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wow Octavia,
You are really bullish on this counter.
Whats the timeline to reach $1.50 even? Any thoughts?
Octavia ( Date: 22-Oct-2013 09:24) Posted:
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Began drilling the Ca Ngu-1 exploration well in Block 120 offshore central Vietnam, with an estimated planned reach of 1,500m total vertical depth subsea for testing. The Block, which KrisEnergy holds a 25% working interest in, was originally acquired in 2010 following 2D and 3D seismic acquisition and interpretation, and is one of the several prospects in the contract area. Management provides that the last single well to have been drilled in the current boundaries of Block 120 was in the early 1990s and encountered oil.
CIMB has an unrated report on the counter. Note that led by an experienced team with a proven track record, KrisEnergy is a young but promising E& P company with a multi-asset balanced portfolio across Southeast Asia. Its existing reserves appear to be priced in but share price could be catalysed by new discoveries. Being in the early stage of E& P, KrisEnergy has yet to accumulate substantial reserves. Based on its peer group?s average EV/reserves of 39.3x, KrisEnergy could be worth S$1.25 on its 2P reserves. Successful new discoveries of oil and gas is needed to move the needle. House see this most likely in Vietnam where hitting a low estimate of risked recoverable prospective resources could raise its value to $2.21 per share.
Key takeaways from a recent HSBC roadshow are: i) Compared with its predecessor Pearl, Kris has a much more mature and diversified portfolio, with a higher hit rate. ii) Any of the big hits in Vietnam would change the company?s entire outlook. iii) The company expects to win the bids and expand into Malaysia and Bangladesh before next month. iv) Breakeven price is US$42-45/bbl, therefore there is enough room for oil price fluctuations. Kris has 16 blocks currently (two in Vietnam, five in Thailand, seven in Indonesia, one in Cambodia and one in Bangladesh) and is operational on eight of them. Since being incorporated in 2009, 27 wells were drilled and 18 discoveries made with seven now under development. The success rate is 67% versus 50% at Pearl. Keppel is a strategic investor in Kris and holds a 35% interest post-IPO. HSBC has a Underweight rating with TP of $1.10.
Kris Energy expects to spend one-third of the $203m proceeds raised from its recent IPO on acquisitions of oil and gas fields in Asia. The remaining two thirds will go to fund exploration and production activities at existing fields. The co is awaiting regulatory approval to take over UK-listed Tullow Oil's Block 9 onshore Bangladesh. Elaborating on the rationale of the company's first asset acquisition in Bangladesh, mgt explains that in addition to holding the producing Bangora discovery, Block 9 shares similar geology to KrisEnergy's Udan Emas production sharing contract in Indonesia.
Off Thailand, KrisEnergy is also awaiting the green light for a farm-in to gain an operating stake in Block G6/48. Sources also said the Asia-focused independent is bidding for one of the 10 risk service contracts on offer under Petronas' licensing round for marginal field developments off Malaysia.
Meanwhile, another O& M E& P firm, Interra Resources has also been making active acquisition plans, having yday just announced its biggest acquisition yet to acquire an Indonesian oil field for US$78.5m. Peer Mirach Energy also recently added to the positive sector newsflow, announcing that it had struck a new untapped oil zone in Indonesia which could be a potential ?game changer? for the company.
Reversal mode. Good luck.
They are in my watchlist only.
Find rex has too much hot " gases" .Best to wait for some concrete evidence that their technology works.Interestingly they said they did not patent their technology,why?So it is not so unique after all?
No offence.Just sharing my views.
starlene ( Date: 03-Sep-2013 10:47) Posted:
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Octavia u are in both Kris and Rex...do u think Rex can catch up...although doesn't hve Keppel Corp as its cornerstone investors but..it has...
REX INTERNATIONAL: Game Changer For Oil & Gas Exploration
http://www.nextinsight.net/index.php?option=com_content& view=article& id=7299& Itemid=1
.
Author: value_investor | Publish date: Mon, 2 Sep 13:40 | > > Read article in Blog website
KrisEnergy reports deeper losses for Q2
Author: value_investor | Publish date: Mon, 2 Sep 13:40 | > > Read article in Blog website
Krisenergy
Ltd, an oil and gas company, deepened its losses to US$8.2 million for
the second quarter ended June 30, 2013, compared to a net loss of US$1.9
million a year ago. Revenue for the quarter also fell 25.3 per cent to
US$16.7 million. Half-year net loss for the period stood at US$8.8
million, worsening from the loss of US$451,300 a year ago. Revenue
decreased by 21.6% to US$36.8 million in the six months ended 30 June
due to a US$4.9 million decrease in condensate and gas revenue from the
Kambuna gas-condensate field as it approached the end of its economic
life. (BT)
HSBC initiates at Underweight with TP $1.10. Notes KrisEnergy is a young E& P company with an experience team operating in familiar geographies. Meanwhile, KrisEnergy?s diversified portfolio of 14 assets (7 operating) spans the whole E& P lifecycle. This will rise to 16 assets upon the successful acquisitions of Block 9 and G6/48. The co has potential for significant reserve upside, with exposure via its Vietnam blocks. Nevertheless, the house expects KrisEnergy to post net losses over 2013-15, due to significant build in G& A and financing expenses. Hence while HSBC views a high probability of mgt creating long term equity value, in the intermediate term, potential for share price appreciation is less certain.
KrisEnergy announced 2Q13 results, which do not reflect the financial effects of the recent Jul IPO. Revenue and EBITDAX (earnings before interest, tax, depreciation, amortization and geological and geophysical expenses and exploration expenses) in line with mgt?s expectations.
Revenue was down 22% yoy to US$36.8m on the back of lower pdtn and sales volumes and a decline in average realized oil and gas prices. EBITDAX declined 42% to US$15.6m, due primarily to the decrease in sales volumes, lower realized ASP and increased general and admin expenses. Operating costs declined only 9.6%, and the group extended its net loss to US$8.7m from slightly below breakeven levels last year.
The group?s working interest pdtn from the producing areas in Gulf of Thailand, and in the Glagah-Kambuna Technical Assistance Contract (GKTAC) in Indonesia averaged 2,737 bbls of oil equivalent per day (boepd) in 1H13, declining 24% yoy. The decrease in pdtn is inline with the anticipated decline in the Kambuna field as it approached the end of its economic life. Pdtn ceased in Jul ?13, and the group expects to relinquish its entire interest in the GKTAC by year end. In addition, the producing areas in Gulf of Thailand experience scheduled and unplanned shutdowns, exacerbated by bad weather causing delays to on going work.
Still mgt remains confident. Notes as the group nears the end of its 4th yr of business, its portfolio continues to grow and will comprise 16 contract areas. For 2H13, the group has two high-impact exploration wells offshore Vietnam and also seismic programs lined up in Indonesia and in the Gulf of Thailand.
FY result:
Operating costs declined by 9.5% which was generally in line with the decrease in production
volumes. Overall, KrisEnergy reported lower earnings compared with first half 2012 which was
consistent with the current phase of operations. Profit before tax was down 109.1% resulting in a
loss of US$0.9 million due to higher costs and expenses resulting from headcount growth to support
the group?s expansion in the region higher accrued bond interest from the successful US$35 million
tap issue in May 2013 and the unrealised marked-to-market decrease in value of the Company?s
Senior Guaranteed Secured Bonds due in 2016.
http://infopub.sgx.com/FileOpen/KrisEnergy_1H2013_Media_Release30Aug2013.ashx?App=Announcement& FileID=254525
good to know... today managed to buy small lots at avg 1.147.
Hope to make some nice profit.... before fy result out
luckyfa ( Date: 27-Aug-2013 11:53) Posted:
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Financial result coming up this friday and hope it's good...Maybe and it's likely to shake-up more shares before the release of the results...
what happen ah?
CLSA initiate coverage with a BUY and a DCF-derived TP of $1.58, implying a 22% upside. CLSA see near-term upside to production from two key projects in the Gulf of Thailand. These assets could lift net production by more than 8,000 boepd of mainly liquids. House don?t expect full production from these projects until 2016/17, but there is upside risk to timelines. In addition, two exploration wells are being or are just about to be drilled in the large prospective resource of blocks 105 and 120 in Vietnam.
Keppel Corp has bought three chunks of KrisEnergy since 2012 and is the most likely buyer of additional stakes as First Reserve might seek to exit. CLSA questions if KrisEnergy could morph to become the oil and gas division of Keppel Corp, with a possible whitewash resolution of the takeover and merger rules that typically require a general offer, Keppel could acquire more stock. The stock has edged higher since its IPO and is trading close to its current underlying NAV. Further upside will come from exploration success and the timing of new production.
6 black candles.
rebound in sight?
looks like i'm wrong.
spiralled down to 1.19
jumped from 1.215 to 1.24 before sliding to 1.23.
on track for spike this week for results?
Running out of energy again.