JOG, Reabold, Gulfsands
Jersey Oil & Gas
JOG interims this morning which show no surprises but the CEO makes a number of key points ahead of the upcoming Capital Markets Day. Cash is at £15.5m at period end and whilst there a number of modest calls on the balance sheet upcoming the company is strongly placed at the moment.
JOG has had a very busy time recently and best described by CEO Andrew Benitz ‘the period has been transformational as the company has begun work on a full re-evaluation of the P2170 Licence Area and after significant effort and investment JOG was awarded 100% WI and operatorship of 4 blocks in the Greater Buchan Area’. It is worth noting that Equinor is still contemplating its option to back-in before 22nd October.
There is potentially massive upside for this area where the CNS can still deliver a sizeable JOG operated hub. With this potential and the company gearing up with key personnel ahead of the programme the company is a very exciting prospect. The Capital Markets Day on the 8th October will be worth listening to as the company delivers its plans and work programme ahead and shareholders should very much look forward to it. A leader in the Bucket list and likely to remain so…
Sometimes Reabold’s Californian acreage can get lost behind the noisier, potential at West Newton or Parta but shareholders should take a look at the asset. The third party reserves report, out today, on assets at the West Brentwood field in California where Co-CEO Stephen Williams says that ‘the 6x multiple on cash investment so far at west Brentwood has been delivered whilst RBD has been paying almost 100% of costs and economics can essentially double on a go forward basis’.
With all that is going on at RBD, including smart use of a well funded balance sheet to step in when needed at short term, I consider the company to be looking very strong in the coming months with significant upside.
I have mentioned Gulfsands Petroleum a number of times in recent months as I feel that there is a massive opportunity for canny investors to make an impressive return for a modest outlay. Older investors will know that GPX has a significant exposure to Syria that for the duration of hostilities has meant a ban on investing under EU sanctions.
In the last two days there have been momentous changes at the UN as the Syrian Constitutional Committee starts to get approval status, which these links show.
Success here would be a significant development for Syria and therefore for Gulfsands and as I suggested before that interested potential investors can trade via auction and I suspect that returns could be huge if the UN get fully behind Syria. Investors may therefore consider taking an albeit high beta opportunity at the next quarterly auction which closes on 31st October at 4pm, after all, recent trades of 5,6 and 7p should be remembered against a share price of over 400p in its heyday…..