FoxDavies views from the trading floor - Genel Energy, Serica Energy and Max Petroleum
Friday, February 24, 2012
Genel Energy (LON:GENL) threw a few hints out to the market yesterday, when Tony Hayward said 'production from the firm's Kurdistan operations would generate sufficient cash to underwrite drilling and exploration activities this year. Genel, formed last year through a merger of the former BP PLC (BP.LN) chief executive's Vallares PLC investment vehicle and Turkey's Genel Enerji, still has some $1.9 billion in cash to use as an acquisition war-chest. The firm is open to either buying whole producing assets like oil fields, or companies in possession of them. He also said Libya and Egypt were areas of particular interest, highlighting Genel's identity as a Turkish firm as a particular advantage in seeking to secure access to these countries in the wake of the Arab Spring. The firm is open to either buying whole producing assets like oil fields, or companies in possession of them, Hayward said. He said Libya and Egypt were areas of particular interest, highlighting Genel's identity as a Turkish firm as a particular advantage in seeking to secure access to these countries in the wake of the Arab Spring.' We are doing a little digging on a few companies in the areas mentioned above, to see which would fit Mr. Hayward's remit. Watch this space.
Serica Energy (LON:SQZ) jumped 5.5% to test resistance at 30p again today and on decent volume. If the shares can break through and close above this important level, then a retest of 40p could be next on the cards. One important thing to remember here is the announcement from the 14th of February that said 'at the NAPE Expo to be held in Houston, Texas during February, the Company will be presenting farm-out opportunities in its Foum Draa and Sidi Moussa Licences, Offshore Morocco and its Rockall Basin Licences, Offshore Ireland.'
Max Petroleum (LON:MXP) moved another 11% better to 14p during lunchtime trading, after the company said it received notification that as at Feb. 21, Macquarie Bank Ltd, held directly a beneficial interest in 200.96 million ordinary shares in the company, consisting of 199.98 million ordinary shares and warrants entitling it to acquire a further 974,755 Ordinary Shares at an exercise price of 13.83-19.22 pence per share. The previous holding update that I could see from the 7th of December said that Macquarie had just over 211 million shares. Possibly the market is of the opinion that Macquarie could be done selling for now, hence the move higher today. We will be watching the news wires closely to see if they disclose any more holdings updates.
Woburn Energy (LON:WBN) were active once again today, trading almost 500,000 shares before the end of lunch. Now for a company that didn't even trade a single share yesterday, these sort of volumes do tend to catch the eye. The company have been very quiet over the last 4 or 5 months, so it would not be a surprise if holders here were expecting some sort of update from the company soon. First line resistance looks to be around the 2.75p area, with support looking to kick in around 2p.
Written by Steven Asfour, Sales Trader at Fox-Davies
This article is for information and discussion purposes only and does not form a recommendation
to invest or otherwise. The value of an investment may fall. The investments referred to in this
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