Basically, Reach has more high quality sweet and light Brent oil in the 1P reserves. If you take together the 2P reserves, then it will be RM 21.05 B

However total oil and gas 1P reserves is almost RM 6.4 B at USD 65 pb and forex RM 4.00

Hi Jeffrey Ng, natural gas reserves for Reach is 21770 mmscf in the 1P reserves, at USD 4.00 per mmbtu, this worked out to be almost RM 400 M

Based on these estimate, the next Qtr in Nov ie a few days time, the profit is about RM 20M

The breakeven costs for Reach is estimated to be USD 50 pb especially the forex gain from cheap RM and Kazakhstani Tengi

Brent price is up yesterday. Two days of uptrend.

Yes, crude inventories increased but motor gasoline and distillate fuel decreased! This is the catch. Brent price will be stable if not up.

To win in anything, the first thing to do is to control oil. Opec leader Saudi and Russia felt so cheated by Trump, surely they will hit him back by pushing up oil price and squeeze Trump.

Hi Ali baba, not to forget, Reach pay their employees in Kazakhstani Tengi which is also very cheap, hence operating expenses very low

WTI crude price is down simply because of pipeline woes in the Permian Basin causing bottleneck in the midstream. Hence the WTI crude have to sell cheaply. Furthermore, China impose tariff on US oil. However, for Brent it is different.

That is why EIA report is the official one

API ie American Petroleum Institute usually measures oil inventories from the wellhead to the retail outlet whereas EIA ie Energy Information Administration measures oil inventories from US firms and government departments.

39s ....GONE CAN OR NOT

Now that the oil price has stabilize , even the renowned oil trader Mr Mark Fisher said it is time to buy oil, then this is the golden opportunity to buy Reach shares cheaply.

Reach share price is grossly undervalued. The NTA is 74s and their oil and gas reserves is FANTASTIC

Hi myongcc5, I have been following Reach since last year. The best Qtr was the last one where the company made its maiden profit. From that day onwards, there is no looking back. Now just buy long and monitoring the forex of RM and the Kazak Tengi and also the weather conditions there. So far everything looked great . Lets keep our fingers crossed and hope for the second profit this coming November.

Yes....Reach style ...Eat at 1 go.....NOW Brent is up 66.44

Sorry.... 1 year time...

But my bet is still Reach because Reach is just like Hibi in year 2016. Reach has got what it takes to become like Hibi in 2 years time.

Yup... Yesterday and today.

I am buying Hibi too but just a little bit.

Now let us be patient and wait for the coming 3rd Qtr result this end of Nov. Hopefully, my calculation is perfect, after studying the weather conditions from July to Sept in Mangystau area which is ok, then there should be no problem for Reach. Also the oil now is transported by pipelines through Ansagan which is cheaper and faster to reach the customers.

The cash, deposit and bank balance as at end of June 2018 is RM 37M and the cash generated from operating activities is RM 27 M. The current assets increased from RM 66M to RM 86M in just 6 months.

Hi WeiZian Chin, no worries about finance costs because it is a loan from a corporate shareholder and NOT from a bank. Anyway, this loan has got no time repayment period except Reach has to pay some interest. With the maiden profit in the 2nd Qtr of this FY, after taking full control of Emir-Oil in May 2017, it is only a matter of time that all these loan will be fully settled. However, the company has shown vast improvement in their cash flow account and also a good cash balance in the bank after the maiden net profit of RM 11.227M

Relax guys, just stay cool and stay happy. Brent price is now stable

Hi Lai Hm, just sharing my oil knowledge. I invested in oil starting Sept 2016 in Hibiscus. Now I found a new gem in Reach. In oil stocks, there are a few important factors to take note. However, have to do lots of reading and research.

This coming Qtr based on the increased oil production, good Brent price from July to Sept, and forex in Kazakshtani Tengi and RM, the estimated revenue is RM 77M and profit is RM 20m

A renowned oil trader, Mark Fisher said it is time to buy oil stocks. However, we are not oil traders, we are investors.

Reach Energy sells Brent and LPG and also Natural Gas

If the 2P natural gas reserves is estimated then the amount is RM 1.5 B !

Reach Energy has a proven Natural Gas 1P reserves of 21770 MMScf which is equivalent to
RM 455 m at current price and cheap RM forex. BUY Now to enjoy this uptrend of Natural Gas price which is at 9-year highs.

Wow,. Brent rebounded strongly!

Buy buy buy

Bought so many at 37s. For keeping in my cupboard. FYI, Brent price now very stable ie 65 pb. At this price, Reach still make profit

Never ever panic when you buy oil.

It is time to nibble and buy slowly and quietly. Senyap Dan senyum membeli.

Brent at 65, Hibiscus and Reach still make profit.

Brent at 65, Reach and Hibiscus still make profit

Brent at 65, Reach can still make profit because operating expenses reduced tremendously due to Kazak Tengi is now very cheap at 374 to 1 USD. My estimation for this coming Qtr in 2 weeks time will be a huge profit of about RM 20 m

Well guys, you have to study the graph / chart. Just for your update, in year 2014 Nov, oil price plunge from 120 pb to 30 pb in Jan 2016. Now Brent is 65 pb, the same level as April 2018. So those who want to sell think carefully because at 65 pb Reach still make a decent profit.

Just FYI, Reach Energy has Brent oil reserves and also GAS reserves. Now, natural gas price is very high.

Hahaha....

Hibiscus and Reach, both are good for long term investments

Why RUN? This is time to buy long and keep. Invest in good stock like Reach. Zero bank borrowings and good management team.

Why RUN? Reach Energy sell Brent of high quality ie light and sweet crude to EU and China in USD dollars. Pay salary in Kazakhstan in Tenge currency now at 375 Tenge to 1 USD which is very low and bring back RM to Reach shareholders at 4.20 forex

FYI, Reach not only sell Brent oil but also natural gas. Now the price of natural gas is very good.

This coming Qtr will be even better. That time the Brent price was 72-85 and the production also increased and the forex also excellent. My estimation is Revenue RM 77M and profit is RM 20m.

In the last Qtr , Reach made its maiden profit of RM 11 m . At that time , Brent was 65 pb.

Today Brent closed at above 70 pb! Still OK.

Two ways to look at it. Oil dropped but still within profit level, of course lesser profit. However , forex gained as USD is stronger at two areas ie Kazah Tenge and the RM. Oil up or down is normal . The CEO did mentioned that the operating costs has reduced substantially and even planned to go downstream. Lets see how's today trading.