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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
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
WF: Very interesting; you might also want to read this though:
Oil Glut Absorbed by Asia Spells End to Brent’s Collapse
Brent crude’s biggest price-rout in more than a year is coming to an end as the flow of West African crude to Asia helps disperse a glut, banks including Societe Generale SA (GLE), BNP Paribas SA (BNP) and DNB ASA (DNB) said.
A “price floor is forming” close to $100 a barrel for Brent, used to value more than half the world’s oil, as the surplus of Nigerian supplies is whittled away, Societe Generale said in a report today. The incentive for sending cargoes from the region to buyers in Asia is at its strongest in four years, data from PVM Oil Associates Ltd. show. Chinese and Indian refiners bolstered purchases of West African crude to the highest in at least three years, a Bloomberg News survey of traders indicates.
“We might be around the bottom for this price cycle,” Torbjoern Kjus, an analyst at DNB in Oslo, said by phone today. “Nigerian barrels moving to Asia again, to me that’s the first sign that the market’s starting to re-balance.”
A “glut” of oil in the Atlantic basin has shielded prices against the turmoil in Iraq, the International Energy Agency said on Aug. 12. Brent crude plunged 11 percent in the past two months as surging shale output in the U.S. dulls the biggest oil consumer’s need for imports, leaving an excess of supplies from producers such as Nigeria and Angola. Signs of recovery in OPEC member Libya, which is restoring exports choked off during a year of political feuds, amplified the drop.
Clearing Overhang
“The overhang of Nigerian supply has almost cleaned up and West African crude differentials have stabilized,” Mike Wittner, Societe Generale’s head of oil market research in New York, said in today’s report. These are “key steps towards stabilizing Brent,” he said.
Chinese refiners bought 40 cargoes of West African crude to load in September, equating to about 1.27 million barrels a day, according to a Bloomberg survey of nine traders. It’s the most since Bloomberg started tracking the data in August, 2011. Companies in India bought 27 cargoes for this month, the most on record, the survey showed.
Brent for October settlement fell 0.2 percent to $102.09 a barrel on the London-based ICE Futures Europe exchange at 4:08 p.m., close to its lowest in 14 months. The front-month Brent contract fell 5.6 percent in July, the biggest monthly drop since April, 2013.
The benchmark’s narrowing premium over the Middle East reference price, Dubai crude, is encouraging refiners in Asia to opt for supplies valued using Brent, such as Nigerian exports, Societe Generale and BNP Paribas said.
Speedier Sales
“We are confident that the temporary light-oil physical glut is removed from the Atlantic Basin at these levels, because a number of Brent-related crudes have cheapened,” Harry Tchilinguirian, BNP’s head of commodities strategy in London, said by e-mail today.
The Brent-Dubai exchange of futures for swaps, or EFS, shrank to 87 cents a barrel on Aug. 12, the lowest since June 2010, data from brokers PVM Oil Associates shows. It traded for 96 cents today.
“First reports are hinting at Nigerian crudes for September loading beginning to clear quite nicely and that they are doing so at a faster rate than expected,” David Wech, an analyst at consultants JBC Energy GmbH in Vienna, said in a report yesterday. Consequently, there is a “bottom in sight” for Brent prices.
Cheaper Brent-related crudes are also encouraging traders to ship North Sea oil to other regions for storage, according to DNB’s Kjus. Mercuria Energy Group Ltd. has chartered a tanker, currently anchored off the coast of England, to ship crude for storage at Saldhana on the west coast of South Africa, according to two oil traders with knowledge of the matter.
http://www.bloomberg.com/news/2014-08-21/brent-crude-at-turning-point-as-asia-absorbs-african-glut.html
Wellsfargo: thanks for all the posts on the various updated traders accounts: I had a look at my account this afternoon and it also has been updated.
Thanks,
BVE
Powerwalker:
Wells Fargo: when I called last week to ask where my new shares were I was told that this can take up to 4 to 5 weeks after the RS. I can't by the HRTPD either at this point.
BVE
correction: what I thought was a Q2 statement (HRT ITR 2T 14 Port) I have is on hindsight more presented as a 6 month statement than a 3 month statement contrary the doc title by Ernst & Young suggest.
Live and learn I guess.
At least it explains the double the personnel expenses.
So profit was 0.385 per share over a 6 months period......
BVE
dias55: I did not find this or any number close to 68 million reais. I have both the Q2 English 18 page statement and the full 50 page 1H2014 statement.
BVE
I had a question but they ignored my webcast inquiry. The "analysts" question were pretty lame questions from world class investment companies. If they read this blog they might reconsider why these analysts were hired in the first place.
My questions are what is going on today and not some future possible LNG set-up in the Amazons or Namibia: all that is years away.
- why if head count goes down the personnel expenses almost double compared the Q1? R$10 million almost. I know laying of people in Brazil can be expensive but a detailed explanation would be appreciated.
- why did the expenses of third party suppliers/contractors jump from about R$ 3 million in Q1 to R$ 30 million(ten fold)?
These two items together are more than the profit in Q2. If they had been as in Q1, the profit per share would have been roughly 2 to 3 times.
- and most importantly: what is HRT paying Maersk to get their 40% stake and how will this be paid: lump sum or several months / years?
- and as of what date / quarter HRT thinks they can star counting these extra barrels to their account? I know they depend on ANP for approval but they must have some estimate whether this will be Q3 / Q4 or next year.
On a side note:
I like it that HRT is going after the 36 wells previously drilled (by Devon or BP) and will revisit those this year (I guess with a different rig than Polvo A). If they select the right ones and only 10% is productive, HRT might double their production. The fields in this area seem to produce between 5,000 to 10,000 bpd per field (OGX is almost next door and have the same volumes)so we might be in for an interesting couple of months and we could see HRT doing 20 to 30,000 bpd by end next year.
BVE
Aventti seems to be 2 entities located in the Bahamas and Virgin British Islands: At first glance there seems to be no connection to any of the current major investors in HRT
Number of current appointments: 2
LLP DESIGNATED MEMBER: ADVANTAGE ALPHA VI FUND LTD
Appointed: 28/04/2014
No. of Appointments: 1
Address: WINTERBOTHAM PLACE MARLBOROUGH AND QUEEN STREET
P.O. BOX N- 3026
NASSAU
NEW PROVIDENCE
BAHAMAS
LLP DESIGNATED MEMBER: RESTORATION ENTERPRISES CORP.
Appointed: 28/04/2014
No. of Appointments: 1
Address: ABBOTT BUILDING P.O. BOX 3099
ROAD TOWN
TORTOLA
BRITISH VIRGIN ISLANDS
BVE
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
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
DrillaHill, dig a bit further on Avantti and you find it has been established on April 28, 2014. A front office for xxx? Next week I'll see if I can get some additional info.
BVE
Could you tell me where you found this information? via Deutsche Bank?
My account doesn't show the "HRTPY" trading symbol any longer, but lists the total amount of shares I have and the total $ value of the last trading day before the reverse split.
Thanks,
BVE
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
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
Albatross top prospect in license offshore Namibia
============
Apologies if this has been posted earlier and I repeat: anybody want to weigh in, I'm not familiar with these players.
BVE
===========
07/24/2014
PERTH, Australia – Seismic surveys earlier this year in the EL 0037 permit offshore Namibia have identified at least four prospects, according to partner Pancontinental Oil and Gas NL.
Tullow Oil operates the 17,000-sq km (6,564-sq mi) concession.
The structures are up to 300 sq km (116 sq mi) in area and appear to be in favorable geological settings.
Albatross, in the area covered by 3D seismic, could contain 422 MMbbl of oil (gross unrisked mean), or 1.093 Bbbl (P10 basis). It is a large base-of-slope turbidite fan of mid- to early-Cretaceous age.
Pancontinental adds that the structure is interpreted to be horizontally and vertically close to a fairway of mature oil source rocks proven in the Wingat-1 well drilled in the adjacent exploration license area.
The other prospects and leads could contain gross mean risked resources of more than 150 MMbbl, the company adds.
07/24/2014
I might want to add that this HRT-Maersk deal is pending ANP approval
HRT buys the 40% Maersk stake.
This popped up this morning on "InfoMoney" in Brazil: breaking news: On July 8 HRT signed a deal with Maersk to purchase the remaining 40% of Polvo.
I quote the Brazilian press release and take no responsibility for its correctness: we should expect an HRT press release shortly.
http://www.infomoney.com.br/hrt/noticia/3444914/hrt-assina-acordo-com-maersk-para-compra-fatia-campo-polvo
BVE
And whilst the World Cup is going on.....
HRT PARTICIPAÇÕES EM PETRÓLEO S.A.
CNPJ/MF Corporate Taxpayer Nº 10.629.105/0001-68
N.I.R.E. State Registration N° 33.3.0029084-2
PUBLICLY-HELD COMPANY
NOTICE OF LACK OF QUORUM
OF THE SPECIAL SHAREHOLDERS’ MEETING CALLED
FOR JUNE 13, 2014 AT 2:00 P.M.
In compliance with the call made pursuant to the provisions of article 124 of Law
No. 6.404/76 ("Brazilian Corporation Law"), by Announcement of Convocation
published in the newspapers “Diário Oficial do Estado do Rio de Janeiro” and “Brasil
Econômico”, attended the headquarters of HRT Participações em Petróleo S.A.
(“Company” or “HRTP”), located in the city and state of Rio de Janeiro at Avenida
Atlântica, nº 1.130, with supplementary entrance at Avenida Princesa Isabel, 10º
andar (parte), Copacabana, CEP 22021-000, on June 13, 2014, at 2:00 p.m.,
shareholders representing 6.94% (six point ninety-four per cent) of the Company’s
capital stock, thereby unable to be installed on first call, the Special Shareholders`
Meeting convened for this date, to discuss the following agenda:
(i) To change the Company`s headquarters;
(ii) To ratify the capital increases in light of the exercise of stock options and
warrants, in an amount equivalent to 4,335,996 (four million, three
hundred thirty-five thousand, nine hundred ninety-six) new shares, in
the total amount of R$ 11.420.758,80 (eleven million, four hundred
twenty thousand, seven hundred fifty-eight Brazilian reais, eighty cents);
(iii) To approve the Company`s reverse split of common shares at the rate of
30 (thirty) shares for 1 (one), pursuant to Article 12 of Law 6.404/76,
including the reverse split of Global Depositary Shares (GDSs) issued by
the Company at the rate of 30 (thirty) GDSs for 1 (one) GDS,
maintaining the same proportion currently in force of 2 GDSs to 1
common share;
(iv) To amend Article 5 of the Company´s By-laws, in order to encompass
the new capital stock arising from the split of shares held on May 28,
2012 and the exercise of stock options mentioned in item (ii) above, as
well as the reverse split of common shares mentioned in item (iii) above;
(v) To approve the amendment of the Company´s By-laws, according to the
Management Proposal disclosed by the Company through CVM, SEDAR
and the Company´s websites; and
(vi) To restate the Company`s By-laws.
Therefore, due to the lack of the attendance quorum required by articles 125 and
135 of the Brazilian Corporation Law, the Management of the Company will proceed
with the publication of the second call announcement of convocation in the Brazilian
newspapers Diário Oficial do Estado do Rio de Janeiro and Brasil Econômico on June
16, 17 and 18, 2014, and the meeting will be held on second call on June 24, 2014,
at 2:00 p.m.
Rio de Janeiro, June 13
th
, 2014.
VINÍCIUS DO NASCIMENTO CARRASCO
Vice-Chairman of the Board of Directors
Namibia: Repsol/TRP started drilling again today:
Tower Resources plc
Welwitschia-1A Drilling Re-commences
4 June 2014
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)), the AIM-listed Africa-focussed oil and gas exploration company, through its wholly-owned subsidiary, Neptune Petroleum (Namibia) Limited ("Neptune"), is pleased to announce that it has received notification from Repsol Exploration (Namibia) (Pty) Limited ("Repsol"), the Operator of Namibia PEL0010 (Neptune 30% working interest), that the drilling of Welwitschia-1A re-commenced on the morning of 4 June 2014.
BVE
April 2014 Polvo Production: Total avg: 10577 bbl/d, for HRT's account: 6346 bbl/d
BVE
rzbern, couldn't agree more than to postpone any suggested changes till after World Cup and Presidential elections (Nov 2014).
Specially since all listed companies on the "Novo Mercado" have till August 2015 to crank up their stock value above R$1 to comply with the new rules put in place August 2014.
Regards / BVE
Question on the (US) GDS fees after possible reverse split:
Does anybody have in writing what the GDS fee will be after the possible reverse split?: we all seem to assume that it will be $0.02 / share (as currently) but I can't recall seeing it anywhere.
I searched on the Deutsche Bank website but no info either / yet.
Thanks / BVE
HRT Meeting June 13, 2014 Initially I would go along with most of the HRT proposed changes but the more I think / read about (thanks in part to this forum) the less I'm convinced that they have any serious considerations for any share holder in general.
My considerations for my change of mind (comments always welcome..)
Date: IMO meeting will be held on this date to minimize share holder participation.
Moving HQ: Lease prices seems to be the same at old /new office so why move at this point? If you plan to take full control of the company, yes it would be handy to have the office address closer. (rzbern found out that Tanure has his office at the same new address).
Reverse Split: there is more than 1 company on the NM - Novo Mercado with a share price of less than R$ 1 and have been trading happily for a long time. I haven't been able to find any requirement for a min. price to trade on NM. At R$0.77 seems to be one of the better companies in the under "1" group.
Additional Shares: no opinion on this one yet. I'm not even clear if this is before or after the RS. You would assume before but do I assume correctly???
Poison Pill: with all the above, my opinion is: "why rock the boat" at this point in time?
Maybe with the proposed changes HRT could run a bit more efficient but I rather know what we have right now and be somewhat less profitable: at least I know they can't get hold of the company that easy nor get it on the "cheap".
Maybe there is an disgruntled HRT IR employee reading along on this (public) forum and keeping an "eye" on all of us... If so, maybe you want to comment.....
Regards / BVE
rzbern: agree with you that they probably don't care hence the suggestion to copy Bovespa or CVM. If there is an issue at a later date that they have ignored minority share holders, you have another piece of material to prove so.
It might do nothing but might be worth trying: You already have "No" for an answer.
Beside attending the meeting: an extra month delay of this AGE would give us another 30 days waiting for Repsol/TRP results.
Thinking out aloud: If you're trying to rally the minority shareholders in Brazil can't you get them to issue a "procuracao" so you or your lawyer can represent them on this one issue requesting a new date for the AGE? You wanted to get their voices heard so this might be a good test case...
They know you there and a thorn in the side: with a few more shareholders represented it will be harder to ignore you.
Regards / BVE
rzbern, you think it is possible to get a change in the AGE date?
I think this day is chosen deliberately.
This is one day after the World Cup Soccer in Brazil starts (of course they can't miss the Brazilian opener on June 12) and planning this day might be a way of keeping minority share holders out of the meeting. (Lack of travel opportunities (full flights), excessive hotel prices, difficult to access HRT HQ as part of Av. Atlantica will be closed off, etc) HRT is the only company having a AGE during that period: all others have theirs before or after this period: June 12 through July 13. See following link:
http://www.acionista.com.br/agenda/agenda_age_ago.htm
Could I suggest you send a request to HRT appealing to their common sense with a copy of the request to Bovespa/CVM. (not sure if BOVESPA or CVM would make sense but I assume you know that).
Let me know what you (and others) think.
Regards / BVE
Marcos, nice example.
They had a nice run-up over the years and great profit for 2014Q1: most important for me is that the P/E range is comparable with the US for this type of general industry and in the range of 10-12.
Thank you very much,
BVE
Great,
There are banks, insurance companies, telecom companies (none of the walk-in types) but no shops or anything like that where you normally would see a possible (Conjunto?) 101C. That for sure would not fit say 100 office people. Maybe it is a typo and should be 1301C
EY occupies the 5 to 8th floor
The price comparison was just to see if that argument of cost reduction makes even sense: lease price is of course per m2.
BVE
RZBern: Interesting observation:
Do you live in Rio? Could you drive by and ask the doorman if this Pav and 101C even makes sense?
There are a number of well known companies in this "Botafogo Business Center", including Ernst & Young, HRT's auditor....
Pricing: a quick search on ZAP.com.br gives you about the same prices for where they are now to moving to Praia de Botafogo. Both are (for recent listings) around R$175 to R200 including condominio fees. You might knock off a few Reais but you're not going to cut your lease cost in half.
Regards / BVE
One of our English colleagues asked TRP what the issue is with the BOP - Blow Out Preventer:
Quote:
I emailed trp and asked if they could be more specific as to the issue with the bop, here's the reply... Thanks for your email. As highlighted in the RNS the issue was with the control system of the BOP and not the BOP itself. The rig carries a second BOP in any case which is industry standard. Regards Andy Andrew Matharu Vice President - Corporate Affairs
End Quote:
BVE
DrillaHill, glad that you're happy with the results so far. So am I.
About the volumes: I was looking more forward for the next quarter and see if they could achieve 1,000,000 barrels (60% to HRT) and by when they should sell. I used their information on the 123,000 barrels in storage on March 31 (page 35 of their Financial Statements, page 37 in the PDF file) as a basis.
With logistics to get this oil offloaded, sold, etc, I'm sure they have a cut-off date before the end of the quarter. The closer they can be to end of the month, the more room they have to achieve that goal.
Technically they could NOT sell and keep producing till they fill the FPSO storage capacity of 1.6 million (even lower offload cost) but you wouldn't have any sales in Q2 which the market wouldn't like very much. So my guess is that they produce the max. they can in a quarter to have a sales number to keep us happy.
On expenses: They have R$50 million OPEX and R$120 million "Cost for Products / Services" (just above the note of 123,000 barrels. These two numbers alone together are more than the revenue from Polvo.
If you dig a bit deeper, you see that they made about the same money from financial transaction (10.7 million) as "nett" from Polvo. (Gross - Income tax)
Hence my comment that they need to get revenue from their other assets and cover current expenses. Yes, they get another Rosneft payment if and when ANP approves, they will sell another helicopter or plane but to get really going, they need to make a clear cut profit. The market bought Thursday on speculation and once gone through the numbers, I think they realized that HRT is not quite there yet.
But I'm not in HRT in the long run for reasons of Polvo, that's what keeps them ticking for now, but really that they can get farm-in agreements in the short run. At that point we have a starting point to consider HRT a valid Oil & Gas producing company and large financial institutions will start pay attention.
As you probably are aware there is more than one company in North America that produces less oil than Polvo, same amount of shares and have decent EPS and industry P/E of about 10 and you have to pay up anywhere from 100 to 200 times for what you pay for HRT today. It is incredibly undervalued. But only when profit.
Sorry it got a bit long but as you can see I look at this from a technical point of view and minimize the "assumptions" as much as possible. It is to justify to myself why I should be in HRT.
BTW: I love people "shooting holes" in my calcs and theories and tell me where I went wrong and have different opinions on all this. I'm on this forum to learn.
Regards / BVE
All disappointed?
I'm not an financial specialist and accept that there probably is some "financial window dressing" going on in this 2014Q1 statement to make it look decent. It is actually roughly were I thought it would be: round about "break even". So as a first step I'm happy. Of course I also had hopes for a better market reaction but there you have it. It told in a previous post that IMO it only works when HRT gets some credibility and I think this is a worthwhile first effort.
See, all HRT companies,(4 in total) have their expenses charged to (finally!)one money producing asset: Polvo. That's a lot of people and expenses to carry for a relatively small O&G operation.
It might actually generate a bit less for Q2. HRT says 600,000 barrels at avg. R$ 210 (note 1 below) and you can see that sales next quarter could be less. My guess is they're not going to get there but more in the 900,000 barrels total or 540,000 for HRT share. That is if production goes without a hitch. They have 123,000 barrels produced (note 1) since 2nd shipment and have say 10 weeks ( + 2 wks for logistic, sales and some "spare") to produce 900,000 - 123,000 = 777,000 barrels. That amounts to 777,000 / 70 days = 11,100 bpd (and that's pushing it!)
The future value for HRT is in producing money from Solimoes and Namibie in whatever shape or form. Even at a relative modest rate sufficient enough to cover their own expenses, it would make Polvo a money maker and should help lift the HRT's stock value in the short run.
For the crazy ups and downs of yesterday and today: I guess the large players had a day to sit down and shift through the financial statement and realize that it might need another quarter.
As for my positions: I'm waiting on a farm in agreement from Namibia which would help pay some of the expenses; at that time I increase my positions.
Have a great weekend,
BVE
Note 1: The financial statement inform that:
On March 31, 2014 the oil and gas in store in the amount of R$25,856 is representative of 123 thousands bbl.
That's about R$210/barrel assigned value.
http://ir.hrt.com.br/hrt/web/download_arquivos.asp?id_arquivo=E09201B4-2E9A-4B5C-9DF1-43F212DE70D0
This company being?
Thanks in advance,
BVE
VAN / Thanks
BVE
VAN (and others): would it be possible to include the link to the original article with the Google Translation result?
Thanks in advance,
BVE
And so did Chevron Frade..... If you take the HRT first quarter of 2014: the average is about the same as all of 2013, approx 10,500 bpd.
Reality is that equipment breaks down and this FPSO being quite a few miles offshore, repairs can take days rather than hours and with that taking the average production down pretty fast.
BP had last year a month or two with production levels at 8000 bpd.
Now, if next month shows another drop, than I agree it is time to wonder.
BVE
My assumptions are based on the February 2014 report not appearing till about a week after it's due date April 1. So, report date and posting date are not necessarily the same.
I can come up with 10 scenarios why this might be but I think we leave that better for a website on Brazilian culture rather than on this stock discussion board....
May 1 (Labor day) is a holiday in Brazil so I don't expect any report till earliest mid to end next week at best.
FYI: The link to the ANP site is:
http://www.anp.gov.br/?pg=69700&m=&t1=&t2=&t3=&t4=&ar=&ps=&cachebust=1393984923425
Search for HRT in this PDf doc and most likely you end up on the monthly production data of all operators in Brazil.
BVE
Bovespa Brazil: HRTP3
As I had mentioned before, in my opinion HRT will not be able to get “traction” in the market until there is some positive news.
Since there is none, the market just focuses on the negative news and in that respect the Press Release on a clarification to CVM on BW Offshore dropping out of the acquisition of part of Polvo is misread or misunderstood.
It might be understood by the market as a vote of “no confidence” and hence the sell-off.
I’m going to be the devil’s advocate here: I think HRT realizes that there is no need to sell off parts of the assets to BW: the renewal of the FPSO contract was already done in January well before BW let the Polvo option expire. Based on (our) income predictions from Polvo, there should be sufficient funds to pay for the FPSO lease and keep the Polvo assets at HRT.
But I agree: you have to have a strong stomach for these swings.
BVE
From Tower Resources' website: they'll hold the news back for a while:
Welwitschia-1 Drilling Operations Expected to Commence this Week
22 Apr 2014
Tower Resources plc (the "Company" or "Tower" (TRP.L, TRP LN)), the AIM-listed Africa-focussed oil and gas exploration company, through its wholly-owned subsidiary, Neptune Petroleum (Namibia) Limited ("Neptune"), expects formal notification from Repsol Exploration (Namibia) (Pty) Limited ("Repsol"), the Operator of Namibia PEL0010 (Neptune 30% working interest), that the Rowan Renaissance Drillship will commence drilling operations in Walvis Bay, Namibia by 25 April, 2014. This is a little later than expected owing to prolonged acceptance-testing by Repsol in advance of it taking the Drillship on a three-year contract.
The Welwitschia-1 prospect which is targeting net risked recoverable resources of 496 mmboe to Tower's 30% interest (based on the updated CPR - July 2013) will intersect up to five separate reservoir targets ranging from the Palaeocene-Maastrichtian to the Albian Carbonate sequence at a potential total depth (TD) of 3,000m TVDSS. The Operator expects this to take up to 46 days.
During drilling there will be no updates to the market as this well is classified as a "tight hole". Accordingly the Company will provide a comprehensive update only once operations on the Welwitschia-1 well have been fully completed and analysed.
Graeme Thomson, Tower's CEO, commented: "We are very excited that the high potential Welwitschia well is to commence drilling in the coming days. This follows hard-on-the-heels of our announcement of a $32m placing, acquisition of exploration interests offshore South Africa, onshore Zambia and of an interest in Block 2B onshore Kenya where we expect to be drilling in late 2014. We are fulfilling the strategy we set out in mid-2013 to build a pan-African portfolio of high upside exploration licences combined with near-term material drilling opportunities."
Some additional info on Polvo:
From BW OffShore's webiste: HRT and BW renewed the lease contract in Jan 2014 for the Polvo FPSO through 3Q2015 with an option through 3Q2022.