Headlines
• Savannah Petroleum (LON:SAVP– 39p) – Stars Aligning – Time to Spin the Bit: All of the ingredients are coming together, and with the current oil price environment actually supporting the Company in the form of lower drilling costs, we believe that it is well positioned for the next step – there is only so much you can do before it becomes time to spin the bit.
• Empyrean Energy (LON:EME– 6p) – Sound Foundations Established: This is a good news for the Company, and continues to firm up its base sufficient to provide it with a springboard to grow from once oil prices and the Marco economy start to improve.
• Range Resources (LON:RRL, ASX:RRS– 0.65p/A$0.01) – An Announcement About... Financing.: Time is running frighteningly short for the management team to salvage any credibility to carry the Company forwards – we believe that the time is coming that the lack of a cohesive and costed plan starts to become more about the management team and less about the asset base, its creditors and the Company's owners.
News Items
Savannah Petroleum (LON:SAVP– 39p) – Stars Aligning – Time to Spin the Bit
Today's upgrade to resources isn't such a surprise, especially as you learn more about a play unless you withdraw, it should only keep looking better, but the quantum is impressive. With the reduction in the transport tariff all of the stars seem to be moving in the right direction, and ahead of drilling, the only issue would be the availability of sufficient ullage in the pipeline to export sufficient quantities of crude to fully valorise the asset base.
All of the ingredients are coming together, and with the current oil price environment actually supporting the Company in the form of lower drilling costs, we believe that it is well positioned for the next step – there is only so much you can do before it becomes time to spin the bit.
Empyrean Energy (LON:EME – 6p) – Sound Foundations Established
Today's resources and reserves upgrade is a solid step forwards for the Com
pany, especially as it is in the face of weaker oil prices, and although P1 valuations have declined, the reserves have increased, indicating that the technical work and cost structure have improved significantly since the last reserve assessment.
This is a good news for the Company, and continues to firm up its base sufficient to provide it with a springboard to grow from once oil prices and the Marco economy start to improve.
Range Resources (LON:RRL, ASX:RRS– 0.65p/A$0.01) – An Announcement About... Financing.
Another day, another announcement from Range Resources about financing. It seems that the Company has ceased to be an oil company and has become something else - answers on a postcard please.
As we have said previously:
It has been a tortuous journey to get here, and if the Company still has pretensions of remaining public, it needs to start outlining its plans in more detail, how it will get there and what milestones it will need to reach, by when, to achieve them. It is now time to start the hard work (growing production, paying down debt, generating cash flow, rebuilding trust with the Company's owners), or get out of the way so that somebody else can.
and nothing has transpired since then to change our mind.
Until such times as the Company can deliver a coherent and cohesive development plan that addresses its asset base and debt pile, there is no good reason to be invested in the Company. We wouldn't mind so much, but there has been nothing but a loud silence on the underlining strategy for too long, and we now think that its creditors are in greater control than we first believed, which means that the Company's owners are about to lose what vestige of control they once had.
Time is running frighteningly short for the management team to salvage any credibility to carry the Company forwards – we believe that the time is coming that the lack of a cohesive and costed plan starts to become more about the management team and less about the asset base, its creditors and the Company's owners.