Volga Gas Share Discussion Threads

[incorrigible] 08/10/2011 20:18

cash is king in these times

[pillion] 08/10/2011 12:45

VGAS sell their oil at the well-head for a discount -- no pipe-lines etc

They always have eager buyers

[sat69] 08/10/2011 12:05

Cheers Incorr - Can't dispute that statement then.

[incorrigible] 08/10/2011 10:15

sat69 - "US$13.9 million in cash at 30 June 2011 (US$26.6 million at 31 December 2010)"

[sailing john] 07/10/2011 21:24

Inc
If you read past the bullet points you would know that circa $16m cash was used in 1H to acquire the assets of GND incuding the GPU and pay down most of the debt that GND had with Transnafta. See cashflow statement in 1H results

"The Group acquired the equity of GND for a consideration of approximately US$1.1 million. At the time of the acquisition, GND had loans outstanding due to Trans Nafta amounting to approximately US$24.4 million. By 30 June 2011, the debt outstanding had been reduced to approximately US$6.0 million, with repayments being made from the cash generated by GND itself as well as the Group's internal cash resources."

Further detail of this transformational deal - enjoy!

[christianf12] 07/10/2011 21:13

I'll be adding next week, probably 50k shares.

[christianf12] 07/10/2011 21:09

Put the production/revenue and profits on a p/e of 10 (not undemanding for this type of growth and potential for increases) and you are talking £200 million Market cap Inc net cash.

2,500 bopd x 300 days x £25 per barrel profit = £18,750,000 per year x 10 = £187,500,000. plus net cash = £195 million = 4 x this Market cap and share price = 276p target!!!

[christianf12] 07/10/2011 21:01

The cash decrease is due to vgas paying Debts associated with gnd Debts. Cash and revenue was used. Production has increased to 2,600 bopd so imagine what cash they are throwing off now. Debt is down to $6 million and cash is $14 million so £8 millin net cash.

Let's say 2,500 bopd at £25 profit per barrel (cuatious) x 300 days allowing time for maintenance = £18.75 million per year pure profit.

Put that on a p/e of 5 (low considering growth but allowing for Russian factor) = £93.75 million. Add cash back in so say £100 million.

That's double today's Market cap on a low multiple so 150p short term target for me, which incidentally is where the chart is pointing to short term also as looks like we have a double bottom!!!

[sat69] 07/10/2011 20:56

Incorr - Please copy and paste the relevant bit for us.

[incorrigible] 07/10/2011 20:55

i did - i read the rns dated 13/9/11 titled "half yearly results"

[pillion] 07/10/2011 20:38

Like Sail John says, read the accounts to see where the $$$$ is up to

[eric76] 07/10/2011 13:49

Could be a placing has brought these down to these levels. I know the delay has been taken not so well (obviously) but the stock has taken out all its supports so far with ease including the 200 dma which has been an extremely bearish sign recently.
Could be on the turn otherwise support around 65p or 39p if that goes?

[sat69] 07/10/2011 12:30

Incorr - I'm still watching but very tempted to dip in a toe at these levels. If what you say is correct, there could be a placing imminent. Maybe the market has got a whiff of it, so the time to buy will be after a cash call.

[sailing john] 07/10/2011 12:27

Inc
I politely suggest you read the accounts!
SJ

[incorrigible] 07/10/2011 11:47

26m cash at dec 2010, half that at jun 2011 so out of cash at dec 2011?

[christianf12] 07/10/2011 11:14

Level 2 turned for the better now. Looks like this is the bottom.

Should be back at 100p in no time.

[pillion] 06/10/2011 12:12

It was the VM delay that caused the share price collapse imho

[tradermel] 06/10/2011 11:30

Thanks for that simon, think we will get a re-rating ahead of H2 if the General market normalises as the market thrives on anticipation.

[simon gordon] 06/10/2011 11:17

Oriel - 15/9/11:

Volga Gas issued a solid set of interim results with the company generating net profits of US$3.0mn on the back of production of 2.0kbopd, helped by the acquisition of the Dobrinskoye gas field. Production is expected to grow significantly in future years with commissioning of the company's main asset, the VM gas field, however initial production from the field has now slipped into H2 2012. Whilst the shares trade at a significant discount to our NAV, and there is the potential for exploration upside in the near-term, they are unlikely to re-rate until VM is onstream and the associated reserve base derisked.

[corrientes] 04/10/2011 09:31

The price says a lot about the world economy, with everything being liquidated.The amount of debt in the world supported by worthless pieces of paper is still just too horrible to contemplate. The real culprits are those who allowed banks free reign in the first place,Clinton,Brown etc. The legislators should have remembered the prime characteristics of human beings ; greed and fear.

[tradermel] 04/10/2011 09:19

71, how can this deserve to be at 71????