

SOCO International plc
‏
TGT- 16AP Well flow test results: choke 34/64”, gaslift 1.0 mmscfd, oil 1,202 BPD, water 7 BPD, gas 1.27 mmscfd, THP 691psi, BHP 1798psi, THT 46 degC

At this rate and an oil price of $85/bbl payback of well costs is effectively less than 4 months

[emptyend] 18/10/2018 10:13

Late payments is an issue which is being eliminated. Improving environment now.

[nigelpm] 18/10/2018 08:09

Indeed. It did make me laugh - the huge excitement of trying to link the Egyptian assets to the SQZ north sea deal which is not only completely different politically but designed to take advantage of SQZ's huge tax credit balance.

[greyingsurfer] 18/10/2018 08:08

Interesting to spot Merlon on the group of assets ripe for takeover/amalgamation in one of the slides in SDX's presentation yesterday.

[haideralifool] 18/10/2018 08:04

Whoever takes them will need a balance sheet that can withstand late payments from the Egyptians, that's what led to Circle losing their assets to SDX.

People were doing a read across from the SQZ deal and licking their lips about the possible impact on the SDX share price But I did point out that dilution had to be on the cards, while SDX is throwing off cash, it would need a stronger balance sheet to pull this off.

[nigelpm] 18/10/2018 07:50

Sdx has walked away from acquiring bp's Egyptian assets. I wonder if soco will consider.....

[nigelpm] 18/10/2018 07:22

Seen it so many times in the past as well. Stocks sitting at levels which seem ridiculous. Annoying part of it is sometimes the market is right but usually it isn't. Take comfort that if we are wrong here we weren't the only ones who got it wrong.

[lauders] 18/10/2018 02:14

nigel - Not much helps the share price when it comes to SIA! This is definitely one UNLOVED company at the moment. Even a higher oil price isn't doing much good. Need the patience of a saint that is for sure.

[nigelpm] 15/10/2018 19:45

Malcy doing a good ramping job on this now - not helping the share price though ;-)

[burtond1] 15/10/2018 09:22

https://total-market-solutions.com/2018/10/15/malcy-talks-oil-gas-part-v/Very bullish Malcy on #SOCO first company on...

[yasrub] 12/10/2018 13:22

It will be interesting whether PV are prepared to increase activity in 2019. Ed Story agreeing to the recent interview indicated that perhaps there is now light at the end of the tunnel and there is tangible activity.

[emptyend] 12/10/2018 12:56

RBC have raised their NAV estimate to 127p and have upgraded their recommendation to outperform:https://www.proactiveinvestors.co.uk/companies/news/206774/soco-international-tipped-to-rise-thanks-to-recent-deal-making-206774.htmlClearly Proactive Investors have seen the note they quote from, but yet the actual owners of the company......shareholders here....are not allowed to see the RBC note. Well....to be more accurate....some shareholders have certainly seen the note - just not us. I'm more bothered about the outcome of the sidetrack well and any production/reserves issues flowing therefrom. Given that the RBC analyst, Al Stanton, was one of those who queried the reserves impact of the sidetrack, who thinks he will have published a note without knowing what happened after the perfing 10 days earlier?

[nigelpm] 11/10/2018 18:47

Excellent summary here:

hxxps://www.stockopedia.com/content/soco-intl-jam-today-and-possibly-lots-more-tomorrow-407184/

[kenobi] 11/10/2018 09:30

The problem is once you start paying a divi, it's hard to stop because you have a shareholder base who expect income. Not to mention Ed's wife. However I would say in an enviorment where the management are major shareholders, and earning good salaries and divis are paid out, to some extent based on results, no doubt the share price over time too, Is there really any need for big performance payments for big share holders ? I'm not saying no bonuses, but I'm not sure how much ed's wife is spending, hard to imagine we really need such massive payments. I'm pretty sure Ed will be working hard anyway to get the company to a point where he can cash out his shares and retire to pay Elephant football, (and good luck to him).
EE raised the issue of renumeration at the AGM, I hope the management are listening. The most important thing is that better times are ahead. The market is skeptical, I hope SOCO prove them wrong,

K

[richalert] 11/10/2018 08:19

Yes Steve, but surely Merlon must have some statistical history on well production and performance, which can be analysed.

[steve73] 11/10/2018 07:48

..and the answer from me (and also probably Ed) would have been exactly the same.

[richalert] 11/10/2018 07:29

Thanks for your insight Steve, My question should have been, what is the average total number of barrels per well pumped before shut in?

[steve73] 11/10/2018 07:13

It's not the absolute number of barrels that's important (I've worked on some onshore fields that were steadily pumping just 2-3 bpd, or even less).

The more typical limit is when there's too much water, and the (energy) cost of lifting all that water and treating it exceeds the value of the oil that comes out with it. Some mature NS fields this limit might be around 97-98% water cut, but if rates are limited by water production, it's often better to shut in even earlier if there are "drier" wells that can be ramped up.

(Water is heavier than oil and there's no gas to help "lift" it up the well bore, so it requires more pumping energy, or supplemental gas lift)