Urals Energy Share Discussion Threads

[calmtrader] 23/4/2017 09:49

Dean. I agree certainly possible with some good drilling results and decent PR...As per their presentation the average AIM oiler is valued at 4.5 2P reserves and we are at 0.2...silly

[deanmatlazin] 22/4/2017 11:05

Just browsing past history of UEN. Before the acquisitions, licence extension and licence awards between 2015-2016, someone was offering 12.25p per share to takeover the company in late 2013. At the time the company still think it is significantly worth more than that.

In last 2 years UEN has added 62 million barrels ( P2 reserves ) in its portfolio. Currently 2 wells are being drilled to prove the reserves.

I am eagerly waiting competent report in June. I can see UEN would be £100m market cap by end of year .

Verdict: keep accumulate/hold ( no advice intended)

[wanna brew] 22/4/2017 10:46

Ok calm

For those advocating later possible institutional involvement. Please consider that an Institution will always buy at discount and will also mean dilution. Surely the way forward is a JV as the Co have stated. That have been quite clear that they do not need finance this year. A JV partner could take a share of the spoils for providing the drilling where-with-all. A win win for all.

Also re consolidation, one plus could be more transparency into shareholders. The exchange 1-20 may 'out' any 3% plus holders that not declared their holdings. This may only be in nominee account so may not lead to actual holders. Just a thought.

[calmtrader] 22/4/2017 08:52

Sorry meant allenby

[wanna brew] 22/4/2017 08:24

Calmtrader

your 20437 - Adler has only one client which is Roman Schvets, it is a vehicle set up for his investments, UEN have told us this, when his holding was announced.

Top

Should be back in 31 soon, pool season nearing :-))

I take onboard your comments and hope your optimism is well placed. After so much pain through the years, must hope we are finally getting there. UEN with its consolidation as you say may prove different. The reason I do not regret my post is that until we have the EGM and everything is passed, I will continue to hang on to my thoughts. There have been so many twists and turns over the years, that I've learnt with UEN that nothing is a given until the t's are crossed and i's dotted.

I find it odd that they prepared such a presentation to show how undervalued they are, without any apparent reason for doing so. No investor presentations planned. Who was that aimed at ?

These past 4 months have seen extra ordinary activity in both trades and Co News. Yesterday's RNS could easily have been combined with the update 3 days before. If they weren't ready with consolidation news, the update could have been held back. Go back 4/6/9/12/24 months and their news flow has been poor. Perhaps again we have turned a corner here.

It all just seems a little coincidental, that all these ducks are in a row at the same time. I think all would agree that whether its just pi's or someone else, the trade activity since Dec has been exceptional compared other times. Please show me any other time we have had a such consistent rise which has held, without it being related to some accumulating factor.

[calmtrader] 21/4/2017 16:50

Anybody on here buy any today?

[lalria] 21/4/2017 16:33

Overall that was a good week. Have a good weekend all

[calmtrader] 21/4/2017 14:38

i know Adler are keen to start pushing UEN to their clients and an share price in the £ makes it so much easier

[lalria] 21/4/2017 13:03

LONDON (Alliance News) - Urals Energy PCL announced on Friday proposals to reduce the company's share premium account and consolidate its shares on a 1-for-20 basis to help stabilise its share price volatility and allow the company to start a dividend policy.




Under the proposals, which will be considered by shareholders at an extraordinary general meeting on May 26, the 300 million existing ordinary shares will be consolidated into 15 million shares. At the same time, the share premium account will be reduced from USD656 million to none by writing off losses of the company equivalent to this amount.


The company, which primarily operates in Russia, had announced in January that it will restructure its share capital after it reported production growth in 2016.


"The effect of the proposed capital reduction, if approved and finalised, will be to offset the company's accumulated losses against its capital reserve, but still leave a balance of positive capital reserves, to allow the company to pay dividends in due course," said Urals in January's trading update.

[topicel] 21/4/2017 11:41

But surely it is good news, and was explained as such in January, as a consolidation into strength and to draw a complete line under legacy issues?

Fair enough if you don't regret thinking and posting the consolidation wasn't happening. No-one is pointing any fingers as we all call things wrong - a couple of big events in 2016 in my case!

But stop digging mate. The consolidations you refer to in other instances are indeed usually to start the same process of draining PIs of cash - or money-lending leaches in the City who participate for non-altruistic reasons - with little assets and deliverables.

And certainly not with very nice cash flows!

As djm suggests, this is about attracting bigger investors, hopefully solid backers, to build UEN back to where it was ten years ago. The divvy is a hint of the ambition and certainly no big buyers are in this particular arena when Adler hold so much of the market cap under tight control.

If they were doing a private deal to hand over all control to a bigger outfit that is another thing but is complete speculation. I'd welcome it, as I said before, for this share is so undervalued now and ripe success will come either way.

Topicel

[wanna brew] 21/4/2017 10:16

TopNo don't regret the post. Still think something or someone propping this up. This will be so illiquid, you try selling a few if the mm's not in the mood to buy the stock and then again to buy, you'll only get a few quids worth as the Nms will be so small. I'm glad share price has held up as every other share I've seen announce consolidation has fallen on the news

[djmoggy] 21/4/2017 09:51

Sport - they won't buy given the very limited availability and illiquid nature.

However my guess is that the company will request shareholders to approve an increase to the authorised share capital after the consolidation (from 15 million to a considerably higher amount) and then actually place shares at a time when a) the shareprice is much higher and b) the company requires capital to further develop Arcticneft (deeper oil potential) or Komi assets.

This will address both the market cap (much higher given expected increase in shareprice and issue of shares) and lack of availability of shares.

[sportbilly1976] 21/4/2017 09:03

re Institutional interest - how many II's will look to buy into a Company with only 15 million shares in issue?

They will go according to mkt cap...and generally the minimum level if £50-100mln

+1 though for hoping the consolidation will see a reduced spread, on current basis 130-145

[canny lass] 21/4/2017 09:00

Calm, was that your 40K buy?

[topicel] 21/4/2017 08:48

Weather good in 31 wannabrew and 22-23 degrees today expected.

Consolidation announcement also as expected, as was the intent of the Statement in January to keep a cap on things as was pretty obvious I think you would now agree.

As for your post 20413, I guess you wish you hadn't posted it?! And of course the PIs have been chasing up the price, you can't have seriously have been thinking anything else mate? Not possible to hide the numbers when the spread is so great, price so fixed and intentions so public.

Question is, will this do what they anticipate? I think so because, as many have pointed out this is a different outfit now with most residual historic issues laid to rest - like all those curious links you found so relevant?

They are happy at 7p-ish and have again found a way to slam on the breaks, just as I was musing last night. We must wait for our breakout when we are ready. Hopefully the PIs can move it as it does look ripe.

Topicel

[deanmatlazin] 21/4/2017 08:42

We are going to get dividend. A very good news :)

[basem1] 21/4/2017 08:24

Maybe set 2 or 3 orders all at 7.25 in smaller amounts. That's how I would do it with only £5 trading costs.

[calmtrader] 21/4/2017 08:16

thxs think i'm going to add this morning

[basem1] 21/4/2017 08:09

Max 25000 at 7.16 50k NT 100k at 7.456 which is nice to see. Any NT will be done at 7.25 obviously.

[calmtrader] 21/4/2017 08:04

Basem. What the spread this morning any size on offer?

[darren81] 21/4/2017 08:04

I would prefer less of a consolidation as well but my main takeaway from the RNS is the writing off of the past losses, in the earlier RNS it was stated this was to be done before any divs could be paid.

Giving the EGM is in May, I am reading this that they'll be paying a div after the June shipment - and I think we can all get onboard with that!

[martyn9] 21/4/2017 08:00

Darren,it depends on your perspective? i personally don't like consolidation,i think the strength of the company in the future does'nt warrant this action.

[basem1] 21/4/2017 07:57

Good post dj.

[djmoggy] 21/4/2017 07:53

The consolidation will price UEN between around the £1.40 mark (135p - 145p on current spread).

Reducing by such a number will result in stock becoming very illiquid - the shareprice will be prone to high volatility. Good news if there is expected continued positive newsflow which could see the shareprice move quickly through £2, £3, £4 etc if there is a demand for shares following good news.

I guess the rationale behind this is a way to attract more serious and institutional investment (given that penny shares by their very nature are unattractive to institutions) however the market cap really needs to climb over £25m to bring onto the radar of small cap institutional fund managers (so 10p or £2 which isn't far off).

A share consolidation will also result in the ability for the company to raise finance through issuing paper and at the same time would be a good way to reduce illiquidity. Given that there will only be 12.6 million shares in issue after the consolidation (with an authorised share capital of 15million) the company may line up investors through closed issue later down the line (when the shareprice is many £s).

Could be a masterstroke but we may have some volatility in both directions initially as current investors digest the news and react depending on their interpretation and adjust their holdings accordingly.