Just thought I'd start off a general thread for discussion of possible alternatives for those who will receive a chunk of cash (from whoever and at whatever price) following the demise of Dana Petroleum Plc (LON:DNX).
I'd start off by arguing that there aren't many Dana lookalikes in the UK. That is reasonably large and liquid stocks with a good combination of strong cashflows, reserves, development opportunities and exploration. There's dozens of high octane exploration plays on AIM but not many in the Dana mould. I wouldn't imagine that many will be looking to roll 0ver into 100% explo stories but may look to put a bit into them.
Secondly I'd argue that more of the Dana look alikes are to be found overseas. Now its harder to research these but it can be done quite easily, especially if there are people willing to share notes...
May I suggest that if people think of an idea or want to expand on one then they should start up a new thread or continue on with the "main" thread of an existing company.
So, without thinking too hard, here's a list of some of my initial thoughts:
In the UK (some may have dual listings):
1. Ithaca Energy Inc (LON:IAE) - very sound finances now after the c$1.70 funding and BoS facility and way down from recent peaks. Dual listed and slightly more liquid over in Canada.
Ithaca Energy Inc (LON:IAE) came pretty close to death till a very good restructuring deal with Dyas was put in place. Now set to push on with developments and generate v strong cashflows in 2/3 yrs (20k bopd+). Would probably make a good acqn for someone (knoc perhaps given dnx gives them a good N Sea presence now). Merger potential too?
Disc - we've now got a good chunk in IAE.
2. Bankers Petroleum (LON:BNK) nominally UK AIM listing but in reality bloody hard to trade over here, espec in size (+kay for say 1k or 2k but even then a big spread).
There's already a thread here on Bankers Petroleum (LON:BNK) so I won't go into it further here. Not really any explo, unless you count the potential upside from the Thermal project - results in next year. Should be sold in 12-18 months I'd say.
Disc - we already have a good chunk of BNK.
3. Circle Oil (LON:COP) - again, a thread here gives the investment proposition. Good and growing cashflow, more to come from Egypt and Morocco with explo in Oman and Tunisia (and Namibia if PetroHolland ever pay up). Following placing its very well funded.
Disc - another one of ours.
4. SOCO International (LON:SIA) - no need to reiterate this one but I suspect most will already have an exposure. Critical period for the company in coming few weeks either making us all very happy, or testing if our theories re core downside protection are right.
5. Cairn Energy Plc (LON:CNE) - not sure if this should be here now that the Vedanta deal has come along. More an explo story now I'd say.
6. Melrose Resources (LON:MRS) - not one that's ever excited me and I don't like the majority ownership situation. Seems to lack critical mass in terms of impact?
7. Northern Petroleum (LON:NOP) - too disappointing for my like with personality problems and now Italian drilling moratorium.
8. Premier Oil (LON:PMO) - probably the most Dana-esq in terms of production, market size, developments and portfolio of explo. Arguably too dnx like for me i.e. bitty.
I think I'll leave it there for now. Thumbs are killing me. Will try to add some overseas names over the next few days.
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Ithaca Energy Inc. (Ithaca) is involved in the exploration, development and production of oil and gas in the North Sea. During the year ended December 31, 2010, the combined production from Beatrice and Jacky averaged 9,336 barrels of oil per day gross (4,485 barrels of oil per day net to Ithaca) as measured at the Nigg storage facility. In February 2010, the Galaxy II rig commenced drilling at the Stella appraisal well location in block 30/6a. In February 2011, it completed the drilling of a water injection well for the Athena field development. Ithaca has a wholly owned subsidiary Ithaca Energy (UK) Limited. The Beatrice Field, in which Ithaca holds a 50% interest, is operated by Ithaca. The Athena field is situated in block 14/18b in the Outer Moray Firth area of the United Kingdom's Continental Shelf. In April 2013, Ithaca Energy Holdings (UK) Ltd acquired the entire share capital of Valiant Petroleum PLC. more »
Circle Oil PLC (Circle) is an oil and gas exploration company. The Company is engaged in oil and gas exploration, development and production in North Africa and the Middle-East with oil production in Egypt, gas production in Morocco and exploration assets in Morocco, Tunisia and Oman. It operates within two geographical markets: Africa and the Middle East. During the year ended December 31, 2011, it drilled six wells. A 5,027 line kilometer two-dimensional (2D) seismic programme for Block 52 was completed in February 2011. As of December 31, 2011, Circle had interests in three exploration licences in Tunisia, the Mahdia permit (offshore), Ras Marmour and Grombalia permits (both onshore). As of December 31, 2011, it operated two concessions in Oman, the onshore Block 49 and the offshore Block 52. Circle holds a 70% working interest in Mahdia permit. more »
Bankers Petroleum Ltd. (Bankers) is engaged in the exploration for and development and production of oil in Albania. The Company generates all of the oil revenue from its operations in Albania, which is located northwest of Greece in South Eastern Europe. In Albania, Bankers operates and has the rights to develop the Patos-Marinza and Kucova oilfields pursuant to License Agreements with the Albanian National Agency for Natural Resources (AKBN) and Petroleum Agreements with Albpetrol Sh.A (Albpetrol), the state-owned oil and gas corporation. The Patos-Marinza oilfield is an onshore oilfield in continental Europe, holding approximately 7.7 billion barrels of original-oil-in-place (OOIP). The Company also has rights to exploration Block F (adjacent to the Patos-Marinza oilfield), a 185,000 acre oil and gas prone exploration field. more »
99 Comments on this Article show/hide all
I have recycled the proceeds from the disposal of DNX into 5 other O&G sector stocks which I believe may have the potential to multibag.
MOG - Mediterranean Oil and Gas - the SP has recently been slashed partly as a result of the Italian Govt imposing a ban on the drilling of offshore wells subsequent to the BP disaster in the GOM. This seems to be a knee jerk reaction and one which will be reversed when the fuss dies down. There is a big difference between deep water and shallow water drilling in terms of risk, and Italy still needs oil. This stock should either reverse its nose dive or it becomes vulnerable to a take over. Their only problem is the cash situation.
IAE - Ithaca Energy - covered in some depth elsewhere on stockopedia by DJP.
LGO - Lenigas - I bought in after reading the recent Edison note on the company in which they suggested a value of 7.8p. We currently await news of Hontomin testing in October. Also Ironpyrites on TMF contributed this piece:- http://boards.fool.co.uk/lgo-leni-gas-oil-12046562.aspx?sort=postdate
AST - Ascent - covered elsewhere by JohnnyT which he has championed for some time. Inland well drilling in Slovenia and Switzerland could multiply the depressed SP.
DPL - Dominion Petroleum - Operating in central and west Africa. Lake Albert prospects alone could work wonders for the SP. Long term, offshore Tanzania could be a company changer.
There are others I considered such as NPE, GPX and AEX but I tend to diversify rather than to increase what are already substantial holdings.
icdgyixify
How about VPP ? Plenty of cashflow from the Don area 6K-7.5K BOPD and
Successful 'Tybalt' discovery earlier in 2010 which VP have 80%
They are currently drilling the Viola North prospect.
http://www.investegate.co.uk/Article.aspx?id=201008310700568300R
'...The Viola North prospect is a mapped three-way dip and fault controlled structural trap in the Fulmar sand formation and is targeting an estimated gross prospective P90-P50-P10 resource range of 63-111-191 million barrels of oil equivalent. Viola North is located in the Central North Sea, near the producing Janice, Medwin, Clyde and Fulmar fields...'
http://www.valiant-petroleum.com/assets/documents/assetsdocs/000012-10_viola_north_south_prospect.pdf
50% of Viola has been farmed out to Apache with apache paying 75% of well costs
Planty of future explo prosects during 2011 with 'Handcross' a WOS paleocene prospect with P50 resource estimate of 70Mmboe nett
In reply to ohisay, post #40
Hedgehog Capital LLC and parties have increased their interested in Antrim to 24.97% from 15.45% previously.
Today's RNS:
http://www.investegate.co.uk/article.aspx?id=20100928070010M4323&fe=1
Previous RNS:
http://www.investegate.co.uk/Article.aspx?id=20100127151611M9144
I've topped up my holding when oilretire and ohisay highlighted the Blakeney field closeness to Antrim's Fyne/Dandy discoveries and the Greater Fyne acreage. Antrim (AEY) were up 16% at one stage yesterday if I recalled correctly.
I took a wee top up too, and was planning more. Very interesting news this morning. The notification was on 24th, but I understand there was above average volume yesterday - Hedgehog still building?
Anyone know who they are, Google doesn't help much at first glance.... website under construction
http://www.hedgehogcapital.co.za/
Some nice posts here, but sorry chaps and db,
It's still SLG for me.
Rumours of no oil water contact abound and look to be from a reliable source
repo
DYOR research today?
In reply to repobear, post #84
"Rumours", surely you're not selling SLG on rumours are you Repo :-)
In reply to peterg, post #85
Hi Peter,
I was intending to buy some more but was awaiting clearance of funds and arrival from the UK. I don't think the rumour will stop me. The money will be here today. Phew!
This might be of interest to Dana holders and the commentary today and yesterday from Captain NF over on ADVFN.
http://investorvillage.com/smbd.asp?mb=13265&mn=639&pt=msg&mid=9562234
It is close to some Dana acreage. In fact some think that our Cladhan oil has spilled over into that block.
I don't have a clue but my instincts tell me to hang in on there;-)
repobear
I don't get to see a lot of broker notes and this one on a large universe of oil stocks is the best part of 7 weeks old and has in many cases been overtaken by events.
Nevertheless there are lots of interesting metrics in here - I'm sure some will find it useful.
I quite like exhibit 28 on page 19 .
http://www.oilbarrel.com/fileadmin/content/pdfs/Brokers_Notes_Aug2010/International%20E%26P%20August%27s%20Prospects%20Aug%2710.pdf
In reply to uncommon13, post #82
Well, the farmout deal didn't take too long and we now know Premier Oil have taken the bait and farmed into Antrim's Fyne area now :)
http://www.antrimenergy.com/news/press-release.php?url=aHR0cDovL3d3dy50aGVwcmVzc3JlbGVhc2V3aXJlLmNvbS9jbGllbnQvYW50cmltX2VuZXJneS9yZWxlYXNlX3htbC5qc3A/YWN0aW9uRm9yPTEzMzExMzY=
I like this statement especially:
Regarding the farmout terms:
Will be interesting to see what get's scheduled for explo, from the Interim Financial Report........
In reply to uncommon13, post #88
All looking quite cosy isn't it with Premier ,Wintershall ,Sterling and Encore all having biggish stakes in the area.
http://www.energy-pedia.com/article.aspx?articleid=141397
Worth recalling that Antrim is ISA able. Maybe this is finally the deal that will get them moving again. Some significant upside IMO
B.
Updated 16 page RBC presentation on international Oil stocks - basically covering Octobers wells and more besides...
http://www.oilbarrel.com/fileadmin/content/pdfs/Brokers_Notes_Oct_10/International%20EP%20October%27s%20Prospects%20Oct%2710.pdf
Excellent!
Union Securities note from 5th November available here :
http://www.union-securities.com/CMResearchFiles/1_152_International%20Junior%20Oil%20and%20Gas%20Nov%205%202010.pdf
FWIW, they have both Ithaca Energy & Sterling Resources as a 'Strong Buy' with targets of C$3.00 and C$4.00 respectively.
I hold a decent chunk of both, though I have been top-slicing my Ithaca position at the current price and buying a few more Sterling.
Cheers,
Chris
GS note on oil stocks has been posted all over Advfn ..
If you aint seen it ....
http://www.mediafire.com/?5vc4vbeueq8qbv1
Some crazy moves Oil E&P wise so far today.
Great news for Bowleven on Cameroon discovery - up 34%!
Elsewhere:
BPC up 13.4%
Caza up 13.4%
NOP up 15.5%
Pele up 20.5%!
PMG up 9%
and astoundingly
WBN up 75%
Bar PMG and Blvn, little in the way of news out there,,,,
Spec money seems to be chasing resource stocks as well - Gold, Silver.
Crazy days it seems.
In reply to Fangorn, post #95
You missed GED - up 17%.!
Aside from the fact that its rather leveraged to the oil price I'm sure the GS note helped - valuing it at 157p.
The proverbial curates egg that GS note.
Ah I dont actually have that one on the radar.
Worth taking a look?
In reply to Fangorn, post #97
Well its either a bargain or a long term dullard - at 60p odd it was clearly in the bargain category but then I'm rather biased .
See ...
http://www.stockopedia.co.uk/content/global-energy-development-ged-a-primer-47685/
Thanks for the heads up...will check it out.