Volga Gas Share Discussion Threads

[sailing john] 24/1/2011 08:48

Bought a few first thing. Breakout?
SJ

[tadtech] 24/1/2011 08:28

Breakout and no resistance to £1.40, where could this go in the short term??

[tadtech] 24/1/2011 08:08

Taken from a competitor site...Interesting.

[tadtech] 20/1/2011 10:40

There seems far more commentary of VGAS on LSE which is unusual. It shows how under the radar VGAS is with private investors.

The bid/offer is creeping up and I would expect further share price movement due to the fact that the company will shortly become active again with the drill-bit.

This stock moves very quickly indeed historically.

[tadtech] 19/1/2011 21:37

From another site courtesy of poster PPVN posted last week gives a good overview of VGAS's forward activities.........


Firstly, they had $25.4m in the bank as of 1st November 2010, with no massive expenditure since then, or forecast for 2011 (so probably no dilution of shares). Secondly, the Trans Nefta legal case seems to be going in their favour, and could see a resolution soon. They are also revenue generating, and I personally think oil and gas prices are going to rise, hence my interest in this sector. VGAS also have few shares in circulation - quite often Russian companies will have individuals or institutions that will buy and hold the shares for years and years - there are fewer than 50% of these shares in free float, hence the frequent wide spread. The failure to find really large sub-salt resources was not an issue for me - its always risky as from what I understand the salt layer clouds the seismic readings and can reduce the CoS significantly - that just gave me an opportunity to buy in at what I perceived to be a low price. Spudding a well is when the rig is mobilised and physically starts drilling. From then, depending on the well type completion to TD (total depth) will be between say 25 and 60 days, depending on how deep it is. VGAS are planning 3 exploration wells (cheap, and help identify where hydrocarbons are but not producers, also they increase the proven reserves of the gas/oil field) and 1 more production well for 2011-12 (see RNS of 4th November).

Their focus is now on further exploitation of the supra-salt field that is already producing. Supra salt is where the hydrocarbons are above a salt layer, so the CoS is much higher, and this will materially increase VGAS' income, with minimal expenditure. The CEO has mentioned that they intend to increase revenues (thus further reducing the chance of dilution) and increase the value of the shares.

[tadtech] 19/1/2011 15:38

simon gordon

This is from the listing document


The Vostochny-Makarovskoye Licence Area covers
approximately 18km(2) and is situated in the Volgograd region. It contains
proved and probable reserves of 7.2bcm (approximately 42.4mmBOE) of gas and
18,892mbbls of condensate and also possible reserves of 11.1bcm (approximately
65.3mmBOE) of gas and 33,391mbbls of condensate.


I have followed Volga since flotation ~ this is the 1st time I have bought as I see significant upside ahead. The shares have had an 18 month range of circa 60p to £3

The recent falls were triggered by failure of a key well and litigation. The well failure is now history and noises are coming from the company re a positive litigation result.

They plan to drill 2 wells in H1 2011 and have $25m in the bank. The shares move extremely quickly in a very thin market.

The current market cap seems to take no account of future prospects/activity.

At £1.50 Volga would have a market cap of £100m ~ hardly demanding in today's market. Production is currently circa 1500 bopd.

All IMO

[simon gordon] 19/1/2011 11:01

Tad,

What are the reserves? Bopd seems pretty low and needs to be trucked to market. What makes it worth 200p?

Cheers.

[corrientes] 19/1/2011 10:44

I also bought for the recovery,yesterday Tadtech, though PTR remains my biggest holding by far.

[tadtech] 19/1/2011 08:59

Gentlemen



I have bought into VGAS today on the basis of the following.........


Looks like a recovery play into 2011

Well funded, cash at 1st Nov 2010 $25m, positive cash generation also.

Drilling activity in H1..2 wells planned

Likely positive outcome to Legal situation which dogged VGAS through 2010...News expected shortly

Stable production of c1500bopd

Solid insitutional shareholder base, small free float, only 67m shares in issue...moves fast!

Rising oil prices, could benefit from improved tax regime in Russia

Newsflow expected

Under most PI's radar.



I feel the worst is behind the company (major drill failed in 2010) with lots of news due on a number fronts into H1, the shares look cheap in today's marketplace. The BP deal will also add further credability to Russian investments, Russian oil stocks have been star performers with PTR, MTA, EXI, UEN more than doubling in 2010.

VGAS could easily bounce to £2+ on modest buying interest IMO.

[anusol] 14/1/2011 08:20

cmon £1 weekend.... please!

[flirker] 13/1/2011 17:07

And a few ample ones as the day progressed but nothing like yesterday unfortunately. Thought we would see a bit more of a rise but appears to like 94 nearly as much as it did 80. Not complaining though....

[anusol] 13/1/2011 08:19

sniff sniff
lots of tiddler buys popping up.
Bid up nicely now at 93p

[tradermel] 12/1/2011 21:49

I will be sniffing around first thing as well

[triples] 12/1/2011 17:50

final buy today was 5k shares at 90.5p each.

Well, it's a start, isn't it? :)

I'm in for more tomorrow first thing.

Looks very promising,

triples

[anusol] 12/1/2011 17:42

900k and 600k buys at 86p according to shareprice data on my iphone.
final buy today was 5k shares at 90.5p each.

Nice day today, and expectation high for RNS tomorrow and more action - huge potential here is RNS are released to back up the turnaround.

[anusol] 12/1/2011 15:45

S P I K E !!!

[coscos] 12/1/2011 15:30

Yes, spotted those. L2 looking strong too. Interesting. Maybe things are now back on track.

[biggerthus] 12/1/2011 15:11

2 buys, 1 at >800k and the other >600k shares.... that's wide awake.

[coscos] 12/1/2011 15:05

Wakey wakey time? Hope so, as market cap is cheap in relation to assets.

[anusol] 11/1/2011 08:13

BT

yes i mean the GPU issue - the november rns said they are close to reaching a conclusion. so looks good but until the deal actually goes through it isn't completed! risk loks low though, so i think that when the deal is annoubced as complete in a new RNS, people mght wake up to this stock

[anusol] 30/12/2010 11:43

we have got seriously stuck at 80p !

Expecting no movement untill further RNS update on legal wranglings.

[chopsy] 16/12/2010 17:18

and down :-(

[chopsy] 16/12/2010 15:26

a tick up!