Saturday, 28 June 2014

DocsLaymanChatter Smallcap Oil & Gas Focus

Over recent weeks we appear to be witnessing a similar pattern in the junior Oil & Gas space as we did earlier in the year with junior miners, granted these flurry's of interest can subside as quick as they surface however the sector feels firmer to me and on that basis I have decided to dedicate this weeks blog to the sector.

I appreciate that there are many good companies that are incorrectly valued and vice verse however this is the aim market where sentiment and momentum can be eight tenths of the law, particularly in a modestly bullish arena. Interest,volume and coverage has certainly been ramped up over the last few weeks as have a number of small cap companies, here we'll talk about the beginning,end or the beginning of the end!!!

Private investors have to manage expectations before,during and after executing their interest, far to often people lose perspective thus increasing the risk ratio to a level which is not viable to take any return in a structured fashion. Nobody goes broke taking some off the table, I see my buddy @ChrisOil on twitter getting his back up over Rose Petroleum as he feels he's having it stuffed down his throat. Chris is a savvy guy (no question) but to threaten writing damning articles as a defence or threat to (spammers) shows an emotional element to his tact which from experience is never a good application. I have a lot of time for Chris as I do all of my fellow bloggers,writers and commentators, I too have been on the recieveing end of a pretty shitty stick although remain steadfast with my opinion. I know my friend Tom Winnifrith, BrokerManDaniel and Ben Turnkey and co. are all of a similar makeup which is why the berating or abuse falls on deaf ears as presenting facts or educated opinion is key rather than engage in meaningless debate with dickheads.

whether or not we agree we have to accept that this is the nature of the markets, here's a few that appear to be gathering momentum over the past week or two....

Gulf keystone: Rumours of an imminent Joint venture agreement with Chevron has the tails of the shareholders wagging, this makes a pleasant change from the tail wagging the dog which has been killing the share price and sentiment of GKP, we often see this depressed price action just before significant news so lets hope the markets are about to reward punters. At last glance a strong close over 106p pointed to high 140's however this JV news could well rock any technical call.

Rose Petroleum: Seems to be an all or nothing approach at times in Oil and Gas companies however Rose has been fortunate to have had really positive support over recent months. Needless to say the company came to market for £5million and secured £6.5million (15% over) the initial call. At £6.5m subscribers were still scaled which is the real explanation for the rise off 1.6p to 2.6p in no time at all. We hear market speculators calling the dump on share admission and that's fair enough however not only has their been a fundamental shift in the demand for Rose but technical support has formed. @ZakMir picked it up before me so he has the cap badge here but I fully back his call that whilst the interference at 2.65p and 3p will be the obstacle on the way up! with all ups are down as both bull/bear trigger point's lie withing the chart from a technical perspective however the Rsi shows 52 as does the ascending price trend (bullish) remain in tact so until we have a full reverse confirmation I don't see 1.6p happening.

UK Oil & Gas: BMD has been on the naturist trail around the downs, a place were they have straw roofs and paint gnomes whilst bidding everybody a good afternoon and doffing cap's. A far cry from Dan's modest grounding fighting for a spot in the bed of 13 sibling's growing up on cabbage soup, anyway over to Ukog - The Lidsey well has seen the rig move off sight leaving the Ops team knee deep in the black stuff '' The hillbillies would have been proud '' however know the market waits for the update to open the door of upgrades as expectation is surly exceeded or met. The Horse Hill projects set to spud in July with crews now paving the way literally for the rigs movements. I look forward to a more detailed update from the infamous BMD soon...

In essence the shares have travelled along way since the 0.35p call on the blog a few weeks back however the bar has been set and I anticipate further meaningful moves but concede folk want to feel at ease too...

Frontier Resource: This week they announced its funding call at 1.5p for a pretty modest amount, the great surprise here was the CEO subscribing to £135,000 of the stock himself now that's confidence! more to follow on this story but watch this space and that of but remember that the CEO also waivers 70% of his remuneration which is very rare on the aim.

All the best


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