Urals Energy Share Discussion Threads

[calmtrader] 18/1/2017 21:22

so:
1.Production 6% higher in 2016
2. 12% including Artic..we also got some better equipment with this deal
3. Two Shipments( no funding no required)
4. Net beneficial of Tax changes
5. Refined products +13%
6. Ruble stronger
7. Russian Economy improving

and then we have the new acquisitions to throw into the mix...bought on the cheap!!

and POO looking so much better..and market cap still £10m

and Divs in the future and a consolidation of the share price Should entice Institutional investors.....did I miss anything?

[calmtrader] 18/1/2017 18:19

Djmoggy. The lse update reads very..a lot more to come from this beauty me thinks

[sportbilly1976] 18/1/2017 15:11

slow steady rise?

It's more than doubled in 6 weeks :)

[darren81] 18/1/2017 13:41

I would be quite happy to take a regular dividend here. Glad the board are being finally persuaded to show some value to shareholders!

Surprised not to have seen more action here today but a slow steady rise, like we've seen over the last couple of weeks is prefereable to the quick spikes we've seen in the past

[topicel] 18/1/2017 12:06

I tend to agree djmoggy that Adler are most likely behind the dividend idea.

They have probably stated they need to see a return on investment here or will otherwise begin to sell down. That amount of dividend would be one way of getting value out of this business without ruining the immediate prospects and plans entirely as regards capital requirements.

Added to that is the farm out revenue to facilitate it all even more and surely it is a done deal given they have 44% of the voting rights here?

But yes, people should be calculating the return at various prices and push the share price up accordingly.

Topicel

[djmoggy] 18/1/2017 10:44

Hi Chav - nothing wrong with your maths ;)

However in reality - Shareholders equity has no correlation with Market Cap.
For example in 2008 on news of default of loan to Sberbank - UEN Shareholder Equity stood around £0.5billion vs MC of £4million (at 2p low). Shareholder Equity is simplistically an indicator of the funds invested into a company netted off against the accumulated losses. The action proposed by the directors has no effect on the Net Shareholder Equity - it is just a reduction of the Share Premium account and Removal of Accumulated deficit figure.

On another note - to maximise EBITA - UEN should focus on exports (given the net effect of Tax changes shown by the RNS). Hence the following strategy should be seen in the near term
1. Minimise/stop further drilling at Petrosakh (done)
2. Only firm up reserves at South Dagi which is on Sakhlain Island (drilling planned later this year).
3. Concentrate on increasing production at Kolguyev Island (done by acquisition of Arctic Oil) - I would expect further production drilling announcements near term to increase daily production to maximise exported oil carried out by the two tanker shipments.
4. Farm out to de-risk and drilling at Komi licences (underway).

The key will be to concentrate on increasing production at Articneft (point 3) in order to maximise profit and cash flow. This will in turn help development of the other licence areas (and possibly facilitate a near term dividend payment).

PS just for fun... with the right decisions and drilling outcome - together with continued favorable oil price and Russian tax levies - I can see your 19p figure above being reached and surpassed near to mid term...

[chavitravi2] 18/1/2017 10:16

If djmoggy is correct and we are left with reserve of about £50m doesn't that alone without the rest taken into account make the MC about 19p? Or have I got it wrong?

[chavitravi2] 18/1/2017 10:10

It's a nice one. Just wish people would screw their loaf and not sell just now and see the MC is silly even has things stood before the rns. This is very positive now and I'm all for what management are trying to do. With the drilling program, consolidating, talk of dividend this should be flying and as such is a firm hold/buy not sell. The quick quid lot will hold this back short term me thinks.
Been said many times but this really could be our year.

[keya5000] 18/1/2017 09:54

One of the best RNSs this lot have ever produced.

My sub 3p buys a week or so ago proving very fruitful.

Should move to 6-8p in the short term.

Mcap is crazy.

[djmoggy] 18/1/2017 09:47

Interesting RNS!

It is good to see that UEN is pressing ahead with farm out discussions on all of its acquired acreage with a view to de-risking to mitigate exploration drilling failures and preserving cash balances I would presume farm-in partners would pay the majority of drilling costs for reasonable percentage of licence.

More intriguingly is the next part of the RNS.
It looks like shareholders will be asked to approve a write off of the accumulated deficit of £540m and a corresponding write down of the share premium account. Leaving shareholder equity of around £50m.

All in the aim of paying out dividends!!

I find it a strange time to do this given I would have expected the strategy would have been to grow the company using the cashflow generated from EBITA rather then distribute back to shareholders.

Taking the 2015 interim results ($2.2m EBITA) this would equate to a dividend of up to 0.73p per share - a yield of around 16% based on a 4.5p shareprice!. Note the average FTSE 100 company would pay nowhere near that yield - so reason enough alone to buy in at current shareprice

Would be interesting if this has been initiated by Adler and is a way for them to start getting a regular return.

[tone the bone1] 18/1/2017 09:11

Chavitravi2.. Keep waving that wand mate.

[neilyb675] 18/1/2017 09:09

Full ask 4.75 paid

[calmtrader] 18/1/2017 08:54

I can see some big transformational JV's coming up AIMHO

[canny lass] 18/1/2017 08:52

There's the first one in, although only small.

[tone the bone1] 18/1/2017 08:39

Going Up !

[martyn9] 18/1/2017 08:02

we should see a positive reaction today with the SP,based on those RNS.

[philo124] 18/1/2017 08:00

Sounds very positive indeed.

[rcturner2] 18/1/2017 07:28

Good statement from UEN today

(also good statement from APF if anyone is interested)

commodities the place to be now

[darren81] 18/1/2017 07:26

Did someone just say dividends??? I like the sound of that - could this finally (after years of waiting) be about to pay off???

[basem1] 18/1/2017 07:21

A lot to take in there. Love the idea of a share consolidation. Maybe a 1 for 10 ? It will create much better liquidity and tighten the spread up. Not many junior oil producers are talking about dividends either. Very exciting times here.

[rcturner2] 17/1/2017 15:09

THAL heading for 60p too, I'm up 50%. Oil services, commodities back in play.