Petroceltic's Algerian well beats forecasts

Lexus1976

Tuesday, 22 September 2009 11:38
Exploration company Petroceltic International says the results of the AT-1 well on the Isarene permit in Algeria have exceeded its pre-drilling expectations.

Petroceltic says it is the most prolific single zone well test on the Isarene permit to date.

The AT-1 well is the second well in the current drilling programme on the Isarene permit in the Illizi basis in Algeria. The company says the results confirm the high gas potential of the Ain Tsila ridge discovery at the location.

AdvertisementThe well was drilled by Petroceltic, which has a 75% stake and is the well's operator, in association with the Algerian Oil and Gas Company Sonatrach (25% interest).

'These well results confirm the significant commercial potential of the Isarene permit to Petroceltic and our partner Sonatrach,' commented Brian O'Cathain, Petroceltic's CEO.

http://www.rte.ie/business/2009/0922/petroceltic.html

http://www.petroceltic.ie/pci/investor_relations/reports/2009/2009-09-22/2009-09-22.pdf

:):D:):D:):D:):D:):D:):D

Comordha

There'll be more of these smiley faces in this thread over the next year, this is only the beginning.

ranger4

Comordha wrote: »

There'll be more of these smiley faces in this thread over the next year, this is only the beginning.

Possible takeover target from the likes of tullow etc?

saggart

try bp

lucky-colm

thats great news

i bought 5000 shares in this company 2 weeks ago at 15.75cents a quick check on davys tells me they are at 23 cents this evening might try and buy more tomorrow

there is also a strong rumour of a takeover so it looks like up up and away for these shares:D:D:D:D:D:D:D:D

Comordha

Fill your boots boys

ranger4

Comordha wrote: »

Fill your boots boys

bought more this morn, I feel this stock offers exellent prospects for decent upside by next year, Looks ripe for a takeover bid. Anyone care to predict sp by next year?

Lexus1976

ranger4 wrote: »

bought more this morn, I feel this stock offers exellent prospects for decent upside by next year, Looks ripe for a takeover bid. Anyone care to predict sp by next year?

I doubt there is anything in the takeover news. PCI, Sonatrach and Iberdrola have formed a 3 way partnership. A takeover bid would have to be agreeable to all parties before anything would go ahead.

Besides I hope the takeover stories are just rumours. The company is doing well and in my opinion its the last thing it needs at this stage.
I bought these shares in August at .13 cent their now .215 cents (65%+ increase)

There are namely 2 factors affecting the share price at the moment.

1. Profit taking
2. The fall in oil prices

For those reasons alone I'll be holding off till next week before adding to my holdings.


As far as predicting the share price next year, I predict they will be higher then today.

ranger4

Lexus1976 wrote: »

I doubt there is anything in the takeover news. PCI, Sonatrach and Iberdrola have formed a 3 way partnership. A takeover bid would have to be agreeable to all parties before anything would go ahead.

Besides I hope the takeover stories are just rumours. The company is doing well and in my opinion its the last thing it needs at this stage.
I bought these shares in August at .13 cent their now .215 cents (65%+ increase)

There are namely 2 factors affecting the share price at the moment.

1. Profit taking
2. The fall in oil prices

For those reasons alone I'll be holding off till next week before adding to my holdings.


As far as predicting the share price next year, I predict they will be higher then today.

Where do you see support level with next pullback due to profit taking?

Lexus1976

ranger4 wrote: »

Where do you see support level with next pullback due to profit taking?

Hard to tell, i'm keeping a close eye on the share trades going through, some significant buys this morning.


Came across this site for those of you who believe in bar charts and graphs. Unfortunately I'm not a big believer in this type of analysis, in saying that it provides intersting viewing.

http://quote.barchart.com/texpert.asp?sym=pci.LS&code=BSTK

ionapaul

I've been in and out of PCI for the last few years - it is incredible volatile! Had 52,000 shares until a few weeks ago, had to nail in the profit and only have a little over €1,000 worth now (couldn't actually sell all of them when I wanted to so am left with 6,000 shares!). They could go to 25p as soon as back down to 10p - quite sentiment driven.

joe123

ionapaul wrote: »

I've been in and out of PCI for the last few years - it is incredible volatile! Had 52,000 shares until a few weeks ago, had to nail in the profit and only have a little over €1,000 worth now (couldn't actually sell all of them when I wanted to so am left with 6,000 shares!). They could go to 25p as soon as back down to 10p - quite sentiment driven.

lse.co.uk is a great website for shares. Got into pci a few days ago at 17.25. If you want volatility try PXS. That crowd are craaazzzy.

Lexus1976

I've decide its now time to increase my holding in PCI. It will be a rough ride, so my holdings will be long term (2-5yrs) It looks as if most of the profit taking has now completed. There is an optimistic vibe about the oil industry as a whole and I believe PCI have the most potential considering their current value.

These are only my views!



Pennystocks
http://www.fleetstreetinvest.co.uk/small-cap/aim-market/fsa-warning-penny-shares-77441.html



The Price of Oil
http://media.www.mcgilltribune.com/media/storage/paper234/news/2009/09/29/News/Jeff-Rubin.Warns.Of.Imminent.Rise.In.Oil.Prices.To.Triple.Digits-3786298.shtml

Oil Trades
http://www.bloomberg.com/apps/news?pid=20601102&sid=a0nieIuwG6pU

ranger4

Lexus1976 wrote: »

I've decide its now time to increase my holding in PCI. It will be a rough ride, so my holdings will be long term (2-5yrs) It looks as if most of the profit taking has now completed. There is an optimistic vibe about the oil industry as a whole and I believe PCI have the most potential considering their current value.

These are only my views!



Pennystocks
http://www.fleetstreetinvest.co.uk/small-cap/aim-market/fsa-warning-penny-shares-77441.html



The Price of Oil
http://media.www.mcgilltribune.com/media/storage/paper234/news/2009/09/29/News/Jeff-Rubin.Warns.Of.Imminent.Rise.In.Oil.Prices.To.Triple.Digits-3786298.shtml

Oil Trades
http://www.bloomberg.com/apps/news?pid=20601102&sid=a0nieIuwG6pU

Hello Lexus1976, What sp range do you belive PCI could be trading at in 2 years time?

Lexus1976

ranger4 wrote: »

Hello Lexus1976, What sp range do you belive PCI could be trading at in 2 years time?

Simple answer: no idea!

Davy - Outperform - 29th Sept 2009
http://www.rte.ie/business/2009/morningrep/download/0929davy.pdf

Dolmen - Buy - 29th Sept 2009
http://www.rte.ie/business/2009/morningrep/download/0929dolmen.pdf

ranger4

Lexus1976 wrote: »

Simple answer: no idea!

Davy - Outperform - 29th Sept 2009
http://www.rte.ie/business/2009/morningrep/download/0929davy.pdf

Dolmen - Buy - 29th Sept 2009
http://www.rte.ie/business/2009/morningrep/download/0929dolmen.pdf

With oil+gas consumption bound to increase with increasing asian consumer demand and rest of world showing signs of slowly escaping clutches of the ression i would be confident that we should see PCI sp at 0.50-0.70cent range withinn 24 months or so.

gaafan1

hi guys. I myself think that pci are a good investment but what do you think about providence res?i really really see huge potential here!

ranger4

gaafan1 wrote: »

hi guys. I myself think that pci are a good investment but what do you think about providence res?i really really see huge potential here!

Care to share your reasons for why you see them as v good investment.

Comordha

http://www.independent.ie/business/irish/explorer-is-building-an-empire-and-the-prospects-look-promising-1901108.html

gaafan1

is it better to buy PCI shares throught the euro or sterling?that announcement in todays paper looks very promising.

gaafan1

Markets News Tuesday: Providence Resources to double production; Irish shares rise
By Finfacts Team
Sep 15, 2009 - 12:15:58 PM

[EMAIL="?subject=Markets%20News%20Tuesday%3A%20Providence%20Resources%20to%20double%20production%3B%20Irish%20shares%20rise&body=http%3A%2F%2Fwww.finfacts.ie%2Firishfinancenews%2Farticle_1017892.shtml"]Email this article[/EMAIL]
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Providence Resources, the AIM and IEX listed exploration company, today announced that its wholly owned subsidiary, Eirgas, has exercised its option to acquire a 40% interest in the 100% operated Kinsale Head Area comprising the Kinsale Head, South West Kinsale and Ballycotton gas fields from Labuan Energy Corporation Limited, a wholly owned subsidiary of a unit of Malaysia's State oil company Petronas. As part of the same transaction, Eirgas has also exercised the option to acquire a 40% interest in the 86.5% operated adjacent producing Seven Heads gas field.

Under the terms of the Option Agreement, Eirgas will purchase its stakes in the Kinsale Head Area assets on the same pro-rata terms by which Petronas acquired its stake from Marathon Oil Corporation in April 2009. That transaction had a total value of US$180 million, with an effective date of 1st January 2008.
Commenting, Tony O’Reilly, chief executive of Providence, said: “This transaction allows Providence to capitalise on our extensive operational experience offshore Ireland in combination with Petronas’ proven track record in gas production, storage and trading. Upon completion, not only will Providence’s attributable daily production double to over 4,000 BOEPD (Barrels of Oil Equivalent Per Day), but we will also gain exposure to existing and new gas storage and trading opportunities, which we see as a huge potential future growth area for the Company. Additionally, the deal also provides Eirgas with an opportunity to potentially monetise gas from some of Providence’s adjacent gas discoveries in the Celtic Sea, as well as from third party fields.”

Lexus1976

Petroceltic buoyed by huge increase in Algerian gas flow rates

By Pat Boyle


Thursday October 22 2009

PETROCELTIC continues to enjoy success in Algeria this week with the news that a second test on its AT-1 discovery hole had flowed gas at 33 million cubic feet per day (MCFD), with potential to flow at a rate of 40 MCFD.

At present, Petroceltic has a 75pc share in the Isarene permit, the location of the Ain Tsila discovery, while the local state-owned Sonatrach owns the remaining 25pc.

These shareholdings will change if the Spanish group Iberdrola, takes up its option to pay $55m (€37m) for a 38pc stake in the prospect.

The deal with the Spanish group dates from January 2008 when it bought a 22pc stake in Petroceltic. It has until March next year to execute the farm-in option.

As things stand it would seem an obvious move for the Spanish firm and while this will dilute Petroceltic back down to 38pc, it means that the funding for the appraisal programme on the Ain Tsila find will be in the bag -- the company reckons the partners need to spend about $100m (€67m) to properly appraise the prospect.

The big increase in flow rates during the second test was partially down to the reservoir in the immediate vicinity of the well being infiltrated by drilling fluids and other materials which impeded the flow of gas on the initial test.

Second test

The second test dealt with this problem by mechanically fracturing the reservoir rocks, made up of relatively old Ordovician strata. Fracturing will always boost flow rates but even though Petroceltic was well aware of this, it was still surprised by the extent of the uplift in flow rates.

The other good news was that the second Ain Tsila ridge well encountered a 100 metre column of gas.

According to Davy analyst Job Langbroek, the most important feature of test results from this well is that the pressure profile in the well shows it to be in communication with the AT-1 well located some 11 km to the north.

Ridge reservoir

In a note issued this week Mr Langbroek said this is important because it begins to open up the likelihood that the ridge reservoir will live up to best expectations in terms of scale.

At the moment, the estimate is that Ain Tsila contains just over 2.5 trillion cubic feet (TCF) of gas. "However, the flow rate in AT-1 combined with the pressure readings in AT-2 suggests to us that there is upside to the gas resource volumes assumed for the ridge target," Mr Langbroek said.

The Davy analyst noted that pre-drill estimates had been set at 6.3 TCF of gas, a figure which gives some idea of the potential scale of this find.

The next few months will be a busy time for the Irish firm, which will now test another Isarene permit well, INE-2, which was drilled earlier this year. After that it will conduct tests on AT-2 while a further well, AT-3 will be drilled to the south.

Davy has a price target of 27p on the stock, but that could be reviewed following testing of the INE-1 and AT-2 wells.

- Pat Boyle

Irish Independent

http://www.independent.ie/business/irish/petroceltic-buoyed-by-huge-increase-in-algerian-gas-flow-rates-1920912.html

ranger4

Lexus1976 wrote: »

Petroceltic buoyed by huge increase in Algerian gas flow rates

By Pat Boyle


Thursday October 22 2009

PETROCELTIC continues to enjoy success in Algeria this week with the news that a second test on its AT-1 discovery hole had flowed gas at 33 million cubic feet per day (MCFD), with potential to flow at a rate of 40 MCFD.

At present, Petroceltic has a 75pc share in the Isarene permit, the location of the Ain Tsila discovery, while the local state-owned Sonatrach owns the remaining 25pc.

These shareholdings will change if the Spanish group Iberdrola, takes up its option to pay $55m (€37m) for a 38pc stake in the prospect.

The deal with the Spanish group dates from January 2008 when it bought a 22pc stake in Petroceltic. It has until March next year to execute the farm-in option.

As things stand it would seem an obvious move for the Spanish firm and while this will dilute Petroceltic back down to 38pc, it means that the funding for the appraisal programme on the Ain Tsila find will be in the bag -- the company reckons the partners need to spend about $100m (€67m) to properly appraise the prospect.

The big increase in flow rates during the second test was partially down to the reservoir in the immediate vicinity of the well being infiltrated by drilling fluids and other materials which impeded the flow of gas on the initial test.

Second test

The second test dealt with this problem by mechanically fracturing the reservoir rocks, made up of relatively old Ordovician strata. Fracturing will always boost flow rates but even though Petroceltic was well aware of this, it was still surprised by the extent of the uplift in flow rates.

The other good news was that the second Ain Tsila ridge well encountered a 100 metre column of gas.

According to Davy analyst Job Langbroek, the most important feature of test results from this well is that the pressure profile in the well shows it to be in communication with the AT-1 well located some 11 km to the north.

Ridge reservoir

In a note issued this week Mr Langbroek said this is important because it begins to open up the likelihood that the ridge reservoir will live up to best expectations in terms of scale.

At the moment, the estimate is that Ain Tsila contains just over 2.5 trillion cubic feet (TCF) of gas. "However, the flow rate in AT-1 combined with the pressure readings in AT-2 suggests to us that there is upside to the gas resource volumes assumed for the ridge target," Mr Langbroek said.

The Davy analyst noted that pre-drill estimates had been set at 6.3 TCF of gas, a figure which gives some idea of the potential scale of this find.

The next few months will be a busy time for the Irish firm, which will now test another Isarene permit well, INE-2, which was drilled earlier this year. After that it will conduct tests on AT-2 while a further well, AT-3 will be drilled to the south.

Davy has a price target of 27p on the stock, but that could be reviewed following testing of the INE-1 and AT-2 wells.

- Pat Boyle

Irish Independent

http://www.independent.ie/business/irish/petroceltic-buoyed-by-huge-increase-in-algerian-gas-flow-rates-1920912.html

When are we due next round of test results or news from petroceltic which could give lift to sp? nice gain for petroneft today, any news which gave gains?

Lexus1976

There's a lot of good information here, but there's also a lot of garbage. You will need to sort through it yourself and make up your own mind.

http://www.lse.co.uk/ShareChat.asp?ShareTicker=PCI&share=petroceltic


I have high hopes for

1. Petroceltic
2. Petroneft
3. Aminex

Latest information on Petroneft
http://businessneweurope.eu/story1848

Going forward I'm going to build up my oil and healtcare portfolio....all my investments will be long term.

PYRO#1

I guess in the next few weeks we will hear news of INE-1 and AT-2 and INE-2 soon after.

The sp has been dropping for no clear reason.

You would think people would be queueing up to get in here but no.

Dosnt make sense

Lexus1976

There's rumours that the mm's are manipulating the price.

Or it may be due to the over supply of gas due to the slow down of the worlds economies.

ranger4

Lexus1976 wrote: »

There's a lot of good information here, but there's also a lot of garbage. You will need to sort through it yourself and make up your own mind.

http://www.lse.co.uk/ShareChat.asp?ShareTicker=PCI&share=petroceltic


I have high hopes for

1. Petroceltic
2. Petroneft
3. Aminex

Latest information on Petroneft
http://businessneweurope.eu/story1848

Going forward I'm going to build up my oil and healtcare portfolio....all my investments will be long term.

Thanks for Link.

ranger4

Lexus1976 wrote: »

There's rumours that the mm's are manipulating the price.

Or it may be due to the over supply of gas due to the slow down of the worlds economies.

If results possitive we should see sp break through recent 0.22c high possibly surpassing 0.24c range, We should see sp starting to slowly climb on run upto results.

Comordha

Lexus1976 wrote: »

There's a lot of good information here, but there's also a lot of garbage. You will need to sort through it yourself and make up your own mind.

http://www.lse.co.uk/ShareChat.asp?ShareTicker=PCI&share=petroceltic


I have high hopes for

1. Petroceltic
2. Petroneft
3. Aminex

Latest information on Petroneft
http://businessneweurope.eu/story1848

Going forward I'm going to build up my oil and healtcare portfolio....all my investments will be long term.

Petroneft is seeing a nice rise recently, any news?

Lexus1976

Petroneft Resources PLC

6 November 2009

PetroNeft Resources plc ('PetroNeft' or 'the Company')

Holding(s) in Company

PetroNeft was notified on 5 November 2009 by RAB Capital Plc acting as discretionary manager of RAB Energy Fund Limited and RAB Octane Fund Limited that its shareholding is 30,857,421 ordinary shares of EUR0.10 each representing 8.82% of the Company's issued share capital.

Contacts

Paul Dowling, CFO, PetroNeft Resources plc

+353 1 4433720

ranger4

Hoping to see some upside with results due in few weeks, Are petroceltics interests soley gas exploration?

Lexus1976

ranger4 wrote: »

Hoping to see some upside with results due in few weeks, Are petroceltics interests soley gas exploration?

Petroceltic is an oil and gas exploration and production company. Hoping to have an RNS next week. Fingers crossed!

Thinking about moving into Gulf Keystone again, i'm still waiting for results on how large their oil well is.

ranger4

Petroceltics African gas field 10th Largest in world, Independant.ie

pocketdooz

So this stock is down 16% since the thread started. Does anyone have any valid reasons for owning this?

Lexus1976

pocketdooz wrote: »

So this stock is down 16% since the thread started. Does anyone have any valid reasons for owning this?

What kind of statment is that?

I'm up 43% on this stock alone since I purchased it. And there is nothing but good news in the pipeline

How are your shares doing at the moment? Considering you were boasting about how well your portfolio was doing despite every Tom, Dick and Harry making gains since March. Have your gains been wiped out by the currency exchange risk?

pocketdooz

Lexus1976 wrote: »

What kind of statment is that?

I'm up 43% on this stock alone since I purchased it. And there is nothing but good news in the pipeline

How are your shares doing at the moment? Considering you were boasting about how well your portfolio was doing despite every Tom, Dick and Harry making gains since March. Have your gains been wiped out by the currency exchange risk?

Wow - take it easy.

The stock is down 16% since this thread started - that's a pretty self-explanatory statement I think.

Also, back to the question - are there any real reasons to buy this stock?

The portfolio I posted at the start of the year is up 41% vs. the DJIA which is up 18%. I wasn't boasting at all - I posted in December 2008, then quarterly since then with factual updates and tried to answer any questions people had regarding the reasons for the choices I made.

It's nothing personal Lexus, calm down - I was just asking a question.

.

ranger4

pocketdooz wrote: »

So this stock is down 16% since the thread started. Does anyone have any valid reasons for owning this?

Sp down due to profit taking and high present gas and oil inventories which will decrease with rising indian-china and world demand set to increase, I have substantial stake in PCI which i intende holding.

pocketdooz

Am I reading something wrong here?

Looking at the Company's accounts they had sales of €560,000 in the last twelve months, have never made a profit and the Company's market cap is 364 times revenue . . .

.

ranger4

pocketdooz wrote: »

Am I reading something wrong here?

Looking at the Company's accounts they had sales of €560,000 in the last twelve months, have never made a profit and the Company's market cap is 364 times revenue . . .

.

http://www.independant.ie/buiness/irish/explorer-is-building-an-empire-and-the-prospects-look-promising-1901108.html

pocketdooz

ranger4 wrote: »

If results possitive we should see sp break through recent 0.22c high possibly surpassing 0.24c range, We should see sp starting to slowly climb on run upto results.

I've done a lot of research on these guys in the last few days, thanks for the pointers Ranger.

When you choose the above target share-prices, where do you get them from? What valuation method are you using?

This is obviously a high risk company but it has potential. Best thing I think is it has no debt on it and carries some cash which is good.

The valuation on the Company looks steep already though I think, do you not agree? At 350+ times last twelve months revenue . . . ? It's obviously a speculative stock which I rarely if ever look at so I'm wondering how you value this.

Thanks

.

Lexus1976

pocketdooz wrote: »

I've done a lot of research on these guys in the last few days, thanks for the pointers Ranger.

When you choose the above target share-prices, where do you get them from? What valuation method are you using?

This is obviously a high risk company but it has potential. Best thing I think is it has no debt on it and carries some cash which is good.

The valuation on the Company looks steep already though I think, do you not agree? At 350+ times last twelve months revenue . . . ? It's obviously a speculative stock which I rarely if ever look at so I'm wondering how you value this.

Thanks

.

Wow you big drama queen!!! I know it was nothing personal

I'm assuming Rangers valuations are based on the companies current drilling ventures and the gas they have found to date. Davy stockbrokers currently have a price target of 27p (30 cent) per share which I personally think is cheap. I purchased these shares as a long term investment i.e. 5 + years. The Oil and N Gas rare commody scenario should kick in and rocket the price in about 3 years time. If not sooner!

http://www.rte.ie/business/2009/morningrep/download/1117davy.pdf

Yes this is a speculative stock but its a much safer bet and has considerably more potential then 98% of the other exploration stocks out there considering its future lucrative gas find this year.

Another stock worth noting is Gulf Keystone!

pocketdooz

Lexus1976 wrote: »

Wow you big drama queen!!! I know it was nothing personal

I'm assuming Rangers valuations are based on the companies current drilling ventures and the gas they have found to date. Davy stockbrokers currently have a price target of 27p (30 cent) per share which I personally think is cheap. I purchased these shares as a long term investment i.e. 5 + years. The Oil and N Gas rare commody scenario should kick in and rocket the price in about 3 years time. If not sooner!

http://www.rte.ie/business/2009/morningrep/download/1117davy.pdf

Yes this is a speculative stock but its a much safer bet and has considerably more potential then 98% of the other exploration stocks out there considering its future lucrative gas find this year.

Another stock worth noting is Gulf Keystone!

Ye, seemed pretty personal to me with your little tirade but let's leave it there so.

If this potential upside is there and you believe the share price could rocket, why is this not already priced into the share price? i.e. If we know about it why does the market not know about it already?

I suppose what I'm getting at is with a valuation of 350+ revenue, it seems a lot of potential upside is priced in to this stock already, no?

Also Ranger, was looking for something specific with regard your valuations - or are those shareprices you quoted based on Davys etc research?

Thanks

.

Lexus1976

So many questions so little time.

If this potential upside is there and you believe the share price could rocket, why is this not already priced into the share price? i.e. If we know about it why does the market not know about it already?

Welcome to the world of Oil speculation. Oil and gas compaines quoted on the AIM or IEX are not purchased because of their current fundamentals. They are risky on many fronts.

Polictical - the political background of the country of the gas or oil find.
Economic - The current economic enviroment.
Economies of scale - in relation to how much it costs to distributed and sell the product.
Demand and supply of the commondity -The price is fluctuating due to the glut of oil and gas at the moment due to the worldwide recession.
Expectations of the price of oil and gas in the future based on usage.
Day traders scalping the share price, considering this is still a penny share.
The final results of the gas find are still unclear in relation to the size of the find and how much of the gas can be recovered and at what expense.

I suppose what I'm getting at is with a valuation of 350+ revenue, it seems a lot of potential upside is priced in to this stock already, no?

No not in my opinion! Compared to similar finds by other exploration companies the share value is considerably undervalued, I may be jumping the gun here by saying that as the final results of the gas find are not out. But at the end of the day I have to take the risk, I got into this share at 13 cents and again at 19 cents. I'm happy to ride this out, as I mentioned before the long term price of gas and oil can only go in one direction and with estimates that Petroceltic has found the 10th largest field in the world that only enhances my confidence.

pocketdooz

Lexus1976 wrote: »

So many questions so little time. I feel as If I'm a stock broker trying to sell you a share.

If this potential upside is there and you believe the share price could rocket, why is this not already priced into the share price? i.e. If we know about it why does the market not know about it already?

Welcome to the world of Oil speculation. Oil and gas compaines quoted on the AIM or IEX are not purchased because of their current fundamentals. They are risky on many fronts.

Polictical - the political background of the country of the gas or oil find.
Economic - The current economic enviroment.
Economies of scale - in relation to how much it costs to distributed and sell the product.
Demand and supply of the commondity -The price is fluctuating due to the glut of oil and gas at the moment due to the worldwide recession.
Expectations of the price of oil and gas in the future based on usage.
Day traders scalping the share price, considering this is still a penny share.
The final results of the gas find are still unclear in relation to the size of the find and how much of the gas can be recovered and at what expense.

I suppose what I'm getting at is with a valuation of 350+ revenue, it seems a lot of potential upside is priced in to this stock already, no?

No not in my opinion! Compared to similar finds by other exploration companies the share value is considerably undervalued, I may be jumping the gun here by saying that as the final results of the gas find are not out./ But at the end of the day I have to take the risk, I got into this share at 13 cents and again at 19 cents. I'm happy to ride this out, as I mentioned before the long term price of gas and oil can only go in one direction and with estimates that Petroceltic has found the 10th largest field in the world that only enhances my confidence.

Ok thanks for that. My background is value-investing and long-term credit investing so I value companies on fundamentals. I don't have much/any knowledge of how to value this sort of company. Any other knowledge you could share would be very much appreciated.

Do you know when this is meant to be disclosed? ^^^

Also I see 15% of the equity is held by Iberdrola and 7% by Blackrock, two companies I know a lot about and really respect so that's a definite positive on the stock.

Lexus1976

No idea, but we will see the oil price rise before we get the official news. This company has a habit of reporting its RNS on a Tuesday.

You can get more information here:

http://www.iii.co.uk/investment/detail?code=cotn:PCI.L&display=discussion

As soon as anything happens these guys know, some of them are Algerian expats, MM's and people in involved with the project. In saying that there is a lot of rubbish and speculation on the site.

pjproby

assuming it is the 10th largest gas field in the world, who is going to buy the gas?

displaced dub

Hi PD

Are you doing research for a client or just that you personally are interested in the stock?

pjproby

surely there is a glut of gas at the moment-gazprom are no longer masters of the world.
i am thinking of buying the stock but curious to know what they will do with all that gas.

Lexus1976

pjproby wrote: »

assuming it is the 10th largest gas field in the world, who is going to buy the gas?

This is a commercial field, the target market will be the industrial sector.

Lexus1976

pjproby wrote: »

surely there is a glut of gas at the moment-gazprom are no longer masters of the world.
i am thinking of buying the stock but curious to know what they will do with all that gas.

Sure there is a glut of gas at the moment This will not always be the case.

ranger4

Lexus1976 wrote: »

Sure there is a glut of gas at the moment This will not always be the case.

There is also glut of oil but price of oil has been rising because of futures contract, Global recovery has started which will lift gas-oil demand & price.