No Investment loans allowed!!!!
As you are all aware the Galaxy II is now well underway (as foretold here) and on route to Varadero. This next phase of the Catcher drill should see Encore’s sp rise as you’ll note it is currently slowly trending up and is still way under broker targets. These are certainly under-performing at the moment and any further good news is expected to push them over 200p pre takeover news. Remember that there is a minimum 300p takeover target here and this could rise on further OIP UPGRADES re’ Cladhan/Catcher.
I like Encore Oil and I like the management. I like them so much that I tried to arrange a £1,000,000 loan facility with my bank (Lloyd’s!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!) last Monday! After 30 minutes of negotiating it became apparent that there was no way forward. I did place as collateral the equity in my newly acquired flat and all of my portfolio holdings however apparently Lloyd’s can’t be seen to be encouraging stock investment loans “we just can’t justify it Daniel” I did point out to her the common sense of the facility and the massive gains the investment would accrue. All to no avail! I went through the full gamut of why Lloyd’s should finance my investment pointing out that in my portfolio was a substantial Lloyd’s holding. I had kept faith with my bank even buying their stock through the company stock investment scheme! It was obvious to me that her suggestion to sell most of my portfolio to invest in Encore was a wee bit tongue in cheek. I stand before the blog knowing that Encore will hit 300p yet not having substantial funds available to benefit. She did increase my overdraft facility by £10,000 which gave me access to just over 60k. So I have now further increased my holding here having bought two lumps of EO last week and I have sold 1290 Premier oil shares this morning just to keep my cash position healthy.
It is increasingly apparent that EO are on the rise. There’s going to be a big spike as buying pressure begins to kick in.
Hold your stock for the Takeover.
Hola!
Daniel.
PS. She did telephone me last Friday to offer her sincere apologies. Encore had risen by 10% since.
NB.Correction Cladhan!
(Apology brain is on overload trying to post and work at the same time!)
Remember that there is a minimum 300p takeover target here and this could rise on further OIP UPGRADES re’ Kraken/Catcher.
Encore has no involvement in Kraken. Did you mean Cladhan?
Apologies. Cladhan.
Head is on overload trying to post and work at the same time!
Dan
So you offered Lloyds some of their own stock as collateral against the loan? Nice try!
Thanks for the heads-up Dan I’ll see if I can scrape together any pennies for this one, been watching for a while but am fully invested elsewhere. Any more info / rumour on MTA?
Thanks
Matra are still on embargo can’t get any news from the company.
Dan
Hi Dan
Any news on XEL?
Cheers
Hi Dan,
Thanks for the heads up. Any idea how long EO. is going to take in this next drilling campaign to completion? Reason is I am steck with lack of new funds and being stunned this morning by BMR delay to acquisition, needed to swap my shares around to load on EO. but will have to know timings.
Cheers, SK.
I have a theory – If the weather is good enough for Encore to begin moving the Galaxy 2 rig to the Varadero site, then the weather should be good enough for the flow testing to happen. The Bentley site is about 80 miles South (and a bit East) of Varadero, with nothing in between except open seas (so the weather can’t be that different can it?).
Also, the area that the rig needs to move through, is next to the area that Bentley is in. So that means that we must be getting the flow testing done at the moment and therefore results should be out at the end of this week/start of next week.
I admit that I don’t know how long these things take, and I cannot find any trace of the Betty Knutsen in the region (she seems to have gone onto complete radio silence since the 7th). Results should be with us soon.
What are your thoughts Dan?
Do not listen to the sirens on the boards flow testing has been (and is continuing) on-going for many many days!
Dan
Thanks for your reply Dan. Appreciate your help on here – I will post again if I find anything else out, or have any more theories!
Huge tree shake on XEL a little while ago, I was considering a stop loss at 250p thank god I didnt, Would have got stopped out at a silly price. I hope the good news will come soon! And I hope its good, we have rumours starting on iii board again…
DAN URGENT PLEASE
Can you tell us what is happening with xel we are really being shorted
what is the latest news re flow tests is it this week ?????????????????????????
can you do a blog please !!!!!!!!!!!!!!!!
thanks
Day-trader jitters. Nothing more nothing less.
Dan
Dan. Do you think the current sp of 133p for Encore is underpinned by the current OIP figures? What level of increase in these figures do you think couild be seen on a further drill?
Cheers
PB
There is an underpinning of sorts however for the full potential to be realised further increases in OIP need to be quantified the stock is under-value and expectation is NOT being projected into the sp. This is due to the current uncertainty re’ the total OIP re’ Catcher/Cladhan which is expected to be increased as the drilling campaigns progress.
Great stock to be in.
Good Luck
Dan
Hi Daniel,
Think the Lloyds woman was right. Sell all your Lloyds shares and invest in Encore!
Lloyds of London is an insurance company, not a bank. Why would they give you a loan?!
It’s a typo o should be i an the photograph is a stock pic to liven up the post!
Dan
Dan, could you explain why you managed to ask Lloyds of London, the well-known insurance company (whose headquarters are pictured on your blog), for a bank loan?
Surely you’d have been much better asking for insurance from them?
It’s just a stock pic to go with the post.
Dan
substitute the o for an i!
There are some pendantic people out there!
Dan
Hi Dan
rumours of XEL problems, Ft being done with tote tanks etc, do you have anything to calm the nerves, prozac isn’t working!
Couldn’t you have got equivalent exposure using CFDs, which many retail investment companies are more than happy to sell you? Equivalent to the loan without asking for the £1m up front.
Yes I could of gone down that route but it was only a half hearted tongue and cheek attempt to see how far I could push my bank. I was actually closing an ISA and transfering funds into my current account to meet a short term commitment. Still there’s no harm in being cheeky! And I did get an increase to my overdraft!
Dan
Dan