ENCORE OIL AGM. Thoughts.

 

Alan Booth can do no wrong!

 

The AGM news. To get the full unadulterated presentation click on the link below

http://www.encoreoil.co.uk/assets_cm/files/PDF/encore_oil_2010_agm_pres_14_oct_2010.pdf

As AGM’s go this one ran very smoothly the chairman’s welcome went down well and we moved onto the formal matters at hand ALL resolutions were duly passed and the presentation was a good account of matters already known Except the appointment of Paul Doble. This raised eyebrows among my group. Doble has been roped in to the Catcher discovery as the Catcher development officer now some will see that as a significant development as Doble was the Project development guru on Buzzard! The Q=A session was rather dull with the Board refusing to be drawn on any questions that they considered close to the bone(price sensitive). Bloody typical!No point taking the Mic for a question as it became crystal clear that they would not be erring from their script!

However Dan’s Brigade did manage to speak to two of the directors. After much small talk about the venue(Lovely decor’) we managed to put a good few questions to them about their whole strategy vis-a-vis asset sales and takeovers. We got the distinct feeling that this line of questioning was having an uneasy effect on them. Could it be that Encore are already in discussions with other parties?  I did detect a very quick lowering of the eyes when we asked who if any were after encore’s oil. “Well It’s still all up in the air at the moment” came the reply! “The more oil we can prove up the bigger the fish we will attract” and therein folks lies the key to the whole Encore strategy. Encore are talking the talk but their will be no asset sale or takeover until the figures are in for Cladhan and Catcher then Encore will be gobbled up one way or another.

As for price on any takeover the best that can be said is that a 200p minimum isn’t beyond the realm of plausibility. It could be higher it could be lower. All depends on the prevailing global market sentiment which is plummeting as we speak. We could end up with about a quid the way it’s going. Big problems looming on the Global financial stage.

We did speak and network amongst the great unwashed. One chap/investor was a very interesting character having been an army officer who served in Northern Ireland,Falklands, he’d left the army 7 months after the Falklands conflict. He was convinced that Port Stanley was going to become the biggest oil terminal this side of the North sea!

All in all I’d say that Encore know exactly where they are going no worries here!

Exit price for me 130+p.

Daniel

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