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Thanks for GGR pick. I am doing more DD and may play it next week. Are you buying at this level?
Posted latest financial results here: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68714367
GGR GeoGlobal Resources: New play chart looking good. Due diligence from latest financial results below the chart.
GeoGlobal Reports Second Quarter 2011 Financial Results
Aug 15, 2011 4:20:00 PM
CALGARY, ALBERTA--(Marketwire - Aug. 15, 2011) - GeoGlobal Resources Inc. (GeoGlobal or the Company) (NYSE Amex:GGR) today announced operating highlights and selected financial results for the quarter ended June 30, 2011. All amounts are in U.S. dollars unless otherwise noted.
"In this quarter we continued to advance our preparations with respect to our Israeli drilling program, finalizing the Assignment Agreement for a semi-submersible drilling that we'll be able to access before the end of the year," said Paul Miller, President and CEO of GeoGlobal. "With the support of our board of directors, we also retained a financial advisor to assist us in the evaluation of a range of strategic options designed to derive additional shareholder value from our diverse asset base."
Selected Operational Highlights
Since April 1, 2011 the following events have occurred:
-- An agreement with Export Development Canada (EDC) to provide bonding
capacity to cover the Company's performance and financial guarantees
which were provided by GeoGlobal for the period of April 1, 2011 to June
30, 2012 for its Indian operations, allowing the Company to release $4.1
million from its restricted deposits upon EDC providing sufficient
security to GeoGlobal's bank;
-- Commencement of drilling of the first well on the Rajasthan Block RJ-
ONN-2004/2. The well (Phulasar-1) was subsequently tested, determined to
be non-productive and was plugged and abandoned;
-- The Israel Petroleum Commissioner's Office granted us an extension for
the planned drilling program on the Myra and Sara offshore Israel
licenses to July 13, 2012. Under the terms of the extension, the
partners were to present to the Petroleum Supervisor their final
prospects for the Myra and Sara licenses by August 1, 2011, which has
been presented, and begin drilling the first exploration well by no
later than March 31, 2012;
-- Retention of Rodman & Renshaw, LLC to assist management in investigating
a broad range of strategic alternatives available to the Company to
enhance shareholder value with capital restructuring and financing
alternatives including, but not limited to, a sale of assets or stock, a
recapitalization or consolidation of the Company, or a joint venture;
-- Release of a Resource Report prepared by Netherland, Sewell &
Associates, Inc. (NSAI) of Houston, Texas on the offshore Israel
licenses known as Myra and Sara;
-- Finalization of the terms on the Assignment Agreement entered into with
a third party whereby GeoGlobal took assignment of the third party's
rights and obligations to an existing Drill Rig and Associated Services
Contract for a Semi-submersible Drilling Rig; and
-- Completion of the 43 square kilometer 3D seismic acquisition program on
the Israel Samuel block.
Financial Review
All of the Company's oil and gas sales are derived from production in India. With the approval of the Tarapur 1 field development plan by the Management Committee, three wells began production in mid-May 2009, two in September 2009 and one in January 2010. There are ten additional wells which are drilled, tested and awaiting tie-in to the oil tank storage facilities. Further, associated natural gas from one gas well is being contained and sold while awaiting approval of a development plan for completion of a pipeline.
Oil and gas sales for the three months ended June 30, 2011 were $108,000 as compared with $235,000 for the three months ended June 30, 2010. Oil and gas sales for the six months ended June 30, 2011 were $251,000 as compared with $426,000 for the six months ended June 30, 2010. This decrease is mainly attributable to lower oil and gas production for the three and six months ended June 30, 2011 when compared with the same periods in 2010.
Oil sales are currently based on the spot price based on discount to the Nigeria Bonny Light Crude bench mark. To date, none of GeoGlobal's production has been hedged. All associated natural gas is sold to local markets at a firm contract price of $7.00 per Mcf adjusted for rebate/premium on account of calorific value.
Interest income during the three months ended June 30, 2011 was $9,800 as compared with $11,000 for the same period in 2010. The average cash balance and restricted deposits during the three months ended June 30, 2011 was $10.0 million compared with $16.5 million for the three months ended June 30, 2010. Interest income during the six months ended June 30, 2011 was $20,000 compared with $30,000 for the same period in 2010. The average cash balance and restricted deposits during the six months ended June 30, 2011 was $11.1 million compared with $19.3 million for the six months ended June 30, 2010. The decreases in interest income are primarily attributed to lower cash balances and restricted deposits available for investment.
Operating costs for the three months ended June 30, 2011 were $34,000 or $22.33 per BOE compared with $40,000 or $11.26 per BOE for the three months ended June 30, 2010. Operating costs for the six months ended June 30, 2011 were $68,000 or $20.76 per BOE compared with $102,000 or $13.82 per BOE for the six months ended June 30, 2010. The decreases were mainly attributable to lower oil and gas production for the periods ended June 30, 2011 when compared to the same periods for 2010. The operating costs include handling and processing charges, transportation costs and utilities, maintenance and tank rental charges and contain a fixed and variable portion.
For the three months ended June 30, 2011, general and administrative expenses increased to $1,220,000 from $928,000 for the three months ended June 30, 2010. These general and administrative expenses include costs related to the corporate head office including administrative salaries and services, directors' fees, rent and office costs, insurance, bank guarantee fees, NYSE Amex listing and filing fees, investor relations services and transfer agent fees and services. This increase is mostly attributable to an increase in the Directors' and Special Committee fees by $88,000 combined with an increase in salaries and benefits of $62,000, mostly related to restructuring of our management team which was previously included in consulting fees, and an increase in travel and hotel costs by $62,000 due to increased activity. Stock-based compensation costs increased by $100,000 to $246,000 for the three months ended June 30, 2011 from $146,000 for the comparative three months in 2010. These compensation costs are for stock-based compensation arrangements with employees and directors which are being expensed over their respective vesting periods of the related option grants. Further, there was a general increase in general and administrative costs due to increased activity in Israel, offset by overhead recoveries of $105,000 for the three months ended June 30, 2011 as compared to nil in the prior period.
For the six months ended June 30, 2011, general and administrative expenses increased to $2,300,000 from $1,596,000 for the six months ended June 30, 2010. These general and administrative expenses include costs related to the corporate head office including administrative salaries and services, directors' fees, rent and office costs, insurance, bank guarantee fees, NYSE Amex listing and filing fees, investor relations services and transfer agent fees and services. This increase is mostly attributable to the following: Directors' and Special Committee fees increased by $111,000, salaries and benefits increased by $307,000, mostly related to restructuring of the management team which was previously included in consulting fees and the inclusion of a new executive officer in March 2010, and travel and hotel costs increased by $58,000 due to greater activity. Stock-based compensation costs increased by $241,000 to $490,000 for the six months ended June 30, 2011 from $249,000 for the comparative six months in 2010. These compensation costs are for stock-based compensation arrangements with employees and directors which are being expensed over their respective vesting periods of the related option grants. Further, there was a general increase in general and administrative costs due to increased activity in Israel, offset by overhead recoveries of $105,000 for the six months ended June 30, 2011 as compared to nil in the prior period.
For the three months ended June 30, 2011, the Company incurred a net loss of $1.6 million compared with a net loss of $1.1 million for the three months ended June 30, 2010. As at June 30, 2011 GeoGlobal had an accumulated deficit of $50.7 million.
At June 30, 2011, GeoGlobal's cash and cash equivalents were $6.7 million (December 31, 2010 - $7.8 million). The majority of this balance is being held in US funds, of which $2.2 million is held in term deposits. At June 30, 2011, the Company had current assets of $23.3 million and current liabilities of $21.0 million, or working capital of $2.3 million. Current assets as of June 30, 2011 include $734,000 of restricted deposits which management expects will be released from escrow on or before September 30, 2011.
Outlook
Management expects exploration and development activities pursuant to its Production Sharing Contracts ("PSCs") in India will continue through 2011 in accordance with the terms of those agreements. During 2011 and up to March 31, 2012, based on the current budgets in India, management anticipates drilling seven exploratory wells; drilling two core wells; acquiring, processing and interpreting 2,480 line kilometers of 2D seismic data; and acquiring, processing and interpreting 350 square kilometers of 3D seismic data as well as processing and interpreting an additional 400 square kilometers of 3D seismic data. Management further expects to tie-in additional oil wells in Tarapur along with the construction of a gas pipeline for the Tarapur G gas discovery and to continue with the construction of the gas gathering and production facilities together with further development drilling on the KG Offshore Block. Additional expenditures may be incurred in connection with additional exploratory, appraisal and development wells the Company may participate in. Also, if the Government of India approves the increase to GeoGlobal's participating interest in the KG Onshore Block to 20%, the Company's obligations to fund 3D seismic acquisition and exploratory drilling on the block will increase.
Management expects the Company's exploration activities pursuant to our licenses in Israel will continue through 2011 in accordance with the terms of those agreements. During 2011, management expects to complete the acquisition, processing and interpretation of 43 square kilometers of 3D seismic data in its Samuel license as well as to complete the processing and interpretation of 1,360 square kilometers of 3D seismic data covering the Sara and Myra licenses and also to commence drilling the first deepwater exploration well before the end of the year.
Thanks for your detailed due diligence on this play. I will spend some time over the weekend doing some more research.
Very impressive background this guy has. I wish I was investing with this guy in the 90's.
Thanks for your insights. It is a tough climate out there its good to exchange feedback. What firms are you clearing through these days if you don't mind me asking?
Yeah I am pretty confused at what strategy they are trying to use here. Management is solid and West Texas is one of my favorite regions so hopefully they will get it together. Have you talked to management recently?
I agree it is going to be about how they use these funds and what kind of deal they secure. I know there are many opportunities as I deal with M & A and there is a lot of money making projects available out there just a matter of putting together a plan and going to work. We will have to wait for it to close to see what is next though.
Interesting article DD. Thanks for sharing.
Hey guys new to the board and eager to share some of my patience plays here. I trade almost exclusively oil & gas stocks so my DD will be focused on that but I do play special situations as well.
Well worth it for sure. This one has great potential for 2012.
Yeah makes you wonder. If they were going to raise funds in the market why not do it in an organized manner and link with an investment group to support your plans.
It could just be some disgruntled investors too as you pointed out since volume has been pretty low. I just really like the structure and current business so I see a lot of upside should they get things going.
At this point having primarily cash without a project to develop makes this a high spec play still so I would caution any investment at this stage but once something from the company is made available it could be the start of a good play.
I recommend to all my investments to focus on existing production with upside through rework or drilling. This model is safe and brings value immediately to the company.
Sounds good when we take on a small company we can build the DD then spread the word. Then everyone gets a nice ROI!
Samson has pulled back from its 52 week high of $4.75 to $2.36. This pullback has made Samson a value. It still has its acreage in the Niobrara, plus right to first refusal to participate in wells with Chesapeake (CHK). Samson has 1,200 net acres in the North Dakota Bakken. This project has had very good production from its 6 by 640 acre Bakken producers. Samson has 3 additional on 320 acre spacing.
Samson recently announced the purchase of 20,000 net acres of leases in Roosevelt County, Montana. Fort Peck Energy has the option to buy back 33.334% of the 20000 net acres plus the same percentage of the two first horizontal wells by reimbursing Samson. Samson has the option to purchase an additional 20000 net acres, bringing the total to 40,000 total net acres.
If all goes well, Samson will then purchase an additional 50,000 net acres with Fort Peck Energy. Continental and Brigham have both had good well results near Samson's newly acquired leasehold. The most recent is Brigham's Johnson 30-19 which had an IP rate of 2962 Boe/d. If well results continue to impress it could mean there is significant upside to both Samson and Triangle.
Oil has already rebounded we are holding $90 with bad economical data. Triple digits are coming and mid caps like SSN have great upside when they do with the holdings they currently have.
I like SSN here at these prices especially for a starter position if you don't have any yet. All of their project information and drilling details are best sourced on their site here: http://www.samsonoilandgas.com.au/IRM/content/projects_overview.html
I wish I had more time to post my DD on some of the other group boards but I have to focus on trades and new research as well as deals I am working on so haven't had the time. Spread the word!
Yes I actually just recently set up a board for exactly that. I mainly use it for posting my own DD but welcome others to post their picks or feedback.
Come post! http://investorshub.advfn.com/boards/board.aspx?board_id=21808
Yeah the climate has changed a lot for Pink Sheets. I am taking two OTCBB companies public now and want to focus almost entirely on OTCBB, AMEX and NASDAQ plays but there are still good Pink Sheet deals out there.
Dealing with a small full service firm, having all the reporting done through OTCBB markets and a solid paper trail seem to be the receipt for getting shares deposited for funding etc. What do you think?
Seems like we have a bright 2012 in front of us with plays like this.
CFW management bios: worth a look while the stock is still $.13.
Cano Petroleum (CFW) has seen better times. The one analyst covering it has Cano losing 15 cents/share this year. It has missed earnings for four straight quarters. Each quarterly miss was at least 100%, with the largest miss being 300%.
Cano has acquired a series of assets over the years, for the purpose of using secondary and enhanced oil recovery methods to obtain resource. Its assets are located in New Mexico, Oklahoma and Texas.
These acquisitions have been paid for through the issuance of stock. This stock dilution has been part of the reason Cano trades for 18 cents per share, down from $1.13 two years ago. Third quarter of 2011 results saw operating quarterly revenues increase 16% year over year.
Cano saw oil sales volumes decrease, but realized a higher sales price. It lost 11 cents per share for the quarter. The problems with Cano's business seem to be too large to be optimistic about its future.
I would not normally buy Cano as it will have to continue to cut shares to maintain its business even if oil prices continue to improve. However I agree a solid management team and make things happen and bring the value back in so I am keeping this one as a super spec play for now.
Yes I almost only play oil & gas stocks / etf / projects. A big boom is coming and there is easy money with these stocks.
I also look at highly speculative deals that with the right mixture of project and investment can turn these pennies into 1-3x.
Cheers to you too!
That my friend is wishful thinking. Did the TRRC violations get cleaned up on this one yet?
I don't think its called OCD I think its called paranoia LOL jk.
SK you play reverse mergers?
I agree with your point there the shareholders don't seem to be getting any return on investment. The price per share is speaking for itself. I am surprised Scott doesn't have a market plan here.
WS do you know what means they have to fund yet?
I doubt it at this point 71S. They haven't had any developments since August and back then it seemed line fluff news with promotion. If they are going to make it to the next level management will need to start communicating and have a plan to acquire and develop (finance) their projects.
I have had some communications with the company in the past but haven't gotten anywhere recently to give me much to go on. Keep me in the loop if you hear anything!
I am in the same boat I like to find undervalued stocks and sit on them while they roll out. Question is more what is management's intention. I don't see anything tangible at this point to hold onto.
Going to try to reach the company next week again.
Here are the latest highlights I had in my notes.
This stock has moved up from a low of $1.270 per share and now trades at just over $3 per share.
Fieldpoint has 304 gross producing wells (82.53 net). They are currently the operator of 59 of these wells.
This company has been actively buying back shares which total 810,000 at an average cost of $1.86 per share. Since the stock has ripped it seems this was a very good business decision.
Fieldpoint expanded its debt cap to $10.5 million last December. Fieldpoint has a combination of oil and natural gas wells through Texas, New Mexico, Louisiana, Wyoming and Oklahoma.
It also recently purchased a 440 to 800 acre play in the Bakken for $155 per acre. Fieldpoint is currently profitable, and by its new Bakken position seems to be going after oil.
Portfolio starting to take shape here.
I like this for a small cap spec play. Chart is looking appealing.
Does anyone know how many reworks or new holes they intend to work on this project?
Cambrian Begins Work on 84 Acre Lease
Nov 4, 2011 3:15:00 PM
LEXINGTON, KY -- (MARKET WIRE) -- 11/04/11 -- Cambrian (CAMS) (the Company) (PINKSHEETS: CAMS) is proud to announce that over the next few days the Company will begin the bail testing of the recently acquired 84 acre lease in Green County, Kentucky.
This testing process is done with a hydraulic cable tool service rig and is used to aid in determining which wells might be commercially viable oil producers. The Company will be updating the website with pictures of this work as it progresses.
Assuming that the Company has some wells that look promising, it will then contact the State Oil and Gas Inspector to come verify or assign the correct identification numbers for the wells. The Company will then proceed to permit and bond the wells so that it can begin the in depth cleaning process and possible acid treatment of the holes prior to equipping and producing the wells.
The results of the bail testing should also provide the Company with enough information about the area so that it is comfortable moving ahead with the purchase of some additional oil leases that it has identified in the immediate area. The Company's research has shown that there were over thirty wells drilled in the immediate vicinity of its lease.
Alex Ipanag, President, stated, "This is just the first step in implementing our plan to bring on board quality leases and wells that have been under developed in Green County, Kentucky."
About Us
Cambrian is an independent oil and gas company with a primary focus on acquiring, developing and participating in the U.S. crude oil and natural gas properties.
Great DD I am a big fan of the Canadian Bakken plays. What do you think you would see going into 1st quarter?
What do you think CFW can do to get to the next level. Do they just need the capital to properly develop their holdings? I like the price here wonder if they can pull it off.
It is never a sure thing with these penny's. Right now there is some good trading swings and this company should only be looked at that way until there is some consistent developments. Only then will the play have longer term potential in my opinion.
The chart does seem to be saying it found a bottom.
Worth keeping an eye on it but needs to be some clarification. Lots of sideways action lately but when it pops it certainly can show some quick gains.
Ok I like the sound of that. I will keep an eye on your plays and will let you know a few that I think are going to have explosive days coming up.
I like the company a lot of move in 2012 but yes even in the short term.
Lucas Energy (LEI) is a small oil and gas company that initially made its business of purchasing shut in, abandoned or poor producing wells. These wells are re-worked to start or increase production. Lucas has 15,000 gross acres in Gonzales, Wilson, Karnes, and Atascosa Counties in Texas.
These have been productive oil producing counties in the Eagle Ford. Lucas has been involved in several JVs, most notably its Marathon (MRO) agreement.
When Marathon purchased Hilcorp, it also acquired its JV with Lucas. In September, Lucas signed an agreement to pay $22 million for Nordic Oil's acreage in Gonzales Karnes, and Wilson counties. Nordic Oil signed a letter of intent to purchase Lucas' New Mexico properties for four million in cash.
In my opinion the purchasing of assets was good for both companies. I like Lucas as it has some very good acreage. Its acres have multiple pay zones, which could provide well spacing of 20 to 40 acres. I really like Lucas' prospects, it has pulled back significantly from its 52 week highs.
It might be worth the risk at this valuation.
Some recent due diligence I have collected.
Sunoco Logistics Partners LP Co has a market cap of $3.42 billion with a price to earnings ratio of 13.70. For a 52-week period its trading range has been $73.19 to $100.00. It is currently trading at around $99. The company reported second-quarter earnings 2011 as $2.43 billion, an increase from first-quarter earnings of $2.26 billion. Second-quarter net income was $94 million, a substantial increase from first-quarter net income of $48 million. The company is achieving quarterly revenue growth of 51.70%, currently has no return on equity and pays a dividend with a yield of 5.10%.
One of Sunoco Logistics’ closest competitors is Plains All American Pipeline L.P. (PAA). Plains All American Pipeline is currently trading at around $65. It has a market cap of $9.76 billion and a price to earnings ratio of 21.67. It has quarterly revenue growth of 44.70%, a return on equity of 12.83%, and pays a dividend with a yield of 6.00%. Based on these performance indicators, both companies are performing on par, although it is noted that Sunoco Logistics does not currently have a return on equity.
Sunoco Logistics’ cash position has improved: Its second-quarter 2011 balance sheet showed $6 million in cash, an increase from $2 million in the first quarter. Sunoco Logistics’ quarterly revenue growth of 51.70%, versus the industry average of 12.50%, and no return on equity, versus an industry average of 11.30%, indicates that the company is outperforming many of its peers.
The earnings outlook for the Oil and Gas Pipeline industry overall is quite positive and this is being driven by the high demand for oil and gas. When this is combined with the devalued US dollar and better than expected manufacturing sector results, it bodes well for oil and gas suppliers such as Sunoco Logistics.
Based on the positive industry outlook in conjunction with Sunoco Logistics’ increased earnings, substantial increase in net income, solid performance indicators and attractive dividend, I rate the company as a buy.