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Hopefully SHE will follow SVGP's/SMA's example

Sovereign Mines of Africa PLC
("SMA" or the "Company")

Placing, Proposed Move to AIM and Operations Update

Placing

The Directors of Sovereign Mines of Africa Plc are pleased to announce that it
has today completed a private placing raising a total of £1,329,000. The funds
were raised through the issue of 13,290,000 Ordinary Shares at a price of 10p
per share. The funds raised will be used to accelerate the Company's mining
program and for working capital.

Proposed move to AIM

The Company also announces that it is proposing, subject to market conditions,
to move to the Alternative Investment Market ("AIM") of the London Stock
Exchange. Further announcements will be made in relation to the possible move
to AIM shortly.

Operations Update

A diamond drill-rig is being mobilised from South Africa to the Mandiana-Magana
project to commence the first ever drilling on the property in April.
Construction of a special purpose exploration camp in this remote frontier area
of Guinea is near completion and we expect full satellite communication to be
installed by the end of the month. As advised in the detailed Market Update of
February 2nd, a contract has been signed for 3,000 metres of drilling which
will focus on two priority zones of intense small scale gold mining where
pit-sampling results returned the best gold grades. Proposals have been
received from a leading international consultant to prepare a Competent
Person's Report on SMA's Guinea assets and also a brief analysis of the
structural geology of the small-scale mining corridor of the Mandiana-Magana
project. It is intended that once oriented drill-core has been secured,
additional structural analysis will assist in elucidating the controls on the
gold mineralisation. Proceeds from the recently announced private placement
will strengthen the Company's financial capability to seamlessly continue with
drill-testing at Mandiana, contingent on success in this limited maiden
drilling program.

In the past few weeks SMA's exploration team have been conducting stream
sediment sampling in the northern part of the Marela Property in central
Guinea. Alluvial gold mining by local villagers at Marela indicates that there
is a considerable amount of gold in the area. In the 1990's the area was
prospected by expeditions from Russia and Japan, which focused on the alluvial
gold. SMA's objectives are to identify and target the bed rock source of the
gold. Heavy concentrate samples were taken from 32 sites within drainage system
to elucidate the source area and has been accompanied by geological mapping
using aerial photo-mosaics. Results and interpretation in the context of the
geological framework are pending.

As a result of the above placing, the total issued share capital of the Company
is 153,192,183 ordinary shares.
 
Rumours of another placing in SOU and the price nosedives from its highs today...
 
SOU is a long-term hold so dilutions were always going to take place.

On an aside, Jeremy Eng is a royal **** at AST. Second time in a year where he has screwed pi's over by ii placings at significantly below SP. His IR tactics make Moon look like Mother Teresa.
 
Tom Bulford pumping the Oracle story in his weekly free email.


Shahrukh Khan was watching television at home in London with his daughter, when he turned it off using the remote control.

“What has happened, Daddy?” asked his daughter. “Has there been a power cut?”

That would not be the normal reaction of a child in London. But in Pakistan, where Khan’s family has spent much time, power cuts are commonplace. Pakistan’s power industry is in crisis. Its indigenous oil and gas supplies are running dry and it is being forced to pay top dollar for imported oil and coal just to keep the lights on.

Next year it is facing 628MW shortfall of electric power and this deficit is set to hit 14200MW by 2020 on current trends. Khan wants to do something about this and although his plan to develop Pakistan’s largest domestic coal mine has a very sound commercial logic, he makes no secret of his desire to do something useful for the country.

I described Oracle’s coal project in Penny Sleuth in October when its share price on PLUS Markets was around 3p. Now it is nearer 10p and Oracle is closing in on a transfer of its listing to AIM, a move that should take place in the second quarter of this year.

When I caught up with Khan last week he brought me right up to date with Oracle’s impressive progress. They make this company look like an exciting share…
The desperate demand from local companies

Oracle has a license on the massive Thar coal deposit in Pakistan’s south-eastern Sindh Province. Today, it’s crawling with consultants checking the extent of the coal deposit, assessing the impact on the local water table and considering the consequences for the local flora and fauna. The latter include wild camels, peacocks and snakes!

All of this work will contribute towards a feasibility study, the basis for financing the project. The latter is scheduled to take place in the second half of the year and Oracle could be producing its first coal next year.

Pakistan needs this coal urgently, and Oracle has two customers lined up. The first of these is Lucky Cement. Judging by comments in it recent interim report Lucky is not so lucky now.

“The major reasons for decline in growth”, it explained, “were heavy monsoon rains with massive devastated floods, lack of government spending on public sector development projects, hyper inflation and deteriorated law and order situation across the country”.

To make matters worse, “cost per ton of cement increased by 20.5% as compared to same period last year. Fuel cost comprising of heat and power, the major cost component which accounted for 67.2% of total cost of production, increased by 14.2%. Further, prices of coal in the international market have increased tremendously and reached a new height of $140”.

Lucky, which also exports cement to the Middle East, is desperate to wean itself off imported coal and is pressing Oracle for supply as soon as possible. The longer term plan, however, is for Oracle to supply the Karachi Electric Supply Company (‘KESC’).


The gatekeepers of Pakistan’s mammoth coal reserves

Speaking at a recent conference, Mr. Ammar Ali Talaat, the KESC’s Strategic Planning and Business Development Manager said that “Pakistan’s huge reserves of coal provides the best solution for its energy crises”. He added that a switch from oil-fired power plans to coal “could save the country approximately one billion dollars”.

Given the political imperative to provide reliable electric power to the 180m Pakistani population, the Government is clearly keen to see the new project succeed, and the plan is for KSEC to build a new power plant next door to Oracle’s Thar mine.

This leaves Oracle’s immediate future somewhat dependent upon KSEC. As shareholders in South Africa’s IPSA (IPSA) have discovered to their cost, that is not always a good thing. But KESC is drawing up its own plans and will seek to raise finance for the power plant concurrently with Oracle’s fund raising for the mine. Initially this will be for a 300MW plant, with a view to scaling this up to 1100MW.

This cosy arrangement also raises the question of Oracle’s future profitability. The Government wants to see the provision of cheap power, and can regulate the electricity tariff. This will determine the price that KSEC can charge, and consequently can afford to pay for its coal.

So Khan accepts that Oracle will not make the super-normal profits that could be generated by exports. On the other hand, a long-term supply agreement with KSEC will give it a secure income stream from which it can look to expand the company.

Either way, Oracle will be a welcome addition to AIM’s mining sector and I’ll be keeping an eye on how it does.
 
GKP up 25% today on discovery of significant oil flows.. more news to come in the next few days.

I'm glad I topped up last week at the 120 level.
 
Must be a relief if anyone is invested in RKH.....

Sound oil seems to be quite a sound investment... :)

Anyone in XTR?
 
dblock said:
GKP up 25% today on discovery of significant oil flows.. more news to come in the next few days.

I'm glad I topped up last week at the 120 level.
Click to expand...

Up another 15% today. I sold at 150ish then bought back in when it went down into the 120s
 
I hope some of you boys got into SOU when it was tipped at 2.1p. Hit the heady heights of 6.4p before a retrace to 5.975p through profit taking.

I still think it will hit 10p by end of Q2 based on anticipation of the Italian drilling programme.
 
I missed out at 2.1 but got rid of some mta and gkp andd bought in at just under 4. It looks very promising. It certainly seems to be gaining momentum.
 
It been ramped to death on the bb's by pi's looking for the next GKP. But while it is probably due a retrace, I still think it has a lot of potential. They also have money in the bank, which is always a comfort against dilution.
 
jaspa888 said:
I hope some of you boys got into SOU when it was tipped at 2.1p. Hit the heady heights of 6.4p before a retrace to 5.975p through profit taking.

I still think it will hit 10p by end of Q2 based on anticipation of the Italian drilling programme.
Click to expand...

Sadly Jaspa...I did not!! Put all eggs into RRL basket. I was hoping for sou to remain quite till we get Georgia drilling news but didn't quite work out that way... well done to those who did buy it at around 2 p.

Bought Encore today on an oil find, stayed away from RKH.

Hopefully I'll make it up with Red Emperor (RMP on ASX) when they list on AIM in a month or so. They have 20% of Gerogia and Puntland... mcap currently around £26m.
 
Would like to find out people's opinion on XTR as well.

Due to drill multi billion prospect in the summer I believe, (Danish north sea).

Market cap 30Million.

Jaspa what do you think about this company, If they hit oil, could it be the next XEL?
 
On_the_up said:
Would like to find out people's opinion on XTR as well.

Due to drill multi billion prospect in the summer I believe, (Danish north sea).

Market cap 30Million.

Jaspa what do you think about this company, If they hit oil, could it be the next XEL?
Click to expand...

XTR has some interesting prospects but it is being ramped to high heaven by some very low grade operators who are talking nonsense and really should know better so go into it with your eyes wide open.

The malicious/naive will talk about the oil shale or shale oil assets in Australia. I have no idea of the difference between shale oil and oil shale but it is apparently a massive difference so anyone talking this asset up is either trying to pump and dump you or very naive and either way you want to stay clear. The 'asset' is under a Aussie Govt moratorium because it would be so polluting to mine it and the Management of XTR to their credit hardly mention it as it is unlikely to be economic for about 20 to 50 years probably.

There is some interesting UK/Danish North Sea licences which are part of the Rotligiendes? geological formation which stretches as I understand it across Europe from the North Sea to the Polish/Rumanian gas/oil fields. An operator which is regarded as being a smart operator Noreco has rescued XTR on this and seems to be pushing towards drilling these prospects. The scuttlebut amongst some appears to be that Noreco have some smart tech which can sniff out oil fields and they do apparently have a high success rate in their driling so that prospect is one to watch.

Finally XTR also have some licences in areas like Kyrgystan which might be of interest one day but the main other assets are in Turkey where they had so many problems the last CEO got himself sacked. Candarli Bay is supposed to host some decent prospects although the drillbit will be the judge of that and they'll need to farm out to some credible operator for it to be taken seriously.

(Disclosure : I played XTR from 2p to 5p (the first time round) and then the round trip down from 5p to 1p so I know the story from very bitter experience)
 
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hey guys, i invest a bit too. im more of a value investor, keeping with safe boring investments with lots of tangible assets and small obvious downsides.

i only looked at xtr very quickly, and to me i see too much risk currently. a 36m market cap on a company with i would roughly estimate a asset worth of about 5m looking at their balance sheet seems steep consdiring they havent made any real money yet.

i only looked at it for a few mins tho, and if they do strike lucky i will look like a fool. happy investing bro. i have a bit of exposure to oil and gas too.

what market to people here primarly trade, im all in lse.
 
Thanks guys, so doesn't seem a straight forward case then. Might be wise to wait a bit longer to see how it plays out.

My current strategy is to get in early-ish (couple of months) on a oily which is about to drill a "big" prospect, wait for the SP to rise on anticipation and top slice before target depth is reached minimising the risk.
 
That is a good strategy

I tend to target small explorers which are looking at potentially big provinces. I was early into things like RKH, BPC, TRP which are targetting Falklands, Bahamas, Namibia respectively.

I think given the performance of the sector and especially juniors it is now very hard to find value in some of these plays as the herd alights on them and takes them up very quickly.

One stock which I think is relatively undiscovered but will target a potentially huge basin is GBP Global Petroleum.

The reason GBP has not been 'discovered' yet is that it has only announced a move into Namibia recently and even then it has not yet completed on the deal which will give it a Namibian licence. GBP used to be a boring cash shell not going anywhere with a Market Cap of £20m and Cash of £20m !

Now it has announced it will buy Jupiter Petroleum.

Jupiter Petroleum is a 'sister' company of Tower Resources which owns the next door licence to Jupiter and has some common management.

TRP has a 15% carry on their Namibia licence. TRP Mkt Cap £90m? for 15% licence.
CHAR has licences next door to TRP and a Mkt Cap of £500m for its 100% held licences.
HRT a big Brazilian E&P player recently paid $750m for UNX a Canadian listed Nambian explorer.

So all in all GBP IF it completes its deal to buy Jupiter Petroleum will in my opinion look very cheap with a Market Cap of £40m? ish with Cash of almost £20m so an EV of just £20m.

Furthermore for those of you with ISA's GBP owing to its listing on both AIM and the Australian Stock Exchange is ISA-able. i.e. potential capital gains can be protected from the taxman

TRP and CHAR are talking about drilling their Namibian licences in Q4 2011 so once GBP complete their deal (May/June?) I reckon they will start promoting themselves more aggressively and will benefit from the bandwagon effect as CHAR/TRP start to mobilise rigs for their campaigns.
 
There is a chap called "Waz Shakoor" who writes on the Fool.co.uk message boards who is highly regarded in PI investing circles who has had this to say about GBP

Hi christian,

You're welcome.

One point that I would make is that it's always worthwhile comparing companies of a similar market cap. to see where relative value is. One thing that struck me recently was that Global Petroleum (GBP) offers that perfect combination of cash + sexy story (Namibia) + low price for the story. I probably should have bought some at 16p when Chariot/Tower Resources were on fire but, as I said, liquidity is an issue for me.

At a market cap. of £40m, but with a lot of cash, it may be of interest to you and others who like that kind of play. I don't hold any, but it looks like a decent "hot money" trade.

WShak

http://boards.fool.co.uk/question-for-wshak-ghh-12203748.aspx?sort=whole
 
char looked really good to me about 6 months ago, but i didnt have free money to put into it. then it got highlighted in investors chronicle and i missed the boat. oh well never mind. it still looks good, just not as good when it was in 180s level.

i still see a lot of the potential in the namibian eplorations. gbp looks interesting, will check it out, thx for the heads up.
 
GBP gaining a lot of interest today

may be due to news due or the fact that people have only a few days left of this tax year to use or lose their ISA allowance

either way I think 20p is a good entry point and 40-60p does seem a decent target

i disagree with the below poster from advfn in that i doubt CHAR now have as much pressure to release news about a farm-in partner having secured funds from investors and also I don't think GBP's US or Ugandan interests have much if any value however TRP news is worth watching out for


mick


Lots of news flow due soon;
1. Completion of Jupiter acquistion
2. Chariot ( their neighbours in Namibia ) are due to announce a farm in by end March.
3. Tower /Arcadia ( also neighbours in Namibia ) are due to produce a CPR in HY1.

In addition given that Global already hold 17m in cash and in addition have valuable interests in US and Uganda, this company looks to have the potential to run onto to 40p to 60p range. Its just a pity that stock is so tightly held.
 
Cnr

Eagle_Eye said:
mining 786..... I thought the JORC is still pending?
Click to expand...

Eagle_Eye, I have no knowledge of this. I just get information from my uncle. But he doesn't spoon feed me information just lets me know what is of importance to me. Sorry for the late reply haven't really been online all that much.
 
Completley unrelated but didn't think it was thread worthy so posted here in the hope that somebody could help ....does anybody have any idea of the salary progression if you work in operations in a bank?
 
Thanks for the heads up pia, being ISA-able is definitely a bonus. Will put it on the watchlist. Maybe move a few notes into these from RRL after Georgia and Puntland mobilisation.

Any thoughts on AEX?
 
mining786 said:
Eagle_Eye, I have no knowledge of this. I just get information from my uncle. But he doesn't spoon feed me information just lets me know what is of importance to me. Sorry for the late reply haven't really been online all that much.
Click to expand...

Thats OK... I thought you might be providing information I was not aware of.. so I was keen to find what you had heard. They came up with with an OK RNS about their gold... They flipped from 3p to around 1.2 p since then.... I think it will motor when they provide further information.
 
DeadlyVenom said:
Completley unrelated but didn't think it was thread worthy so posted here in the hope that somebody could help ....does anybody have any idea of the salary progression if you work in operations in a bank?
Click to expand...

Salaries vary wildly depending on the bank. The Arab banks pay the most, then the foreign banks, followed by the local ones.

The low level positions start from about 20k per month, moving up. My cousin is a VP for Barclays in KHI and he gets about 3.5 lacs per month as a guide.

Cronyism and nepotism is rife though, especially in the local banks. And promotion can take years as the banks (especially local ones) are massively over-staffed.

But there are still management level entry positions for the cream of local graduates (IBA, LUMS) and foreigners.
 
Jaspa... wait for the retrace in SOU to play out or you think its still got more legs? I just have a feeling that lot of recent investors in SOU will head into RRL in the near future...
 
jaspa888 said:
Salaries vary wildly depending on the bank. The Arab banks pay the most, then the foreign banks, followed by the local ones.

The low level positions start from about 20k per month, moving up. My cousin is a VP for Barclays in KHI and he gets about 3.5 lacs per month as a guide.

Cronyism and nepotism is rife though, especially in the local banks. And promotion can take years as the banks (especially local ones) are massively over-staffed.

But there are still management level entry positions for the cream of local graduates (IBA, LUMS) and foreigners.
Click to expand...

I've been offered an interview place on the operations graduate scheme in santander and an engineering interview on the same day and cannot resechedule either. The starting salary is crap in Santander £18-21k a year compared to what I would get as a graduate engineer but the job is closer to home. Ultimately I do want to move abroad (Pakistan or Mid East) and the salary over their seems decent. 18k UK salary is pants though and thats really whats putting me off.
 
Eagle_Eye said:
Jaspa... wait for the retrace in SOU to play out or you think its still got more legs? I just have a feeling that lot of recent investors in SOU will head into RRL in the near future...
Click to expand...

Retrace has started but I personally believe SP will hold because SOU has plenty of drills, plenty of cash, and plenty of pi goodwill.

Everyone wants to be in the next potential XEL/GKP in the pennies...
 
DeadlyVenom said:
I've been offered an interview place on the operations graduate scheme in santander and an engineering interview on the same day and cannot resechedule either. The starting salary is crap in Santander £18-21k a year compared to what I would get as a graduate engineer but the job is closer to home. Ultimately I do want to move abroad (Pakistan or Mid East) and the salary over their seems decent. 18k UK salary is pants though and thats really whats putting me off.
Click to expand...

Banks always pay **** at entry level in the UK, though there is a massive hike when you get to the senior levels.

The problem with the credit crunch is that the bottle necks for promotion have got even narrower, meaning that promotion is ever more elusive.

£18k for a graduate in the current market aint bad at all, when there is 50% unemploytment amongst raw graduates.
 
^^ thanks jaspa. Will have to weigh up the pros and cons of each job
 
It is ISA-season.

This year I'll be using my ISA allowance to purchase (or "Bed & ISA") GBP Global Petroleum - (Namibia/Uganda oil play) and FCR Ferrum Crescent (South African Iron Ore play)

Intend using next years allowance for Serabi Mining (SRB). SRB has actually just become eligible for inclusion in an ISA today as it has achieved a dual listing on the Toronto Stock Exchange (TSE:SBI)

Serabi will be presenting at the next Minesite Conference if you fancy viewing Management telling their story in London...

http://www.minesite.com/msforums.html

quite a packed schedule with other companies presenting including...

•Beowulf Mining
•Crusader Resources
•Hot Chili Limited
•Goldplat
•Ovoca Gold
•Volta Resources
•Serabi Mining
•Endeavour Mining
•Minera IRL
 
What are you current holdings these days and what you hope to include in your portforlio next month for your ISA?

My current holdings are... RRL and MTA.

I will look to put GBP (Thanks pia786) and RMP (Red Emperor on ASX) in ISAs soon. If you believe the RRL story then in short term RMP (20% of Gerogia and Puntland) may provide more bang for the buck as mcap is around £30 m compared to £280 m of RRL. RMP is due for listing on AIM in May but you can put in an ISA through TDW on ASX if you cannot wait till then.

Tony - any more info on wessex?

I am watching SOU and EOG closely too, may take the plunge once I am comfortable that the retrace is over.
 
Toony™® said:
my bro works in oil and gas... he is tipping wessex.
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wessex is run by ex-CEO of HAWK David Bramhill

as well as having lost me and others significant amounts of money the guy is also one of the ugliest,fattest and most looking like a slimy toad individuals i have ever met

i shan't be touching WSX with a bargepole, however Global Petroleum GBP do share the Juan de Novo licence offshore Madagascar with WSX
 
FOGL - news out today

Market Cap around £100m and has about $100m of cash resources to pursue a drilling campaign in the basin south of the Falklands

Just one prospect Loligo (to be drilled with BHP) could be worth £35/share to FOGL so I'd expect the shares to trade at around £3.50/share prior to any drill next year (to account for 1 in 10 chance of success) ?

Will be interesting to keep an eye on
 
RHPS out today at some point

Hopefully will tip ORE, getting a bit bored with that. (Usually a good sign though stale bulls selling LOL)
 
PYC - looks like they've had some news, as ever with bios I have no idea what it means
 
pia786 said:
RHPS out today at some point

Hopefully will tip ORE, getting a bit bored with that. (Usually a good sign though stale bulls selling LOL)
Click to expand...

Which gold miner was he talking about in his free email day or so ago?
 
The RNS basically means that PYC has a future!

Their predicted combination drug scheduling was able to reduce the tumour by 75%. Therefore making their efforts worthwhile.

What this does not mean is that they have in some way have found a magic formula. Instead, what what they can aid in is better treatment regimens for the disease and drug design. Better for the patient as it could yield better results and relief from side effects associated with the drugs.

Going into the future, this area of predicted models to determine treatment strategies for patients will be the way forward and indeed the NHS is already looking into delve into the world of personalised medicine. The technology of sequencing a human genome within a couple of hours has arrived, literally in the last month or so and roll out plans are afoot currently.

Going back to PYC, they will benefit tremendously from this technology as they will be able to get hold of lot of DNA sequences of cancer patients to better their tumour model. This puts them ahead of the game with lot of companies and groups that will increasingly get into this field. I know one prominent hospital in London which is planning to do just that with pharma money.

I have not bought any PYC yet, I will wait for the pump and dump to play out first.
 
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Excellent thanks EE

The gold stock was CGH which is just Bulford retipping his stale stocks to be honest

Actually gold stocks in development and production stage have been pretty ropey in this gold bull market

You needed to be in straight risky explorers like CNR SRB TPJ ORE SHE for decent gains
 
PYC looks like you called it well EE

the share price reaction suggests the news was more significant than I could make it out to be
 
SRB Serabi Mining (Brazilian gold explorer valued at 'only' £24m but with an existing mine and plant infrastructure in a highly prospective area of Brazil with Net Assets of close to $50m! and 26% shareholder is just $9bn gold miner Eldorado) listed in Canada this week so is now ISA-able

some broker comments this week...

Despite the good news, the share price has not reacted accordingly and moved up a trading range. The shares started the year at 36p-40p and are currently quoted 30.5p-32p. The price is clearly sensitive to news releases and generally reacts well to positive newsflow, but tends to drift (particularly in the current climate) on any perceived lack of news.

To us the stock seems unduly range bound in the 30-40p range, perhaps indicative that despite positive news, production is a way off.

By way of background, the current market capitalisation seems to assign little value to an existing gold mine, which has 650,000 ounce gold resources, a mill, 158,000 hectares licence area and enough cash to carry out the necessary resource upgrade activities.

Close to the Palito gold mine, 18 primary targets have been identified, each of which possess a similar geophysical signature to the Palito deposit. A 7,500 metre drilling programme on nine of these drill targets has begun and the plan is to identify two or three mineralised areas, similar in size to the Palito gold deposit, within the immediate mine site area.

The board's multi-mine scenario envisages three 25,000 ounce per annum satellites trucking material to the existing mill. With the level of reserves suggested, the greater Palito project could become a 75,000 ounces of gold a year operation, with a mine life in excess of ten years.

Further news on drilling results should emerge throughout the year. We expect Serabi to generate plenty of news as it continues to journey towards the establishment of a resource of 1.5 million ounces (gold equivalent).
 
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pia786 said:
PYC looks like you called it well EE

the share price reaction suggests the news was more significant than I could make it out to be
Click to expand...

I will buy some now. I cannot stress enough how much this area of research and medicine is about to take off.

If PYC continue to demonstrate that their predictive models work then I expect them to be taken over by one of the big pharma for their own R&D.

Only note of caution is that there will be a deluge of academic research in this area too which might dilute the uniqueness of PYC's work.... But PYC has a head start as major pieces of academic research will start start to be published in a year or so.
 
Bought a small amount of XTR at 3.7p after the latest dip. Seems to have good support around the 3.5p mark. Been floating in the 3.5 to 4.5p channel for a while. Will be looking to break the 4.5p resistance as we head nearer the Luna drill in Q3. Maybe another dip before then.
 
more on SRB Serabi Mining...

Very interesting investor presentation from Serabi comparitor Brazilian Gold Corp (TSX:BGC)

They are on a roadshow at the moment.

Interesting Management/BoD including Ian Stalker and Jim Mellon of UraMin fame

They also just put out a new Investor Presentation highlighting potential of Brazil and in particular the Tapajos region and mention Serabi in passing

http://www.braziliangold.ca/download.html?file=/docs/bgc-corporate-presentation.pdf

BGC and Magellan (TSX:MNM) are valued at close to $120m each versus SRB at only $35m

BGC state they aim to have JORC/NI 43-101 gold resource of 1.5m oz by end 2011 (vs current 0.8m oz)

SRB stated aim is to increase resource to 1.5m+ oz from current 0.6m oz

Serabi is valued at $35m but has net assets of c.$50m (mainly reflecting existing mine and related infrastructure) so very little/zero 'in the price' for exploration success or potential corporate activity (given $9bn gold miner Eldorado owns 26%)
 
very risky due to the debt situation so expect to either make a bundle or lose your entire investment


I would not take those odds myself
 
Toony™® said:
Anyone invested in JJb?
Click to expand...

i got in afew month back at 4.3, thought it might double, but since then it has dropped alot, im just waiting for my entry point so i can get out but they are looking in better shape then a month back....
 
FOGL - Bought a bit today

The South Falklands has been out of the picture whilst RKH prove up their Sea Lion discovery in the North Basin and DES stink the place out with duster after duster.

BOR are due to start a drilling campaign in Q4 in their South Basin licences and it would be sensible for FOGL to opt-in to one of their option wells. However even without that FOGL will no doubt get taken up in sympathy.

FOGL is trading at 85p today. The success case for a successful drill at Loligo was supposed to be £100 per share. Given it is a 1 in 10 CoS (Chance-of-Success) drill the stock should trade at about £10 by my reckoning to adequately 'price' the risk-reward.

"

Further to our announcement on 11 November 2010, Borders & Southern Petroleum plc (AIM: BOR) is pleased to announce that it has signed a contract with Ocean Rig UDW Inc. for the provision of mobile drilling rig services using the Eirik Raude drilling unit, a dynamically positioned, harsh environment semi-submersible. On completion of its current contract in West Africa in October 2011, the rig will be mobilised to the Falkland Islands to commence our two well drilling programme. The wells on our Darwin and Stebbing prospects are currently estimated to take approximately 45 days each. The contract allows for up to three option wells."
 
Anyone in CHAR and/or BPC?.... Do they plan to drill anytime soon or keeping living off the resource updates?
 
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CHAR and TRP claiming they will drill in Q4 in Namibia (I am playing offshore Namibia via TRP and GBP ; GBP might be safer as they won't be drilling :p )

BPC have said they aim to get prospects drill ready for 2012

Generally I prefer to play explorers on the run up to the drill campaign and sell on spud. It usually the safest time to buy them when there is no drilling. If you buy when they are about to drill you'll be buying with the herd and probably overpaying in my experience.
 
BPC licences expire in 2012, and the Environment Minister has recently dismissed BPC's chances of being given permission to drill before that date - hence the reason for the recent drop in SP.

http://www.tribune242.com/business/03302011_albpc_business_Page1-3

I still expect the SP to stay around the recent ii placing of 18.75p, but Burns keeps selling off too. Much of the pi money seems to be transferring to SOU, as they look for short-term gains, but the potential 400p upside of BPC will keep the SP from tanking...
 
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Thanks Jaspa and pia.

I too plan to get into the namibia story via GBP. I was looking into CHAR and realised that they keep enticing investors with resource updates of billions of barrels of oil in place but not firm commitment as to when the plan to drill. Similarly, BPC I am not invested yet but before I do, I want to be sure they actually do have some timelines for drilling and not just the promise of billions of barrels of oil. Although in BPC's case its out of their hand at the moment.

Jaspa - I agree with you, the SOU story seems to be gaining momentum and SP is holding its own. I am waiting how the next few weeks pan out with RRL. There is talk that the Gerogia spud will be delayed till end of May to allow RMP to raise money to list on AIM in early May. Also, Africa Oil may well put the spanners in the works by asking Puntland Government to delay the first drill till september as they have agreed to take over LION (20% of Puntland).... and that is subject to LION shareholder approval in June!!.... Its cutting far too close.

I just hope RRL have some backup plan if Africa Oil delays drilling yet again.... Maybe going Puntland offshore with the chinese? We will soon find out why they raised the £17 million through the drawdown.
 
supersix said:
i got in afew month back at 4.3, thought it might double, but since then it has dropped alot, im just waiting for my entry point so i can get out but they are looking in better shape then a month back....
Click to expand...

thats a very dangerous game to play, u may get lucky with some good news or you may be waiting a long time to break even, but in reality there are many other places where u could reach back to that level quicker then keeping your money in jjb imo.

i think the fact that the largest director shareholding is £20k in a company with a market cap of 40 mill pounds says all you need to know.

hope for your sake its a small part of your protfolio. best of luck with it nonetheless but its way to risky for a defensive investor like me. :misbah
 
Eagle_Eye you still got shares in MTA? What price did you get in and whats your target? I sold most of mine to buy SOU. Hoping that there is some share price movement when A13 flow rates are announced in the coming weeks...
 
DeadlyVenom said:
Eagle_Eye you still got shares in MTA? What price did you get in and whats your target? I sold most of mine to buy SOU. Hoping that there is some share price movement when A13 flow rates are announced in the coming weeks...
Click to expand...

I got in at 3.70. Invested mainly in MTA as news about the flow rates can come at anytime. You made the right choice with SOU hopefully lot earlier that the current SP. I will top slice RRL at some point and invest in SOU.
 
re the BPC licence 'expiry', i don't think it is as terminal as some suggest , these tend to be arbitrary limits with the main aim to stop companies simply hoarding licences, it is quite clear BPC have done a significant amount of work to get potential drill prospects and plays drill-ready and it has been the Bahamas govt imposing a moratorium on drilling which has been the main impediment

remember the Bahamas is a British colony with Union Jack Hayward one of the major figures :p in the Islands and so IMO a British company with heavy US Institutional involvement is not going to be disadvantaged versus the Ruskies/Chinese operating in neighbouring Cuba as wider geo-political and strategic objectives are at stake here

having said that after a move from 2-4p to 20-24p BPC is probably 'up with events' versus other oil explorers targetting large potential World Class provinces like FOGL, TRP, GBP
 
292n289.jpg


This graphic albeit with out of date figures adequately portrays the simple playbook i use to invest in E&P's

No.1 They have to be targetting a potential World Class province - will provide an exit in case of success and may lure a major to farm-in and carry them

No.2 A large province with a number of players is more likely to get media and investor attention when the drilling campaign starts

No.3 Giant prospects make the risk-reward equation a bit easier to understand. Oil exploration drilling is binary anyway so you may as well play for the big home run 10/100 baggers rather than bother with the mere 1-2 baggers IMO

As you can see we now have AIM listed stocks like CHAR in Namibia which hasn't found didly squat valued at $500m or BPC in Bahamas valued at $400m

I suspect FOGL ($200m) is a bit undervalued versus BPC and CHAR right now simply because it went out of favour due to one initial poor drill result and failure to get a rig sorted for another campaign but that looks like it may be rectified soon.

GBP looks ultra-cheap to me with an EV (Market Cap - Cash) of about £10-20m but potentially targetting some interesting acreage. You could easily see that getting taken up in sympathy with any move in TRP and CHAR prior to their Q4 drilling offshore Namibia. GBP looks cheap versus CHAR and remains an undiscovered story albeit they still actually have to complete on their deal to buy Namibian acreage and there have been ructions recently between Serica (SQZ) and CHAR over one licence in the area so the political waters are a bit choppy right now.
 
supersix said:
i got in afew month back at 4.3, thought it might double, but since then it has dropped alot, im just waiting for my entry point so i can get out but they are looking in better shape then a month back....
Click to expand...

Possibly from today more likely tomorrow, the prospectus will be released with the OO share price being announced for the share issue...which is likely to be taken up by the 5 Key investors.. likely to be 40 - 50p - so they will only be ones snapping them up to strengthen their hold in the company... hence why the current share price (29-30p) is being surpressed...by one of them selling for the past 2 weeks...

interesting to see what happens - plan to sell half my investment if it hits 40p this week - thats 4p old money - before share consolidation!
 
From RHPS...


Who could be next to strike in the Falklands?

So far all the drilling activity has been in the North Falklands Basin, and conducted from the Ocean Guardian drilling rig. This has now moved to the Desire’s Ninky prospect, where drilling has started and results should be known within 30 days. This is one of six wells for which Desire already has sufficient funding. Rockhopper, meanwhile raised £200m last October with which to drill new targets but also to do more appraisal work and field development plans at Sea Lion.

All of this is taking place in the North Falklands Basin, but progress has been slower in the South Falklands Basin. Here, the deeper waters require a different type of rig to the Ocean Guardian, and the two stock market plays are Borders & Southern and Falkland Oil & Gas.

Borders & Southern has contracted the Eirik Raude semi-submersible rig that will make its way to the Falklands on completion of its current contract in West Africa in October. Borders will then drill two wells, and have an option to drill three more. So at the end of this year attention will turn to Borders, which just leaves Falkland Oil & Gas.

Falkland Oil & Gas also has acreage in the South Falklands Basin, to the east of Borders. It has drilled one unsuccessful well at its shallower extremity, where it was able to utilise the Ocean Guardian, but for further exploration it needs a deep water rig. Last year FOGL’s partner, BHP, decided that it did not wish to continue with a joint venture over the southern half of FOGL’s license area, but it does still have a shared interest in the northern half.

A fortnight ago FOGL revealed that it is “at an advanced stage in contract negotiations for a suitable deep water rig for the Southern Licence area” and that “BHP Billiton is also engaged in related negotiations to secure a rig slot to drill Loligo”.

Loligo is a massive prospect, with estimate reserves of 3.5bn barrels. On the basis of the valuation metrics applied by RPS Energy and Senergy 3.5bn barrels would be worth a mind-boggling $50bn, a massive sum, of which FOGL would have a 49% interest.

There is not much doubt that the South Atlantic is host to more than just the Sea Lion field. All four explorers have further shots at the board over the next year or so. This remains a territory where fortunes could be made.


http://info.redhotpennyshares.co.uk/
 
Disappointing flow rates from MTA. Just goes to prove that Binman Dan is a hack.

DV - good call on moving your stake from MTA to SOU.

MTA would be a good buy after the retrace... 2.5 maybe?

Jaspa - you still in MTA?
 
Eagle_Eye said:
Disappointing flow rates from MTA. Just goes to prove that Binman Dan is a hack.

DV - good call on moving your stake from MTA to SOU.

MTA would be a good buy after the retrace... 2.5 maybe?

Jaspa - you still in MTA?
Click to expand...

Eagle_Eye the only time MTA share price increase was when BMD wrote a bit on his blog about it. So much for his share price will double on news nonsense :))
 
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