Share Talk – Steve Shares 18th March
Welcome to Steve Shares. This publication is an interactive weekly update on what is happening over social media and the trending stocks that have made the news this week. I highlight and comment on the coming news and events in connection with the trending stocks. I provide a round up of Share Talk’s key company interviews over the last week. If you think that a certain share or a key news item should be reported on be in the next edition, let me know by contacting me via my details at the bottom of the page.
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Last weeks Steve Shares was well followed and had a lot of messages in relation to TipTv where I have been asked my thoughts on a lot of oil and gas stocks. I have this week clarified my thoughts and have summarised below.
TipTV with Jenny and Zak Mir
Steve Shares with TipTv last week covered AAOG, and I have had several contacts this week asking what are the better plays on company’s with current production and proven reserves so have this week given my thoughts on several stocks.
This weeks stocks…
Panmure Gordon (LON:PMR)
Friday saw one of the oldest listed companies receive an offer that the board has recommended. The deal which would value Panmure Gordon at around £15.5Mn and was offered by Ex Barclays banker Diamond. Offered via his private equity firm Atlas Merchant Capital, alongside Qinvest who are a majority shareholder already. Although caught up in the Libor rigging scandle Diamond had built a massive following and was one of the top investment bankers via Barclays. Although he will not be involved in the day-to-day running of the firm surely he can use his contacts to provide the ailing company with a way forward to exist in the future. What are your thoughts behind this deal with the company? Would you rather see the company go it alone after they have said that they hope to return to profits in 2017?
Anglo American (LON:AAL)
Last year, Anglo American‘s shares were the best performer on the London FTSE as the mining industry recovered from a slump in commodity prices and the low point in the cycle in 2015\16. this week saw the Indian billionaire Anil Agarwal said he wants to buy a 2 billion pound ($2.45 billion) stake in Anglo American, a major vote of confidence in the global miner’s recovery and in the sector as a whole. Agarwal, who has majority control of Hindustan Zinc Ltd, which has a market value of around 16.6 billion pounds. The announcement of Agarwal’s plans said neither Volcan nor Vedanta intended to make an offer for Anglo American. The purchase would be a passive investment and Agarwal would not be seeking a board seat at Anglo American. What is the upside potential for the company? Brokers notes already have the target price as the share price…
Angus energy (LON:ANGS)
Angus Energy this week announced that they have received final regulatory consent from the Oil and Gas Authority to acquire their proposed 12.5% interest in UK onshore Weald Basin licence PEDL143, with Europa Oil & Gas plc as previously announced on 6 February 2017. As previously reported, the Company will participate in the drilling of the planned Holmwood-1 exploration well for which it has permits and licences in place already, which will test the Holmwood Prospect’s identified Portlandian and Corallian sandstone reservoirs and the same Jurassic section that tested oil from Kimmeridge limestones at Horse Hill and which the Company is planning to place into production at its 65% owned and operated Brockham oil field. Things are certainly hotting up for them, await the licence clarification for the other target at Brockham.
Ascent Resources (LON:AST)
It’s been a quarter of ups and downs for holders, however the contracts of their first sale of gas has caused a buzz this week. The gas production from Pg-10 is expected to commence to a local corporate consumer next month. This will provide the company with immediate revenues until the increased production under the INA contracts commences. The infrastructure is in place and will be connected before the commencement of the flows start. Separately, preparations for the sale of gas to INA under the existing contract are well under way. Whilst the final treatment of the gas delivered to INA will be at their treatment plant at Molve in Croatia, the gas from Pg-10 must first be dehydrated at the Petišovci field.
Lets hope things go smoothly, however with the suppression after the placing I look forward to seeing the company becoming a producer. Thoughts and comments are welcomed as always.
What companies 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
The FTSE100 this week has hit historical highs. Do you think this will continue? Mining companies continue their recovery within their cycle as the highest gainers of last year. The banks and property developers recover to their pre-Brexit trading levels 8 months after the initial announcement. Berkeley Group has announced a strong position and wishes to deliver at least £3.0 billion of pre-tax profit over the next five years. Lloyds having price targets of 80p plus in place I think that the FTSE will continue to impress even with Brexit uncertainty in the background.
Today’s TipTv stocks… oil drill update for 2017 oil company’s…
88e short term due to spud, good flow rate above 100 barrels per day will see a commercial field being announced on the north slope, although no proven reserves I think it is clear to see that the north slope is a prolific area for production so as mentioned it is a binary play but de-risked to a substantial point based against Icewine1 drill results.
Aminex or Solo? Aminex hold 75% of the in the Ruvuma Basin in Tanzanian where their recent drill encountered high quality gas and tested at a rate of 2,833 BOED and are now looking at a 25 year production permit for commercial development. What most have failed to notice is that they are still to announce the size of the field and they still have the 3rd drill to complete which I think should be done toward the end of the year.
Trinity Exploration & Production Plc is an unloved company by the looks of it, when looking at the market cap there are company’s in the oil and gas market that have no reserves and need money to do risky wildcat drills with similar valuations, however Trinity are producing at a rate of over 2,500 barrels per day! They have discovery’s that are ready for near term production and further discoveries and exploration work to make as well, cash rich, so a firm base on which to build on, so I see this one as a longer term slow burner but very low risk even after the recent rises since relisting…
SDX Energy’s portfolio is covered in two areas In Egypt at South Disouq and in Morocco at Lalla Mimouna. Both areas are producing at a combined rate of 11,200 boe per day and will also include what they call high impact exploration opportunities. They will be drilling on exploration targets 2H in 2017…
88e shale play potential takeover target due to the Trans Alaskan pipeline system as announced in previous episodes of Steve shares…
Aminex £175Mn Mcap vs Solo £43Mn Mcap Solo also have assets in the Weald basin Solo Mcap looks of more value longer term.
Trinity have similar production values and proven resources as compared to Aminex’s initial flow rates from the one drilled well, so makes the market cap look very cheap at only £43Mn Mcap and have more assets than solo for the same Mcap…
Sdx Energy have a large base and proven reserves and exceptional flow rates and upside potential from their drilling campaign for the next year ahead for their £87Mn mcap
Share Talk round up – Interviews and updates
Share Talk Presents an interview With Greg Kunenzel Managing Director of Georgian Mining http://www.share-talk.com/share-news/greg-kuenzel-md-georgian-mining-corporation-aimgeo-interview/
Share Talk Presents an interview With Cameron Parry CEO of Lions Gold http://www.share-talk.com/share-news/cameron-parry-ceo-lionsgold-ltd-aimlion-interview/
Share Talk Presents an interview With Karl Smithson of Stellar Diamonds http://www.share-talk.com/share-news/exclusive-karl-smithson-ceo-of-stellar-diamonds-plc-aimstel-speaks-to-share-talk/
Share Talk Presents an interview With Andrew Bell Chairman or Red Rock Resources http://www.share-talk.com/share-news/exclusive-andrew-bell-chairman-of-red-rock-resources-plc-aimrrr/
Share Talk Presents an interview With Michael Masterman CEO of Saffron Energy http://www.share-talk.com/share-news/interview-with-michael-masterman-ceo-of-saffron-energy-plc-lonsron/
Share Talk Presents an interview With Andrew Bell Chariman or Regency Mines http://www.share-talk.com/share-news/andrew-bell-chairman-and-ceo-of-regency-mines-aimrgm-us-coal-projects-update/
Brand new Share Talk feature with TipTV
Share Talk and TipTv Presents an interview With Roger Murphy, CEO of Sula Iron and Gold (LON:SULA) about their recent placing and answers shareholder’s questions.
Share Talk has presented lots of other articles which can be found here http://www.share-talk.com/share-news
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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