High risk stocks (Petroceltic)

Shauny2010 · 20-12-2010 4:59pm #1

Hi, I'm looking at shifting a small percentage of my port-folio higher risk stocks such as Tech startups or Oil and gas exploration. I was looking at Petroceltic (because of the weakness of the Euro Vs Sterling stocks)
stocks but don't really know much about them, they seem to be loss making for the last number of years. Are they a case that if they strike oil then the stocks will sore or are they just a drill company with no ownership of the wells ?

poodles · 20-12-2010 11:33pm

Shauny2010 wrote: »

Hi, I'm looking at shifting a small percentage of my port-folio higher risk stocks such as Tech startups or Oil and gas exploration. I was looking at Petroceltic (because of the weakness of the Euro Vs Sterling stocks)
stocks but don't really know much about them, they seem to be loss making for the last number of years. Are they a case that if they strike oil then the stocks will sore or are they just a drill company with no ownership of the wells ?

I recommend you look at Range Resources (RRL)

Comordha · 12-01-2011 10:59am

More proof of the Mammoth find Petroceltic have. Dump your bank shares and get in here, 2011 is going to be a game-changer for this company. A gas field the size of greater London can only go unnoticed for so long.

Petroceltic International plc
Algeria Operational Update

Better than expected AT-4 well encounters 155 metre gross gas column
Pressure and gas column continuity confirmed on the eastern flank of the field
Well suspended for flow testing later this month
AT-5 spudded on January 9th
Petroceltic International plc (“Petroceltic” or “the Company”), the upstream oil and gas
exploration and production company, in association with its partner Sonatrach, the
Algerian National Oil & Gas Company is pleased to issue an operational update on its
Isarene permit in the Illizi Basin in South Eastern Algeria.
Well AT-4, the first of a four well appraisal campaign, was successfully drilled and
completed within budget. The well commenced drilling on 16th November 2010, and
reached total depth of 2142 metres on 18th December 2010, having successfully cut and
recovered 48 metres of core in the objective Ordovician Unit IV reservoir sequence.
AT-4 is a vertical well located approximately 10 km to the east of AT-2 and is the first
well to be drilled on the eastern flank of the field. The principal objective of the well was
to determine the nature and extent of the gas in place in this previously undrilled area of
the field.
The well encountered a gross gas column of 155 metres with no gas-water contact
observed. Additionally, static reservoir pressure readings indicated that the main
Ordovician gas reservoir in this area is in the same pressure regime as that encountered
at wells AT-1, AT-2, and AT-3.
Completion operations on the well finished on 27th December 2010 when the rig was
released to move to AT-5. The well has now been suspended, pending rigless fracture
stimulation and flow testing over the coming month.
Appraisal well AT-5 was spudded on 9th January 2011 and has an expected drilling
duration of approximately 65 days. This well is targeted at a “pop-up” feature to the north
of the Ain Tsila field, where natural reservoir fracturing in combination with the near
horizontal well bore trajectory may lead to enhanced productivity. The well will be drilled
first as a semi-vertical pilot hole, and then sidetracked as a deviated well with a 450
metre horizontal section through the objective Ordovician reservoir.
Brian O’Cathain, Chief Executive of Petroceltic, commented:
2
“The first well in the current Ain Tsila appraisal campaign has successfully achieved its
objective of confirming the presence of a gas column with pressure continuity on the
previously undrilled eastern flank of the field. Whilst AT-4 was designed with a primary
focus on proving up gas in place rather than productivity, we are optimistic for a positive
outcome from testing. The next well in the appraisal drilling programme (AT-5) will test
the potential for encountering natural fractures in horizontal wells, in addition to the
potential for multiple fracture stimulations to improve productivity and recovery factor for
the field”.

Shauny2010 · 12-01-2011 11:53am

Picked up even more shares today on the news ( There definitely top heavy on my port-folio now),
Its hard to pin-point what was holding down the share price over the last 12 months maybe factors such as BP did; This Gas field may be as Big as they said after all !!!
As more and more results like this come in then the sp is going to rocket

I wonder will Tullow Oil end up partnering them on this

swagger121 · 12-01-2011 3:44pm

up 12% to 14.5p already today. youve made a decent return already shauny!

Shauny2010 · 12-01-2011 4:10pm

swagger121 wrote: »

up 12% to 14.5p already today. youve made a decent return already shauny!

This is still early stages,if that gas field turns out as big as they say then the shares will go close to £1

Comordha · 12-01-2011 5:14pm

I'm in vewry deep here too. Been in for a while so sitting on a nice profit. Even though there are still risks I feel very confident in the management. This is worth a read too - http://www.sgam.co.uk/petroceltic-latest-ain-tsila-well-prompts-upgrade-from-davy/

Unfortunately for me, for now, I made a decision to top this up instead of Petroneft before it increased some five fold in value. I would have been a very rich money otherwise but still very confident I can someday make a similar type of return on this one.

Shauny2010 · 12-01-2011 6:05pm

Comordha wrote: »

I'm in vewry deep here too. Been in for a while so sitting on a nice profit. Even though there are still risks I feel very confident in the management. This is worth a read too - http://www.sgam.co.uk/petroceltic-latest-ain-tsila-well-prompts-upgrade-from-davy/

Unfortunately for me, for now, I made a decision to top this up instead of Petroneft before it increased some five fold in value. I would have been a very rich money otherwise but still very confident I can someday make a similar type of return on this one.

The door hasn't closed yet for getting in on this share but By the time The next well in the campaign AT-5 is drilled it may be too late to buy in. From then on it will be a hold and see what happens situation.
It was a fair bold move alright to drill AT-4 so far from AT-2 lets hope the next one comes in

As for Petroneft, theres always one that gets away; I could be moaning for the next 10 years about all the what ifs

muppet_man · 12-01-2011 6:18pm

Shauny2010 wrote: »

The next well in the campaign AT-5 is drilled it may be too late to buy in.

Any idea as to when this well will be drilled and results known?

Shauny2010 · 12-01-2011 6:39pm

About 65 days but it could be sooner, the last set of results came in earlier than expected

irishh_bob · 12-01-2011 6:47pm

when you try and purchase this share via goodbodies , two options come up , one is petroceltic ( lse ) , the other is petroceltic international plc

stupid question i know , i realise LSE is london stock exchange but are they one and the same company

dunkamania · 12-01-2011 7:18pm

Yes they are, liquidity is usually better in London, if memory serves.

irishh_bob · 12-01-2011 9:21pm

dunkamania wrote: »

Yes they are, liquidity is usually better in London, if memory serves.

plus sterling is likely to stay strong against the euro in the short term

dunkamania · 12-01-2011 11:06pm

If you are a cash buyer, than your return will be identical, whether you buy the Euro or GBP line. The company's accounts are in USD, so the EURUSD rate is probably more important.

Dude240502 · 12-01-2011 11:12pm

If the results were that positive, it didn't rise by very much, are there a lot of important dates still to come? Is Xcite not a better Investment in he short term?

Comordha · 13-01-2011 11:03am

I'm happy with 12.5% in 1 day and then it holds the next too.

Shauny2010 · 13-01-2011 12:47pm

Dude240502 wrote: »

If the results were that positive, it didn't rise by very much, are there a lot of important dates still to come? Is Xcite not a better Investment in he short term?

This is more speculation than investment, theres more tests to be done all of which aim to find out how much Gas they can extract.
As for Xcite it may well be a better short term but for me its another stock I have to go and research and I ve already done that with enough stocks for now

Range resources is still also good punt though and offers good short term prospects

pokerface11 · 13-01-2011 2:32pm

I have a small holding on this stock but looking to add more. Its a speculative buy but could turn out to be a good reward. What is the general consensus for SP December 2011?

Shauny2010 · 13-01-2011 11:57pm

pokerface11 wrote: »

I have a small holding on this stock but looking to add more. Its a speculative buy but could turn out to be a good reward. What is the general consensus for SP December 2011?

Depends, at the moment 16p
By the end of this Algerian appraisal campaign probably 30-40p if results are good (or 5p if not!!). That will be about it for 2011 unless they get the go ahead to recommence operations off the coast of Italy which could add a bit more to the sp

poodles · 14-01-2011 3:23am

Shauny2010 wrote: »

This is more speculation than investment, theres more tests to be done all of which aim to find out how much Gas they can extract.
As for Xcite it may well be a better short term but for me its another stock I have to go and research and I ve already done that with enough stocks for now

Range resources is still also good punt though and offers good short term prospects

Shauny did you buy back into RRL?

Next week should be big.

Shauny2010 · 14-01-2011 9:52am

I did, I had got stopped out at 8p and bought back in twice as many at 7.6p
Ive since decided to push the stops back to 6.5p so I could take a loss but I don't see a choice as these penny shares jump about too much:)
I'm in for just a nice few K between Petroceltic and Range so I`ll lay off buying any more for now

poodles · 14-01-2011 10:31am

Shauny2010 wrote: »

I did, I had got stopped out at 8p and bought back in twice as many at 7.6p
Ive since decided to push the stops back to 6.5p so I could take a loss but I don't see a choice as these penny shares jump about too much:)
I'm in for just a nice few K between Petroceltic and Range so I`ll lay off buying any more for now

I wouldn't put a have a stop on any AIM share...that said, I'm not working so I'm able to keep a close eye on my stocks. I think we could test 12p next week with RRL.

swagger121 · 14-01-2011 6:42pm

anyone consider selling? i bought in at 15.5p about 2years ago so will have to wait a while yet!

SC024 · 14-01-2011 8:05pm

Yes am in for about 4years now, doing ok...
Am also in Matra Petroleum LSE:MTA and Roxi Petroleum LSE:RXP

Bought a very small amount in amerisure LSE:AMER mid september @ 0.139 pence, todays closing mid price is 20.5 pence

swagger121 · 14-01-2011 8:50pm

wot price did u buy PCI at, i doubt they will reach davys price target of 30p!

turbobaby · 14-01-2011 9:05pm

I have done a little bit of research on this, and very much considering getting on the bandwagon with about €3k worth of shares.

Have sold out of my USL oil ETF and looking for a riskier play, which this certainly is.

Good luck to all over the next year!

SC024 · 14-01-2011 9:36pm

swagger121 wrote: »

wot price did u buy PCI at, i doubt they will reach davys price target of 30p!

Got in about 10.25 pence. I wouldn't pay much attention to Davys Targets, They were tipping Aib & Boi till 12 months ago

turbobaby · 14-01-2011 9:50pm

SC024 wrote: »

I wouldn't pay much attention to Davys Targets, They were tipping Aib & Boi till 12 months ago

Completely agree!

Dude240502 · 14-01-2011 11:17pm

Does anyone know anything about Arian Silver, apparently there is an announcement of results soon, I've heard a lot of predictions for it?

poodles · 15-01-2011 2:33am

Dude240502 wrote: »

Does anyone know anything about Arian Silver, apparently there is an announcement of results soon, I've heard a lot of predictions for it?

I've read good things about AGQ but decided against buying them as I though I had missed the boat - I since bought Ortac Resources OTC.L and have done a lot of reading up on the company. Great *measured* type of gold in the ground and they're expecting to increase their jorc estimate to 1million oz gold + within the next few days.
The company is already undervalued on the existing jorc, never mind the upgraded jorc expected soon.

ranger4 · 15-01-2011 12:50pm

Very possitive RNs with 3 more due to confirm potentail algerian gas find size and volume of gas find also we should hear news of potentail farm in partner, I would rather hear news that pci is in postion to aquire funding to build plant and be in postion to exstract the gas from At-4 which could see buyout interest from one of the majors BP, or russians, either way PCI SP has potentail to rocket over next few months although we could see sp dip back to 0.15-0.16c support untill next hopefully possitive RNS is announced, I am in Large with this share and am confident it has potentail to easily reach 0.30-0.50c+ this year.

Shauny2010 · 15-01-2011 5:34pm

ranger4 wrote: »

share and am confident it has potentail to easily reach 0.30-0.50c+ this year.

I agree that it could hit that price this year but by then it will be worth waiting till mid 2012 to realize the full extent of the sp rise

Comordha · 19-01-2011 12:41pm

Very exciting times for Petroceltic -

http://www.icis.com/heren/articles/2011/01/18/9427082/major-algerian-gas-discovery-volumes-marked-for-europe.html

dunkamania · 19-01-2011 5:14pm

Subscription required?

Shauny2010 · 19-01-2011 5:43pm

Comordha wrote: »

Very exciting times for Petroceltic -

Comordha we cant see the article, if you get a chance you might put it up here
thanks

Comordha · 20-01-2011 10:34am

From ICIS HEREN, 19/01/2011

International exploration company Petroceltic, which is headquartered in Ireland, is in discussion with several European utilities to form a marketing agreement to export its large Algerian gas discovery to Europe for a period of 20-25 years.
The gas - estimated at between 2.7 trillion cubic feet (tcf) and 10.9tcf, or between 76.5 billion cubic metres (Gm³) and 308.9Gm³ - is planned to be moved to Europe via pipeline from 2016.
Petroceltic will announce its choice of European partner in the second half of 2011.
A gas-marketing company will then be formed by Petroceltic, Algerian state energy company Sonatrach and the European partner, with 51% of the project ownership awarded to Sonatrach.
"We want to export the gas through a long-term gas pipeline contract to Europe because we have enough gas to export for a period of 20 to 25 years - so it's a big investment," said Brian O'Cathain, chief executive and managing director of Petroceltic, in an interview with ICIS Heren on Tuesday.
"However, we will not rule out exporting gas as spot LNG cargoes."
Petroceltic announced on 12 January this year that its well in the Illizi Basin, southeastern Algeria, had encountered a gross gas column of 155m, with no gas water contact.
"We are optimistic for a positive outcome from testing," said O'Cathain.
In 2009, Petroceltic had discovered 2.7-10.9tcf in four wells in the Illizi Basin, representing up to around one-tenth of Algeria's estimated gas reserves. It is this gas that is marked for export.
Sonatrach's role
Petroceltic has a second option: selling 25% of its gas discovery to Sonatrach, priced on the state company's netbacks for exports in the past six months.
The gas would become part of Sonatrach's general portfolio, but would most likely be marked for export.
"Algeria's major gas-producing field, called Hassi R'Mel, has been going since the 1960s, and is now in serious decline. It is flowing way more water than it should, which will eventually make gas exports from Algeria pretty tight," said O'Cathain.
"In addition to this, the price for selling gas on the Algerian domestic market is relatively cheap, so gas is more valuable to Sonatrach as an export commodity."
Iberdrola
Petroceltic originally had an agreement with Spanish electricity and gas supplier Iberdrola to channel its Algerian gas assets into Spain's gas market through the Maghreb-Europe Gas pipeline.
However, the agreement fell apart when Iberdrola sold its majority stake in Petroceltic two years ago, as part of an ongoing divestment of non-core assets.
Algeria currently runs two pipelines to Europe: the Trans-Mediterranean pipeline (to Italy), and the Maghreb-Europe Gas pipeline (to Spain). The Medgaz pipeline (to Spain) and the Galsi pipeline (to Italy) are scheduled for early 2011.
Petroceltic's partner could therefore be a Spanish or Italian utility, but O'Cathain would not confirm this, except to say that Petroceltic was choosing from "a very short list". JSH

The Pontiac · 20-01-2011 1:42pm

I'm not actually invested in PetroCeltic, but I came across this while searching for something else. A presentation they did in Manchester at the end of November..

https://www.youtube.com/watch?v=8AhWQ4ScmME

https://www.youtube.com/watch?v=al2kFZbS9Ug

https://www.youtube.com/watch?v=p3dQ48sMQ1s

Fr Dougal Mcguire · 25-01-2011 4:48pm

is this the right petrolceltic or is it a different one you guys are talking about

http://www.davy.ie/PricesAndCharts?pandccompanyname=petroceltic

josey_whale · 25-01-2011 6:15pm

Fr Dougal Mcguire wrote: »

is this the right petrolceltic or is it a different one you guys are talking about

Yes. That's the one. Petroceltic is quoted on the AIM in London and also in ISEQ in Dublin. The page in the link refers to the AIM.

Fr Dougal Mcguire · 25-01-2011 8:53pm

thinking of buying these shares. does it matter if i buy on AIM or ISEQ. Was just gonna pop into broker and get them.

christeb · 25-01-2011 9:51pm

1% tax on the ISEQ, but then you negate currency risk.

I joined this party yesterday too (on the AIM), will be in for the medium -> long term

Fr Dougal Mcguire · 25-01-2011 9:58pm

anyone know what the current price is to buy shares in davy. is it still around 100 per transaction.
Im just gonna go in and buy them instead of going through my online account

Shauny2010 · 26-01-2011 12:49am

Fr Dougal Mcguire wrote: »

anyone know what the current price is to buy shares in davy. is it still around 100 per transaction.
Im just gonna go in and buy them instead of going through my online account

You must have money to burn so,
Why not use your trading account and save some money, plus you don't have to accept the market price for the share you could go in lower than the Bid and wait for the usual share volatility to play in your favor:D

Shauny2010 · 26-01-2011 12:52am

christeb wrote: »

1% tax on the ISEQ, but then you negate currency risk.

I joined this party yesterday too (on the AIM), will be in for the medium -> long term

Some party eh! Just remember this is still a punt not an investment

Fr Dougal Mcguire · 26-01-2011 12:59am

Shauny2010 wrote: »

You must have money to burn so,
Why not use your trading account and save some money, plus you don't have to accept the market price for the share you could go in lower than the Bid and wait for the usual share volatility to play in your favor:D

Sorry I wasnt very clear in my post,
Im using my own online account for myself, but family member also on boards constantly and wants to buy too, so they heading into town to buy for themselves because their online account isnt set up yet and their anxious to buy these.

Comordha · 26-01-2011 10:06am

I've been in this party for 2 years now, it's a great one to be in. Very rarely quiet but some times the cops show up and turn the music down a little.

christeb · 26-01-2011 10:10am

Shauny2010 wrote: »

Some party eh! Just remember this is still a punt not an investment

Some party indeed. Clearly a Boards I&M night out is on the cards if this one goes through the roof....

Shauny2010 · 26-01-2011 11:00am

christeb wrote: »

Some party indeed. Clearly a Boards I&M night out is on the cards if this one goes through the roof....

Yea, that would be something
I`ll be supplying the Bubbly with my own vineyard
(I wish.....):D

bestie · 26-01-2011 9:00pm

Is one better off buying shares on the

LSE (0.14 gbp) or the ISEQ (0.18 eur)

Obviously there are more trades done on the LSE, are most people buying from LSE ?

anyone know why doesn't google finance never shows results of ISEQ shares?

poodles · 27-01-2011 2:05pm

bestie wrote: »

Is one better off buying shares on the

LSE (0.14 gbp) or the ISEQ (0.18 eur)

Obviously there are more trades done on the LSE, are most people buying from LSE ?

anyone know why doesn't google finance never shows results of ISEQ shares?

If I remember correctly...PCI's SP on the ISEQ rarely goes up or down in anything less than 0.5c's whereas on the LSE it will move usually in 0.25p's or less.

Also, I think there is a higher / extra government stamp duty charge when buying Irish stocks?

You have to take into consideration also that you will have to convert funds from Euros ---> GB Pounds and beware of the charges. (TDWaterhouse charge 1.75% over the base rate on FX :eek: )

Fr Dougal Mcguire · 27-01-2011 10:35pm

Anyone take a guess at to what the potential for these shares is in a year or even 6 months.

Do you think they will yield a return in the next few months?

Be interested to hear peoples opinions

High risk stocks (Petroceltic)

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