Petroneft Resources

JOHNPT

I recently tipped Providence Resources to be successful in its drilling campaign and those who followed my advice to buy two months ago and to sell up last Friday have made a 100% profit.

My next tip is Petroneft Resources - share price is 9 pence this morning

Grecco

JOHNPT wrote: »

My next tip is Petroneft Resources - share price is 9 pence this morning

I hadnt realised that they had gone that low :eek:
whats the story with them?
Any chance of a bit more info John as to why you are tipping them now

turbobaby

Petroneft has really been battered over the last year.

Would be very interested to hear why you are calling the bottom here.

Soulja boy

turbobaby wrote: »

Petroneft has really been battered over the last year.

Would be very interested to hear why you are calling the bottom here.

It's approximately equal to its 2008 low value.

Kristopherus

Well, OP , I'll be very interested in how this share has come under your radar. This has gone from the low seventies to 10cents today, in the space of 12 months. They have cut production targets by 75%. Now that Putin & his mob are back at the coalface, I don't see any good news coming from Siberia anytime soon :(:(

Luckily, I bought at 20c & sold half at 54c, so I'm covered, but will be looong on the remaining half.:)

neil.p.b

I'd agree with John that it looks like PTR may be coming close to a breakout. If anyones interested in TA here's pretty straight forward chart

http://www.screencast.com/t/5LLE6kViWlL

The left is early 2008 to mid 2009 and the right is early 2011 to mid 2012. As you can see the price action is very very similar, channel line putting downward pressure on prices. Currently prices are reaching the apex just as it did in 2008 and similar to 2008 prices need to close above 10.2 to technically breakout.

The RSI (first indicator below the graph) had support in in early-mid 2009 at 42 as prices closed in on the apex. This level has now been acting as resistance since turn of the year and will need to be broken before you see significantly higher prices.

I wouldn't be buying yet as prices are in limbo, i think there is still scope for PTR to test 7.80 again which would be a good entry or after prices closed above 10.2 which should indicate a break out with an initial target of 17pish.

The Pontiac

An absolute dog of a share. It's almost at all-time-low now, and for a good reason.

They promised production at end of Q1 to be 4.500bopd, yet they actually managed to decrease production from 2,500 bopd to 2,300 bopd They're after failing on promises time and time again (read back through the RNS's).

PTR's neighbors, Imperial Energy, are actually reducing activities - same fracking issues, yet producing 20,000 bopd with low profits. See here http://www.imperialenergy.com/en/pressarea/pressreleases/full/72/

The Tomsk region is technically challenging, to say the least. Then you have the extreme weather conditions coupled with the non so favorable Russian oil tax.

The Pontiac

Forgot to add that, that, yes, PTR have a load of booked 2P reserves (over 100 mmbbls), and looking at close to 180 mmbbls by year end. But they're of little use if you can't get the oil out fast enough to make it commercially viable.

Grecco

And the OP has left the room............

turbobaby

It's not right to come on and tip a share without giving any reasoning. I believe there may be some posters who were waiting for the OPs pick after his Providence tip.

People should realise that the Providence 'investment' was mere speculation on the prospects of the drilling in Cork.

That said, if you, like me, are happy to speculate rather than invest, you could take another punt on Petroneft, but that is one ugly chart! Without reasoning from the OP you might be best off avoiding.

The Pontiac

Well said turobaby!

Rigor Mortis

Well for those with an interest, Pneft have issued an update this morning.

http://www.investegate.co.uk/Article.aspx?id=201204020700175398A

JOHNPT

Very Positive RNS. Regarding previous replies to my share Tip - I believe these shares are significantly undervalued, I think we will see a significant movement in share price over the next months - re-financing is expected to be finalised over the next few weeks - they have proven reserves will potential upside in a number of fields, the reason for the fall in the share price was production problems however I believe they have been oversold significantly.

BUY

I will re-post when I have more information.

Grecco

JOHNPT wrote: »

I believe they have been oversold significantly.

BUY

I will re-post when I have more information.

Well OP what's the story now? What information have you or were you just spoofing.
They are trading at 6.8p and on a major downtrend so have you any more advice to give us??