Incidental stuff

The Chinese company is paying 8.84 times earnings before interest and tax for Nexen, compared with the median of 33.06 of ten comparable deals, according to data compiled by Bloomberg. The Beijing-based company will add 900 million barrels of oil equivalent reserves at $19.94 per barrel through the deal, according to a document posted to the company’s website.

http://www.bloomberg.com/news/2012-07-23/cnooc-to-buy-canada-s-nexen-for-15-1-billion-to-expand-overseas.html

Good to see $20 per barrel still being offered despite the EZ crisis! Benchmark set....

GulfTrader that was 900m 1P wasn't it though? there were 1.2bn for 2P so about $13.39/bbl of 2P. Obviously very high production rate too and I don't know the mix of oil/gas and how much was fully developed, and the tax rates etc. of the various fields.

There was also a massive amount of contingent although most of it Canadian tar sands.

Log

In reply to GulfTrader, post #1014

Any implications for SIA?

No - none at all.

This is a better thread for general M&A: http://www.stockopedia.co.uk/content/ma-28067/

All a bit tangential and circumstantial - but the website seems to have had some changes to subheadings and asset classification. So that is another thing that has got cleaned up....though curiously it still strikes me as "work in progress" and rather de minimus.

Interesting post from Megusta on ADVFN flagged this article

http://petrotimes.vn/news/vn/petrovietnam/mo-ra-quan-he-hop-tac-dau-khi-giua-viet-nam-va-cong-hoa-dan-chu-congo.html

A delegation from DRC visiting Vietnam at the invitation of Soco

Any Vietnamese speakers here able to pick up more detail?

Cheers

In reply to rhomboid1, post #1019

Open cooperation between Vietnam Oil and Gas and the Democratic Republic of Congo

(Petrotimes) - From 27 to 31/8, the delegation headed by Minister of Energy and the Democratic Republic of Congo - Mr. Crispin Atama Tabe leader, visited and worked with representatives of the Oil and Gas Group National Vietnam (PetroVietnam) and the partners, members of the Oil and Gas sector.

 Deputy General Director of PetroVietnam Nguyen Quoc Thap (right) to the Minister of Energy and the Democratic Republic of Congo - Crispin Atama Tabe

Democratic Republic of Congo is a country located in Central Africa, the second largest area of ​​Africa, Oil and Gas industry is still young and growing. Delegation from the Democratic Republic of Congo by SOCO Vietnam - a subsidiary of the Petroleum Corporation SOCO International PLC (UK), and is a partner involved in many mining projects of Petrovietnam Oil and Gas - invited to visit, work and visit the sea actually works in Vietnam.

Mr. Vincent Duignan, CEO of SOCO South East Asia, said the delegation from the Democratic Republic of Congo would like to learn from the development achievements of the Vietnam Oil and Gas industry, especially for search experience, exploration and exploitation of offshore oil and cooperation in the future.

 General Director of SOCO Southeast Asia - Vincent Duignan introduction of the activities of SOCO in Vietnam with the mission

On 27/8, the delegation was Dr.. Nguyen Quoc Thap, Deputy General Director of PetroVietnam and the leaders of the Group, the Board of Trade Market reception and exchange of experience in the oil and gas sector between the two countries and support the long-term cooperation in the future future.

On 29/8, continue to work with the company SOCO Vietnam and Joint Venture Operations General Hoang Long and Universe on experience in implementing the project on time and faster progress in the mine Gold Tuna, rhinos white.

On 30/8, the delegation had a field trip at the beginning of wells H1, FPSO vessel Amarda TGT 1, mine white rhinoceros, Indoor PVDrilling2 and work with Company Services Engineering Maritime PTSC (PTSC M & C) experience of exploration, oil and gas and marine construction projects in Vietnam.

 Missions Democratic Republic of the Congo to work with Joint Venture Operations General Hoang Long and Universe

Previously, the Corporation Oil and Gas Exploration and Exploitation (PVEP) 3 lots oil and gas exploration in the Republic of Congo, but Vietnam and the Democratic Republic of Congo no cooperation in the field of Oil and Gas. The visit of the Minister Crispin Atama Tabe was successful, open up promising prospects for long-term cooperation between Vietnam and the Democratic Republic of Congo and its partners in the field of Oil and Gas.

Translated : http://translate.google.com/?tl=vi&q=undefined#vi/en/M%E1%BB%9F%20ra%20quan%20h%E1%BB%87%20h%E1%BB%A3p%20t%C3%A1c%20D%E1%BA%A7u%20kh%C3%AD%20gi%E1%BB%AFa%20Vi%E1%BB%87t%20Nam%20v%C3%A0%20C%E1%BB%99ng%20h%C3%B2a%20D%C3%A2n%20ch%E1%BB%A7%20Congo%0A%0A%28Petrotimes%29%20-%20T%E1%BB%AB%20ng%C3%A0y%2027%20%C4%91%E1%BA%BFn%2031%2F8%2C%20%C4%91o%C3%A0n%20c%C3%B4ng%20t%C3%A1c%20do%20B%E1%BB%99%20tr%C6%B0%E1%BB%9Fng%20B%E1%BB%99%20N%C4%83ng%20l%C6%B0%E1%BB%A3ng%20C%E1%BB%99ng%20h%C3%B2a%20D%C3%A2n%20ch%E1%BB%A7%20Congo%20%E2%80%93%20%C3%B4ng%20Crispin%20Atama%20Tabe%20d%E1%BA%ABn%20%C4%91%E1%BA%A7u%2C%20%C4%91%C3%A3%20c%C3%B3%20chuy%E1%BA%BFn%20th%C4%83m%20v%C3%A0%20l%C3%A0m%20vi%E1%BB%87c%20v%E1%BB%9Bi%20%C4%91%E1%BA%A1i%20di%E1%BB%87n%20l%C3%A3nh%20%C4%91%E1%BA%A1o%20T%E1%BA%ADp%20%C4%91o%C3%A0n%20D%E1%BA%A7u%20kh%C3%AD%20Qu%E1%BB%91c%20gia%20Vi%E1%BB%87t%20Nam%20%28Petrovietnam%29%20v%C3%A0%20c%C3%A1c%20%C4%91%E1%BB%91i%20t%C3%A1c%2C%20th%C3%A0nh%20vi%C3%AAn%20v%E1%BB%81%20l%C4%A9nh%20v%E1%BB%B1c%20D%E1%BA%A7u%20kh%C3%AD.

Well that sure looks like SOCO working their relationships hard. Is this the precursor to new licences in DRC and Vietnam with all three parties participating I wonder? Perhaps PV farming in to DRC Block V and something else, plus DRC partnering SOCO in VN amongst the various possibilities? Cross involving interests usually a good move!

could be as simple as getting the drc people onside incase they strike big, showing how they can fast track a development like cnv and deal with a large project like tgt. This could be housing few headstone. Could be anything at this point.

k

Hi kenobi
" This could be housing few headstone"

..umm not sure I understand ?

Though an African farm in for PV into Soco's acreage to sweeten some sort of deal with them is not without precedent!

In reply to kenobi, post #1022

.....getting the drc people onside incase they strike big

Hi K,

That's an interesting perspective.  For sure they're not doing it for nothing.

In the meantime roll on CNV gas/liquids conclusion and the reserves update.

fuiseog

In reply to rhomboid1, post #1023

sorry, rhomboid, I was on a tablet, and it seems to have auto corrected without me noticing !
I was trying to say is that this could easily be some jolly, DRC people to vietnam. I wondered whether some people had mis read it and thought it was chinese people (democratic republic of china or something), which might be much more significant.

I'm just not getting too excited about this sort of thing, if anything comes of it fine, but lets not get too excited.

cheers K

In reply to fuiseog, post #1025

Hi fuiseog,

hope all is well with you, I was just trying to say it could be as simple as dreambuilding the drc people and keeping them on side, perhaps there's other acreage they fancy in drc ? getting the people on side is one of the things they are good at.

yes the real significant issue is the reserves update, hopefully we'll hear something on that front before too long,

K

Hi fuiseog/kenobi,

Agree that the DRC angle is probably 'nice to know' rather than 'need to know'.....

Soco itself downplayed its takeup of Ophir (ex DPL's) stake in Block V (didn't RNS it, AFAIAI, just mentioned it in passing in the latest interim statement), where it now has 85%. Soco paid $6.5 + $2.2M ie $8.7M for the extra stake, whilst Ophir's interims show that they booked an impairment loss of $0.4M on the same asset.

From OPHR's perspective, this may just have been a tidying up exercise (they also exited their peripheral/inherited(?) assets in Uganda in the same reporting period), from SIA's perspective this could be a useful bolt-on. Remember too that RC is/was Non-exec Chair of DP, source of OPHR's stakeL......so may have a better handle on what Block V might be worth.

It may also be that DPL has some legacy '' favours' owing in DRC...whilst Soco is sure to need some local DRC 'goodwill' to get its increased acreage ratified and again to get any subsequent sell-down (to VN perhaps ?) approved......

ATB
You can tell that I'm (a) bored and (b) a frustrated Kremlinologist ! Where's davjo when you need him ?!

In reply to extrader, post #1028

Soco itself downplayed its takeup of Ophir (ex DPL's) stake in Block V (didn't RNS it, AFAIAI, just mentioned it in passing in the latest interim statement), where it now has 85%. Soco paid $6.5 + $2.2M ie $8.7M for the extra stake, whilst Ophir's interims show that they booked an impairment loss of $0.4M on the same asset.

It was simply an opportunity that came up. They will likely farm down again at a premium. At this stage no-one has much idea what Block V is worth - but it is a cheap option to have.

As to DRC visiting VN, there are all sorts of potential possibilities....but IIRC getting things done ahead of time and on budget is the sort of lesson that the DRC could well be interested in learning! ;-)

Meanwhile, I see that the heat to light ratio on other boards has risen.......but I see little worth commenting on ahead of the news re CNV.

ee

Anyone seen ee ? His favourite analyst at RBC Downgrades Soco back to reality...

FLASH: RBC Capital Markets downgrades SOCO International from outperform to sector performer, target price cut from 450p to 400p

http://www.stockmarketwire.com/article/4439418/FLASH-RBC-Capital-Markets-downgrades-SOCO-International-from-outperform-to-sector-performer-target-price-cut-from-450p-to-400p.html

In reply to Isaac, post #1030

If he's got any sense he'll be enjoying a pleasant game of golf in the sun, and ignoring the stream of pointless personal attacks that the RBC report seems to have set off on the BBs

I don't post very often because of my day job and I don't usually have anything worth saying.

However, for the first time ever, I thought I'd email SOCO International (LON:SIA) to see if they were in a position to comment on whether there is an independent review of reserves and its timing. This is their reply:

Thank you for your enquiry through our website.  We can confirm that there is an independent assessment underway of the Company’s reserves.  As of our meeting with them this week, it appears that they are about 75% complete, which is in line with our expectation of having a report sometime in November.  Obviously we cannot comment on the outcome of the study because it is not complete.  However, we can say that the Company’s purchase of the minority interest in SOCO Vietnam should give you an indication of our confidence regarding the reserves in Vietnam.

 

Should you require any further information, please do not hesitate to contact us.

 

Kind regards

SOCO Enquiries Team

I think I will continue to take the same position as ee, and ignore the analysts.

Best wishes,

Xig

In reply to xigris, post #1032

...I don't usually have anything worth saying.

Have you met Isaac? :)   Thanks for the info, it's reassuring to see some confirmation.

In reply to xigris, post #1032

Xig,

This is of course completely consistent with the responses given to a number of other people who have asked similar questions since the interims (albeit that I haven't seen November specified previously). I'm in little doubt that the (potentially) relatively extended timeline is due in part to the difficulty of deciding when enough production data has been acquired to draw some good conclusions about connectivity...and no doubt this issue forms a big part of the 25% incomplete and is the subject of ongoing meetings.

ee