EnCore Oil PLC

From Oriel today :

........Oil quality is good at 27deg API (a key pre-drill risk, given concerns that oil quality could degrade further westwards from the original discovery) as is reservoir quality with an average porosity of 33% in the main Tay sands

Pre-drill resource estimates were c40mmb which appear to be largely underpinned by this result. Unrisked this would be worth c101p/sh net to Premier, c56p/sh to Nautical and c18p/sh for EnCore over and above our carrying values for the main Catcher discovery.........

hardly research - just read the rns! - and have a strong vested interest in both

in eo. and npe but not pmr too much for me..

now why has P only posted a section of what Oriel wrote? ..... sour grapes or what? ..... anyway, there is a longer version of the company's rns available and the management assuredly has no record of fragile boasts or similar

Cos he's a twat?

post 404 may give you a clue!

Directors selling shares??
News 3.15pm

Three directors of the UK-based oil and gas group Encore Oil have sold more than 4m shares collectively in a sale that reduced their stakes by around 20%.

Chief executive Alan Booth sold 1.55m shares at 143p each to net 2.2m. Eugene Whyms, finance director, sold 1.5m shares at 142p each to generate 2.1m and exploration director Graham Dorsold 1m ordinary shares at 142p each to net 1.4m.

The group has licences in the UK Continental Shelf, including the North Sea, offshore Ireland and a production sharing contract offshore in Western Sahara.

Encore's stock rose over 830% in 2010, with the majority of gains coming in the last seven months following the discovery of two potentially huge North Sea fields, Catcher and Cladhan.

The potential at Catcher was underlined again on Tuesday when field operator Premier Oil reported a successful strike at its Varadero exploration well.

I wonder if the wording of last RNS:
having successfully encountered excellent quality hydrocarbon bearing reservoir sandstones

and wording of the cladham discovery:
The side-track encountered excellent quality oil bearing sandstones,

has any bearing on what actually been discovered at varadero??

Directors sold.

Cannot blame them, EO. is grossly overvalued if you take things in "recoverable" barrels proven potential and also their "net percentage" of those figures.

Way too much future success is in the price already, and there may be failures ahead with the drill bit.

Therefore it makes sense to sell some and lock in some profits while the price is presently way over inflated and far too ahead of itself.

time will tell whether or not you just have a mouthful of sour grapes .... it should be remembered that directors have limited windows in which to sell (or buy) their own stock, and of course it may well be that in this instance they were just cashing in some option shares as is often the case

Market Cap is 407 million.

If you go on 10 US$ per barrel in the ground for them then they need 63 million recoverable barrels to justify the market cap.

Given their small holding in the licenses and the OIP figures from PMO, one could suggest they may have just 20 to 30 million barrels recoverable , and that makes them quite overvalued.

If you are very very generous and give them 30 million recoverable then 30M x 10US$ = 300,000,000 US$ or a market cap of just under half what it is today.

Thats an awful lot of hope and future success already in the price.

Run the figures with a more conservative 20 million barrels they have at the moment P50 recoverable potential and my word, they really are overvalued.

I have seen so many people on other BB's crying at why the price has not risen and its all MM's and conspiracy, no its not IMO, its simply far too much future success is already priced in.

you may be right and certainly in early november GS reckoned EO to be a sell (it's actually well up since then), but then they reckoned DES to be a buy (say no more!) ...... anyway, i banked some good profits here in early november and the balance is also still comfortably in the money though i bought these quite high

decided that it would be a shame to let a good profit perhaps fritter away so have sold the balance but retain (far too many) PMO who are the operator in EO's field

decided that it would be a shame to let a good profit perhaps fritter away so have sold the balance but retain (far too many) PMO who are the operator in EO's field

If the 'EO's field' you are talking about is Catcher, then you are wrong. EO. are operator; PMO just have a larger stake.

SLG are operators of Cladhan.

whatever ..... i banked the profit and continue to hold PMO!

nice rise this morning.,.

now why should EO be roaring ahead today? ...... well was spudded 24/1 and no result expected for another 10 days ..... EO holds 15% and PMO 35%, yet PMO hasn't moved at all tho it has been quite strong of late

NPE also well up and into 5+ so something going on, would Xel have an effect on these two if news maybe very good news coming from that directon?

XEL are very lacklustre ..... perhaps good news rumoured but am reluctant to jump back in ..... if it's good, PMO will do well enough out of it anyway

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bid/offer books very level so rise may be suspect - e.g. just short position being closed