Incidental stuff

Thursday, May 21 2009 by
25

NO TA ON THIS THREAD PLEASE - (edit) and no pointless speculations either!

I've created this thread just to park stuff in that is only tangentially-related to SOCO's interests and doesn't relate to any of the specific assets.


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SOCO International plc is an international oil and gas exploration and production company. The Company has oil and gas interests in Vietnam, which includes Block 9-2 and Block 16-1; Republic of Congo (Brazzaville), which includes Marine XI Block and Marine XIV Block, the Democratic Republic of Congo (Kinshasa), consists of Nganzi block and Block V and Angola, which include Cabinda Onshore North Block. The Company's operations are located in South East Asia and Africa. It holds its interests in the Republic of Congo (Brazzaville), through its 85%-owned subsidiary, SOCO Exploration and Production Congo SA (SOCO EPC). It holds its interests in the Democratic Republic of Congo (Kinshasa) through its 85%-owned subsidiary SOCO Exploration and Production DRC Sprl. The Company’s net entitlement volumes were approximately 15,500 barrels of oil equivalent per day. more »

Share Price (Full)
285.5p
Change
13.2  4.8%
P/E (fwd)
9.1
Yield (fwd)
5.9
Mkt Cap (£m)
903.9



  Is SOCO International fundamentally strong or weak? Find out More »


1291 Posts on this Thread show/hide all

djpreston 2nd Nov '11 712 of 1291
5

Lordy Isaac, you should really watch your blood pressure you know, else you won't be around to enjoy the fruits of Soco's management's labours.

Fund Management: European Wealth
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mangotree 2nd Nov '11 713 of 1291
2

In reply to emptyend, post #706

According to Google Finance the closing price on 20th September 2007 was £23.95.

http://www.google.co.uk/finance/historical?cid=668523&startdate=Sep+1%2C+2007&enddate=Oct+1%2C+2007&num=30#


MT

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emptyend 2nd Nov '11 714 of 1291
3

In reply to mangotree, post #713

Thanks for the confirmation - so 598.75p in today's money.

Soon be back there again.....  ;-)

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extrader 2nd Nov '11 715 of 1291
4

Hi Isaac,

I don't know what you do in the day job to which you refer, but I've usually found that - if I find myself dealing with people who are totally unreasonable, but are 'in the driving seat' - the best thing to do is to save my energy for more worthwhile pursuits, where you stand a chance of making an impression - and move on.

Maybe your day job's not given you that experience - yet ?

Trust me ! It's not only good for the blood pressure (as darron suggests) it also allows you to be more successful in your chosen pursuits.

Why not give it a try ? What have you got to lose ?

Good luck - whatever you decide.

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Isaac 2nd Nov '11 716 of 1291
4

Darron

The blood pressure is fine.

extrader

Thanks for the career's advice but I am actually happy with what I do, let's not get mixed up with Soco's failures and my personal life.


In the course of time I intend to review the performance of Soco over the last 4 years and look back at where they have done things well and where I think they did poorly.

In the areas they have done poorly I intend to highlight the well failures and hopefully I can get a bit of a handle on how much these failures costs so we can analyse the information from a monetary perspective as essentially this is how much value has been 'destroyed' from the company, money that could have come to shareholders in the form of dividends or buy backs.

I also intend to look much deeper in Soco Remunaration based on the performance and compare it against TGT days pre 2007 and try and understand how much the salary has changed as performance has declined etc

I think high salaries for failure need to be prevented & there should be more responsilbity taken by management for the failure of the wells rather then loose statemewnts that 'this is normal business' : http://www.ft.com/cms/s/0/8ac70404-04af-11e1-91d9-00144feabdc0.html#ixzz1cUbY1EQY.

I'm sorry but those statements just don't cut it for me, they need to be more sympathetic for the use of shareholder funds to drill wells that are not succesful & certainly don't add value.

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djpreston 2nd Nov '11 717 of 1291
15

I've said it before and I'll say it again, you really don't get E&P do you old chap?

Soco's had some bad results, so have other companies like Cairn say.

Sometimes even the most attractive looking prospects just don't work out. Look at the recent failure on Heilo off Norway, the most sought after of licences in that round of bidding. Look at Hoil, all looked good and whoops, its not oil, its gas, or Desire, or.... Then there's disasterous problems with drills like M&Ps Deep Mafia well or indeed TGD first time round...stuff happens. You get the idea. Its a roll of the dice.

Thing is, the work involved in a success is just the same as a failure (obviously not counting Appraisal and Dev work). Salaries were set by ref to comparitor groups on shareholder value basis iirc.

Obviously Soco's not had any luck but then they've appraised and developed cnv and tgt to put us in an enviable position.

That's the oil business. Take your lumps along with the rewards.

Fund Management: European Wealth
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djpreston 2nd Nov '11 718 of 1291
16

Oh, by the way Isaac, you keep going on and on and on about the lack of an asset sale and want the management to magic up an offer.

Well, again, you need to understand the industry. Its a close community and large fields are always watched closely by interested parties who will make a move when they feel the time is right. We know that Soco did have an approach a while back but that was dismissed due to hopes for TGD which would/could have been massively beneficial to us. Other companies are no doubt watching and may well have an offer in mind but are waiting for production proofs to minimise risks (who can blame anyone for taking a more cautious line at the moment). Look at that Brazilian field where production is 10% of planned vols due to a surprise aquifer or Tullows experience with Chinguetti.

Meanwhile Soco has been working hard on the development of TGT and hoepfully (probably) there will be much more reserves to be added from the data acquired. Let's not forget the slump in the oil price, the near implosion of the world economy (first time - I reserve judgement on now).

Then there's all the work we never hear about, the examination of possible deals, new assets etc.

So, am I frustrated, yes, mildly. But still, we've had a hell of a run and now have a company with great reserves, great cashflows and balance sheet strength and a great management team whose interests are very much aligned with our own.

There's worse places to be as shareholders in many other oilies will be all too ready to admit.

Let's also not forget that at any point you could have sold, reduced or traded the swings and enhanced your own pot.

Sorry if that's disjointed, several interruptions whilst typing.

Fund Management: European Wealth
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djpreston 2nd Nov '11 719 of 1291
8

Damn, still forgot something else...

As to the management's ability, look at the trading of assets over the years, realising the value then move on... (Yemen, Thailand, Mongolia, UK).

That record shows who they work and yes, NV could have gone before but was held back for hopes of value add to come through the drill bit (increased reserves at TGT, getting CNV sorted) and the ever tamtalising teaser that is TGD.

Fund Management: European Wealth
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kenobi 2nd Nov '11 720 of 1291
1

DJP,

I agree with all the above,

Its still frustrating seeing the shareprice where it is !!!!

hopefully production will ramp up nicely in Q1 and settle nerves,

K



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extrader 2nd Nov '11 721 of 1291
2

Hi kenobi,

I can think of a few nerves that need settling !

ATB

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redhill 3rd Nov '11 722 of 1291

Just looking at Barclays quotes this morning for Soco and surprised to see an unusually wide spread of 319p/310p, but more peculiar is that they are reporting over 800 trades but with insignificant volume giving (by their calculations) an average trade size of 5 shares.

Is this a case of the "bots" at work, or just a case of Barclays having duff data? Curious (or maybe not).

redhill

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emptyend 3rd Nov '11 723 of 1291

In reply to redhill, post #722

ADVFN have only 20 trades and spreads of 1-2p...so it is duff data at Barclays

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nigelpm 3rd Nov '11 724 of 1291

In reply to emptyend, post #723

I think it's duff ADVFN data in that case.

MoneyAM reporting trade data has per redhill.

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Judge Dredd 3rd Nov '11 725 of 1291

The Stock Market is simply the transfer of wealth from the impatient to the patient - Warren Buffett

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WeeEck 3rd Nov '11 726 of 1291

Yes, the SP has been very volatile this morning. It is as if the market makers are expecting something but don't quite know what.
Eric

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emptyend 3rd Nov '11 727 of 1291
2

In reply to nigelpm, post #724

I think it's duff ADVFN data in that case.

MoneyAM reporting trade data has per redhill.

In that case, MoneyAM has the same duff feed as Barclays. The LSE data is here.

...around 130 trades in the first two hours - all pretty normal.

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Spurticus 8th Nov '11 728 of 1291
1

Uncoming elections in DRC, some background on the country here:

af.reuters.com/article/energyOilNews/idAFRISKCD20111108

(nothing specific to SOCO)

Spurticus.

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Isaac 8th Nov '11 729 of 1291
2

Does anyone know if Soco would consider forward selling some of their oil, say 25% and thus locking in the current brent price? i.e. hedge

$115/bbl Brent is not a bad price to lock in some Oil IMO

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thebuffoon 9th Nov '11 730 of 1291

$115/bbl Brent is not a bad price to lock in some Oil IMO

Yeah, we could forward sell Soco's north sea oil.

Bit of a wild goose chase though. :^}

Buffy

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Spurticus 14th Nov '11 731 of 1291
7

At least the good Dr is optimistic:
https://www.honeywellprocess.com/en-US/news-and-events/Pages/PR_14112011_honeywellawardedmultimillionusdcontracttosupplyintegratedsystemforvietnamoffshoreoilplatforms.aspx

“When we reach full production, the Te Giac Trang oil field will be a significant generator of resources for Vietnam and its business partners,” said Dr. Ngo Huu Hai, General Manager, HLJOC. “As a recent discovery, initiating operations quickly and safely in the oil field was of the utmost importance. Honeywell was able to provide a high level of project management, integration capability and reduced schedule risk that we couldn’t find anywhere else.”

“When these wellhead platforms are optimized, the Te Giac Trang oil field will play a crucial role in Vietnam’s energy production and lessen reliance on foreign sources of oil,” said Tony Cosgrove, Vice President for Asia Pacific, Honeywell Process Solutions. “The Hoang Long Joint Operating Company’s decision to award both projects to Honeywell reflects the growing acceptance of turn-key solutions and their importance in helping our customers in the oil and gas industry exceed their business objectives.”

.......When completed and at full production the facility, located in the Cuu Long Basin off the Southern Vietnam coast, will be capable of producing more than 55,000 barrels of oil per day.

Spurticus

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