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Fantastic News!!
The way I interpret the news HRT has their farm down partner which is Rosneft for the whole Solimoes Basin.
This agreement is a big moral boaster for the management and shareholders of HRT. Now the company can focus primarily on Polvo and Namibia.
BTE it's history and what could happen to LSTMF.
I have held Baytex BTE shares since 2004 that I bought for $10.50 each. During that time they reduced their dividend once, then raised it back up in increments’ and ultimately to a level higher then it was when they had reduced it. BTE is a cash cow for me and giving me a 400% capital gain. I have always maintained a core position and traded shares above it enabling me to make even more money. I feel we will experience the same thing with LTS that is why I have significantly added to my position in the company.
If HRT had discovered Oil in Namibia investors would have been doing cart wheels and praising management. As we all know that did not happen. This happens in the Oil business and is no fault of a company's management, if you did not think this could happen you are a very naive investor.
We as investors do not have the expertise or the connections and the ability to bring in new management. Even if we could I feel it would be more expensive and very disruptive to HRT.
What the current management needs now is the support of it's share holders, so they can continue on building a successful company.
Like other investors I am underwater in my investment in HRT, this of course is not the first time, it has happened to me in other investments I have made. But more times then not I have found my patience has proven very rewarding. I feel very strongly my patience in HRT will turn out the same way.
I can understand why some investors were disappointed by the fact the Quarterly report and Conference call did not move the shares up. This was no surprise to me since the company is in the dog house, what I got out of the company is that the management is taking the right steps and moving at the right speed to bring about the results that we once envisioned.
Because of why I invested in HRT in the first place, should anyone try to force the change of management or liquidation of HRT, I shall do everything at my disposal to stop it from happening.
I would not like to see HRT acquired at this time far to early in the game. Good assets with a lot of potential to create a lot of upside in HRT's shares.
What I got out of the 3rd Quarter report was a management that was intent on HRT not becoming another Titanic.
In my opinion we have no choice but to stick behind the current management's efforts to improve shareholder value. I will not support any efforts to get rid of the current management of the company. To try to do so, could leave no one at the helm of HRT and cause a complete liquidation of it's assets at fire sale prices.
I invested in HRT's potential, and feel that with it's current assets it can turn out to be an extremely rewarding company for it's shareholders. So I will argue strongly against dismantling and liquidating the assets and distributing the proceeds to its shareholders.
I am looking forward to HRT's Web Cast.
Company Overview of Discovery Capital Management, LLC
Discovery Capital Management, LLC is an employee owned hedge fund sponsor. The firm primarily provides its services in pooled investment vehicles. It launches and manages hedge funds for its clients. The firm invests in public equity and fixed income markets across the globe. It also invests in alternative investment markets to make its investments. The firm primarily invests in stocks of companies operating in emerging markets. The firm employs in-house and external research to make its investments. The firm manages 13 accounts totaling an estimated $21.3 Billion of assets under management. Discovery Capital Management, LLC's 63 employees help advise 11-25 clients. The company was founded in April 1999.
Recent Private Companies Transactions
Type
Date Target
Merger/Acquisition
November 5, 2013 HRT Participações em Petróleo S.A.
Merger/Acquisition
December 12, 2012 YM BioSciences Inc.
20 Marshall Street
Suite 310
South Norwalk, CT 06854
United States
Phone: 203-838-3188
Fax: 203-354-1450
I think it will be a good thing if Discovery has control of HRT for shareholders in the company. If that is their plan, I feel they are taking it slow and easy buying in the stock market, building their position as cheap as possible. I do not think they want to take the company private. I feel it would be in their best interests to keep it public.
I hope it is to the good too because I added to my position today.
Why Lightstream Will Weather Weakness in Canadian Crude
Looking at Lightstream's production breakdown, you can see why they are in a better position than many Canadian oil producers. Of the 35,445 barrels of oil and NGLs Lightstream produced, 55% came from the Bakken or Southeast Saskatchewan. This oil generally fetches prices that are much closer to WTI prices than other Canadian oil. This is one reason Lightstream enjoys such high netbacks. With current average netbacks well over $50, Lightstream can afford to give up some. Many other Canadian producer have netbacks in the low $20 range, so lower oil prices could make life really tough.
LSTMF third quarter financial and production report.
http://www.lightstreamresources.com/news/view/1/lightstream-announces-third-quarter-production-of-45-160-boepd-and-funds-flow-from-operations-of-180-million
According to a Forbes article Lightstream getting very over sold.
http://www.forbes.com/sites/dividendchannel/2013/11/07/lightstream-resources-getting-very-oversold-lts-2/
Drewey I don't understand your question.
Powerwalker:
In response to a question I sent HRT's IR regarding the time of the CC call. The following was attached to their reply.
Quiet Period
In order to ensure equitable disclosure of information and in accordance with corporate governance best practices, HRT is in quiet until the disclosure of its results for the third quarter of 2013. During this time, it will not comment on its results.
I do not know if you send an email to HRT's IR as rzbern suggested regarding your latest post would be considered something they would not comment on at this time prior to the release of HRT's results. But I would not be surprised if they would not comment on it at this time for the above stated reason.
Re: CC Call November 14, 2013 (Thursday).
Conference Call in English
8:00 a.m. (NY Time)
11:00 a.m. (Brasília Time)
Phone: +1 786 924-6977
Toll Free (USA): +1 855 281-6021
Password: HRT
The presentation will be available for download on HRT’s website a few minutes prior to the conference call.
Quiet Period
In order to ensure equitable disclosure of information and in accordance with corporate governance best practices, HRT is in quiet until the disclosure of its results for the third quarter of 2013. During this time, it will not comment on its results.
For further information, please contact the Investor Relations department.
I am strongly against forcing the liquidation of HRT. The company has no debt, assets with good potential. Throwing in the towel now would not be the right thing to do. Hopefully they can give us some encouragement in the conference call.
Conference Call, Nov.14th, 8am ET.
Do you have the commitment of a Viking? .. (From Future Money Trends)
Legend has it that upon invading a new frontier, Vikings would burn their own ships. The idea being that this would guarantee victory by committing the soldiers to conquering the territory.
It's possible the Vikings knew how the mind works, humans instinctively seek safe harbor in difficult situations.
Many of us today are all too familiar with an opportunity or massive gain in an investment that we missed out on because we simply lacked the commitment.
In life, you are going to have to make some strategic commitments because the decisions you make right now will effect the outcome of the rest of your life.
Becoming wealthy is a choice, pure and simple. If you commit to making wealth generation a priority, people like Warren Buffet say there is no doubt that you can ultimately live whatever kind of life you want.
Commit to your investing, education, and own a business like a Viking, can almost guarantee you success!
Q&A
Hiram M.
I am down on a stock I just bought, should I sell it?
It all depends on what we are talking about, if it is a large cap company that you know you bought at a discount, I honestly would recommend you only sell it if you absolutely have to. You are far better off holding it and allowing the compounding effect to take its course.
If it is more of a speculative trade that you are expecting a large return on, you have to ask yourself, would you buy it today if you didn't own any shares? If the answer is yes, then I would hold and consider buying more on the dip.
You have to remember that speculative trades are inherently going to be more volatile, but remember volatility doesn't equal risk. The dollar value of your trading account will absolutely wreak havoc with your emotions, but it doesn't add any risk to your position if the business or prospect is sound.
A good business/stock whose share price is down is a buying opportunity.
For more speculative trades, I think your exit strategy should align with the company achieving its goals. You will have to decide if this strategy works for you; if it is, I would encourage you to commit to it and don't be shy about knowing what is going on with your money. Call companies to, get to know the people, and stay connected.
Marin Katusa ( Casey Dispatch) has stated, his biggest gains have taken 5+ years and we are talking about millions of dollars that he has made simply because he committed his money to staying the trade.
Marin's personal story is incredible. Before he became a multi-millionaire, he was a teacher who borrowed over $100,000 to buy a junior miner, the stock literally collapsed.
He calls this moment his valley of darkness, when he had to re-look at his investment and decide if he was right or wrong.
Obviously the rest is history and he was right and his original investment turned into millions of dollars.
Ideally, next time try and have your exit strategy before you enter any investment. You need to have an objective to commit to if you want large net worth changing returns like Marin.
Rzbern OK I will try again.
Rzbern I joined your group but cannot get the site to translate the questions and answers regarding the meeting.
I added my shares backing any efforts they make to get a greater voice in HRT.
Dividend cut versus an Asset sale
A dividend cut of 50% ( 90 million dollars a year ) would have little effect on LTS's debt but will have a negative effect on it's share price. Where as a meaningful asset sale like their Duvanay property would.
In Oct. of 1911 PBN/LTS hit a low of $6.05, then they sold a non core property for 425 million dollars and did some refinancing as mentioned in the BNN video clip. The shares then proceeded to treble themselves to a high of $18.28.
A piece of past history of Petrobakken now Lightstream when it first traded in the $6 range.
A video clip from the past saying good things about Petrobakken /Lightstream.
http://bit.ly/x0uThk
27 Feb 2012, 02:18 AM
Hi XXXX,
As of Q2 we were getting $87.24/bbl with the differential of the WTI being 10%. I would like to mention that we do not function only in the Bakken, however and that figure includes all of our business units.
Hope this helps,
Investor Relations
Higher Bakken Crude prices should be positive for LSTMF.
http://marketrealist.com/2013/06/bakken-crude-begins-to-trade-at-premium-to-wti-benefiting-north-dakota-names-such-as-whiting/?utm_source=yahoo&utm_medium=feed&utm_content=more-2
Last year at this time LTS traded as high as $14.37 with lower production and oil prices and now it finished the day closing at $6.47. Unbelievable!!
When the Saudi's announced they were going offshore to drill for oil to make up for declining onshore production I was rather skeptical of them being successful. Although they were not instantly successful at it, their perseverance paid off big time.
I hope HRT goes back to drilling offshore Namibia and they persevere like the Saudi's, that is the only way they will ultimately be successful.
The following article can be very telling as to why HRT with it's huge holdings in Brazil and offshore Namibia may not have difficulty in merging with another company. Think of what could have happened to HRT shares if they had hit such a huge discovery in offshore Namibia as was discovered in offshore Saudi Arabia. That is why HRT has to go back drilling again in offshore Namibia.
The Record Oil Outputs in Saudi Arabia Fail to Ease Shortage Anxiety
BY OIL PRICE10/02/2013
Saudi Arabia, along with OPEC neighbors Kuwait and the United Arab Emirates, exported a record high of crude oil this August. Despite pumping out 10.2 million barrels per day, the fastest rate in 32 years, Saudi Arabia was unable to offset OPEC’s 0.8 percent decrease in oil production, attributed largely to instability in Libya and tough sanctions on Iran. As a number of OPEC countries face stagnant or falling production and oil prices creep steadily upwards, the question of whether Saudi Arabia can offset further shortages is more pressing than ever.
Saudi Arabia has traditionally acted as a “swing producer,” utilizing its significant spare capacity to stabilize oil prices and thus buffer the effects of geopolitical upheavals that could otherwise upset the global supply of oil (such as the Libyan civil war in 2011 and the Gulf War in the early 1990s). However, the price of oil has sharply increased from $22-28 per barrel—in the period lasting from the 1980s until 2003—to a high of $134 per barrel in July 2008. The Brent Crude currently sets the price per barrel at $109, a number that could easily increase if OPEC supplies did not match global demand.
Ali al-Naimi, the Saudi oil minister, emphasized Saudi Arabia’s ability and willingness to meet global demand last week. The kingdom currently has an estimated spare capacity of 2-3.5 million barrels per day and plans to begin production in the offshore field of Manifa, which could increase output by up to 900,000 barrels per day.
[Hear More: Dr. Robert Hirsch: Middle East Waking Up To Peak Oil Reality
Despite these assurances, the kingdom faces domestic obligations that in effect constrain its export potential. Domestic consumption of oil has reached nearly 3 million barrels per day and is growing at a rate of 7 percent per year. In order to meet projected domestic and global demand by 2020, Saudi Arabia will have to pump between 12.5 and 15 million barrels per day. This might be achievable with billions of dollars in infrastructure investment.
However, even if Saudi Arabia is able to ramp up production to this extent, it is unlikely that it will keep its single-handed ability to stabilize oil prices unless it also maintains a large spare capacity. Any regional event on par with the Libyan civil war, during which Libyan oil exports plummeted from 1 million barrels per day to barely a trickle, could send oil prices shooting upwards, unless Saudi Arabia retains enough spare capacity to fill the resulting supply gap.
Stable oil prices are critical to global growth. The impact of increased energy and transportation costs reverberate through all sectors of the economy. Countries with little or no domestic oil production and emerging economies are especially vulnerable to high oil prices. Deutsche Bank analysts claim that $120 per barrel, just $10 more than the level at which barrels are currently trading, is the point at which the cost of oil begins to make up more than 5.5 percent of global GDP. This benchmark has historically “been an environment where global growth has come under pressure.” The IMF, meanwhile, estimates that every additional $10 on the price of oil shaves 0.2 percent off global growth.
Saudi Arabia’s ability to meet global demand and buffer supply fluctuations in the long-run may be questionable and thus concerning for global growth.
However, recent developments suggest that Saudi Arabia may not ultimately need to be the only one bearing the burden of maintaining stable oil prices. The renewal of talks between Iran and the United States could result in the easing of sanctions and increased Iranian oil exports. Emerging shale gas production in the US holds the potential for the US to become less reliant on OPEC oil, thus decreasing its share of global demand. As energy producing countries diversify and alternate energy sources are explored, it is quite possible that Saudi Arabia may no longer hold, or even have to hold, the key to stable oil prices.
By Marina Mellis
Record Oil Outputs in Saudi Arabia Fail to Ease Shortage Anxiety
BY OIL PRICE10/02/2013
Saudi Arabia, along with OPEC neighbors Kuwait and the United Arab Emirates, exported a record high of crude oil this August. Despite pumping out 10.2 million barrels per day, the fastest rate in 32 years, Saudi Arabia was unable to offset OPEC’s 0.8 percent decrease in oil production, attributed largely to instability in Libya and tough sanctions on Iran. As a number of OPEC countries face stagnant or falling production and oil prices creep steadily upwards, the question of whether Saudi Arabia can offset further shortages is more pressing than ever.
Saudi Arabia has traditionally acted as a “swing producer,” utilizing its significant spare capacity to stabilize oil prices and thus buffer the effects of geopolitical upheavals that could otherwise upset the global supply of oil (such as the Libyan civil war in 2011 and the Gulf War in the early 1990s). However, the price of oil has sharply increased from $22-28 per barrel—in the period lasting from the 1980s until 2003—to a high of $134 per barrel in July 2008. The Brent Crude currently sets the price per barrel at $109, a number that could easily increase if OPEC supplies did not match global demand.
Ali al-Naimi, the Saudi oil minister, emphasized Saudi Arabia’s ability and willingness to meet global demand last week. The kingdom currently has an estimated spare capacity of 2-3.5 million barrels per day and plans to begin production in the offshore field of Manifa, which could increase output by up to 900,000 barrels per day.
[Hear More: Dr. Robert Hirsch: Middle East Waking Up To Peak Oil Reality]
Despite these assurances, the kingdom faces domestic obligations that in effect constrain its export potential. Domestic consumption of oil has reached nearly 3 million barrels per day and is growing at a rate of 7 percent per year. In order to meet projected domestic and global demand by 2020, Saudi Arabia will have to pump between 12.5 and 15 million barrels per day. This might be achievable with billions of dollars in infrastructure investment.
However, even if Saudi Arabia is able to ramp up production to this extent, it is unlikely that it will keep its single-handed ability to stabilize oil prices unless it also maintains a large spare capacity. Any regional event on par with the Libyan civil war, during which Libyan oil exports plummeted from 1 million barrels per day to barely a trickle, could send oil prices shooting upwards, unless Saudi Arabia retains enough spare capacity to fill the resulting supply gap.
Stable oil prices are critical to global growth. The impact of increased energy and transportation costs reverberate through all sectors of the economy. Countries with little or no domestic oil production and emerging economies are especially vulnerable to high oil prices. Deutsche Bank analysts claim that $120 per barrel, just $10 more than the level at which barrels are currently trading, is the point at which the cost of oil begins to make up more than 5.5 percent of global GDP. This benchmark has historically “been an environment where global growth has come under pressure.” The IMF, meanwhile, estimates that every additional $10 on the price of oil shaves 0.2 percent off global growth.
Saudi Arabia’s ability to meet global demand and buffer supply fluctuations in the long-run may be questionable and thus concerning for global growth.
However, recent developments suggest that Saudi Arabia may not ultimately need to be the only one bearing the burden of maintaining stable oil prices. The renewal of talks between Iran and the United States could result in the easing of sanctions and increased Iranian oil exports. Emerging shale gas production in the US holds the potential for the US to become less reliant on OPEC oil, thus decreasing its share of global demand. As energy producing countries diversify and alternate energy sources are explored, it is quite possible that Saudi Arabia may no longer hold, or even have to hold, the key to stable oil prices.
By Marina Mellis
The only one that has reported reducing their holdings of HRT is Putnam dropping from 5.40% to 4.84%.
One problem I have with the company is the name HRT PARTICIPACOES EM PETROLEO. The name of a product or company is very important, it most be easy to remember short and sweet like Coca Cola ( USA ) Sanyo ( Japan ) Petrobras ( Brazil ), Rosnoft ( Russian ) Statoil ( Norwegian ). No matter what language people speak in their native country your brand name be it a company or product most be easy to remember such as the examples I mentioned. This is certainly not the case with HRT PARTICIPACOES EM PETROLEO, so it most be rectified. I feel a change of the name would be a step in the right direction in improving the value of the shares.
Since I support the BOD's management of HRT I will not be adding my name to rzberns list of HRT's concerned investors who would like to have an influence in the direction ( decisions ) of the company.
My computer shows no trades on the OTC in the US as well WEIRD. I spoke to my online broker and he said there is no trading halt on the stock, my level 2 shows bid and asks. I checked the Bovespa and there is trading volume in Brazil.
DrillaHill:
Thank you for the wealth of information you post on this board.
Garyadam:
I live just north of you in Metro Vancouver B.C. I am glad you find value in my observations. I feel it would be even more beneficial if you send me a private message with your phone number if it suits you to do so I will call you.
IR of HRT would be the one to ask regarding Rosnoft commitment to acquire an additional 10% ownership of the Solimoes Basin. The definition of an option means you can elect to either go ahead or not go ahead in buying any item, such as an interest in property, shares etc.
In order for Rosnoft to maintain it's current 45% interest in any additional drilling results they will incur 45% of the costs. Since they paid 1 billion dollars for that right. I feel they will live up to their commitment.
Judging from Rosnoft's involvement in the gas monetization talks and the following statement in the latest presentation. "Farm-down process of Jurua Cluster blocks and New Frontier Exploration Areas under negotiation 25% working interest is available ( to come from HRT's current 55% ) which shows Rosnoft's commitment to carry the balance of 45%. Which probably means they to not plan to exercise their option to pick up another 10% of the basin. I feel if Rosnoft does not exercise the option it gives HRT more flexibility in making a deal with another company or deals with other companies..
I am in favor of them making more capital available for Polvo and Namibia.
The BOD's decisions and resulting direction of HRT as laid out in it's latest presentation, I feel are in the best interests of all it's shareholders.
With the exception of Putnam Investments shareholding of HRT dropping below 5% from 5.4% to 4.84% it is no longer listed as a major holder of the company's shares. The other two major share holders have kept their holdings intact. The total holdings of the three is 26.41% of the O/S.
We can be sure if these major shareholders felt not comfortable with the direction HRT was going in they would make their positions known to the BOD.
New Presentation link which is better then rzbern's
http://ir.hrt.com.br/hrt/web/conteudo_en.asp?idioma=1&conta=44&tipo=32110
ClipDapper:
The name of the company is HRT and not POS and in my mind it has still a lot going for it and should not be called POS. It has taken a lot of drilling to find significant oil fields, such as the North Sea. The potential to discover oil offshore Namibia is very real. Unfortunately for HRT they missed on their 3 drills, but as we all know when you are breaking ground in a new area for oil the risks are high, but the rewards can be outstanding.
HRT had to drill, regardless of the fact they failed in these attempts, I would have been more disillusioned with the management if they did not drill the wells NO GUTS!! NO GLORY!! Fortunately they made a very good deal with GALP who paid for the largest portion of the drilling costs for only 14% of the results.
The Polvo deal is a good deal, giving them cash flow from it's oil production retro back to January, to come off the 135 million dollar price tag once the deal is approved by the government.
Solimoes Basin where HRT drilled the 2nd and 3rd highest producing NG wells in Brazil. Discussions have been held to monetize this badly need gas in Brazil. The changes to find oil and NG in other properties HRT has in the basin is very real.
HRT gained a lot of valuable information from their drilling in offshore Namibia. Which will enhance their ability to find oil in the future.
I will be holding onto my shares, watching the company evolve in Brazil and looking forward to seeing them back drilling again offshore Namibia.
On SH the term POS is used quite loosely by some ignorant posters ( along with the bashing of companies and posters ) they have nothing constructive but rather destructive things to say. IH has the opposite reputation and it should be kept that way.
VanWilder:
It appeared in the post I referred to, you were aware where you could get majority shareholder updates of HRT. Maybe rzbern can find a Brazilian site with the info since he lives there and speaks the language.
VanWilder:
Where can you find the latest majority share holder updates for HRT. The web site still shows their holdings as of June 14th.