Share Talk – Steve Shares 10th June
Welcome, the publication is an interactive weekly update on what’s happening with the trending stocks this week. I highlight and comment on the stocks that you want me to highlight or comment on. The more you speak the more I Share! I also provide a round up of Share Talks interviews over the week. If you think that a certain share or person should be mentioned in the next edition let me know my details are at the bottom of the page… If there is anything Share Talk can do to help you let us know!
Last weeks Steve Shares was well followed with the main comments around VAST Resources, as I always say do your own research. There is always risk involved with any stocks no matter what their size, as reported a few issues back on Steve Shares a FTSE listed company had its sales rights revoked in country over a discrepancy of weights of its gold sales. However, work out the risk versus reward and see if that is acceptable for your tastes. The housing sector had several comments and many said that many companies even with robust futures were now at fair values after the Brexit saga. Thank you for your comments and your interactions.
This week I covered Zenith (ZEN) and Old Mutual (OML) The write ups are at the end of this publication as always, but here is the link for the company’s covered via TipTv: http://www.share-talk.com/share-news/steve-larratt-on-tiptv-stock-watch-zenith-zen-and-old-mutual-oml/
This weeks stocks…
Bellzone Mining plc (BZM) has been the top of the risers this week on the back of the news release where the company have announced that negotiations, including approval for their Ferronickel project, have concluded satisfactorily. The resulting provisionally agreed addendum to the 2010 Mining Convention is going through the official approval process with the expectation that it will be signed and ratified in the coming weeks. With the news that the funding is in place to the tune of over £10mn by the way of a loan and are now expected to provide working capital through to the end of June 2018, is all as it seems? Although I am happy seeing such rises, have investors considered the risk if the agreements aren’t authorised in the coming weeks? Thoughts and comments welcomed as always…
With the manifesto from the conservatives stating that they will allow as many drills as the pad will allow the onshore exploration projects now seem to be de-risked that little bit more. Angus Energy (Angs) UK Oil and Gas (Ukog) and Uplands Petroleum Limited, (UPL) are some onshore companies with prospective drills. Angus have 3 main areas in play, firstly they have their Lindsey field, I say their due to them being the majority partner and they hold 50% of the licence interest but more importantly they have their PL241 which is the Production License. Brockham is a similar story but they have a 55% licence interest. Angus holds a 12.5% interest in PEDL143, located immediately to the south-west of the Brockham oil field. PEDL143 is operated by Europa Oil & Gas (Holdings) plc and contains the Holmwood prospect. The Holmwood-1 exploration well has been designed to test the Portland sandstone, Kimmeridge Clay and Corallian targets, in an analogous trap configuration as the adjacent Brockham oil field. Plenty for investors to get their teeth into there.
UKOG a bit of a mixed bag with older plays in production at Horndean and Avington and although producing Angus is planning a side-track on Brockham and a new well at Lidsey. Both of these oil fields currently produce from a single well. They were first to drill into the Horsehill acreage in recent times. The drill tested the main three plays of the upper Portland and upper and lower Kimmeridge targets this flowed at a stable rate of 1688 barrel of oil per day. As they only have a licence in place to flow test there might be delays around successful applications around allowing production, however they have other plays to consider in the shorter term. They have their Broadford bridge 1 prospect currently being drilled Sussex, in which the Company has a 100% interest via Kimmeridge Oil & Gas Limited. The well has been designed to penetrate four naturally fractured Kimmeridge Limestone units (KL1-KL4), the uppermost two units of which flowed at Horsehill and this well will further de-risk that play if successful and will provide additional information on the two unknown additional plays.
UPL is what many consider to be a slow burner to many however their ethos of seeking oil and gas plays that represent an attractive risk versus reward balance for shareholders is attractive to some. Their board of directors includes the respected Dr Stephen Staley who took Cove through to a successful sale and more recently assisted 88energy, he uses industry experience and contacts in conjunction with technical expertise to source, assess and secure the best assets. Their SK46c prospect fits this bill and is especially appealing as it includes the opportunity to rejuvenate an old production area known as Hardstoft Oil Field. This was the first ever oil discovery well in the UK back in 1919. The current plan is to drill a modern low cost, low risk deviated development well on Hardstoft Field and Their Hardstoft East prospect, directly adjacent to Hardstoft Field, plans are to drill a second well with a view to increasing production values. New seismic data will be acquired to identify the best well locations. An independent report by Blackwatch estimates that the chance of success for Hardstoft Field is 80%, and 64% for Hardstoft East.
Thoughts and comments as always are welcomed. What company’s do you consider undervalued and news items that the market has missed…? Let me know and I will announce via the next issue of Steve Shares…
My thought of the week
last week I mentioned politics. Now the vote result was that of a hung parliament the markets held their breaths and at the end of the day the markets remained indifferent and a neutral trading day ensued. As I covered last week for followers to gain some insight, the housing stocks were top of the losers by sector, but not anywhere near as bad as post Brexit. I asked the question if people looked at the longer term effects of the political situation not only at home but in the wider world. The question of volatility still remains in place with Brexit and news this week surrounds the Trump administration. This week I will ask again ‘Have you considered the effects of Brexit, or a failure across the proverbial pond with Trump on your portfolio? Could there be stocks or sectors that would benefit from this?
Share Talk round up
In this interview @conkers3 had the pleasure of speaking with business man, semi-professional part-time private investor and blogger @darrenhazelwood Darren Hazelwood. Darren describes himself as a “Council estate boy”, with only a couple of GCSEs. But his learning from the university of life and being open minded in his pursue of greater financial achievements has taught him lessons from the positives and negatives. Listen now to gain insight to his learning knowledge and insights into investing in the AIM market: http://www.share-talk.com/share-news/conkers-corner-speaking-with-darren-hazelwood/
Share Talk TV with Zak Mir
This week Zak talks to Robert ‘Rusty’ Hutson of Diversified Gas and Oil plc: http://www.share-talk.com/share-news/robert-rusty-hutson-jr-ceo-of-diversified-gas-oil-plc-aimdgoc-video/
Share Talk Interviews
Share Talk spoke with Gervaise Heddle, CEO of Greatland Gold Plc (AIM:GGP) about today’s announcement that they have expanded their land ownership around the Havieron Project to include a number of new targets to Paterson East: http://www.share-talk.com/share-news/gervaise-heddle-ceo-of-greatland-gold-plc-aimggp-interview/
Share Talk spoke with Greg Kuenzel, Managing Director of Georgia Mining Corporation (AIM:GEO). We discuss the recent oversubscribed placement. Update about the exploration projects discuss the near term production of the Kvemo Bolnisi East project: http://www.share-talk.com/share-news/greg-kuenzel-md-of-georgian-mining-corporation-aimgeo-podcast/
Share Talk spoke with Antony Laiker, Director of Vela Technologies Plc (AIM:VELA) about the background of this disruptive technology investing company and their involvement with the likes of BTL Group. http://www.share-talk.com/share-news/antony-laiker-director-of-vela-technologies-plc-aimvela-interview/
Share Talk has Presented lots of articles and can be found here http://www.share-talk.com/share-news/
The Biz Lounge… Taking the stress out of stocks
TipTv Write ups
The first company I wish to highlight is Zenith Energy (ZEN), registered and based with its main bulk of operations in Azerbaijan, they own 100% of an area of 642 square kilometres, as of March last year they signed a working agreement with the state oil company to start a number of projects on what is Azerbaijan’s largest onshore oilfield. The contract area includes the contingent Muradkhanli, Jafarli and Zardab oilfields and is located in the Lower Kura Region. This was with the primary aim of enhancing the value of existing oil and gas producing assets in the Republic of Azerbaijan. Historically the field was producing an average of 9000 barrels of oil per day back in the 1970’s but due to natural decline and lack of maintenance and work overs it is now down to only 300 barrels per day.
This decline largely conforms to the countries shift in energy strategy that has prioritized investment in its offshore areas over the onshore sector because of the greater production volumes and commercial value it can yield. So Zenith have the early movers advantage and saw the potential to increase reserves and production figures. The last few months they have announced small scale but low cost maintenance of their rigs and have had low level increases in production but this is a small scale and long term plan, back in April they announced a sidetrack well was underway and this week saw the positive announcement that Initial flow rates of 149 barrels per day and a steady and increased rate of production is expected to be achieved over the next few weeks, the Company will provide a revised production rate announcement as soon as this has been determined. With a market cap of under 10mn and with the CEO having recent buys above the share price at present I think it looks undervalued against what could potentially be…
The second stock I wish to cover is a FTSE based stock Old Mutual (OML). The company seems to be going through a period of change and is redirecting and restructuring the business, the share price has been in a firm trading range so there could be a level of potential upside to longer term holding after these changes, in the beginning of April as part of their UK Platform Transformation Program they had to make a difficult decision in which they made the choice to end a contract covering the supply of their International Financial Data Services and signed a deal to source platform and outsourcing services from another firm named FNZ. This was and is a case of short term pain for longer term gains, as the costs run around the £140mn point but with the “FNZ platform it is a proven platform supplier and outsourcer with an existing, fully functioning UK platform service of significant scale.
FNZ has a number of major UK financial institutions as clients so they know the business very well. The company has also been making some very prudent looking acquisitions. Last week its UK wealth management business, completed the acquisition of financial adviser network, Caerus Capital Group. Caerus consists of more than 300 advisers who hold responsibility for more than £4.00 billion worth of assets under advice. Upon acquisition, Caerus will become a subsidiary of Intrinsic, and the 300 advisers will adopt Intrinsic’s advisory process over a phased transition, with 3,700 advisers are now authorised through Intrinsic. For the first quarter of the year, Old Mutual Wealth saw its highest ever period for net client cash flow and funds under management. With £2.70 billion, a 59% increase, while funds under management rose to £122.30 billion, a 6% increase.
Let me know what should be in next weeks article and I will report on the shares that matter to you…
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