Who? What? When?
Some news coming through on Encore over the last few days. From what I can gather this new North sea oil tax may well have had an adverse effect on the current rumoured takeover offers. Numbers are ranging from 180/ 210p depending on who one speaks to. It would seem that Booth is determined to get fair-value for the share-holders. The thinking now is that any offer circa 250p will secure this company and that the Encore board will further prove up their assets to get fair value. Most brokerages have them as a buy as it is more than likely given the company pronouncements that a sale will be concluded in due course. Of course these things never run smoothly as there are always unforeseen flys in the ointment( North sea oil tax being one of them)
I would expect they could be gone in 3/4 months or so given the fact that it is now being openly discussed between brokers as to who? what? when? Will these rumours be confirmed. It is worth noting that Encore have not poured cold water on the whisperings.
Viva!
Dan
Cad doing well today with 2 rns
Yes it is good news. When a major oiler comes in you should take it as a pointer of future potential.
Dan
Nice work dan, would be more happy with 250p. It will be another coup for the greatest blog ever!! Keep up the good work, its been a torrid time for most pi’s of late, keeping the faith here….
Thank’s for the update Dan
Could a predator decide to make move before Encore has a chance to prove up more of their assets, the new owner can then exploit the upside.
Thanks for that Dan its nice to know what the rumours are circulating around the smoke.
there are some useful adverts on this site the trade to be free email alert is very good i urge peeps to sign up for it. they even mentioned this blog last week!!
Citytrader
IMHO we will be at least two side tracks and a couple of CPRs away from any T/O, that if they really want to maximize value. I have my attention split now with NPE and the upcoming Kraken spud.. a bit of the XEL effect would be nice.
Not my post, but thought it interesting enough to repost here. From the wall of NPE ii:
As of today encore and nautical both have a market cap of £346m, strange they are exactly the same.
I believe NPE’s assets outweigh that of Encores, however the possibility of a takeover there adds value. To be honest I don’t think Encore will be taken over, they really have only 2 assets at present (discounting Tudor Rose) and why would a large company want such small parts of assets. I think the likeliness is that they sell their value in Catcher, sell their value in Cladhan and distribute the cash value between the shareholders, making the majority holders (directors and ii’s) very rich.
I cant see Premier oil buying the entirety of encore, just like I cant see them buying NPE.
Nautical have said they want to become a producer and with the resources they have and are acquiring this is a definite possibility.
I am out of Nautical at the moment but think its a great company, its a shame that the market doesn’t realise it but I think a successful flow at Kraken will change its fortunes. Good luck all.
Repost from wall of ii:
As of today encore and nautical both have a market cap of £346m, strange they are exactly the same.
I believe NPE’s assets outweigh that of Encores, however the possibility of a takeover there adds value. To be honest I don’t think Encore will be taken over, they really have only 2 assets at present (discounting Tudor Rose) and why would a large company want such small parts of assets. I think the likeliness is that they sell their value in Catcher, sell their value in Cladhan and distribute the cash value between the shareholders, making the majority holders (directors and ii’s) very rich.
I cant see Premier oil buying the entirety of encore, just like I cant see them buying NPE.
Nautical have said they want to become a producer and with the resources they have and are acquiring this is a definite possibility.
I am out of Nautical at the moment but think its a great company, its a shame that the market doesn’t realise it but I think a successful flow at Kraken will change its fortunes. Good luck all.