High risk stocks (Petroceltic)

Agree , believe its prob good in the medlong to long term bit I was hoping to get a short term payback after olding for the long term !!!!

Frustrating this share but potential and upside to to large to get off, sit and wait pattern as usual......

No Risk No brainer, SCLP, XEN, FUM DYOR

Thanks

OBRIEN552008 wrote: »

Excuse my ignorance but what is the advantage of the merger for a petroceltic shareholder v a Melrose shareholder?

They are looking at a longer term build to establish a strong company.
It gives is more fire power down the line,skills and knowledge swap,greater exploration but I reckon this will be a slower burner than I had planned for.
In it a long time now but looks like we could be heading for a 2-3 yr mark to get a decent return once things go to plan.

Grecco wrote: »

Sappa wrote: »

I reckon this will be a slower burner than I had planned for.
In it a long time now but looks like we could be heading for a 2-3 yr mark to get a decent return

I disagree,
a move to the FTSE main market will lift the SP on its own. Petrocletic will move from being a small struggling tin pot of an exploration company to a major player in the MENA region. I believe the arrival of Tom Hickey on the scene has transformed this company, Its objectives are now a lot clearer
Once the dust settles expect significant SP movement upwards over the next 6 months.

I hope your right grecco

Grecco wrote: »

I disagree,
a move to the FTSE main market will lift the SP on its own. Petrocletic will move from being a small struggling tin pot of an exploration company to a major player in the MENA region. I believe the arrival of Tom Hickey on the scene has transformed this company, Its objectives are now a lot clearer
Once the dust settles expect significant SP movement upwards over the next 6 months.

What about reverse split/consolidation?

OBRIEN552008 wrote: »

Excuse my ignorance but what is the advantage of the merger for a petroceltic shareholder v a Melrose shareholder?

Petroceltic, with partners, have had a huge oil and gas find in Algeria [look at the press releases on their website www.petroceltic.ie for details].

P/celtic had a number of options in order to fund getting the oil out of the ground, they could have brought in another partner [farmed out a stake], tried to raise money on the markets or tried to borrow money.

This deal is a combination of some of the above. Melrose already has cashflow, whereas P/celtic has prospects. Using their cashflow and assets, P/celtic will be able to borrow or finance the amounts they need to raise.

For a melrose s/holder, the advantage is that they get access to the huge Algerian find in exchange for the 'borrowability' of their current cash flow.

Latest release from the Company as of this morning

---

Interim Results and Operational Update - Six months ended June 30th, 2012


28/08/2012

Petroceltic International plc (“Petroceltic” or “the Company”), the independent oil & gas exploration company focused on the Middle East-North Africa (“MENA”) and Mediterranean region today announces its results for the period ended 30 June 2012.

Highlights:
•Proposed Merger of Petroceltic & Melrose Resources plc (‘Melrose’) announced 17 August.
•Declaration of Commerciality announced 9 August for the Ain Tsila Field in Algeria.
•Final Discovery Report filed with the Algerian Competent Authorities.
•Petroceltic estimates the Ain Tsila field to contain gross resources of 2.2 Tcf of sales gas, 70 MMbbl of condensate and 113 MMbbl of LPG.
•Agreement reached with Sonatrach to market the Ain Tsila gas at a price linked to Brent oil price.
•Seismic acquisition underway in the Kurdistan Region of Iraq.
•Award of two licences in the central Adriatic, offshore Italy.
•Italian Legislative Decree 83/2012 approved by Italian Parliament 12 August, provides for the potential resumption of activities offshore Italy.
•Preparations for drilling of high value Carpignano Sesia prospect (formerly Rovasenda) in Italy in early 2013.
•Funded and well placed to continue to develop and grow the business. Cash position of US$51.1m at 27 August 2012 with no debt.

Brian O’Cathain, Chief Executive of Petroceltic commented:

“This is a transformational time for Petroceltic, the proposed merger with Melrose has a compelling strategic and commercial logic, creating a regional leader with a diversified portfolio of producing, development and high impact exploration assets. Upon approval by shareholders of Petroceltic and Melrose of the proposed merger, the Enlarged Group will be well funded, capable of sustained long term growth and of delivering significant value to our shareholders. During the first half of 2012, Petroceltic has achieved some significant operational and commercial milestones in both Algeria and Italy, and has made good progress with seismic acquisition in the Kurdistan Region of Iraq. Our next important task will be the commencement of the development planning phase on Ain Tsila, in conjunction with our partners Sonatrach and Enel”.


www.petroceltic.ie

RATM wrote: »

Has anyone got any thoughts or outlooks on Petroneft ? They are drilling out in Siberia and intend to drill about 10 wells in total. One is producing steady at about 2400bpd. I read the other day that a big company in the area bought out a smaller one, valuing their reserves at 2.35 a barrel but Petronefts valuation is sitting on 88c a barrel so a few analysts reckon they're vastly undervalued and the upside should be coming soon so long as the other 9 wells come on stream.
CEO is an Irishman Dennis Francis, can't seem to find too much about his working history online.

So just wondering if anyone here is on them or have looked at them ? I'm a beginner at this game but looking at a play soon. The news coming from them seems to be quite positive of late so just looking to get others thoughts on them.

This a PCI thread pal and some of us are little too anxious to be concerned with other small caps!

rs500ff wrote: »

Is there any current interest in the current debacle here with World View?
I'm assuming many of you have sold out at this stage.
I'm still in and eagerly awaiting the outcome to see if Brian O'Cathain will get the bullet.

From the Irish Times

The board of Petroceltic says it has been endorsed by three leading shareholder advisory groups in its fight with investor Worldview.
The Dublin-based oil and gas explorer is trying to fend off moves by the Swiss hedge fund to oust its chief executive Brian O’Cathain.
It said top corporate governance advisory firms - ISS and Glass Lewis - have advised shareholders to vote against resolutions proposed by Worldview at a crunch EGM next week.
A third advisory group Pirc recommended shareholders abstain on a resolution to remove Mr O’Cathain, while voting against resolutions to appoint Worldview candidates, Maurice Dijols and Angelo Moskov, to the board.
The company claimed the recommendations represented a strong endorsement of its strategy and corporate governance.
“These three independent corporate governance groups have completed detailed analysis of this situation and have taken the views of both sides into consideration,” Petroceltic chairman Robert Adair said.
“We welcome these conclusions and believe that this represents a vote of confidence in the existing board, its strategy and governance.”
The latest salvo in the increasingly fraught war of words between Petroceltic and Worldview comes ahead of next Wednesday’s EGM.
The Swiss fund, which owns a 29 per cent stake in the company, has been in a wrangle with management over a string of alleged corporate governance failings, which it blames on Mr O’Cathain.
It accuses Petroceltic of reneging on an agreement to undertake a strategic review of the company in return for Worldview’s consent to a $100 million share placing last year.
However, Petroceltic claims the allegations are merely a ruse to gain control of the company without buying it.
Last week, Mr O’Cathain said he was prepared to sit down and talk with Worldview but could not get the Swiss group to return his calls.
He also claimed he would not be surprise if energy group Dragon Oil, which aborted a bid to acquire Petroceltic in December because of the drop in oil prices, came back with another bid for the company.
In a broker’s note, Goodbody said: “As an independent entity we continue see value in Petroceltic, even if the lack of exploration success has limited near term catalysts.”
“In the circumstances, we are not surprised to see commentary that management would be open to a fresh approach from Dragon Oil.”
“Whether that emerges or not, consolidation around the core assets of Algeria and Egypt and pressure from an activist shareholder is likely to see Petroceltic feature as a potential M&A target.”

Turning into a car crash. Hard not to feel some sympathy for Worldview's recent actions. Just a train of bad management and bad business decisions.