Both the markets and oil prices continue to firm up and, on the company front, it’s been an interesting first half to the week. I’m sure there will be more to come, which I’ll report upon at the weekend.
Bahamas Petroleum Company (BPC) announced its final results. No surprises in those, but rather disconcerting that they’re converting £1.535 million of the notes at 1.27p per share, when the market price was standing at nearly 3p. The company will proceed to issue a further 120,866,141 new ordinary shares and continue on its path of dilution for the reward of certain undisclosed “investors.” People appear to have been misled into thinking Bahamas Petroleum is now fully financed for the drill and have been buying these new 1.27p shares at up to nearly three times that price. Unfortunately, it’s not.
Independent Oil & Gas (IOG) announced the award of the Phase 1 Well Management Contract. They’ve appointed Petrofac, who look like a good choice. Phase 1 comprises the development and production of the Southwark, Blythe and Elgood fields in the UK Southern North Sea through a total of five wells, with gas transported onshore via the Thames Pipeline.
Columbus Energy (CERP) and Predator Oil & Gas (PRD) announced the start of Phase 2 of their CO₂ Pilot Project in Trinidad. The aim is to increase oil production and they will be building up to continuous injection in the coming weeks. The results are awaited with interest.
Empyrean Energy (EME) announced that an extension has been agreed with the China National Offshore Oil Corporation for the first phase at Block 29/11, offshore China. The company now has until 12 June 2022 to drill its first well. They hope to do that sooner, though, as soon as it is practicable and safe to do so. It should be an interesting one.
Ascent Resources (AST) announced the Administrative Court of the Republic of Slovenia has ruled that an EIA is required for their planned work. No surprises there. The Slovenian environmental agency has been saying that all along. It really is a joke of a company and, as for the new “in-house lawyer,” unless they’re fluent in both Spanish and Slovenian, and expert in both Cuban and Slovenian law, I doubt they’re going to be able to help much at all. As I’ve said before, it’s just a lifestyle company for the Board, so the “news” doesn’t really matter anyway, since nothing of value will ever be achieved for the shareholders, as at the other companies of which they have previously been or still remain directors.
For balance, I should say that these types of shares can occasionally perform, but only on organised ramps where you risk getting spiked. These ramps also generally presage a heavily discounted placing. Overall, if you hold, you will inevitably lose money. Just take a look at some historic charts and you’ll see what I’m talking about.
For those interested, my personal trading focus is on the elimination of all potentially loss making trades and only going for those which I view as certainties. That is the secret to making the large profits. I set out my trading ideas in the private blog each week and I’ve also written a 10 part trading course for those who want to understand these small cap markets in detail and make money out of them. Details of the course are at https://www.oilnewslondon.com/course and details of the private blog are at https://www.oilnewslondon.com/subscribe There are trial offers for both.
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The author may hold one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research. This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.