Urals Energy Share Discussion Threads

[djmoggy] 10/1/2018 10:58

Greg - as you say floor price guarantee different to a hedge... my reasoning was they would lose money if the oil price surged with a hedge as you say

[bengal1] 10/1/2018 10:58

Order landed.. Will move quickly now..

[gregpeck7] 10/1/2018 10:49

dj, understand they are insulated, but I dont see what is stopping them getting a floor guarantee at 65, then if oil drops to 45, they pay taxes etc based on that but get 65 USD for the oil..

Yes there cost of sale would be higher because they are paying for the financial instrument, but nothing to stop them taking one out surely? Note I would go for a floor price not a hedge as if the price moved North they could actually lose money.

Good discussion today,

And as per expectations, she is moving up...

All MM's now blue.. Ready to to again IMO, fill yer boots.

[neftanik] 10/1/2018 10:47

UEN don't do good news....ask the LTH

[bengal1] 10/1/2018 10:47

Up she goes...

[djmoggy] 10/1/2018 10:45

Guys - I asked the question about hedging at the last meeting.

As expected this is not an option as Russian Oilers are insulated from oil price swings due to the Russian oil tax regime.

If you read this article or if you don't have the patience to read - look at the bar chart at the bottom of page one and top of page 4 this shows the Netback at various oil prices (note the article is slightly out of date and the rates will have changed in favor of Russian oilers in the more recent years - but it gives you the gist)

As you can see Netback largely remains unchanged even on large swings of oil price - so it is not worthwhile for Russian oilers to use hedging.

hxxp://www.gazprombank.ru/upload/iblock/a42/GPB_OG_Weekly_20160623.pdf

(Replace xx in hxxp with tt)

[lalria] 10/1/2018 10:41

Keya5000 why don't you spread the word like last week as you said you raised awareness and hence the buying began

[chavitravi2] 10/1/2018 10:40

It will help enormously if the sustained seller has gone. I can only think it is an Insti that has took the decision to off load their holding after a periodical review of their holdings. If they had 500k shares (10m old money)worth £300k that's a lot to you and I but peanuts to them. As we know these big insti's do have a shake out every now and then. Let's hope they are done.

[gregpeck7] 10/1/2018 10:35

Market cap 8.8 million... #Rubs_eyes

[keya5000] 10/1/2018 10:33

Yes some good news on any front and this could move strongly now.

[gregpeck7] 10/1/2018 10:20

Be interesting to see what happens if a 10k plus buy lands, I suspect we will move several pennies... Only 1 MM selling stock now at 72.

[darren81] 10/1/2018 10:09

last operational update was

Kolguev Island:

- continue work overs and the installation of jack pumps with the aim of keeping production stable at approximately 1,000 bbls/day

Sakhalin Island:

- continue well work overs at Petrosakh, thus seeking to maintain production at approximately 1,200 bbls/day


At a price of $70 that is actually $154,000 revenue per day.

We are prob getting more as there is a refinery at Sakhalin, resulting in increased prices, which accounts for 1200bopd.This will increase once the wells at South Dragi are completed (one underway) and daily production from these are transported to the refinery by road

[lalria] 10/1/2018 10:03

Sounds good mate and hopefully we will be in a much better place by then.

[calmtrader] 10/1/2018 09:54

Nope but I'd think s meeting around March ie 6 months from the last one would be a good idea

[gregpeck7] 10/1/2018 09:49

Calm my personal suggestion would be to put in floor pricing on 50 percent of production. Oil has moved a long way quickly and I would be surprised if they are not at least getting pricing indications. At 70 usd they are generating 140,000 usd a day. That's pretty mental.

[lalria] 10/1/2018 09:48

Calm have the board indicated on any more meetings

[calmtrader] 10/1/2018 09:43

They have considered it and decided against it...look it may work in our favour like last October but it's not an idea scenario and new investors should be aware of it

[gregpeck7] 10/1/2018 09:38

Calm, there are no laws against them using hedges.. I would hope they are considering it.

[darren81] 10/1/2018 09:31

That's only true of their production Art (less than half), the production at Pet isn't reliant on shipping.

Given production at Art is steady, I'd hope this year, if they have two shipments they'd space them out at 6 months intervals - that'd be April and given that Brent for March delivery is now touching $70, I think that bodes well

[calmtrader] 10/1/2018 09:14

Guys ..to those of you posting about how the price of oil is great for UEN please be aware that half their production is held in tankers and shipped in June and October so it the price on those dates that are relevant to their P/L not current price

[gregpeck7] 10/1/2018 09:11

That 10k "sell" looks like an ISA transfer or rollover lol..

Got to love the MM's delaying the trades...

[gregpeck7] 10/1/2018 09:06

Small tick up this morning, not a lot of stock about online.. Hopefully a few chunky buys land and I think this will be off again....

[bengal1] 09/1/2018 20:49

Market cap peanuts

[gregpeck7] 09/1/2018 19:52

Some seriously large coin has dropped in on uen last few days. Really feel like this is the start of something.

[bengal1] 09/1/2018 17:55

Traded Monday at 08.12 The 108k was a buy.