Headlines
In Brief:
Petroceltic International (LON:PCI – SUSP) – And So It Begins...
Roxi Petroleum (LON:RXP– 9p) – Operational Update
Cairn Energy (LON:CNE – 196p) – When You're Hot...
In Brief
• Petroceltic International (LON:PCI – SUSP) – And So It Begins...: Today sees the start of the official period of the Examiners operation of the Company, and with it, so to the fight for the Company's future. We believe that ultimately the existing shareholders will have to play a part, as the Company is worth more that the value of the worldview open offer plus the debt. With respect to the offer, while it woefully undervalues the Company, management are acting in shareholders’ best interests when they recommend the offer, given the probability of dilution, or worse, further down the line. We believe that even in that small token, they deserve the credit in providing for a solution for shareholders that could ultimately lead to their loss of tenure. While the conclusion is not yet forgone, the outlook as a listed entity is bleak, and if Woolcott and co are the best Worldview can come up with to take over, then there is little chance of it returning to the market in a meaningful way.
• Roxi Petroleum (LON:RXP – 9p) – Operational Update: Today's update underlines the start of the activity build-up that the Company is enjoying in Kazakhstan. While the news, although positive, is coming on the back of drilling failures, or rather antiquated drilling practices, we still believe that the story is starting to generate forward momentum, and one in which investors should soon start to enjoy the fruits of in the form of the Company's revaluation.
• Cairn Energy (LON:CNE – 196p) – When You're Hot...: Today's update is starting to read like a world class find, and depending on the appraisal, could well be the next fortune that is made by the Company. However, before we get too excited and carried away, we must make sure that the appraisal programme is completed properly (which we expect it to be), save for the embarrassment that was Chinguetti. That said, today's results are a strong positive for the Company and a reflection of its position as one of the preeminent modern day explorers, alongside the likes of Tullow and Ophir. Investors should start to be optimistic about the Company's future, especially in the context of the wider portfolio.