Today we hear that Global have confirmed the sale of the Eagle ford asset for $510,000 which is further cash into the coffers which sit at around £15m cash which means the company is trading below cash value!!!
Global Petroleum appear completely unloved as they are charted into frontier operations in Namibia however the risk of the E&P sector for an Oil and Gas smallcap is significantly de-risked by its cash and tangible value.
Net Assets £19.5m
Cash £13-14m(Exchange rate £1=$1.65)
Share Issue 199.45m
Must see news coverage below
Nambia News One Channel: http://www.helioschariot.com/category/namibia/
New presentation out – here. Count the source rocks (Courtesy of the helios website)
The focus on HRT follows a simple principle of reflective material value to Global and its interest in Namibia, The company are looking to broker a high value deal with its data room open and considering all options tabled.
Some previous thoughts here: http://docslaymanschatter.blogspot.co.uk/2013/06/global-petroleum-undervalued-in-sector.html
OFST.com review is here: http://uk.advfn.com/one-free-share-tip/buy-global-petroleum-limited-at-7-625p-says-doc-holiday/411
Shareprophets.com review here: http://www.shareprophets.com/analysis/534/buy-global-petroleum-at-6625p-a-low-risk-namibia-play
This shows the potential of the region. Any drilling success by HRT will see Global’s shares rocket.
I regard it as a matter of when and not if the region is pegged on the map. Given Global’s mammoth cash backing it appears a low risk play on this potential.
The arguement why not position in another operator in Namibia? frankly I don't see another company with more cash in the bank than its marketcap, Low cash burn, acute tangible value of over £15m with Intangible value of £21m before completing any further joint venture/s
I suggest signing up to the SP.com and OFST.com site for a pragmatic and diverse source of information as a private investor, a valuable tool to help circumnavigate the markets.
All the best /Doc
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(These are but opinions derived from my own experiences and thoughts and do not adopted as statement of fact)