Sovereign Oilfield Share Discussion Threads

[robizm] 20/10/2009 12:45

You wont if it drops quickly. I have no trouble buying in voloume, you should change your broker.

[quraishim] 20/10/2009 12:43

well managed to get 15k...promising even at 14p....

[ayesha4] 20/10/2009 12:42

Was recommended these a few weeks ago by someone working in the ME in the oil industry, I ignored him completely, could have bagged already

[ayesha4] 20/10/2009 12:35

wish I'd got more than 25k now, as cannot buy more than 5k

[jotoha2] 20/10/2009 12:30

Over 50% of shares held by 2 Directors and these have been pledged against a loan, so unable to trade...there is no overhang here.

[ayesha4] 20/10/2009 12:25

1.Must be big news

OR

2. Overhang cleared

OR

3. Big buyer.


seems any which way, it should go up as it hasn't taken part in the general market rally. In for 25k, although it hasnt shown.

[zool21] 20/10/2009 12:23

These appear to be flying but do any of you guys see any buys appearing at these prices

[ayesha4] 20/10/2009 12:22

whilst i am dithering, this is shooting up

something must be up...apart from the sp!

caught in 2 minds whether to chase it.... will probably go for 25k

[jotoha2] 20/10/2009 12:17

Did they really float @ £1.75 , that is some fall from grace.

[ayesha4] 20/10/2009 12:10

They expect to be in a decent position this year, so I suppose with that tiddly market cap, a decent contract may transform their share price

[jotoha2] 20/10/2009 12:07

Only 18 million shares , so it is correct, lots of debt , but is being paid down with asset disposals, the fab business is profitable so the measures to restructure should alter the companies outlook, they are operating in a good market place .........oil industry support.

[ayesha4] 20/10/2009 12:07

seems really cheap, so could the rumours be true? Straight to top of the leaderboard.

will check it out in detail later.

[pbracken] 20/10/2009 12:05

Market cap is c£1.75m.

[ayesha4] 20/10/2009 12:03

Can someone confirm the market cap?

[ayesha4] 20/10/2009 11:58

Rumours of a big contract win in the ME.

Look like the Kuwaiti board appointment has done the trick.

Is the market cap right?

Looks cheap but I think I'll wait until there is confirmation of news.

[jotoha2] 20/10/2009 11:48

£80 million turnover , debt taken care of and a market cap of £1.5million ....whats going down here.

[slumdoga] 30/9/2009 16:27

If there is anyone in here still holding then get out!!! Before the come for you........... this is a dog with fleas!

[bushtuckaman] 07/9/2009 21:50

Lol. Yes, will the directors be on job seekers allowance or drinking Red Red Wine in Kingston Town next year?

A most interesting company you have highlighted here pb. For the reasons you have mentioned in post 119 the rewards could be substantial, should they over come this hurdle and the oil price work in their favour. Obviously there are Many Rivers to Cross

Not a sector I have any knowlege of to be honest as I tend to stick to mining companies but i may be tempted to take a small flyer here at some point. Certainly Food for Thought.
;-)

[pbracken] 07/9/2009 17:41

Very fair point bushtuckaman - one which I raised with the business just today. I got the answer I suspected. That it has been in breach of covenants before (without triggering a pulling of the plug), that the accountants required the (technical) warning, and that SOGP reckons it might not miss the EBITDA threshold anyway - it will know better when it reports at the half year in November.

Meanwhile, it points to this:

"The feedback from our customer base is that we can expect to see larger capex
driven projects being approved October to December 2009. We can substantiate
this information based on the large volume of live enquiries our business units have responded to and are consistently updating at our customers request. With this knowledge we are confident that we will achieve covenants in subsequent periods.

The Company is in dialogue with the Lenders regarding the projected covenant
breach at December 2009 and what actions they will take at that time, and whilst these discussions have not yet concluded the Directors are confident of achieving a positive outcome."

The question is, will it? Herein lies the risk/reward connundrum. Because if it does (or it sells the debt to a third party at a big discount) it will fly. Not for anyone with a UB40. (!)

[bushtuckaman] 07/9/2009 16:48

pb, I've been watching this one since you mentioned it on the CBM/WTN thread. Pretty ugly figures as you suggested but I didnt like this bit from todays RNS

'Although the Group has successfully achieved its covenants in the first quarter, there is a likelihood of breaching the 31 December 2009 EBITDA covenant. The failure of covenant tests renders the entire facilities repayable on demand at the option of the Lenders.'

Can't imagine the lender would call it in mind you.

High risk, high reward.
Still watching ;-)

[pbracken] 12/8/2009 08:10

The FY results (to March 09) are due end of the month/early September and will not be pretty, to say the least. It's what SOGP says about prospects since the debt was restructured and reduced that is going matter. Burgess is confident that with oil stabilising well above $50 and the cost of rigs massively down, SOGP will benefit from a growing demand for its products. The Fabrication Division is (always was) a decent business, and now freed of supporting the loss-making DDS and crippling debt and interest rates, it should be able to show it.

Next year's EBITDA should be around £6m (maybe more). SOGP's EV (debt plus mkt cap) is around £28m. Assuming interest charges of £2.5-3m (perhaps less) that provides an operating profit of c£3m. Given that SOGP nearly sank, some may reason it is fairly valued at 10p a share - it has yet to show it is out of the woods.

But for me, what makes SOGP attractive as a speculative BUY is that for the EV (assuming stable debt levels) to grow by a mere 20% to £34m, the share price has to quadrupple. An EV of £50m would equate to a share price of 130p. Seems outlandishly unlikely, I know, but if trading does pick up...

Of course, meanwhile SOGP will be trying to get the debt down further - a scenario that proffers further upside were it to succeed.

High risk, of course - and don't forget that the full year report will look awful. The BOD is likely to 'kitchen sink' the results, thereby draw a line under the recent travails, and argue that the current FY will see the company return to (modest) pre-tax profitability. Whether market believes the story is another matter.

[phil0001] 11/8/2009 19:30

Sovereign Oilfield Group Appoints Group Chief Operating Officer
Friday, June 19, 2009



Plans to further expand Sovereign Oilfield Group's (Sovereign) operations into the Middle East and achieve further growth through acquisitions has led to the appointment of a Group Chief Operating Officer. The role, which will be filled by Chris McGeehan, is seen as being key to Sovereign achieving their expansion targets.........

------------------------------------------

They have expansion plans. The recovery looks well under way so why not look to the future?!

P1

[phil0001] 11/8/2009 19:23

An interesting recovery play?!
Restructured, refinanced, debt being paid down and becoming a streamlined business with orders and profitability.

From RNS: 'the unaudited turnover attributable to the remaining Drilling and Fabrication Division businesses of the Group was GBP75.5 million with a gross profit of GBP20.4 million before the allocation of central running costs.'

P1

[phil0001] 11/8/2009 19:17

Soveriegn Oilfield Group continues disposal programme

10 August 2009



P1

[horsepower] 16/7/2009 13:37

Back in here today with two buys at 10.05.

Downside looks limited and potential upside excellent. A good risk return play, especially on the back of comments such as this:-

"With new funding in place and the proactive support of Lenders going forward,
the Board believes that the prospects for the Group are excellent."