Another high risk stock pick: HRT Participacoes

turbobaby

Just wondering if anyone on boards is invested in HRT?

They are an onshore oil and gas explorer in Brazil, with offshore assets in Namibia.

Stock trading at just above cash value right now, with a market cap of approx $1 billion.

Listed in Canada and currently trading at $2.24.

The recent drop in shares is attributable to them finding gas but no oil. However, the blocks they drilled were a requirement of the Brazilian authorities.

They share a common story with Petroceltic.

2012 will be a massive year for them.

If anyone is interested in hearing more I can post more details.

Reillyman

Yeah give us some more details.

rs500ff

As i a PCI holder im all ears.

The Pontiac

52 week high of $10.19. What a battering. I know nothing about the company but will have a look..

cooperguy

Im all ears!

The Pontiac

turbobaby wrote: »

Stock trading at just above cash value right now, with a market cap of approx $1 billion.

Listed in Canada and currently trading at $2.24.

Am I looking at the correct stock? Market cap of $146m? http://www.stockhouse.com/financialtools/sn_overview.aspx?qm_symbol=V.HRP

turbobaby

<Ollie> wrote: »

Am I looking at the correct stock? Market cap of $146m? http://www.stockhouse.com/financialtools/sn_overview.aspx?qm_symbol=V.HRP

It is primarily listed in Brazil under the ticker HRTP3. The Canadian stock follows the Brazilian one.

I will post more details tomorrow.

It has taken a hammering due to the same reasons PCI did.

The Pontiac

turbobaby wrote: »

It is primarily listed in Brazil under the ticker HRTP3. The Canadian stock follows the Brazilian one.

I will post more details tomorrow.

It has taken a hammering due to the same reasons PCI did.

Nice one. Will have a read tomorrow.

scotchstocks

They have two drills turning right now. IMO at least one will hit oil and the SP will skyrocket!

turbobaby

Reuters wrote:

SAO PAULO, Feb 3 (Reuters) - Brazil's state-controlled oil company Petrobras said on Friday it had struck good-quality light oil in the Solimoes Basin, in the state of Amazonas.

The company said in a market filing that the find had the capacity to produce 1,400 barrels of light weight, 41-degree API oil a day, as well as 45,000 cubic meters of natural gas. The well is onshore.

Petrobras is a 100 percent stakeholder in the SOL-T-17 concession block, in which the find occurred. It said if it confirmed commercial viability of the discovery, it would create a new oil and gas production center in the Solimoes Basin.

The company now produces 53,000 barrels of oil, 11 million cubic meters of natural gas and 1,300 tonnes of liquid petroleum gas a day in the state of Amazonas.

Lesser known than the massive subsalt deposits off the southeastern coast of Brazil, the onshore Solimoes Basin has turned up attractive new finds.

Discoveries in the basin have been behind the rise of local onshore exploration start-up HRT in Brazil, a rarity where Petrobras still dominates the oil industry.

HRT agreed in October to sell a 45 percent stake in 21 Amazon oil blocks to Anglo-Russian TNK-BP for $1 billion.

http://www.reuters.com/article/2012/02/03/petrobras-amazonia-idUSL2E8D3GJB20120203

Light oil found next door. Wonderful!

Oil and Gas production centre will likely be built.

TJ Mackie

HRP has hit 3.00 - some lovely movement on it this evening. Closed at 2.90 yesterday.

ixus

Turbobaby, I've deleted a few of your recent posts as I've been led to believe they are direclty copyrighted from a financial report.

Please don't copy and paste from a report that requires payment.

By all accounts, supply the link and give a run down in your own words. But, with the SOPA and Irish version of it, these things have to be treated pretty strictly.

Thanks,

Ixus.

turbobaby

Hi Ixus,

Yes, one post above had text from Byron King at Outstanding Investments. I noted that in my message but I understand why you would take it down.

However, this morning's message and every other one was all mine. I take it as a compliment that you think the post was taken from another site but I can assure you it was not. The fact that I used the term 'us' when speaking about the company may have led you in that direction. I am a shareholder so I consider myself part of the company.

Please re-submit this morning's message as it provides a very good summary of events this week.

turbobaby

Rewritten:

Indeed Mackie, this week we broke through some strong resistence over in Brazil at BRL $480 per share, straight to $500 which was tested a couple of times before moving up to $525 late on Friday.

The latest move up can be attributed to Cobalt finding a shed load of oil in Angola (Namibia's neighbour). Infact a lot more than they anticipated.

http://news.businessweek.com/article.asp?documentKey=1376-LZ5PZH6TTDS501-0R6NGPU6COOSLOFLOJ9I4VHQDB

It ended the day up 32%.

So in the last two weeks, Petrobras and Cobalt have made good discoveries right beside our blocks.

I understand that HRT have adjusted their drilling approach for the next two wells based on what they learned from the first four drills. They also have much better quality seismics for these holes. I have heard that they are ahead of schedule, so I expect news before the 3Q2011 conference call on March 5th. Remember, the quality of oil in the Amazon area is top quality light crude.

In terms of Namibia, HRT completed the last bit of 3D seismics for their blocks in Jan and are analysing these right now. No less than 12 majors have expressed interest in farming in, but our CEO wants to analyse the seismics before any negotiations take place.

This share is a bargain.

www.hrt.com.br for more info if you're interested!

Sparrow_Hawk

Do i have the correct company on my odlmarkets a/c - HRP-V - HRT PARTICIPACONES EM PETROL?

turbobaby

That's right.

Listed in Brazil as HRTP3, Canada as HRP and the pink sheets in the US as HRTPY.

Volume in that order too.

Price in Canada is 1/100 of the Brazilian price.

TJ Mackie

It's a very exciting stock, can only see this price going up even further.

Turbobaby, you asked me a week ago what funds I'd seen investing in this. LLP Global UCITS fund has a holding in this, I think their last investment was in November but dont quote me on that. I know for a fact another couple of funds have also invested, but couldnt tell you for certain which ones until Monday - ill root them out and let you know.

turbobaby

Mackie, are you a shareholder? Great day again yesterday.

I have an inkling that some of the recent buying could be from unofficial insiders who may have heard how the drilling is going. The drill was progressing much quicker than previously so they should be close to hitting the target zone now.

Just a hunch, no idea if it's true.

turbobaby

Just a quick update here.

Since the opening post on the 11th Jan, the stock had moved from $2.24 to $3.60 representing a 60% increase in six weeks.

The move can be attributed to some value beginning to be given to the Amazon and Namibian assets as we have seen in that period oil has been found next door in both locations by other oil explorers.

Petrobras in the Solimoes
http://www.lngworldnews.com/petrobras-strikes-oil-gas-in-solimoes-basin-brazil/

Energulf in Namibia
http://www.newera.com.na/articles/43065/Claims-of-multi-billion-barrel-oil-find-in--Namibia

Cobalt in Angola
http://www.reuters.com/article/2012/02/10/cobalt-angola-idUSL5E8DAAYM20120210

In terms of Solimoes (Amazon):

Petrobras produces 55,000 barrels of oil and 11 million m3 of gas per day.

The area that HRT has is at least 4 times that of Petrobras;

If HRT produce the SAME that Petrobras produces, based on an EBITDA of $ 50 per barrel with Brent at $ 80, they would generate $ 912.5m cash per year. As HRT owns 55% of all licences (TNK BP are the partner), it would be then, at worst, $500m per year for HRT. With this, the company would be worth around $5 billion, or approx $8.50 per share;

Today Brent is at $120; EBITDA per barrel should therefore be around $80, and HRT may produce 4x more than Petrobras. Plugging these numbers in you get a figure of approximately $12.75 per share.

To make things interesting, if HRT produce 4 times as much as Petrobras i.e. 200,000 barrels per day, we get $46.75 per share.

Then you need to include the gas and condensate.

Then you need to include the billions of barrels of oil offshore Namibia!

The 4th quarter 2011 results are out on Friday, with the conference call on Monday.

I strongly expect that the drill results will be released this week or just before the call on Monday. The drills are still in the more gas prone West side of the basin, but one hole in particular 170/6 could certainly find oil. (Markets don't want gas as it's hard to monetize from their location). It is only 20km from a Petrobras hole which struck gas and HRT are guided with new 3D seismics as opposed to the 2D previously used.

I am very very excited about this company.

turbobaby

More good news coming out of Namibia.

Eco Oil and Gas have their blocks very close to HRT Participacoes.

They were up over 70% yesterday.

http://www.bradenton.com/2012/03/08/3926105/eco-atlantic-receives-independent.html