Sovereign Oilfield Share Discussion Threads

[xumii] 29/3/2006 08:16

awesome prospects in this sector

[r33skyline] 29/3/2006 07:52

Acquisition / Placing

RNS Number:5603A
Sovereign Oilfield Group plc
29 March 2006



SOVEREIGN OILFIELD GROUP Plc


Acquisition of MaxWell Downhole Technology Limited
Placing of 1,434,000 ordinary shares at 220 pence per ordinary share


Sovereign Oilfield Group Plc ("Sovereign" or "the Company"), the Aberdeen based
diversified oilfield services group, announces the acquisition of MaxWell
Downhole Technology Limited ("MaxWell"), a company that provides directional MWD
equipment for the oilfield drilling industry, for a total consideration of up to
#3.2 million. Sovereign also proposes to raise approximately #3.15 million by
way of a Placing by Charles Stanley Securities of 1,434,000 new Ordinary Shares
("Placing Shares") at a price of 220 pence per Ordinary Share (the "Placing").


Information on Maxwell


MaxWell was founded in 2000 by Syd Fraser and William Brown-Kerr and is based in
Aberdeen. MaxWell has developed a series of high temperature Measurement While
Drilling ("MWD") and Logging While Drilling ("LWD") tools, which use mud pulse
and electromagnetic transmission, enabling regular readings to be taken during
the drilling process, thereby keeping the driller updated. In addition,
MaxWell's toolset is of a modular design enabling modules to be interchanged
between all product lines.


MaxWell has designed, developed and manufactured a series of tools including:


* Directional survey tools;
* Other associated measurement tools providing:

- Vibration measurement;
- Gamma ray measurement; and
- Positive pulse telemetry and electromagnetic telemetry.


Customers include Smith International in the US and Phoenix Technology of
Canada.


For the 12 months ended 31 December 2005, MaxWell had turnover of #0.53 million
and profit before taxation of #0.1 million. Net liabilities at 31 December 2005
were #0.62 million.


The initial consideration consists of #2.32 million satisfied by a cash payment
of #1.0 million and 489,030 ordinary shares at a price of 240 pence per ordinary
share at completion ("Consideration Shares") to a value of approximately #1.2
million. Further consideration of up to #1.0 million will become payable based
on the audited turnover for Maxwell for the year ended 31 March 2007 exceeding
#1.5 million. The further consideration will be satisfied by the issue of new
ordinary shares at the average mid market price of an ordinary share for the 45
days after 31 March 2007.


The Board believes that the acquisition, apart from adding a new profitable
business stream, will enable Sovereign to accelerate the development of its
I-Sub product through MaxWell's expertise in the design and development of high
temperature electronics, tool management software, electromagnetic and mod pulse
telemetry electronics expertise. In addition the Directors believe that
synergies exist with Diamant Drilling Services and Serco whereby Serco has the
manufacturing capability to produce the steel components of the Maxwell tools
in-house.


The Placing


The Company is proposing to raise #3.15 million by way of a placing of 1,434,000
new Ordinary Shares at 220 pence per Ordinary Share. Charles Stanley Securities,
as agent for the Company, has conditionally agreed to use its reasonable
endeavours to procure subscribers for the Placing Shares. The Placing Shares
will represent 10.0 per cent. of the existing issued share capital of the
Company. The Placing Price of 220 pence per share represents a 8.33 per cent.
discount to the middle market closing price of 240 pence per Ordinary Share on
28 March 2006.


Application has been made to the London Stock Exchange for the Placing Shares
and the Consideration Shares to be admitted to trading on AIM. It is expected
that Admission will become effective and that trading will commence on 30 March
2006. The Placing Shares and the Consideration Shares will, when issued and
fully paid, rank pari passu in all respects with the Company's existing Ordinary
Shares, including the right to receive any dividend or other distribution
thereafter declared, made or paid.



Graham Burgess, Chief Executive of Sovereign Oilfield Group plc stated:


"MaxWell is for us an exciting acquisition which complements our existing
businesses and further diversifies our product range which will allow us to
increase our sales to existing customers as well as introducing new ones to the
Group. This is a further step towards our aim of having an integrated company
offering a broad range of oilfield services.


"In addition, the acquisition, which is earnings enhancing, will enable us to
accelerate the development of Diamant's new drilling technology which itself
offers significant growth potential."



29th March 2006

ENQUIRIES:

[bobic] 26/3/2006 19:49

johnrxx99 want is it got to do with u.

rudal mite baned me johnrxx99

[johnrxx99] 25/3/2006 13:55

bobic - 25 Mar'06 - 13:43 - 31 of 33 (Filtered)
bobic - 25 Mar'06 - 13:51 - 32 of 33 (Filtered)
bobic - 25 Mar'06 - 13:52 - 33 of 33 (Filtered)


I bet his input used a brain cell.

[bobic] 25/3/2006 13:52

THE CAR IS FOR SELE

[bobic] 25/3/2006 13:43

hello rudal i i 'm here now.

u sad ore u are not letting me go on bsko

[bobic] 25/3/2006 13:38

comone sack me

[bobic] 25/3/2006 13:38

why have u shone that rubish car rudal

[johnrxx99] 23/3/2006 09:12

Back to SOGP, some news I've found:

[johnrxx99] 22/3/2006 08:23

Gosh, very tastey!

[Abuse team] 21/3/2006 18:02

Post removed by ADVFN

[johnrxx99] 21/3/2006 17:56

By the way R33, how does it go, speaking as a supra owner?

[johnrxx99] 21/3/2006 17:45

Need a bit more activity here. This is what TMI thought in the November issue:-

With the oil & gas sector still providing fertile ground for investors, new issue Sovereign Oilfield, a diversified oilfield services business, has clearly picked a good time to float. The company was introduced to AIM by broker Charles Stanley at 140p a share in a placing which raised £4.1m net new money and have since shot up to a 27% premium. Market cap. at today's price is £26m.

The most impressive thing about Sovereign is that although only formed two years ago, it has hit the ground running very hard. In that time, management have made four acquisitions, which are forecast to make sales of £29m and a pretax profit of £1.3m in the current year ending 31 March, before rising to nearly £37m and £2m respectively in 2007.

The fact that Sovereign paid a grand total of just over £2m for these businesses shows it certainly has an eye for a good deal. The first purchase was Aberdeen-based Prodrill Engineering (57% of forecast sales), which is the second largest provider of senior engineering consultants to the leading lights in the oil & gas industry including BP, ExxonMobil and Total. Prodrill has a database of 18,000 consultants, giving it a market share of 20% and these provide expertise in areas such as drilling engineering and management, production and subsurface engineering, project management and health & safety. With the backdrop of high energy prices, a record number of oil rigs and oil refineries running at full pelt, market conditions could hardly be better. It was not surprising therefore that under Sovereign's ownership, the number of consultants placed has doubled from 56 to 116, with annualised revenue increasing from £7.2m to £13.2m. As nearly two thirds of its placements are on annual contracts, which are often renewed, investors should have some confidence that this growth is sustainable.

Aside from the acquisition of a smaller version of Prodrill, Sovereign has made two other significant deals. Larger of the two is Belgium-based Diamant Drilling Services (25% forecast sales), which provides fixed cutter drill bit technology and has quickly built a reputation for stable and durable bits which consistently outperform its rivals. Although its annual sales of around £7m place it among the small fry in this niche, its leading technology, which includes a revolutionary new down-hole drilling data gathering tool, has excited several oil majors and its order book stands at record levels. That just leaves Caledonian Petroleum Services (18% sales), an Aberdeen-based fabrication services business, which makes specialist parts for oil wells, drilling platforms and rigs.

Based on pre-float earnings forecasts of 7.7p (13% tax) for this year and 11.2p (20% tax) for 2007, Sovereign trades on a prospective PE of 23.1 falling to 15.9. Not cheap but still worth watching.

[r33skyline] 05/2/2006 09:34

Taken from the VOG thread,



someuwin - 4 Feb'06 - 19:11 - 7436 of 7444


VOG in Shares magazine this week:

Adds VOG to their portfolio at 217.5p...

... The Victoria story has far from run its course and it is an exciting one, so we are going to switch it into our portfolio watchlist at the expense of Sovereign Oilfield (SOG).SOG hasn't done badly at all, turning a decent 22% gain in three months, but it doesn't capture the imagination quite like VOG.

(read the full article in your local WH Smiths)

[azalea] 27/1/2006 12:35

That's a wacking great spread; what are the MM frightened of?.

[johnrxx99] 22/12/2005 13:39

Starting to take off now.

[johnrxx99] 30/11/2005 09:32

Amiga - err, would you like to rephrase that please?

[Abuse team] 30/11/2005 02:53

Post removed by ADVFN

[r33skyline] 07/11/2005 08:00

New facilities

RNS Number:6979T
Sovereign Oilfield Group plc
07 November 2005



SOVEREIGN OILFIELD GROUP Plc

New facilities leased

Sovereign Oilfield Group Plc, the Aberdeen based diversified oilfield services
group, announces that its fabrication subsidiary Caledonian Petroleum Services
Ltd has now leased much larger engineering and fabrication facilities in
Aberdeen and expects to relocate to them in mid December 2005.

The new facilities, located at Dyce near Aberdeen Airport and near the current
facilities, consists of 40,500 sq.ft. of workshop and offices and 17000 sq.ft of
yard compared to the current 18000 sq. ft. and 10,000 sq. ft. respectively. This
will allow the already growing business to expand and diversify its operations
and will also facilitate the building of larger structures.

Graham Burgess, Chief Executive of Sovereign Oilfield Group plc commented:

"The move to larger premises, promised at the time of flotation, will allow
CPS's growth to continue and it will also allow it to expand its product range
by removing one of the main constraints, the size of the building. CPS continues
to grow strongly and to win new orders.

"All the operating companies are performing in line with expectations. As a
result we continue to view the future with optimism."