Just cannot understand recent SP volatility!

As a Dana shareholder I find it difficult to
find any reason to sell, even at current price. The Company has recently
entered a number of agreements which will have
considerable benefits:-

1. Reserves from 31st December 2003 of 123.7 mmboe
must now be in the region of 200.0 mmboe.( 100 million
North Sea 70 million Mauritana 30 million Russia ).

2. Production will rise to 25-27 thousand boepd in
2005 from 18 thousand in 2004.

3. At 30th June 2004 a Net cash position which will
have been enhanced significantly year to date.

4. Exciting exploration potential.

5. Management that seem to know what they are doing
with an excellent chief executive.

6. Recent deals by other oil companies have seen oil
assets bought at prices between 7-11 dollars a barrel
( see last weeks Investors Chronicle ) Dana must have
a value well in excess of the current 300 million.

I am holding firm and looking towards 800 pence.

Any other views out there?

more good news for dana....

Oil prices 'will not come down' says OPEC boss
By Edmund Conway
Last Updated: 2:40pm BST 24/06/2008



The cost of a barrel of crude oil has edged closer to its all-time high after OPEC president Chakib Khelil warned that oil prices will not come down. Ahead of a meeting with EU officials in Brussels today, he said that the cartel had done all it could to ease prices.


His comments pushed up benchmark crude in London by $1.24 to $137.15 a barrel - it hit an all-time high of $137.69 a barrel on June 6. The spot price - the cost of buying a barrel of oil for delivery that day - has risen close to $140.

European Union Energy Commissioner, Andris Piebalgs, said he was not convinced speculators are to blame and repeated his call for the Organization of Petroleum Exporting Countries to pump more oil and scrap production quotas. But OPEC Secretary-General Abdalla el-Badri said: The market is currently hijacked by speculators, including hedge funds. There is no shortage of supply as I said before.

OPEC members besides Saudi Arabia have no intention of raising output to bring down near-record prices, he said. This will be the main point for todays discussions, which will also include Mr Khelil and French Energy and Environment Minister Jean-Louis Borloo.

Saudi Arabia, the worlds biggest oil exporter and OPEC producer, plans to raise production for a third straight month in July and will further increase output as needed to curb record-high prices above $135 a barrel.

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Saudi Oil Minister Ali al-Naimi announced the increase at last weekends summit of 35 producing and consuming countries in the Saudi port city of Jeddah. Mr Khelil and ministers from Venezuela and Libya have said the Saudi initiative would fail to lower prices.

Speculators have almost doubled their share of the New York oil futures market, according to figures provided for the US Congressional Energy and Commerce Committee by the Commodity Futures Trading Commission.

Between 2000 and this April their share of West Texas Intermediate contracts rose from 37pc to 71pc, with the rest accounted for by companies such as airlines hedging against price rises.

Many analysts now expect crude prices to shoot up towards $200 a barrel as the growth in global demand for energy outpaces the supply.

However others, including billionaire investor George Soros, have warned that the price could soon fall back sharply, and that the price looks like a bubble.

John Dingell, chairman of the Congressional committee, said the growth in speculative activity "raises troubling concerns about whether the oil future prices have become de-linked from underlying supply and demand fundamentals and whether the commodities markets have become a casino for unscrupulous speculators who profit at the expense of the American people".

Presidential nominee Barack Obama has pledged to control oil speculation if he gains office, ensuring, among other things, that US energy futures cannot be traded offshore unregulated.

Julian Jessop, of Capital Economics, said: "I've no doubt that there is some speculative froth in the market... it's impossible to prove if it is contributing $5 or $50 to the price.

"More recently [since April] speculative positions have been flat or falling, while prices have been rising sharply," he added, saying speculative activity could not explain the recent sharp increase in price from $100 to almost $140 a barrel.

However, analysts expect that with China, Indonesia and other emerging nations cutting subsidies on their domestic oil prices, demand may soon drop.

The fact that oil prices have risen, rather than fallen, may embarrass Gordon Brown, the Prime Minister, who flew out yesterday to the Jeddah meeting to urge producers to pump more crude.

We've had a good consolidation period here and let's hope there's some substance to this mornings early gains and we can build back to the highs. After all production greatly improving this year and a rapid exploration phase in H208. I don't doubt we'll be well over 20 before too long.

All producers up this morning.....explorers not doing so well !.

That's a bit more like it.

at last.....saw another broker report of 26 quid.....has market just noticed that oil aint going down! doh

Was that ABN's revised target? Trying to see what that is and was it 26 flat?

That 26 revised target is ABN Amro

A better start to the week. Chart looking strong for rises to 20 and beyond now.

Oil shares still cheap when you consider most navs are using $68 a barrel.

this has went down more than 1.60 in just over a day.....whats wrong?

oil at highest ever too....makes no sense

General market correction. Lots of stocks are down, many of which don't deserve to be, imo. Maybe we should have sold the lot in the spring & waited for the usual summer downturn to pass?!!!

Quite possibly. I'm holding about 60% cash now (but still hold Dana). I'm expecting a bloodbath later in the summer/October across the market and not ruling out a crash. I still think DNX will do well.

i think after another crash, most of the damage will be over, its under 5500 already.....it might go to 4500 in end so we have less than 1000 to fall....and we lost more than 1000 already this year, in fact we lost about 1000 in last 7 weeks

dnx.....market correction....but not down 170p in just over a day, thats ridiculous

mm's in nose in trough again no doubt making us pi's hold onto shares long term

I agree, I think this has been a classic A-B-C move down, this being the 'C' wave, and afer that has completely we should have a pretty good buyable low.

I am seeing a lot of value out there. Some of the falls have been sheer panic selling and/or margin call induced.

Up until recently, the market has been working quite well, discounting weak stocks like banks, builders and retailers - which is logical. However, in the last week or so I have see accross the board 'blanket' selling, the type which I would associated with capitulation.

Could be a good Q4 for long investors.

I agree, I think this has been a classic A-B-C move down, this being the 'C' wave, and afer that has completed, we should have a pretty good buyable low.

I am seeing a lot of value out there. Some of the falls have been sheer panic selling and/or margin call induced.

Up until recently, the market was working quite well, discounting weak stocks like banks, builders and retailers - which is logical. However, in the last week or so I have see accross the board 'blanket' selling, the type which I would associate with capitulation.

Could be a good Q4 for long investors.

down 210p in less than 2 days.....pure carnage

oil down quite a bit today....but sp rockets up. last week, total reverse.....more dodgy going on in city

whats the forecast on dana,,it drifting down slow every day

Maybe fall in the sp is partly due to the whole market downturn & also partly due to the 20% stake they had in a recent well which was plugged & abandoned:
" Operator IEOC is currently abandoning the West Gihan-1 exploration well in the Gulf of Suez (Dana 20%). Reservoir sands were found as prognosed in the Nubia formation, however these were non-hydrocarbon bearing at this particular location and the partnership group will now consider further opportunities in this block."
Lots coming up over the next 12 months, so happy to hold. May top up if it falls to 1400 +/-. 200DMA around the 1450 level which should be chart support.

all oil producing companies going down irrespective of their own business. brokers predicting around 25 quid......soon be half the price the way its going.

oil is sky high too....still above 135$......if a company does well it goes up a fair bit, then market knocks it down a certain chunk.

if company does badly, then market kills it down to a penny.......is that how market works?