News round up – AMER, WRES, SOLG and PANR

News out today from some of the sharehub heads-up stocks. First up is AMER. News out a few minutes ago confirms another Non-exec Director buy. This time it is Dana Coffield with a share purchase of 151k shares at 19.77p. That’s his first purchase so bodes well when taken in context with the other non-exec and director buys of late. Certainly looks like the ‘insiders’ at AMER know better times are ahead.

Next up is PANR. Pantheon have been fighting with VOB#2 well for sometime now and today is perhaps the first real acknowledgement that this well is not likely to contribute very much at all. Disappointing as the workover rig is not cheap and the company could have avoided unnecessary cost expenditure. That said, the good news in the release is that VOB#4 sidetrack is underway and should be ready for testing (if successful) within 30 days or so. PANR have disappointed investors with delays – some out of their control and others very much within their control. News that gas should begin flowing into the pipeline come Mid Nov will be watched closely. If they manage to hit guidance (once this year would be welcome) then Gas sales / income should come in around end of Dec or early 2018. Thereafter, it’s a question of capital spend vs cash flows in terms of whether the company is or will be self funding going forwards. I don’t want to be too harsh on PANR as it has been a tough year for the business. But it’s time they delivered on their promises to shareholders and that will hopefully begin in Mid Nov.

Last up is WRES. W Resources dropped a Holdings RNS into the market showing an interest of 3.3%. Normally I wouldn’t comment on shareholdings but this one caught my eye as WRES does not get many Holdings rns’s over 3% and this one looks like an individual rather than an II/fund. Mr Marcus Garvie is now the proud owner of 156m shares worth approx £600k at today’s sp of 0.39p. WRES does have a bit of news queued up on funding and contracts due so it will be interesting to see whether Mr Garvie’s share purchase is ‘timely’ or not. Of course, no guarantees that any funding solution or contract news will flow. The company cited before end of Q4, so a little time left yet.

And news of note just out from SOLG. Looks like a decent exploration result. The share price has drifted post main listing which is not unusual. A return back to the 40’s level looks justified.

3 thoughts on “News round up – AMER, WRES, SOLG and PANR”

  1. Hi Hub, Thanks for the reply. I can see what you mean regarding trust of new management team, delivery is going to be key after the restructuring. Leo Koot is an interesting man, his record speaks for itself (apart from EDP). I’m interested to see your figures on costs TRIN vs CERP, my numbers have TRIN miles ahead so your feedback would be good to check discrepancy. Using H1 2017 figures (per barrel) – TRIN: OPEX $16.5, G&A $3.8, (All in $28.2). CERP: OPEX $27, G&A 23.46 (All in >$65). Thanks.

  2. Great stuff Hub, have you ever taken a look at Trinity Exploration. All in costs of $28 per barrel and production rising without drilling new wells. 3kbopd soon and $5.5m EBITDA in H1 2017. Management, friends and family nearly own half of the company. All star board led by an industry veteran. Huge upside with over 700 mmbo in place in licenses, resuming offshore drilling in 2019. Mkt cap £50m.

    1. Hi Ed, Yes – I am aware of Trinity. I would put them in the same boat (literally) as CERP.L. The latter have a little more trust and momentum behind them due to Schroders recent buy in and then there’s the class management team headed up by Leo Koot. TRIN.L certainly have promise and look more advanced in production terms although cost per barrel looks a bit higher. It didn’t surprise me to see TRIN rerate from 8p levels and clearly if they can achieve stable / steady production with WTI at near $60pb, the cash will be flooding in. Management got caught out by the last downturn and the question is… have the learned from the lesson? My guess is yes, but it might take the market a little while before trust is rebuilt. As assets/production goes, there are plenty of companies on AIM which have a lot less than TRIN and yet are valued at 3 or 4 times the market cap. At present, the market is undergoing some rerates across many stocks as the impact of higher PoO varies dramatically on individual companies dependent on overhead costs or heavy debt etc. TRIN looks in good shape post debt restructure and if they can deliver positive cash flows quarter on quarter, then they will certainly get the markets attention. I have a short list of around 20 stocks already pencilled in for the sharehub top ten picks for 2018. Not easy cutting those down to just ten but TRIN is currently on the short list awaiting the final cut.

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