Thursday 26 June 2014

Morning Mumble: Hurricane Oil & Sundry...

Its been a chaotic time, getting ready for trips/holidays/vacations plus various business commitments. 

Hurricane Energy: Successful Test of Lancaster Horizontal Appraisal Well. Pleasing for all "us" longs, it's had potential for a long-time and finally the drill bit supporting the price and now passing the first day of dealing that long-time ago in February 14. Rock Nominees will certainly be pleased! 

Staying with Oilers, Ophir had further disappointment albeit without much cost to themselves...there's not even the glint of promising information, more so a 'deeper' understanding of the basin etc...Gabon: Okala-1 Well Result. As there wasn't much in the way of Okala being priced in, one can't help but think the sentiment isn't great. This has been followed by Padouck Deep-1 Well Result which was also poor and the Affanga Deep Well Result (poor). Three strikes...doesn't bode well at all. 

More time come, pending time, including the Kenmare takeover by Iluka. Perhaps, like Anglo Pacific (APF) they see minerals sands as progressing and it's near the bottom. I have to question why anyone would bother with KMR, perhaps they perceive themselves as being able to do better? The history for Kenmare is dire, nevermind the inability to resolve power issues until recently with the Aggreko deal announced yesterday. Maybe I'm being harsh...Will review in due course.


Atb Fraser

2 comments:

  1. Fraser- good luck with your robot today. Just back in UK and nice to see that BLVN and HUR moves have paid for that last coffee in St Marks Square before we left Venice :-)) BLNX getting some action today, so no doubt that will be on the agenda. Cheers. The Leggie

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  2. Fraser- thanks for the RIO update via FTML- I guess the "consideration" if any is nominal and good luck to the Norwegian with their 100% ownership- they may need it :-))

    Re QFI- not sure if you follow this one but they have spent years and years developing a new fuel which avoids the need for diesel additives and has multiple potential uses. The mkt awarded them a £250m mkt cap, so some credit was given for the progress they had made with various global players, Maersk being the nearest to mkt and labyrinthine as one the worlds biggest shipper probably should be. The 2015 sulphur emissions rules for the EU seem to have helped and Maersk have today effectively given the thumbs up and QFI have their first order to organise in 2015. Pivotal move, massive potential and this and other fields and tech has been tested for years and is now moving forward. I wont get ahead of myself or get greedy but QFI are one of my longer longs (subject to the odd top slice- but not at this level) and fair value now (with plenty of heavy discounting re future cash flows) is in the mid 50p range, so it seems good value despite the move today.

    Cheers. The Leggie

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