Not a PE of 7. That is old data for the original ATK. The current PE is closer to 15-16 on about 4.50 a share estimated earnings.
They announced they had bought the remaining portion of Marwell Woods. I think Magellan sold it for about 1 pound. This is not the HH1 holding.
A 400% gain in a week, even at the current price, is not a pump. Lenigas has said very little publicly except that he thinks this is of value to England and that a flow test is expected by the end of the year. I really doubt the Exchequer will allow this resource to stay untapped (even if only conventionally) while continuing to send money abroad. Time and cost are the impediments to Magellan and thus I suspect a sale of our interests there (or at least a partial sale) is quite possible.
All speculative of course and ranging from a JV/farmout to sale of UK acreage. The main thought is that one of these must be in the works because Magellan has said nothing about HH and our shares surely have not responded as if investors think Magellan will be a player in this find.
Avi can't stop himself charlotte. One would think your premise is correct but I am afraid Magellan may see that as a quick cash cow and throw the baby out with the bathwater, strangle the goose before it can lay the golden egg, shoot the leprechan before he can lead you to the pot of gold or whatever other phrase you want to use for shortsightedness.
But at what cost to we shareholders? Does Magellan dilute even more so we have an even smaller share. That would not necessarily be bad if it ends up proving how big this resource is and what it means but...
And I do not mean an elephant sized find. The elephant I am referring to, in all honesty, is the lack of cash available to meet drilling development costs. I am a shareholder in Magellan but they simply need more money to meet their obligations if and when the UK opens these areas for development drilling and that is the main reason I fear a low ball take over offer and someone else will reap the benefit in the Weald.
35% interest in the Horse Hill find (PEDL 137)--this is the one in the news plus 35% interest in PEDL 246 just east south east of 137. According to news reports the guess is that this is the sweet spot for the Kimmeridge clays which the consortium running the Horse Hill operation says has excellent porosity with naturally fractured zones that should not need fracking. Magellan also has 50% interests in three other blocks south and west of Horse Hill in partnership with private company Celtique. All of these are in the Weald. I do not know if they still have an interest in the Isle of Wight off the coast.
That has been the theory of some on this board. Perhaps he is doing this to get as many shares as possible and I know it irritates him and all his alter egos (I call him The One) when people hold on and do not give up their shares.
This discovery makes that a greater possibility than in the past. If Magellan's main focus is going to be in the U.S. then selling part of their stake in the Weald (if possible) makes sense.
Thanks Charlotte, glad to know I haven't totally gone around the bend with my memory. My memory regarding how I heard about canso is not quite as good though.
I know, as I get older, that I sometimes forget the original names of small explorers I have owned. But, Canso seems familiar although I thought it was bought out by a different company about 10 years ago. Do you remember me being a contributor to that board. I do remember sending some money to help with litigation to get a better price when it was bought out but am not sure it was for Canso.
Sorry, typed too fast. 100 billion barrels possible. Avi is going nuts this morning with hashed over environmental complaints but he does have a point in that fracking has been blocked in much of the UK. So to be on the safe side I think we need to look at this as a conventional drilling prospect as much as possible.
Horse Hill is potentially the largest find in 40 years in the UK. But, fracking may be necessary to get the largest return. Will that process be allowed. Perhaps a billion barrel resource according to reports.
62 cent/share purchase by someone early? Does not seem to make sense but who can tell with issues trading below a dollar. Keep it moving to get above a dollar for a few days and avi will lose a talking point.