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OGXPY: ADR program terminated. Mandatory Exchange for Cash/Termination. Gross Rate: $0.310314; Cancellation Fee: $0.037237; Net Rate: $0.273077
FINRA deleted symbol:
https://otce.finra.org/otce/dailyList?viewType=Deletions
Yup. The only. $300
Will watch and learn....
It is my hope and expectation that eventually they will be absorbed by an entity that will absorb their shares in a domestic market creating an exceptional opportunity....
I’m the only buyer here.
Just wait....
1-3 years....learn something else
Make my day hedgy
It’s interesting - it took a year for (mm) etrf to cover my shares. I can’t verify a cross, but with micro liquidity and a true presence in the bid 48 hours prior leads me to believe it happened.
Not sure what to make of it “right now”....it could be a kaput call before going zero, or slash before they take it down before revitalization?
It’s worth the look.
Do not depend on me
Here
Going to play my business card out...interest has peaked...now testing a discipline...
I tried a business card for $200.
She'll / Dutch currency...
The ADRs are now 5:1 we used to be 1:1, that seems to me to be 500:1 RS
OGXPY: effective June 7,2016 1 for 100 R/S. Holder are required on a mandatory basis to surrender their DR(s) to for cancellation and exchange to receive one (1)” New” Depositary Share (“DS”) for every one hundred (100)” Old” DSs. No fraction of a DS will be issued. BNY Mellon will attempt to sell any fractional DSs and distribute the cash proceeds to DR holders. Cancellation Fee: $0.000198 per DS surrendered.
http://otce.finra.org/DLSymbolNameChanges
Hard to say...1 for 250 reverse split... but the Judge said shareholder's value = to $0.042..... Low oil prices puts that in doubt.
Old share holders will become the new collateral holders. It's going to be a long road ahead for those holding the bag to wait for there small return at previous interest levels.
Capital depreciation will erode any gains achieved.
Some Big boys are contemplating some steam
http://blog-economiaonline.com/2015/01/26/nelson-queroz-tanure-apresenta-os-planos-da-petrorio-ex-hrt/
Nelson Queiroz Tanure presents plans PetroRio
Nelson Queiroz Tanure 1 The influential journalist Geraldo Samor, which took passage by the Wall Street Journal, published in its SEE Markets column an ??interview with the executive Nelson Tanure Queiroz, son of Nelson Tanure businessman who led a major change in the management of PetroRio, the new brand of oil HRT. Objective and frank, Nelson Q. Tanure, director of the company's projects, explained the company's plans, which just bought the fields of Bijupirá and Salema, Shell.
Here is the full interview:
HRT oil company is undergoing a transformation that simply seemed unlikely, leaving behind its history of megalomaniac promises, cash burn and erratic execution. In the new narrative, which begins to please the market: opportunistic acquisitions and preserve cash.
As OGX of Eike Batista, HRT made ??a espetaculoso IPO and years later flipped spectacularly, leaving its shareholders with the proverbial paintbrush in mão.Nelson Queiroz Tanure
But in recent months, and under new management, the company started selling non-core assets, cut costs ambeviana obsession, and - to complete - bought two Shell oil fields that will triple its production. To leave no doubt about the break with the past, the company also has just changed its name to PetroRio.
Behind this new agenda is the Nelson Tanure entrepreneur, the largest single shareholder of PetroRio, and his son, Nelson Tanure Queiroz, director of the company's projects, who spoke to SEE markets yesterday.
In the dictionary of Tanure, 'projects' means doing more of the same: buy other assets in production, low prices that make PetroRio the consolidator of an industry that lives today with oil at $ 50 per barrel and the aversion of the majors ( the largest oil companies in the world) to invest in Brazil.
Only in the three trading days since the purchase of Shell's fields, PetroRio more than doubled its market value. Yesterday, the company, which had 400 million reais in cash at the end of the third quarter, ended the day worth 187 million.
How did the opportunity to buy the Bijupirá and Salema fields Shell?
Shell had relationship with some people of PetroRio, and they began a formal process of asset sales. We were one of the guests, and essentially were Brazilian and Chinese companies who participated.
You are selling non-core assets, such as the Solimões Basin and Namibia concessions. How is this process?
Bijupirá-Salema is part of the company's plan to buy assets in production, assets that represent a lower risk against the company and was done in the past. In relation to assets that the company still has this past, especially the blocks in the Solimões and the blocks in Namibia, both are part of the previously announced plan of divestiture to have an exploratory profile. Given the company's strategy to reduce risk, they no longer fit in our profile.
When you expect to have completed these divestments?
By the end of February, early March, for sure.
Why Glencore is financing the transaction? She was already trading company that bought those oil fields?
No. Glencore is financing the transaction for a few reasons. The first is because she likes the asset. Second, she likes the PetroRio and wants closer ties with the company, and we want to strengthen our relationship to it. The third is because she has naturally interest in selling the oil that we produce both the Polvo field [where PetroRio holds 60%] and, in a very short in Bijupirá. Today, it is the trading Shell marketing the oil Bijupirá.
After this purchase, as is the PetroRio cash position?
Glencore is funding 80% of the purchase price, and we are paying 20% ??with our cash. We have a very strong policy to preserve cash. The company has no debt. Her box today enough to pay all debts and still have money.
When you entered the HRT, there was almost a war on the board, with each proposing a direction for the company. What direction did you choose?
One of the things we have done more in the company is to introduce common sense. Márcio [Mello, founder of HRT] has all the qualities, is a guy entrepreneur, a great guy. But it's amazing how the company lacked common sense. From the moment we entered the company - we invested a year - much of what we did and that has generated value for the company are obvious things. You saw a decision being taken, you stopped to ask two or three questions, or they had no answers, or the answers did not satisfy.
In addition, we have given chance and resources for executives who are good and well prepared for them to have autonomy and responsibility. We have taken those with state culture, that it's time he wants and leaves the time you want, with giant salaries regardless of result .. that ended within the company! What's there today are very prepared people, very qualified, very autonomy and many goals. People wearing the shirt. The new office is all open, everyone is on the same floor without rooms. The directors sit in front of others. All the talk there has to be good and make sense to anyone who is listening or agree or disagree with you, to improve what is being done.
Did you try an approach with OGpar (formerly OGX) to a merger with PetroRio. How are these conversations?
Look, we are studying all the assets in the market: those for sale and those that are not. As for OGPar, make much sense, because the Tubarão Martelo field is adjacent to the Polvo field, then it has a lot of synergy there. They also have the BS-4 up there, the fields of Atlanta and Oliva, which are developing fields and will start producing in a few years. In 2013, when we began to study the oil and gas sector, we study the two companies: HRT and OGPar. Study these very companies. We currently have no ongoing negotiation with them.
A possible merger with OGPar bring debt to PetroRio?
No, because all debts it is being converted into shares.
You want to lead the consolidation of small businesses, taking advantage of this time to market?
This oil and gas industry has a very interesting thing. When oil falls much more worthwhile for a company to buy another that is cheap and has various fields with more certain perspective than buying an exploratory field and having to make any investment ... So this time of low oil is conducive for mergers and acquisitions. Who has box will be able to buy a company that has multiple active, good executives and everything working. It is better to buy a company so than spend money running the exploration risk of an asset, make all the seismic, etc.
You want to make a story to the capital market, or will administer PetroRio as a family business?
Let's play that company we play all our other: meritocracy, growth, bedding, result. Oil fell a lot and we are taking all measures to restructure the company, renegotiate contracts and can buy ideally solid companies with good assets and cheap. Our vision is long term and based on the foundation and delivery of results.
But you want that the market is on board?
Yes, for sure. We are starting a working relationship with the banks and other players in the industry, but our vision with respect to the capital market is to deliver results. In the case of Bijupirá Salema, we think they did a good buy, we pay a good price, and then we will do the same Octopus: we operate it more efficiently and cheaper than Shell, ideally. This is already a reality: we already operates Octopus with more efficiency than BP [who HRT bought the field].
Picked up and sold to break even my gosh this thing needs more steam.
that's a win win
3rd QUARTER 2014 RESULTS
Rio de Janeiro, December 23, 2014 – Óleo e Gás Participações S.A. – Under Judicial Recovery [traded on the São Paulo Stock Exchange (Bovespa) under the code OGXP3] today announced its results for the 3rd Quarter of 2014.
MANAGEMENT MESSAGE
Over the past months, OGPar continued to improve its operational performance as well as its balance sheet while successfully concluding one of the final steps in its judicial recovery process.
Production from the four wells in the Tubarão Martelo field totaled 1.157 million barrels of oil in the third quarter of 2014, reaching an average rate of 12,600 barrels of oil per day. Production for the past nine months totaled about 3 million barrels of oil.
The Tubarão Azul field produced an average of 3,400 barrels of oil per day in the third quarter 2014, with total production reaching 310,000 barrels of oil in the same period. Production in the past nine months reached 923,000 barrels of oil.
Financial performance as a result continued to improve. Sales for the nine months to date grew 42% compared to the same period last year and the company posted a positive EBITDA of R$149 million. This demonstrates that management continues to be focused on making OGPar a healthy company that generates cash from producing assets while controlling costs and investing in new assets to ensure results in the medium term.
Subsequently to the third quarter, on October 16th, OGPar and its subsidiaries completed their credit capitalization, one of the last critical steps in the company’s restructuring plan that will allow the OGPar Group to fully emerge from bankruptcy. Shares in OGX Petróleo e Gás were delivered to creditors registered under the restructuring plan, thereby freeing OGPar, OGX and OGX Austria of any pre-petition debt as stated under the judicial recovery plan. Having eliminated from its balance sheet USD 5.7 billion in debt, OGPar is now able to focus on developing its production activities in the Tubarão Martelo and Tubarão Azul fields.
EVENTS POST REPORTING DATE – DEBT CONVERSION
The Capitalization of credits, completed on October 16th, 2014, entailed a conversion of almost 14 billion Reais (R$ 13,800,970,749.52) of debt into shareholder equity in OGX P&G, with R$ 862,559.86 going to paid-in capital and R$ 13,800,108,198.66 to the capital reserve. During this process, 86,255,986 new common shares were issued at a price of R$ 160.00 per share and distributed to creditors in the proportion to their respective debts held in OGX P&G, as required under the Judicial Recovery Plan.
Immediately after the aforementioned allocation, Company recorded the accounting adjustments related to the application of ICPC 16 – Extinguishment of Financial Liabilities through the issuance of Equity instruments (IFRIC 19) and therefore reclassified part of the capital reserve balance to 3Q/14 profit & loss, in such a way that the net impact in capital reserve plus paid-in capital corresponded to the fair value of shares issued.
Notwithstanding debt extinguishment was formalized in an Extraordinary Shareholders' General Meeting, held on October 16, 2014, on September 30, 2014 all the precedent conditions necessary to the debt/equity conversion have already been met, hence, pursuant the judicial recovery plan the conversion was already mandatory. Due to that, on September 30, 2014, Company recorded in its accounting books the extinguishment of such debts with the related impact in equity accounts.
See the following variation of the equity of OGPar in 2014 with emphasis on the effects of the conversion:
Results Release
?Equity in December 31, 2014:
Gain on loss of control: Non-controlling portion:
Equity results:
Pro-rata stock options:
Currency translation adjustments: Others:
Equity in September 30, 2014:
(9,734,360)
6,997,227 (818,361) 3,708,041
10,495 (6,872) 3,359 107,629
Post-capitalization, credit holders will hold a combined 71.43% stake in the total paid-in capital of OGX P&G. As a result, the corporate structure of the OGPar Group will be as follows:
2
?Results Release
The Brazilian Securities Commission (CVM) gave OGX P&G a Category A Issuer Registration qualification and the listing of its shares was approved by the BM&FBovespa S.A., as per the Notices of Material Events published on September 18 and October 16, 2014, respectively, thus making OGX P&G eligible to carry out the debt conversion.
Through the establishment of an American Depositary Receipts (“ADR”) Program, the custodian of bonds due in 2018 and 2022 will hand over the American Depositary Shares (“ADS”) to the bondholders through the Depository Trust Company (“DTC”). Each ADS will represent one share in OGX P&G. All the shares issued as a result of the capital increase will have the same economic, political and other rights, including any OGX P&G share delivered in the form of ADS for bonds due in 2018 and 2022.
OPERATING PERFORMANCE PRODUCTION
CAMPOS BASIN PRODUCTION Tubarão Azul field
A - Production
The Tubarão Azul Field produced a total of 310,000 barrels of oil in the third quarter 2014, reaching an average rate of 3,400 barrels of oil per day. The increase in production in 3Q14 compared to 3Q13 is due to the fact that the OGX-26HP well resumed production in February 2014, following the renewal of the
??3
?Results Release
agreement to carry out tests using the FPSO OSX-1 vessel and the resulting lowered costs for chartering the FPSO.
The Company intends to continue production at the Tubarão Azul field at least until March 2015, as disclosed to the market on October 20, 2014.
Total Production (thousand bopd)
?27
246
367
310
3Q13 1Q14 2Q14 3Q14
B – FPSO OSX-1
The detailed breakdown of the Tubarão Azul Field’s OSX-1 FPSO can be found below:
(i) EBITDA pro forma; (ii) daily costs; (iii) bbls costs.
During the first semester the costs of leasing the FPSO OSX-1 and the respective O&M services, which were revised and significantly reduced to US$ 35,000 per day and US$ 85,000 per day, respectively remained stable in 3Q14.
However, costs effectively incurred this year are slightly higher than the currently agreed ones as these were impacted by the 2014 sale of inventories that were built up in 2013 with higher costs compared to the current ones.
?4
?Results Release
In R$ thousands, except as indicated otherwise
??YTD Q3/14
?208
?815,411
?208.05
??169,644
?- (17,854)
(23,415) (44,278) (40,409)
(2,591)
??(128,547)
?41,097
?24.23% 50.40
???Costs of the product sold
?EBITDA
Daily Cost (USD '000) Tubarão Azul
FPSO OSX 1
Descrição
Days of operation Offloadings - in barrels (bbls) Unit price - R$ / bbls
Sales revenue (net of freight)
Sales taxes Royalties Leasing O&M Logistics Others
% EBITDA / Gross revenue EBITDA / barrel - (R$/barrel)
Total: USD 272.9 th./d
Cost per barrel (USD '000) Tubarão Azul
????????5.5 37.9 85.8
49.7
21.8
1.4 9.7
23.9
Total: USD 69.5 th./bbl
??94.0
Royalties Leasing O&M Logistics Others
Development of the Tubarão Martelo Field A - Production
Royalties Leasing O&M Logistics Others
12.7
?????????????Since production began in December 2013, output at the Tubarão Martelo has totaled 3.3 million barrels of oil. With the third and fourth well now on-stream (on July 3, 2014 and September 4, respectively), the field produced 1,157,000 barrels of oil in the third quarter of 2013, reaching an average rate of 12,600 barrels of oil per day.
5
?Results Release
Total Production (thousand bopd)
?331
967
869
1.157
??????B – OSX3 FPSO
4Q13 1Q14 2Q14 3Q14
?On September 12, 2014 the Company signed the charter party agreement for the OSX-3 FPSO, the main terms of which were disclosed in the Notice of Material Event issued by the Company on December 24, 2013. The agreement calls for the following:
(i) Reduction of the daily charter rate to a fixed rate of US$ 250,000, valid from the date the vessel was delivered, i.e. November 19, 2013;
(ii) Alteration of OGX’s rights in relation to the charter party agreement (“Charter Party”) so that OGX has the right to terminate such agreement at any time, without owing any penalty for termination, provided that determined events are heeded;
(iii) Inclusion of acquisition rights in favor of OGX to acquire the bonds issued by OSX 3 Leasing B.V. (“Bonds”) under certain circumstances, if the Bonds have not been refinanced on or after their due date or if the OSX-3 FPSO has not been sold prior to such date;
(iv) Inclusion of the right for Nordic Trustee ASA (“Trustee of the Bonds”) to cancel the Charter Party (a) with an advance notice of 24 months if the Bonds have not been fully paid or acquired by March 20, 2015 and (b) immediately, with a prior notice of 45 days, should there be a default on the Bonds solely
6
?Results Release
for lack of compliance by OGX with its obligation to pay the charter rate as per the terms of the Charter Party (as amended);
(v) Inclusion of determined termination rights for OSX-3 and the Trustee of the Bonds, and the right to raise the charter rate to US$ 265,000 instead of US$ 250,000 in certain cases, should OGX not post guarantee in the amount of US$ 25 million in favor of OSX-3 and the Trustee of the Bonds, in order to guarantee its obligations under the Charter Party (which can be executed in the event of default on the part of OGX on its obligation to pay the charter rate as per the terms of the Charter Party).
Nevertheless, since the FPSO OSX-3 new contract signing, the oil Brent price suffered a sharp drop from USD 97.11 to USD 61.06 (closing of 12.15.2014) causing, in the Companies opinion, glaring contract imbalance. Consequently, On December 22, 2014, OGX P&G released a Material Fact confirming that it has obtained a court decision on a preliminary basis to reduce the charter value of the FPSO OSX-3 daily rate from US$ 250,000/day to US$ 130,000/day, given by the judgment of the Bankruptcy Court in Rio de Janeiro, in the face of OSX 3 Leasing BV, as the vessel owner, as well as Nordic Trustee Asa, as assignee of rights under the vessel charter.
C –TUBARÃO MARTELO EBITDA
The detailed breakdown of the Tubarão Martelo Field’s OSX-3 FPSO can be found below:
(i) EBITDA pro forma; (ii) daily costs; (iii) bbls costs.
The daily leasing cost of the OSX-3 that was effectively incurred is slightly below the US$ 250,000 that was initially contracted, after successful negotiations for retroactive application of the new daily rate agreed upon in November of 2013, which was reverted as a provision for cost made in 2013 based on the rate previously agreed to, in the amount of roughly US$ 430,000/day.
?7
?In R$ thousands, except as indicated otherwise
FPSO OSX 3
Descrição
Days of operation Offloadings - in barrels (bbls) Unit price - R$ / bbls
Sales revenue (net of freight)
Sales taxes Royalties Leasing O&M Logistics Others
% EBITDA / Gross revenue EBITDA / barrel - (R$/barrel)
Results Release
??YTD Q3/14
?235
?2,484,325
?210.32
??522,504
?- (61,109)
(128,316) (66,803) (75,095)
(5,797)
??(337,120)
?185,384
?35.48% 74.62
???Costs of the product sold
?EBITDA
Daily Cost (USD '000) Tubarão Martelo
10.8 113.7
238.7
Cost per barrel (USD '000) Tubarão Martelo
1.0 10.7
22.6
????????139.7
124.3
Total: USD 627.1 th. /d
13.2
11.7
Total: USD 59.3 th. /bbl
????Royalties Leasing O&M Logistics Others
C – NEW CERTIFICATION
Royalties Leasing O&M Logistics Others
???????????A new certification of reserves for the Tubarão Martelo Field, which was prepared by DeGolyer & MacNaughton (dated July 31, 2014), was obtained on October 13, 2014, as disclosed by way of a Notice of Material Event. The main difference compared to the previous certification, which was obtained in 2013, is that Proven Reserves (1P) were estimated at 15 million barrels. As previously mentioned in this Release, since it started production, the Tubarão Martelo Field produced 3.3 million barrels of oil up to September 2014. Its remaining reserves have been estimated as per the following table:
8
?Results Release
Tubarão Martelo OGX BM-C-39 and BM-C- Campos 15.0 78.5 103.6 40
DEVELOPMENT OF THE SANTOS BASIN
Development of the Atlanta and Oliva Fields (“BS-4”)
The tests that were conducted at the two horizontal wells of the Field’s Early Production System (SPA) have indicated that each well should reach a daily production capacity of 12,000 barrels of oil, which is the upper limit of the range estimated before the tests. During tests at the second well, the electrical submersed pump was placed on the ocean floor as an alternative to being placed at the bottom of the well. This option should be used by the Consortium during the development of the field because it represents a more cost-effective solution.
In May 2014, the Company and the operator released the results of the Atlanta Field’s reserves certification report (dated March 31, 2014), performed by independent consultants Gaffney, Cline & Associates (GCA). The main highlights of the report were that 1P reserves were estimated at 147 million barrels, 2P reserves were estimated at 191 million barrels and 3P reserves were estimated at 269 million barrels.
As Material Fact released on December 17, 2014, the Consortium responsible for the development of Atlanta Field has signed a contract establishing the chartering and operations of the production unit Petrojarl I (“FPSO” - Floating, production, storage, and offloading), which belongs to Teekay Offshore Partners L.P.
The production unit will be customized in order to fulfill the specific needs to operate in the Field and it is expected to arrive for lease within 14 months.
The production is scheduled to begin mid 2016. During the first phase, it is expected to produce 25 thousand barrels per day (kbpd), capable of reaching 30 thousand barrels per day with up to three producing wells, and two of which were already drilled and equipped with horizontal wet christmas tree and submerged pump. The unit Petrojarl I will be capable of storing 180 thousand barrels, its contract is for a five year period and includes a termination clause from the third year.
???Field Operator
???????Block (s) Basin
???????Reserves (mmbbl)
???????Proven Proven + Probable
?????????Proven +
Probable + Possible
????????9
?Results Release
The EPS Capex, considering two wells, sums US$ 520 million. The Consortium is evaluating the possibility of drilling a third production well, which would increase the EPS Capex. The total operational costs are estimated in US$ 480 thousand per day, and includes costs for leasing, services, logistics, insure, abandonment fund, and others. All the values announced consider the total of the Consortium.
The average annual production for Atlanta Field is projected based on 2P reserves, in accordance with the Field Development Plan. The Company highlights that the 3P reserves are unchanged with 269 million bbl. The production resultant from the Definitive System (DS) is based on the assumption of hiring a FPSO with higher capacity, starting from 2019 and additional wells drilling. Find as follows:
2016 13 13
2017 30 30
2018 30 30
?????(kbpd)
???????EPS Production
SD Production Total
????????????????????????????????2019 13 2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
21 34 74 74 76 76 60 60 46 46 38 38 33 33 29 29 25 25 23 23 20 20 19 19
?????????????????????????????????????????????????????????????????????????????????10
?Results Release
2031 18 18
2032 17 17
2033 16 16
The projection above represents an estimation based on the operator’s expectations and assumptions determined and are vulnerable to several risks and uncertainties.
First oil at the Oliva Field is expected for 2021, considering that the viability of this field is linked to the operation of the Atlanta Field.
QGEP is the BS-4 block’s operator, where the Atlanta and Oliva Fields are located, and holds 30% of the Consortium and they have as partners OGX P&G and Barra Energia, holding 40% and 30% stake, respectively.
Sale of OGX Maranhão (currently Parnaíba Gas Natural S.A.– PGN)
On October 30, 2013, OGPar and OGX P&G signed a subscription agreement with Cambuhy Investimentos Ltda. (“Cambuhy”), Eneva S.A. and DD Brazil Holdings S.a.r.l. (“E.ON”) whereby, subject to the terms and conditions stipulated therein, Cambuhy and E.ON agreed to invest in Parnaíba Gás Natural S.A. (“PGN”) a total amount of approximately R$ 250 million by way of a capital increase. Such capital increase was carried out in 1Q2014 (on February 19), reducing OGX P&G’s equity interest in PGN from 66.66% to 36.36%. Also on October 30, 2013, the Company and Cambuhy signed a Share Subscription Agreement whereby Cambuhy agreed to acquire from the Company its remaining share in PGN for a purchase price of R$ 200 million, readjusted according to the variation in the Brazilian Comprehensive Consumer Price Index (IPCA). On August 6, 2014 the competitive process called for in the Judicial Recovery Plan was carried out and Cambuhy made the minimum bid of R$ 200 million. Payment of such an amount and the effective disposal depends on certain conditions precedent, among them a final unappealable decision on the Judicial Recovery process. Associated to this sale agreement, a flow of payments was agreed in the amount of R$ 145 million, which PGN is due to pay to OGX P&G as per their cost-sharing agreement. Of this total, R$ 70 million was received by September 30, 2014 and a further R$ 20 million was received by October 30, 2014, as per the terms of the agreement. Also associated with such negotiations, for US$ 3 million, MPX Energia Gmbh agreed to acquire from OGX Netherlands B.V., an indirect overseas subsidiary of OGPar, the total number of shares that it held in
?????????????????????????11
?Results Release
Parnaíba BV, while also agreeing to make a capital injection of US$ 22 million in Parnaíba B.V. so that the latter could settle the debt it has in the same amount with OGX Netherlands B.V.
EXPLORATION
EQUATORIAL MARGIN EXPLORATION PORTFOLIO (BLOCKS OF THE 11th ROUND OF BIDS)
OGpar continues its exploration campaign in the four blocks acquired during the 11th Round of Bids, which are located in deep waters of the Ceará and Potiguar basins (POT-M-475 – 65% OGpar; CE-M-603 and POT-M-762 - 50% OGpar; CE-M-661 - 30% OGpar). At present, the companies serving as operators for these four blocks are conducting bids for acquisition of 3D seismic data that comprise the Minimum Exploratory Program (PEM) for the respective concession agreements. The drilling campaign, which seeks to investigate these blocks’ prospects, is expected to begin at the end of 2016.
OPERATIONS IN COLOMBIA
In continuity to the Material Facts released on April 25 and July 11 of 2014, in the last December 19, 2014 the Company concluded the sale of: 100% stake of the blocks in the Vale Inferior Magdalena basin (“VIM- 5” and “VIM-19) and 100% economic rights of the blocks in the Cesar Rancheria basin (“CR-2”, “CR-3” and “CR-4”), as announced and legally approved by the Agencia Nacional de Hidrocarburos (“ANH”). OGX will temporarily remain as the operator of the CR-2, CR-3 and CR-4 blocks.
The sale of VIM-5 and VIM-19 blocks assumes: (I) a payment of about US$30 million and (II) royalties of 3% on revenue generated by the blocks hydrocarbon sales; exemption of Company’s regulatory commitment (estimated value of US$75 million); refund of US$7.7 million that were pledged as collateral to the credit letters required by ANH.
The sale of CR-2, CR-3 and CR-4 blocks assumes an initial transfer of 70% stake, while OGX temporarily remains as operator and with a 30% stake, as well as equally exempts the Company’s regulatory commitment in the value of US$72 million, which was already due in ANH’s charge process. In addition it provides a refund of US$6.3 million that were pledged as collateral to the credit letters required by ANH.
The offer’s terms and conditions are aligned to the Company’s Reorganization Plan and restructuring process, since it exempts the Company from mandatory exploration costs and regulatory contingencies, as well as providing short term cash flow that improves the company’s liquidity.
PERSONNEL MANAGEMENT
12
?Results Release
OGpar ended the third quarter 2014 with 139 employees on its payroll and 724 outsourced employees responsible for all administrative functions, as well as O&G exploration and production activities. This represents a 7.8% decrease compared to the previous quarter. These 3Q14 figures do not include Parnaíba Gás Natural S.A.’s employees.
FINANCIAL PERFORMANCE
The following financial and operational information is presented on a consolidated basis, in accordance with the international financial reporting standards (IFRS) issued by the International Accounting Standards Board – IASB, and in Brazilian Reais (R$), except as indicated otherwise.
Statements of Income (Loss)
Despesas administrativas e gerais
EBITDA
R$ ('000)
??DEMONSTRAÇÃO DOS RESULTADOS YTD Set/14 YTD Set/13 ? ($) (reapres.) (*)
Q3/14 Q3/13 ? ($) (reapres.)
??(5,879)
(1,858)
(8,927)
7,069
??(5,879)
(14,402)
8,523
??8,523
(1,858) -
(8,927) -
-
(2,118,736)
7,069 -
????6,178,866 3,708,041
(14,402) -
(7,641,536)
6,178,866 11,349,577
6,178,866 3,186,383
6,178,866 5,305,119
????9,881,028
17,536,966
9,363,391 -
11,491,054 -
????????(7,227)
9,873,801
-
9,873,801
(14,366)
17,522,600
-
17,522,600
(5,962)
9,357,429 -
-
-
9,357,429
(7,299)
11,483,755 -
(839)
-
11,482,916
?????????Ganho na perda de controle Resultado de equivalência patrimonial
Resultado financeiro líquido
EBT
Lucro (Prejuízo) líquido - TOTAL
Note:
(i)
?EBIT
(7,655,938)
7,139
(7,648,799)
-
(7,648,799)
(2,127,663) -
1,337
(2,126,326) -
839 -
(2,125,487)
(-) Imposto de renda
(i) (i) This balance corresponds to the sum of (a) the gain arising on the loss of control over OGX P&G, amounting to R$ 6,997,227 and (b) the effect of R$ (818,361) related to measuring the non-controlling stake at fair value.
Due to the extinguishment of the pre-petition and post-petition liabilities adherent to the Plan, through the issuance of OGX P&G equity instruments, OGPar lost its control over OGX P&G and, therefore, according to accounting rules, Company is not consolidating the financial information of the aforementioned entity anymore. OGX P&G results are current outlined in OGPar profit and loss as “equity results”. For comparison purposes, 2013 results previously presented on a consolidated basis are now, represented on a deconsolidated basis.
We highlight the following effects on the nine-months period net income of OGPar:
13
?Results Release
a) Equity on OGX P&G results from January 1st to September 30, 2014
R$ mil
12,655,354 28.57% 3,615,635
92,406
3,708,041
R$ mil
9,768,808
99.99% 28.57% 71.43%
(6,977,860) (19,367) Total (6,997,227)
??Equity on OGX P&G results from January 1st to September 30, 2014:
- Results of OGX P&G on September 30, 2014
- Stake of OGPar on OGX P&G Subtotal
Equity in others companies
Total
b) Gain arising on the loss of control over OGX P&G:
Equity results on OGX P&G before the extinguishment of
debt through the issuance of equity instruments , except
A for net income/loss from January 1st to September 30, 2014
Lost share dilution
Previous stake
Actual stake
B Stake lost
???????????C = A* B
D Others
Gain arising on loss of control
??C+ D
14
?c) Marking at fair value of non-controlling shareholders
Shareholders equity of OGX P&G after on the extinguishment of debt through the issuance of equity instruments
OGPar’s stake on OGX P&G after on the extinguishment of debt throught the issuance of equity instruments
A Subtotal I
Market value of OGX P&G before on the conversion
OGPar’s stake on OGX P&G after on the extinguishment of debt throught the issuance of equity instruments
B Subtotal II
B-A Fair value adjustment of non-controlling stake
Results Release
R$ mil
3,349,810
28.57%
957,041
485,403
28.57%
138,679
(818,361)
???????15
?OGpar Contacts
Investors:
Márcia Mainenti Marianna Sampol ri@ogpar.com.br +55 21 3916-4545
Media:
Cibele Flores cibele.flores@ogpar.com.br +55 21 3916-4505
LEGAL NOTICE (CAVEAT)
Results Release
?This document contains some statements and information related to the Company that reflect the current view and/or expectations of the Company and its Management with respect to its business plan. Such statements include, among others, all the affirmations that denote forecasts, projections or indications or implications of results, future achievements or performance, including those containing such words and terms as “believe”, “forecast”, “expect”, “contemplate”, “will probably result” or other words or expressions with similar meanings. Such affirmations are subject to a series of marked risks, uncertainties and premises. We alert that a series of important factors may make actual results that differ to a material degree from the plans, objectives, expectations, estimates and intentions expressed in this document. Under no circumstances whatsoever may be the Company or its Board Members, officers, representatives or employees be held accountable with respect to any third parties (including investors) for any decisions of acts of investing or conducting business made on the basis of the information and statements contained in this presentation, or for any indirect damages, loss of income or the like. The Company has no intention of supplying any potential holders of shares with a revision of the affirmations or analysis of the differences between our statements and actual results. This presentation does not contain all the information required for a complete appraisal of investment in the Company. Each investor should thus conduct their own appraisal, including as regards the risks associated with making investment decisions.
16
Hmmm, so too bad it is major but nothing to do with ogXpy(.pk).
Your right but the real news is in the "Related News" next paragraph down.
http://www.bullfax.com/?q=node-russia-china-sign-second-western-route-mega-gas-deal-ch
Yeah,
And the article itself with that typo is also from 2012 / 2 years ago :
http://www.bullfax.com/?q=node-gazprom-embraces-europe-little-more-closely
Hi 'cityriders' That was a typo on the part of the editor of BullFax . com.
Gazprom has three Symbols: OGZRY , OGZPY
http://www.otcmarkets.com/stock/OGZPY/profile
IHub OGZPY:
http://investorshub.advfn.com/Gazprom-Oao-OGZPY-26563/
Gazprom Embraces Europe A Little More Closely
By Emerging Money: By Mitchell Hall Russia's state-owned natural gas giant Gazprom (OGXPY.PK) will take over natural gas trading and storage businesses it jointly owns with the world's largest chemical company, Germany's BASF (BASFY.PK), as part of an asset swap meant to avoid further winter supply disruptions to Europe that have occurred in recent years.
-http://www.bullfax.com/?q=node-russian-crisis-kills-big-german-gas-deal
However the share holders are only entitled to .046, that is 10% of the $1.5 B ($150,000,000). . 85% goes to Debt holders or $1,275,000,000. So for share holders .046 is the fair price according to the court.
Head fake on currency? http://investorshub.advfn.com/boards/read_msg.aspx?message_id=105013935
Still hunting GOL
If it breaks 2.4 I will sell my car and buy more....
dayneyus,
Not in direct reply to your article but: You might already know this but according to a press release on September 4th, they have now hooked up the 4th well in Tubarão Martelo.
No volumes were specified yet. We should now next month when they announce monthly production volumes.
BVE
One of the two things I want to find out is how they arrived at $1.5B USD; the other is GDR fees they were collected in Oct/13.
The GDRs are at 1:1 ratio (Mellon Bank Depository),the stock trades for R 0.18 on Bovespa at currant exch. rate, $0.08 USD. Even the currency arbitrage is in GDRs favor.
Trading Bsp:
http://quotes.esignal.com/esignalprod/quote.action?s=OGXP3F-BSP&type=Stock&fromSearch=true
Mellon DR:
http://www.adrbnymellon.com/dr_directory.jsp
My take on How much the present Markets values OGXPY
Undervalued by todays market:
Estimated val. minus Mrkt val.
Estimated value $1.5B - $213M = $1,286,174,000
Court EstimateValue/share
$1.5B /3.23B sh = $0.464
$0.464 x 3.23B sh = $1,498,720,000 almost $1.5B
Ownership post restucture
15% of shares: 484,500,000shares to Common Shareholders.
85% of 3.23B = 2,745,500,000 shares to Debt holders
(It is very likely there will be a Reverse Split under restructure and share reissued according to percentage of ownership.)
Present Market Cap: @ .0622
Total 3,230,000,000 x .0622 = $213,826,000
Common shareholders 15% 484,500,000 x .0662 = $32,073,900
Debt Holders 85% 2,745,500,000 x .0662 = $181,752,100
TOTAL_____________________________$213,826,000
The present Market Cap according to Yahoo finance is :
.0662 x 3.23b =______________________ $214.22Mill
http://finance.yahoo.com/q;_ylt=AhkGTd2YPymVlAsWZS4tukN2NohG;_ylu=X3oDMTBxdGVyNzJxBHNlYwNVSCAzIERlc2t0b3AgU2VhcmNoIDEx;_ylg=X3oDMTBsdWlqampwBGxhbmcDZW4tVVMEcHQDNQR0ZXN0Aw--;_ylv=3;_ylc=X1MDMjE0MjQ3ODk0OARfcgMyBGZyA3VoM19maW5hbmNlX3dlYl9ncwRmcjIDc2EtZ3AEZ3ByaWQDBG5fZ3BzAzEEb3JpZ2luA2ZpbmFuY2UueWFob28uY29tBHBvcwMxBHBxc3RyAwRxdWVyeQNPR1hQWSwEc2FjAzEEc2FvAzE-?p=http%3A%2F%2Ffinance.yahoo.com%2Fq%3Fs%3DOGXPY%26ql%3D0&hspart=att&hsimp=yhs-att_001&type=yahoo_pc_finance&uhb=uhb2&fr=uh3_finance_vert_gs&s=OGXPY
Hi dayneyus,
Thanks for digging this up and very interesting to say the least. I think now it is just a matter as to when OGPar will come out of this bankruptcy protection and can trade freely in Brazil. To me it seems that pricing in Brazil is artificially controlled by ?? and therefore keeps hovering around this R$0.17 to 0.19 value.
With the recent sales of the gas fields in Maranhao they seem to have fulfilled almost all of the Court requirements so I hope they come out of bankruptcy protection sooner than later.
Based on current production (15,000 bpd) I would say they should be values at about 3 times what they trade today. The US$ 1.5 billion would imply a production of (simply divided by 365 and US$100 / barrel): 40,000 bpd. I think they are a few years away from that.
Note that investors barely give value anymore to what is in the ground, only production and profits counts. You could say that what's in the ground is a safety layer and a reason to stay invested in the company and not run for the exits.
BVE
Too many zeros 3.23B : 3,230,000,000 shares. It still looks like a value of $0.46/share.
I see there are 323,000,000,000 shares OS and the Court has the company valued at $1.5 billion US, that's $0.46 a share. If this is true were looking at a great upside sleeper here.
The company is looking to work over some wells to increase production, also two other fields will begin to be exploited 2015/2016.
Thanks BVE. I've been going over the 2nd Qtr financials, dated 8/14/14, found some interesting things:
!(Warrant divy for present shareholders)
!(2.4 million bb oil sold 1st half 2014)
!(appraised amount(equity value) of the restructured company of US$1.5 billion )
http://www.ogx.com.br/conteudo_en.asp?idioma=1&conta=44&tipo=50977
2. Restructuring of debts: In addition to obtaining new funds, it is essential that the Company restructures debt incurred with its general creditors, as well as with post- petition creditors who expressly adhere to the Plan.
The DIP Financing, after certain conditions precedent are fulfilled, will be convertible into shares issued by OGX Petróleo e Gás S.A. which will represent, provided that all stages of the Court-Supervised Reorganization Plan are fully implemented, 65% of the total capital stock of the restructured company. After the conversion of the DIP Financing, OGpar’s creditors will be holders of shares representing 25% of the total capital stock of the restructured company.The Company’s current shareholders, after the dilution resulting from the conversion of the credits into capital, including the DIP Financing, will remain holders of shares representing, in the aggregate, 10% of the total capital stock of the restructured company. Additionally, the current shareholders will receive subscription warrants of the restructured company with the following main conditions: (i) exercise term of 5 years; and (ii) number of common shares to be subscribed representing, in the aggregate, fifteen percent (15%) of the total capital stock of the restructured company, considering an issue price based on the appraised amount (equity value) of the restructured company of US$1.5 billion.
5.
The restructuring of debts will be effected, provided that certain conditions precedent are fulfilled, by means of conversion of the claims into OGX Petróleo e Gás S.A. capital stock, while the unsecured creditors that wish so may receive the amount of up to R$30,000.00 cash, and the remainder of the claims will be converted into capital stock under the terms and conditions set forth in the Plan.
Net Results
In the first half of 2014, the Company’s net income came to R$516 million, versus losses of R$5.5 million in the same period last year, primarily due to: (i) a production portfolio that is currently focused on the Tubarão Martelo field, which ended the quarter with two producing wells and generated EBITDA of R$141 million; (ii) resumption, in February 2014, of production in the Tubarão Azul field, which contributed with an EBITDA of R$32 million; (iii) gains on foreign exchange variation, especially unrealized, of R$760 million; and (iv) the 43% reduction in general and administrative expenses, with a leaner headcount that is in line with the Company’s needs and a cost reduction program which includes moving to a new office and the renegotiation of agreements with service providers. These impacts were partially offset by: (v) restructuring costs totaling R$52 million; (vi) the constitution of a provision for inventory losses of R$155 million; (vii) the constitution of a provision for contingencies of R$54 million, due to the enforcement, by the ANH, of bank guarantees of the exploratory program of the Cesar Rancheria Basin in Colombia; and (viii) income taxes payable, totaling R$145 million, which were offset with tax losses.
Sales revenues
The sales carried out by the Company over the course of the First Half of 2014 totaled R$ 513 million, corresponding to the sale of 2.4 million barrels of oil.
?
Tubarão Azul Tubarão Martelo T O T AL
R$ mil
127,324 386,468 5 1 3 , 7 9 2
Bbls mil
605 1,788 2 , 3 9 3
R$/bbls US$ / bbls *
211 96 216 98
????(*) Translated into Brazilian Reais (R$) at the closing exchange rate for the 2nd Quarter (US$ 1.00 = R$ 2.2025).
I should have given you the link to the article:
http://www.ogpar.com.br/conteudo_eni.asp?idioma=1&tipo=50395&conta=46&id=198318
So, it doesn't say what the destination of these funds will be. Hope to learn more from next week Q2 Earning Release (aug 14, after trading hours). Although it is not part of Q2, they might shed a light on it.
BVE
Hi BVE did't catch that news release, but did buy the
dip. Do you know if the money will be used for debt or CapEx?
dayneyus, you probably read the press release on OGpar's website but nonetheless: they have been able to sell this week their participation in the gas fields up north and got the agreed R$ 200 million (approx. USD 88 million) for it.
This sale was part of the bankruptcy protection so another item they can check mark as "done" and concentrate on oil production.
BVE
The price holds .08 because somebody is willing to bet their losses against future gains unless the now profit is over 15%.
Petrobas would never buy ogxpy. It would be a conflict with the government long term plan. Ogxpy is simply petro rich land. It will remain private and this will not be able to operate adventagously until petrobas is succesfully pulling from their fields.
Brazil will not allow a privatized firm enter the market until it is adventagous for the government (pbr)
Thanks for both your thoughts....it's a long way away, but I like to be around when the time as right.
Thanks for yours and D conversation. It's got me interested in updating my thoughts here.
Conversion rate should finish around $2real vs $1usd. I think a solid move to 2.4 may occur with quick move to 2.60 to 1usd....however there is an outside chance that anyone beyond 2.25 to 1 is actually a head fake and a 1.65 to 1usd is not out of question.
I'm hunting GOL. It's a Brasil, pretoleum, and currency bet
Dayneyus,
Thanks for the link: I did not read all the material but I would say that OGX (or better OGpar today), is a different company from a year ago so I would discard most of the info and start with a new clean sheet.
The big bet is on how the bankruptcy protection and paying creditors will play out. If just look at production and the numbers of shares out there I believe this can be a multiple from where it is today even with a drop of 10-15% in devaluation of the Real: today $2.27 and I think this will got to $2.50-$2.70 by the end of the year.
As mentioned, there was a LOI from an investment group to purchase OGpar's 36% gas operation stake for a minimum bid of R$ 200 million (US 80-90 million)and it was actually already part of the plan to get out of bankruptcy. This did not happen last week, the company simply did not show up in court (nor any other interested co's) so the judge set a second date for August 6 for companies to bid on that gas project. Well see next week what the result is. Obviously, if they sell, it would help OGpar's cash flow.
BVE
BVE came across this article @ Seeking Alpha from 2013. It is interesting at the end of the article he considered it a long term play while it was trading at $1.30, with caveats of course. You might want to read comments section.
http://seekingalpha.com/article/1285401-brazils-ogx-petroleo-outlook-as-the-nations-largest-private-e-and-p-operator
Brazil's OGX Petroleo Outlook As The Nation's Largest Private E&P Operator
Mar. 19, 2013 8:25 AM ET | 25 comments | About: Oleo e Gas Participacoes Sa ADR (OGXPY)
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
In response to reader interest, I am releasing the recent correspondence between a Seeking Alpha reader and myself regarding OGX Petróleo e Gás Participações S.A. (OTCPK:OGXPY).
March 13 at 3:51pm
Bom Dia! Richard: I have another thought that you might have a interest(knowledge) in ... ? Do you follow OGXPY? As you undoubtedly know this company has been beaten up something terrible. it was $10 - $11 dollars a share a couple of years ago. Now it,s $1.30+ As you know too ... OGX has some fabulous "proven" reserves that should be of value one of these days ...? With your background in O/G ... What's your thoughts on OGXPY? Has Batista lost his magic? Best Regards, Bill
My reply follows ...
Richard Berger March 13 at 11:56pm
Hi Bill,
OGXPY.PK share decline initially was triggered by rumors of health problems for Eike Batista. These rumors were never substantiated and indeed appear to be completely without basis. Nonetheless, the attention they brought to his holdings in his EBX Group of companies, including OGX, has resulted in some longer term effects. OGX is essentially a closely held corporation controlled by Batista directly owning about 67% of the shares and companies under his control holding another 30.6%. This totals a 97.6% ownership controlled by Batista. The company apparently is only public traded to provide Batista a valuation of his asset for his own purposes and in use as pledging as a guarantee against debt he may take on for his own unrelated business activities.
OGX went public in June 2008 with a $R6.7 billion offering (USD $ 3.35 billion at current exchange rates). third quarter 2012 saw the first oil production sales revenue on an average 9.4kboe/d at a price averaging $142/boe. Production will be rapidly increasing in 2013 with one of the 3 wells in its current producing field back online after a 1 month shut-in for submersible pump equipment replacement and the connection of several more completed wells to production. Late 2013 is forecast to begin significant gas sales from the company's 16 completed but currently unconnected wells. On the other hand, oil prices are only averaging $95/barrel now, a significant decrease from the $142/b received in 2012. OGX does not use hedging to lock in future prices and smooth out price fluctuations.
OGX plans $1.2 billion in expenditures for 2013 and only has current assets of $2.5 billion. The company has entered into an agreement with Batista which provides a put option essentially whereby the outside directors of OGX may make a determination that the company needs additional cash and can require Batista to provide up to USD $1 billion through the purchase of new shares at $R 6.30 per share. This agreement remains in effect through April 30, 2014.
This "PUT" agreement creates a drag on the company in that it may be dilutive to existing share hold equity. The size of such dilution is unclear since the strike price is in Brazilian Reals and the funds are in $USD and the exchange rate should the PUT be exercised is unknown (currently about $3.15/share USD).
Several important downward revisions to OGX estimated reserves have also led to large downward moves in the company share prices. These reductions not only lowered enterprise value but also lowered the confidence in continuing and future statements made by the company with regard to foreword looking results.
Most recently, just a few weeks ago, on February 27, 2013 Eike Batista denied rumors that the company was being sold to Petronas, a state-run Malaysian company. The uncertainties in relation to the company knocked down the company's stock prices on the market since then. The language of Batista's denial of these rumors that his stakes in several of his EBX Group are in negotiations to be sold was interesting. In his statement, Batista says that no agreement has been reached to sell all or any part of any of these companies. He significantly ignored denying the rumor that the negotiations themselves have taken place.
So, the key issues with OGXPY are:
1. It is very closely held with less than 2.4% of its shares floated in the open market to non-controlling interest shareholders.
2. This non-controlling percentage may be significantly reduced if the PUT is exercised. At current exchange rate it would result in another 317.5 million shares to controlling-interest holders. This is about 10% of the total outstanding shares.
3. With a current market cap of $ 3.92 billion and enterprise value of $ 6.91 billion, The PUT agreement providing for 10% of the outstanding shares (based on current exchange rates) does not appear to have any likelihood of being dilutive.
4. The PUT agreement price of $R6.70 (USD $3.15 currently) does put a upper limit on market share price if it is to remain non-dilutive.
5. The market appears to place a very low value on the shares due to the high percentage owned by controlling interests (virtually all controlled by Batista). This situation is unlikely to change for the better in the near future. The PUT option in fact would significantly increase the percentage held by Batista.
6. A possible sale by Batista to raise cash for his own goals separate from OGX are a drag on its shares in the market.
7. With extreme expenditures planned for the next several years in E&P to develop the company's proven reserves and bring them to market, there is virtually no chance of a dividend and a high likelihood of the need to raise additional funds to meet these needs for cash beyond what the production revenues will be able to supply.
8. OGX looks like a moderate risk gamble for the long term if oil prices remain near or above the $100/barrel price. The forecast for U.S. energy independence by 2016 makes this a risky assumption. As the importer of about 20% of the world's available export-market production, a withdrawal by the U.S. from these markets would likely cause a very significant price fall from the current market.
9. The commencement of production sales in third quarter 2012 along with expected large increases in production in 2013 may provide the news needed to arrest share price decline. The significantly lower price/barrel will offset this positive news to at least some degree.
My bottom line on OGX: Treat it like the penny stock it is. An intriguing speculative investment at these prices with far more long term upside potential than down.
Richard
Disclaimer: I am not a licensed securities dealer or advisor. The views here are solely my own and should not be considered or used for investment advice. As always, individuals should determine the suitability for their own situation and perform their own due diligence before making any investment.
Thanks BVE I have come across some of those figures and will be doing more DD. I do own the stock but looking to add when ever I can grab some around .08 .
Hi,
Glad you did post this question. I'm also on the HRT side of things. My take on his stock is that it will surprise a lot of people towards the end of the year. Although the company is under bankrupt protection, about which I know nothing, let alone in Brazil, for me this one can only go up by a large margin. So, yes, I'm invested in it an bought at the price it stand now.
- In June/July they added another field so I expect near future volumes to reach 20,000 barrels/day: that's about a $600 - $700 million company right there!
- Last month production "dropped" from 16000 to 13000 average per month but to hook up that 4th field to an FPSO you will be a few days off-line just for safety alone.
- Unfortunately they need 2 FPSO's (OSX-1 and 3) to get the the 20,000 barrels / day so extra cost of about $250,000 per day.
- They have participation in gas operations in the north of Brazil which has huge profit margins and they are increasing production. They try to sell their stake and although there were some preliminary contracts, it eventually did not happen. They try again next month.
- To simplify: if $600 million per year from just oil production: with a 10% profit and P/E of 10 and 3.2 B shares my guesstimate is around the $ 0.17 to $0.20 SP.
- For the gas part I'll have the read-up a bit further but their BOE for these fields is about 10,000 boed although gas is at about 1/3 of the price of oil but profit margins are almost 3 times better so you can almost add another 50% (10,000 vs 20,000 barrels per day) to the SP.
In resume: for me this has to be about a US $0.25 to 0.30 share price.
I'm looking forward to their Q2 statement in August as for sure this will give a better insight as to what is still owed to creditors. I expect OGpar to do about the same as Q1 and do not expect better things till Q3/Q4.
The "good" thing for us is that by being under bankrupt protection, they have to have to inform the court of every step/event they take/make so we have actually a better insight at this point than for example what's happening at HRT.
BVE
I am trying to figure a value on OGXPY seems they could still drill their way to a better price per share. After all this company was launched with great expectations, only now we can recalculate with a lower expectations.
Batista’s oil company viable after creditor approval, CEO says • 8:52 AM
Oleo e Gas Participacoes (OGXPY) will emerge as a viable producer once creditors approve a recovery plan at a meeting scheduled for next week, CEO Paulo Narcelio says.
Eike Batista's struggling company will eliminate most of its debt and recover financing capacity as it generates ~$500M in sales this year, enough to sustain operations, according to Narcelio.
OGpar expects to produce an 16K bbl/day for 12 months after connecting two extra wells to its Tubarao Martelo deposit by July.
The warning sign is lit at the Ministry of Mines and Energy and Aneel. The association between Geneva Preview (ex-MPX) and Bob Logistics (formerly LLX) for energy auction A-5, scheduled for September, caused an uproar among the authorities of the electricity sector.
See more: https://translate.google.com.br/translate?sl=pt&tl=en&js=y&prev=_t&hl=pt-BR&ie=UTF-8&u=http%3A%2F%2Fbit.ly%2F1qSJaTG&edit-text=&act=url
http://www.bing.com/images/search?q=france+flight+447+crash&qpvt=france+flight+447+crash&FORM=IGRE
One of the greatest Canadian business icons was on the down flight of 447 when it flew out of Brazil for France that held a huge equity stake in the company and who had put up a fortune in collateral to underwrite the debt known a collateral to the laymen.
Thank god for live insurance bought and held by the company on all officers who put up the collateral.
This has allowed the company to resell the equity position held by this individual and put up new collateral.
the collateral will be sold as new equity and the money will be used to go forward with hopefully more luck then before to find oil in the area of interest.
Collateral is often held as a bond that can be sold or equity that can be sold or held without notice.
Time is running out they need to find oil and fast.
http://ih.advfn.com/p.php?pid=nmona&article=61436091
Moving his funds must be the oil business is a touch to stress full for the old ticker.
Down, down we go were she stops know one knows.
Woopy ding dong a whole 20% move. We have to get this down to were there is a 100% move in a day. This has the making but she won't do it at $.10 we need a bigger short position from the company for the capital that was raised above the strike price and that means more leverage before it can interest me, but with that said you will want to hang on to about a thousand shares so one will remember to keep watch. but should she pumps oil and that is a long shot with lots of risk more down side then up at this time then jump in with both feet on the buy button until then watch for the unwinding of leveraged BP stock as BP is forced on its court debt to the people " statute of limitations " coming up soon.
BP is the only stock that is undervalued to date pending the courts statute of limitations when looking at the oil sector that I have found.
See and read all the 8K's of BP for your DD as to what I'm claiming here to be true.
http://www.bloomberg.com/news/2014-01-20/batista-oil-vessel-unit-stock-embargoed-by-acciona.html
It is going to get tough to pull that rabbit out of the hat when you have nothing to work with.
But hey look at all the capital surplus it just don't make sense to me.he,hE,He,HE!!!!!!!!!!!!!
Supply and demand will fall as supply goes up and demand stays the same for the Hemp as well as when you add in the falling risk do it now being legal to purchase.
The opposite is true for off shore oil as the liability risk goes up as well as easy access oil goes down the price will climb as noted but as electric cars take hold so will demand drop.
http://finance.yahoo.com/news/petrotech-oil-gas-inc-subsidiary-134500566.html
DON'T BELIEVE EVERY THING YOU READ!!!!!!!!!!!!
This has nothing to do with producing Hemp they are required to announce the purchase of such a position that is all.
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OGX
OGX Petroleo E Gas Participacoes Sa
Praia do Flamengo 154
Rio De Janeiro, RJ 22210-030
Brazil
Phone: 55-21-25555248
OGX is part of the EBX Group, an industrial group founded and under the leadership of Brazilian entrepreneur Eike F. Batista, who has a proven track record in the development of new ventures in the natural resources and infrastructure sectors.
OGX is the largest Brazilian private sector oil and natural gas company in terms of offshore exploratory acreage, with concessions blocks covering approximately 7,000 km2 (1.7 million acres) acquired on the Ninth Bidding Round held by ANP.
Since its inception, in June 2007, OGX has established a leading position in the Brazilian oil and natural gas exploration and production sector by acquiring a diversified portfolio of high potential exploration blocks.
In November 2007, OGX raised U.S.$1.3 billion in an equity private placement, providing capital to purchase concession rights in the Ninth Big Round, held by ANP (Brazilian National Petroleum Agency). In this round, OGX acquired concessions rights to 21 exploratory blocks in the Campos, Santos, Espírito Santo and Pará-Maranhão basins, comprising a total area of 6.4 thousand squared km.
Planning to pursue additional growth opportunities, OGX has entered into a farm-in agreement for a 50% participating interest in an exploration block in the Santos Basin totaling 6.8 thousand squared km of offshore exploratory acreage.
In June, 2008, OGX held its Initial Public Offering (IPO) whereby approximately R$ 6.7 billion were raised in a 100% primary offer, representing the largest IPO ever in Brazil. The resources will be used to fund OGX’s exploration campaign and initial production development.
OGX has engaged DeGolyer & MacNaughton, a leading consultant in reserve certification for the oil and natural gas industry with over 70 years of experience, to prepare an appraisal report. Based on information derived from this report, its exploration blocks contain prospective resources of 20.180 billion barrels of oil and natural gas and net risked prospective resources of 4.835 billion boe.
The OGX’s net risked prospective resources are assuming a probability of exploratory success of 27%. However, the exploration team of OGX believes that the average success rate can be closer to 50%.
Brazil
Flavio Godinho, Exec. Dir.
Marcelo Adler Cheniaux, Exec. Dir.
Paulo Manuel Mendes Mendonca, COO
Marcelo Faber Torres, CFO
Bank of New York Mellon Corp.
One Wall Street
New York, NY 10286
Citibank, N.A.
388 Greenwich St.
New York, NY 10013
Pinksheets Information
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=ogxpy
Earnings link
http://ogx.infoinvest.com.br/ptb/712/Release3T09inglsvfinal.pdf
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