Hi all,
A bit like waiting for a bus....
http://www.guardian.co.uk/business/2010/nov/14/premier-oil-korean-talks
GLA
Overseas childhood, Mod Langs Uni, 25+ years M East banking, now shuttling between UK, US and Spain, trying to earn a more or less honest crust investing. Mainly UK shares, predominantly oilies + 'special situations'. more »
Well after some hesitation the market has concluded the story is true.
I must say that PMO looks expensive to me and the premium will be much lower than it was for Dana I would think.
Soco must benefit from this too. Encore too once the Koreans get a better look at Catcher.
repobear
Well I was a little surprised that it took so long to get moving and so I dived on in and now hold PMO for the first time ever.
Granted its not cheap and there won't be a premium like at dnx but enough for me.
The logic is compelling - bulking up N Sea position, adding v significant and quickly growing reserves in a friendly territory where a deal can be done easily.
The interesting thing is, if a deal is done, what other mid cap E&Ps do we have left in the UK market. ENQ is v much a P stock but not much else offering a good balance, except Soco of course.
Now we're going to see an RNS in response to the speculation and the rise the am.
Interesting times.
And now of course, inevitably as I was typing, RNS saying no approach.
Or have they? I got the info from my broker who was giving me the trade report but I cant see an announcement yet.
Most odd.
Still no RNs but Ive seen a comment from the CEO on Reuters apparently saying "We havent been approached". and "We woudl have disclosed any approach to LSE".
Does seem a little strange that there is no RNS yet (either denying or confirming)? Unless there is a little grey area in there?
Hi all,
One thought that occurs to me is that KNOC may not view PMO's Pakistan assets with the sort of country risk discount' of other oilco's .
Back in the 60's, there were 3 countries at roughly the same per capita income , Kenya, Pakistan and South Korea.
The Koreans developed close ties with Pakistan, who the UN had suggested as a role model for moving from an agricultural to an indistrialised society.......
A lot of the low-level links developed at that time are probably still around, but now amongst the 'movers and shakers'.
I would observe that it is highly likely that KNOC have had "talks" with PMO - but "talks" mean nothing. "Talks" happen all the time in the sector and rarely come to anything. I'm away at present and haven't been logging on....so may well have missed some nuances - but it seems to me that there is a lot of excitement over not very much.....
....from where I sit there seem to be vastly more attractive and more likely candidates than PMO, especially at these sort of prices.
I think that most institutions have serious myopia when it comes to looking for bid candidates - and it just happens that Premier is a very well-known and widely held company that looks rather like Dana to many of the institutions....and so they conclude that PMO "must be next". Perhaps someone would like to put up a comparative chart of PMO's share price and Dana's, going back to the time of the first Dana approach. I think the market is getting well ahead of itself....if there is a bid I can't see it being at much over £21 - so £20.30 this morning looks bonkers to me.
But what do I know?
ee
Perhaps someone would like to put up a comparative chart of PMO's share price and Dana's, going back to the time of the first Dana approach.
Something like this?
Ref: PMO vs DNX graph...
Maybe I'm missing something but didn't DNX get bought out at £18? Why does the graph show it at fractionally under £20?
FO.
Fluffy2 - good question, though the prices shown on both y-axes relate to the PMO price in Post #8.
The ADVFN system is now quite ancient and they haven't updated many bits of code related to historic data, or simple usability, and attempting to display DNX first somehow showed PMO flatlining as well:
So I switched it round.
SM
