LON:AEY^J17 | Antrim - Genuine M&A Target?

25th May '09 by JPGH

5 comments 3259 reads

SP hammered in 2008 from lofty heights of 340p to as low as 15p inearly 2009 for many reasons but IMHO the single most damaging reasaon they are slow to recover to anywhere near even 50% of original value is that they have failed to deliver any appreciable increase in production due to delays in Causeway/Fyne & Dandy. 2009, with new UK Tax incentives for smaller fields these borderline "marginal" assets and Antrim's enviable position of no debt and cash in bank to at least keep company afloat could make it a target for UKNS scavengers or even the Middle East Petrodollar mobs.

June 14 2009: - Just adding a cross link to the ADVFN thread for followers to also look at http://www.advfn.com/cmn/fbb/thread.php3?id=14881729

and website http://www.antrimenergy.com/

and link to important TSX quotes which drive the fortunes of AEY over here on AIM. .http://finance.yahoo.com/q?s=AEN.TO

Anyway feel free to contribute to the thread on any matters AEY related.

JPGH

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ManSiarad

25th May '09

JPGH,

Antrim's enviable position of no debt and cash in bank to at least keep company afloat could make it a target for UKNS scavengers or even the Middle East Petrodollar mobs.

The "ME Petrodollar mobs" are not as flush with cash these days as they were last year!

Thus TAQA of Abu Dhabi, which has been the most active UAE acquirer of overseas assets, (Canada, Holland, for example, so therefore likely to be looking at the UKNS), reported a rather sharp fall in 1st Q 2009 profits the other day.

Net profit, after minority interests, for the quarter was AED 40 million compared with AED 398 million in the same quarter in 2008. The decrease in net profit for the quarter is mainly attributable to the decrease in realized oil and gas prices during the period and lower foreign exchange rates.

(Figures here: http://www.taqa.ae/en/news300.html )

The Gulf's Sovereign Wealth Funds have been hurting too - which is why, I think, we've not seen the amount of M & A activity from them that many (including me) expected, even though some of them, at least, have been running careful slide rules over much larger morsels than AEY.

emptyend

which is why, I think, we've not seen the amount of M & A activity from them that many (including me) expected, even though some of them, at least, have been running careful slide rules over much larger morsels than AEY.

I think the question of size is a very relevant point. The buyers who are cashed-up are in general going to be more interested in larger companies that can make a material difference to the bottom line (£1bn+....the likes of Heritage, BG, Tullow perhaps).

Yes there have been deals further down the food chain - but not very many except in relatively distress circumstances.....Oilexco and Bow Valley come to mind - and a few smaller minnows.

JPGH makes an interesting point re the tax changes though - it seems to me from recent deals in the UKNS that the tax position of targets has been a major driver!

Talking of deals, incidentally, I wonder if any will emerge tomorrow? A long weekend sometimes help get the legal work done.

ee, Mansiarad. Ta for posts

At £54m Market Cap (including a fair whack of cash (and no debt) of $48m (in Sept 2008) and recent tax assistance coutesy of GB recent budget) I wouldn't have though much DD or slide ruling is required by TAQA or other larger predators. Dec 2008 NPV10 was circa $250m, add in a few extra million for small field developments and you could almost see 100p a share here.....IMHO.

I have a few but have been reluctant to add as my few were orginally worth a lot more and I have been focusing more on liquid shares of late in case I need to get out quickly, somethig I failed miserably to do last year..

http://www.investegate.co.uk/Article.aspx?id=20081114065927M3263

MrT

3rd Jul '09

RNS today: http://www.stockopedia.com/news/announcement/AEY/090703aey002601.htm

Antrim Energy Inc. announces it has been notified by the UK Department of Energy and Climate Change (DECC) that it has been
offered Block 21/24b in the UK North Sea as part of the 25th Seaward Licencing Round. The block, which was awarded to Antrim on a 100% working interest basis, is in the Company's core area around the Fyne Field in the Central North Sea. As announced in November of 2008, Antrim was previously awarded five blocks in the 25th Round, three of which are in the Fyne area... Block 21/24b will add approximately 36,000 acres to Antrim's asset portfolio in the area. The licence will be a Traditional Licence, with seismic processing to be completed and a contingent well to be drilled during the initial four year term.

Stephen Greer, Antrim's President and CEO, commented, "With its close proximity to existing fields and infrastructure, and potential in two proven producing formations, Block 21/24b is an exciting addition to Antrim's Central North Sea holdings."

oilretire

23rd Dec '10

Seems like a good time to resurect this thread.

What are peoples thoughts on Hedgehog Capital building such a large stake in AEY? They notified on Friday that they are up to 25.6%.

http://www.investegate.co.uk/Article.aspx?id=20101217070317M5153

Up from ~24 % in September, up from ~15% at the start of 2010 & up from ~6% in Sept 2009.

My own thoughts? Well for one I don't think it's for any particular company as it's been such a gradual stake build - but perhaps that's naive of me? I certainlly don't think it's anything to do with Premier as thier interest in what AEY has (GFA) seems to have spawned from the Catcher results - events which are long after the Hedgehog stake building began.

Not much of clue as to what Hedgehog are about here:

http://hedgehogcapital.co.za/

Antrim - genuine M&A target?

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JPGH

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