Encore oil have been a great success for the Blog they have hit 155p and as every man and his dog knows they are now somewhat depressed.
The reasons for the recent falls are many and varied first the XEO floatation was seen at the time as an attempt by the company to hive off the exploration assets thus making Encore Plc more attractive for a sale vis-a-vis their Cladhan,Burgman discoveries any takeover offer would of course have to reflect a discounted price. The North sea increase in tax has certainly played it’s part with most North sea explorers/producers now having to adjust their profit margins down and of course we have had the rather disappointing rns on the Cladhan appraisal well 210/30a-4y. However this toxic combination of events has been massively over-cooked by private investors who have been manipulated out of their stock by the market,Encore are set to rise yet again!
The sentiment is beginning to turn positive with brokerages now stake-building. .
We now learn that the XEO floatation has been cancelled so as far as the company and the market are concerned it is Game back on here! With all to play for there will be a takeover/asset sale it is a question of time. When you have the CEO telling investors that the company “may not be here this time next year“then it is only a matter of time before they go.
Encore are now drilling the final side-track of this drilling phase, approximately 150 feet up dip of the previous oil bearing 210/30a-4 well, with the objective of gaining further information on the southern sector of the Northern Channel area where the original Cladhan discoveries have been made. If they hit more oil here then Encores’ stock will fly up once again. The company leaks like a sieve and I have had much correspondence with well placed sources. Encore are drilling approximately 150 feet up dip of the previous oil bearing 210/30a-4 well, so the chances of further oil are greatly increased.This is now being reflected in the sp which is now on the move upwards yet again! They could easily break 100p on good news. They are trending up on expectation of good news which always happens with successful companys. Hugely under-valued in my opinion there are good gains here for the canny investor and for the love of God if they hit 155p again then please take some profit! Your money your responsibility!