Been looking at this one ever since results were published back on the 7th april. Its both an Oil Explorer and Developer and just throws off cash and makes a profit. I wouldnt initialy go into it because the shares were very tightly held especially by the US Oil Company Harken Energy I think they had around 85% of the share equity and the stock was not very liquid, but thats changing as Harken sells off shares into the market especially to the Large Institutions. In fact its just sold another tranch off today.

It really as a lot going for it and since the results as been tipped by two Brokers Teather and Greenwood and Equity Development) as strong Buys but the good thing is that the price as not yet really moved, the city have not caught onto this one yet and this is an ideal opportunity to get on board. Its also won new contracts and its NAV estimated short term to be 367p, long term 729p is up against a share price of only 161p. The P/E for the company for 2005 is only 6 and for 2006 a mere P/E of 4, compare that to some of the Blue Skers around and it is amazingly cheap. The institution Fidelity have also taken a big stake in the last couple of days and those boys know what they are doing.

Last Results to 31st December 2004.


Financial Highlights



Revenues up 28% to $10,974,000 (2003: $8,556,000)



Gross Profit up 65% to $5,349,000 (2003: $3,239,000)



Profit before tax up 292% to $3,127,000 (2003: $797,000)



No debt as at 31 December 2004



Finding cost of approximately $5 per barrel in the three years ending 31
December 2004



107% increase in Capital Expenditure budget for 2005 (2004: $8,700,000)

- fully funded from cash available and cashflow from production


Operational Highlights



2 exclusive contracts signed in Colombia in 2004 and another exclusive
contract in Peru added post the year end



Portfolio now much enlarged and prospect rich - trend towards exploration
against backdrop of established production

- 6 contracts and 1 pending contract covering approximately 3 million
acres in Colombia, Peru and Panama

- 100% ownership of all contracts



Production widened to 10 wells from 4 contracts as at 31 December 2004

- Record daily production of 2230 bopd from 11 wells as at 3 April 2005



Multiple exploration prospects within enlarged portfolio in all 3
countries already independently reported on

- First exploration expenditure since flotation on properties held under
contract to occur in 2005



Anticipate signing at least 2 additional exclusive contracts or Technical
Evaluation Agreements during the remainder of 2005

Director Speak.

Commenting of the results for 2004 and progress post the year end, Stephen Voss,
Managing Director, said:



'We are very optimistic about Global's position within the oil industry. We
identified many years ago three pre-eminent countries in which to operate -
Colombia, Peru and Panama - that have continually offered improved industry
terms and economic and political stability. All three continue to have few
independents operating in them and as a consequence Global continues to maintain
its first mover advantage and the opportunity to acquire additional attractive
acreage.



We have significantly enlarged our portfolio since our flotation three years ago
and now have a much diversified portfolio offering multiple prospect
opportunities in addition to established production. This production throughout
2004 against historically high oil prices resulted in record financial results
for the year.



Our production and strong-pipeline of near-term production allows the Company to
continue to build on a solid financial base whilst beginning to pursue the
considerable exploration prospects under contract and pending contract which the
management believe are capable of significantly enlarging and transforming the
Company going forward.'


Forward Outlook

We are very optimistic about Global's position within the oil industry. We
identified many years ago three pre-eminent countries in which to operate -
Colombia, Peru and Panama - that have continually offered improved industry
terms and economic and political stability. All three continue to have few
independents operating in them and as a consequence Global continues to maintain
its first mover advantage and the opportunity to acquire additional attractive
acreage.



We have significantly enlarged our portfolio since our flotation three years ago
and now have a much diversified portfolio offering multiple prospect
opportunities in addition to established production. This production throughout
2004 against historically high oil prices resulted in record financial results
for the year.



Our production and strong-pipeline of near-term production allows the Company to
continue to build on a solid financial base whilst beginning to pursue the
considerable exploration prospects under contract and pending contract which the
management believe are capable of significantly enlarging and transforming the
Company going forward.ENDS.

Conclusion.

Way undervalued in my eyes and a lot of others in the industry aswell. The future is very exciting. Remember its not a Petrel or a White Nile so dont expect fireworks. Its got an high beta and the shares are still relatively tightly held. Further news flow will move the share price this year and beyond. You will have to be patient with this one but I beleive it to be an exceptional investment.

DYOR.

cheers GF.

TA looks rather strong.....................

I too see the value here GF and am in (hopefully) for the long run. May buy more.

Rotten all around at the moment Jimmy. Mind I can remember the last two years being rather similar and just when you think the markets had it, it jumps back up and smacks you on the face.

Hoping so anyway. Its very subdued on all the boards.

cheers GF.

We should be careful what we wish for goldfinger. I hold three oil stocks.........nearly half of my invested cash is in them but I'd be happier with a slightly lower oil price.

This high oil price poses a substantial risk to the Global economy........the higher it goes and the longer it is sustained, the greater the risk of a Global recession. The markets have been taking enough of a battering as it is and if high oil prices do lead to a Global recession then the oil price will fall heavily as a result anyway imo.

No problems, every body is entitled to their view and I for one respect that.

Just staying cool myself , Im up 141% for the year on my 18 investments although having said that Ive taken a 28% bashing or so just lately. Barstewards.

Like ive said before you make your own minds up as ever I post DYOR.

Im going to stick in as my recommendations are Oil weighted stocks on the whole. I see oil prices companies(producers) going berserk from January onwards.

Watch out with pure explorers though, they could find it difficult.

Ive also gotten into a fantastic dull share thats reaped me a 14 % or so rise in the last 10 days. SMC - more to come. Boring twatish architects/surveyors who have a rolling P/E of 11 sdropping down to 8 next year. NICE.

I say this forget the momentum stocks and look for quality stocks with low P/Es.

cheers GF. As most know looking to help others but I cant hold their hands day, by day. I hope you understand.

Hi Stringy taken this opportunity to post to you alone or anyone else who is wanting to look in.

To say that you have 50% OILS tied up in your portfolio is crazy to say the least.

You must spread your investments around. Ive been in this business over 22 years and beleive me you are in a position where you can severely be burnt. Obviously I and others dont want that to happen.

The market as a whole is having a bad week. Shares are down. But the market is NOT the artbiter of value but only of price.

Now is not the time to sell. Becuase you are just giving away wealth. Now is the time to buy. The cash has not gone away, only the nerve of some holders has disappeared.

But I ask you as a freind to gradually change your weightings.

cheers Gf.

Hi GF Smc
Been watching them since 13 oct 63p now 77.5 up 23%
good move getting on them they look good.
I bucked out as will only now move on stock trading over 2500 ave trade
been burnt trying to sell a few below that level to volitile
smc ave trade 13/10 1800 moved up to 2300 now so looking good.
As for global most oil stocks have taken a beating this week
not suprising after recent gains but no need to panic
Ged tucked away for the long term.
regards
HUSTLER

Hi Hustler,

nice as always to speak to you and listen to your findings which I take very seriously.

SMC could easily be a year on from here 210p as its derd cheap and Im taking my chances.

GED as ever will go higher, im not going to panic at all and I can see plenty of bullish news that will push this very much higher over the coming months. NAV 8quid.

In fact im adding to this one and Carclo by the day.

Well by that I mean on most days.

Good luck and cheers GF.

back again GF
Appologies previous post, date info incorrect should read 13 / 9
bit knackered time for bed
all the best
HUSTLER
ps carclo on my list since april not moved to date but interesting
keep in touch

Thanks for the advice goldfinger.........much appreciated.

I found GED back in march and it's been one of my best performers to date. I'm a little less than 50% into oil but without doing the sums (it's late), I'd say the figure is in the mid 40's. A little too high perhaps but all with great upside potential. Non are just explorers though, all have contracts.

I did used to have a more diverse portfolio and did well out of Synergy Healthcare, Plusnet and Dragon Oil. Now I'm mostly in oil, metals and tech stocks. The main reason being that I feel I understand those more than other sectors.........time may prove me wrong.

Maybe I should look into diversifying a bit and look more for value rather than momentum stocks.

Will consider this over the weekend.

Thanks again.............Tony

Tell you what Tony its great to see an investor who can take advice. Im sure you are going to be a good un.

Please remember ........ Read, read and read, as many investment books as you can and you will be a a far better investor. We all learn by the day, Ive never stopped learning and never will. Buy a new book every month, otherwise go to the liabary, and have a look at some of the historical ones. Still the same as it was then.

cheers GF.

Up we go , nice RNS, GF i wish you had posted SMC earlier ,i can't find much on it..

Yup just the first I feel in this busier half.

Global Energy expects to flow more oil at Torcaz field after further work
AFX


LONDON (AFX) - Global Energy Development PLC said it is expecting a dramatic increase in the volume of oil it can potentially recover from the Torcaz field in Colombia once it completes further work on the site.

Torcaz is believed to contain proved and probable reserves of around 144 mln barrels, with recoverable reserves -- net to Global Energy -- estimated to be almost 3 mln barrels.

Current recovery rates for the field is estimated to be 'less than 3 pct' of the reserves figure.

'The management of Global Energy believe, following analysis of the engineering feasibility study, that if the project is successful, there could be a four-fold improvement in recovery rates,' the company said in a statement.

It is piloting a test programme that will involve injecting CO2 (carbon dioxide) into the producing wells, thereby improving oil mobility in and around the holes.

Should the project turn in encouraging results, it will be proceeding with the engineering and geological plans needed to develop the field.

mbe/lam

cheers GF.

Well its up but only just on another shocker of a day. RSI shows it to be oversold.

cheers GF.

Taking a pasting today,as are other oils ,oh well been here before .

Everythings taking a pasting. Looks like the US is to blame from last nights session.

Lets hope this is the last of the clearing out and the bottom.

cheers GF.

It's been bad for the last few days. Everything is down except the wife's draws.

MS

We got bashed more than the other aim oils ,and were not rising with them either ,now that's just not fair..

Lukoil interested in projects outside Russia
AFX


ASTANA (AFX) - Lukoil is out to enforce its international presence and draw profit from geopolitical developments favourable to Russia, particularly in the Caspian and Latin America, said Andrei Kuzyaiev, president of Lukoil Overseas, the oil giant's international subsidiary, in the Kazakh capital Astana.

'The profitability of foreign projects can be three times higher than in Russia,' where much disappeared due to taxes, said Kuzyaiev.

The group, which set up Lukoil Overseas five years ago amid rapid expansion, today extracts 5 pct of its oil and 15 pct of its gas outside of Russia -- in Kazakhstan and Egypt. It also participates in exploration projects in Azerbaijan, Columbia, Iran and Venezuela.

Kuzyaiev stressed that Lukoil is fast becoming one of the world's leading producers thanks to its formidable reserves, second only to those of ExxonMobil.

However, a Lukoil source also indicated that Lukoil's expansion perspectives in Russia were de facto limited due to strong ambitions of gas giant Gazprom and another oil producer, Rosneft, who had jumped into the fray for the country's best oil assets.

Lukoil recently paid 2 bln dollars to acquire Nelson Resources, a holding company that controls 1 pct of Kazakhstan's oil reserves, one of the key potential new sources on the world oil market.

The Russian company, which already extracts oil from two Kazakh fields, Karachaganak and Kumkol, in October sealed the deal for 66.5 pct of Nelson Resources and is waiting for approval from minority shareholders to buy the rest.

'We have an advantage in the Caspian: We are close to Kazakhstan, Azerbaijan and Turkmenistan in our mentality, history and language,' Kuzyaiev said.

Russian energy companies have also been benefiting from a recent warming of political ties between Moscow and Central Asian governments, resulting in oil and gas accords between local national companies and Russia's own Gazprom, Rosneft and Lukoil.

In June, Lukoil signed an important contract with Uzbekistan, where it is due to start extracting gas in 2007. However, 'when compared with CNPC which disposes of China's state budget, Lukoil, as a private company, is not very much of a rival,' the official admitted.

Lukoil also hopes to extend its activities in Venezuela, taking advantage of problematic relations between Western companies and Venezuela's populist President Hugo Chavez.

One particularly promising project is the Orinoco field where Lukoil hopes to exploit one sector. The Russian group is also exploring in Columbia and eyeing several acquisitions in Colombia, Equador and Venezuela.

On the downside, the group has yet to make any progress in Iraq, where it hopes to recover its exploitation rights over the vast oil West-Qurna 2 field.

Lukoil gained those rights in 1997, but the contract had since then been annulled by Saddam Hussein's regime.

The Russian producer has sought ties with the new Iraqi authorities by bringing Iraqi engineers to its training centres. It is also hoping for a helping hand from the US company ConocoPhillips, a strategic investor in Lukoil, to regain its foothold in the country.

lgo/cal/sms/jmy




Thread List Earlier Posts

Well IM sticking with this one. We could have a down week for Oil prices coming, but remember with a very high beta this one can turn around very suddenly.

cheers GF.

Hi GF. You often refer to Beta. I assume this is an ascillator. What does a high or low beta mean or imply?. I understand GED has a Beta of .12. Is this considered high?

Regards