PMG looking more like Dana everyday

More directors from Dana come on board as Mr Cross looks to be building another Dana using the very same team. What’s the betting the Koreans buy PMG out in 5 years time!

These guys mean business and have their reputations at stake.

As the very apt Warren Buffett once said… “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently”. END

I don’t think Tom knows how to build anything other than another Dana. That’s why i’m invested in PMG. 11p range looks a lofty valuation for a company with very little in assets. But assets are worthless without brains behind them and it’s the people that make businesses not the other way around. Current sp 11.75p.

From today’s RNS on director oppointments

Tom Cross, Chairman of Parkmead, commented:

“Brian and Faysal have served Parkmead as directors with great skill, experience and dedication over a number of years, including during the significant process of acquisition and integration of Aupec Limited, which is now completed. I would like to take this opportunity to thank them for their important contributions to the Group. The Board is delighted that Philip and Ian are joining Parkmead and we look forward to working with them in the future development of the Group.” END.

Nautical on the march

Nautical looks very attractive at present based on the current Varadero well which is due to TD in 17 days but also due to the recent Xcite Heavy oil flow tests.

Nautical have had success already on their Kraken asset via an appraisal discovery in August this year. They plan to release increased resources/oip numbers early next year.

With plenty of activity due on the catcher light oil discovery (4 wells planned) should varadero well be successful, the oip numbers could rise to near 50mmboe NET to NPE.

Exciting times ahead and one to keep an eye on. At current sp of 380p, they look great value against potential broker targets of £6+ and £7+.

Xcite Gushes – Commercial Flow rates success!

It feels a long journey from the days in April when Xcite scrapped together a rather quiet placing at 40p.

It caught my eye as I was researching it at the time. I remember thinking that is was cheap but funding was required, and I didn’t expect them to achieve it so quickly.

To my surprise – the market wasn’t moved by the placing, so without further delay I mopped up my quota at 40p and sat back and waited.

8 months on and after a journey that has seen problems with the rig and weather – Xcite delivered what all investors dreamed about – commercial flow rates near 3000bopd.

From today’s RNS…………………………..

21 December 2010

Xcite Energy Limited

Successful Completion of 9/3b-6z Well Flow Test

The Company announces that the flow test of the 9/3b-6z horizontal well on the Bentley field has been successfully completed.

The flow rates achieved demonstrate both the commerciality of the Bentley field and the reservoir properties to be above the upper end of modelled expectations.

Key flow test results were:

– Total flow test of 36 hours including clean-up of 9 hours, with cumulative production to tote tanks of over 2,000 barrels.

– Multi-rate flow tests were conducted, culminating in a final stabilised flow rate of 2,900 stock tank barrels of oil per day.

Richard Smith, Chief Executive Officer of Xcite Energy, commented:

“This is an outstanding outcome for the Xcite team and for the industry contractors to deliver this successful well test on Bentley. This flow test fully demonstrates the commercial potential of the Bentley field and the long-held belief that Xcite has maintained in this major North Sea asset. We now move on to the first stage production planned for 2011 with an excellent platform.” END.

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Xmas has come early for Xcite investors and i’m chuffed for everyone that has done well.

2011 will see the company move towards an Early Production System and the cash flow will help offset the capex costs although the SEDA which has proved useful will continue to be used. Current sp 385p.