Since pdz is a shipping company, the drop in oil price will benefit pdz greatly in cost saving.

It looks like PMB has to divest in a hurry. See below article:

Malaysian asset firm struggles with oil & gas plans for PDZ
By Vincent Wee from Hong Kong


Amid the hype of the booming Malaysian oil and gas (O&G) industry,choosing the right investments can prove a minefield as investment firm Pelaburan Mara is finding out after buying over a majority stake in container line PDZ Holdings from tycoon Robert Tan earlier this year and trying to transform it into an O&G player.

Local media reported that while PDZ could see the emergence of another major shareholder looking to use it as a listed O&G vehicle, its foray into the O&G sector has hit a snag over valuations. Its deal to buy a 20% stake in smaller offshore supply vessel (OSV) company Efogen may be called off due to the latter's enterprise value not meeting PDZ's expectations.

Pelaburan Mara had paid MYR41m ($12.9m) to buy a 27% controlling stake, mainly from Tan, facilitating an exit from the shipping business with a reasonable profit, Pelaburan Mara meanwhile is left with a business it would like to transform but does not have much expertise in and which it is unwilling to overpay to acquire.

The reports did not disclose the identity of the potential partner but hopefully it willbe one that brings new expertise in.

Published in Asia, Containers, Offshore

To ahare , quotating from elsewhere

" Malaysian businessman Tan sri Halim Saad is believed to be eyeing a controlling stake in loss making container shipping firm PDZ Holdings Bhd to turn the company into his oil and gas flagship,
According to the source, Halim will acquire the block of shares from state owned investment fund Pelaburan MARA Bhd (PMB) which bought a 26.83% stake in PDZ for some RM41 mil or an average 0f 18sen per share.
PMB now has a 30.03% interest in PDZ.

"The crossing of the 30% block will be done in tranches,with the first tranche to be done in the next few days. It will probably be done at a price of of above 18sen per share paid by PMB" the source says.

On Aug 7, PDZ saw heavy trading volume, with 298.4 million shares changing hands to close at 20 sen. Fund managers believe Halim has started to accumulate PDZ on the open market.

Another source familiar with the deal says Halim will inject several of his oil and gas (O&G) units into PDZ to transform the company into an O&G player.

"The first asset injection by Halim will probably be of a profitable offshore service company" he says.

Fund Managers say PMB quick exit from PDZ stems from the fact that the fund stands to reap gains within three months.

The stake PMB acquired in April included that of PDZ's major shareholder Tan sri Robert Tan Hua Choon who sold his 19.13% direct stake.

For the nine months ended March 31, PDZ trimmed its net loss to RM2.4 mil from RM3.64 mil a year ago,despite posting a lower revenue of RM116.2 mil from RM151.5 mil. ""

nemesis, next qtr result will be much better. Just look at the receivables, which have increased by more than 25 millions.

correction 30bpd not 50bpd

Current production is about 150bpd from 5 wells out of 47 wells. ie 50bpd/well.This is very little. It has been more than 3 months since the start of refurbing some of the wells but no report on this. It the refurbing a sucessess or a failure? Can they achieve 1000bpd by end of 2014? I doubt!!

hi, kpanjang

If u based on my previous calculation of total revenue of usd 219 million over 12 years and purchase price of usd 154 million, u will get a positive income of 219 - 154 = 65 million usd or 5.4 million usd per year. Then with operating costs included, a rate of return on investment can be calculated using discounted cash flow (DCF)

At price of 250 million usd, the calculation is negative

hi, moneygrabber

Thanks for the correction

hi, kpanjang

If I'm not mistaken,SUMA got the Rakushechnoge field with reserves of 42 million barrels under 2P class for usd 95.0 million. The by simple
proportion the cost of Buzachi field of 68 million barrels should about

95/42 x 68 = 154 million usd.

hi, kpanjang

U know the recovery factor is quite low @ 15-20%. Moreover, as extraction progresses, the factor drops lower. Also, the 68 million barrels is only 2P. ie Probable & Possible not 1P (ie Proven) Thus, taking the actual flowrate of 400-500 bpd is more realistic as a first assumption. If this matchbox caiculation does not give a possitive figure no point doing a DCF & NPV valuations.

250 million usd for an oil field producing 400-600 (av 500)bpd over 12 years (lease ends 2026) looks expensive. Simple evaluation shows total revenue comes to 500bpd x 365 x 100 usd = 18.25 million usd per year. For 12 years total revenue = 18.25 x 12 = 219 million usd-- much less than the purchase price of 250 million usd. This has not include operating costs yet.

How can the price goes up when company is issuing ESOS extra shares at
24.4 sens as aganist market price of 32.0 sens. An official got 10 million Esos shares already made RM 800,000.00 The share will drop back to below 30 sens.

Report estimated gas reserve of 535 billion cu. feet or
535/(3.25x3.25x3.25)= 15.584 billion cu meter

China recently signed an agreement with Russia to buy gas at a rate of
38 billion cu meter for 30 years at 400 billion USD. This works out to be 0.350 Billion USD per 1 billion cu meter. (400/(38x30).

Thus, the estimated gas reserve has a contained value of about
0.350 x 15.584 =5.454 billion USD. at current market price.

see

http://www.nst.com.my/latest/halim-saad-to-build-us-700mil-methanol-plant-in-kazakhstan-1.604116

see

http://www.china.org.cn/business/2014-04/04/content_31999958_9.htm

From the MOU between Ingen.& ZTE, it looks like Ingen. will be getting a lot of revenue in the distribution/selling ZTE's products. ZTE is one of the biggest smart phones producer in China. Even China President's wife uses one of ZTE's smart phones. Ingen. at current price of 9 cents will be very cheap in months to come. Potential is great.

INGENUITY AND ZTE ENTERS INTO STRATEGIC PARTNERSHIP
Kuala Lumpur, 21 March 2014 – Ingenuity Consolidated Berhad (“ICB”) through its sub-subsidiary, Ingens Sdn Bhd (“Ingens”) today announced that the group has entered into a Memorandum of Understanding (“MOU”) with ZTE (Malaysia) Corporation Sdn. Bhd. (“ZTE”) in relation to telecommunication devices (such as smartphones, tablets and modems) and provision of on-site warranty services via the establishment of approximately 3,000 touch points (kiosks, flagship stores, etc) nationwide.
The strategic partnership will see both companies jointly invest up to RM70 million to establish about 3,000 new touch points nationwide which will be the first to provide on-site warranty and servicing for telecommunication devices using Ingens's logistics and courier business unit. The partners have targeted to complete the touch points establishment within one (1) year from the time the project is kicked off.
“We are truly grateful and honored to be appointed by ZTE as their exclusive platform service provider. We would like to extend our gratitude to ZTE for their confidence in our company and we believe that this is a new milestone for us to grow even stronger,” expressed Mr. Howie Tan, ZTE Product Director of Ingens.
To ensure the success of the project, Ingens will be leveraging on the B2b2C (business to business to consumer) model which aims to offer a complete business solution that caters to all types and sizes of business as well as the end-consumer. This will be achieved through the wide range of products and services provided to their partners through Incom, a B2b2C ICT products portal owned and operated by Ingens.

“As part of the B2b2C model, we are proud to introduce Genuine Care, the first-of-its-kind on-site warranty services including pick-up and delivery for servicing of mobile and telecommunications devices to all the touch points. In other words, if a customer encounters any problem with their ZTE devices which is still under the warranty period, they can enjoy our free door-to-door pick-up and delivery services throughout the country starting with Peninsular Malaysia first,” he added.

“We are also hoping that the 3,000 new touch points will be able to leverage on our ready network and platform to increase cross-selling and business opportunities with other vendors and partners. The touch points will also be listed as our partners for Incom, a B2b2C ICT products portal whereby they can purchase stock and perform stock inventory, sales & promotions, various payment modes, delivery and all through Incom itself. With Incom, they no longer have to commit to any stock or sales quota,” continued Howie.

Commenting further, Howie said that the company will also employ a team of 60 Relationship Executive Officers for the implementation and execution of the expansion plan. “We will also provide dealers with extensive training programmes on Incom to help them to better manage their businesses.”

Media Contact:
Howie Tan
ZTE Product Director
+6012 272 1443

Please take note: Today is T + 3. Hv to digest the large volume done on 21/11. Thus, a pull back is normal

Right issue over subscribed by 7.17%

Valid amount = 98.70%
Excess = 8.47% Total = 107.17%

Watch out on 21/11/13, especially the 3 underwriters.
The 2.722 billion new right issue shares, if not fully taken up by the shareholders, will go to the underwriters @ 0.175/share. The underwriters will make a killing in the market. I don't think the share will stand @ 0.30

Chris Dalton, CEO, provided following info. in EGM in June '13

-47 wells drilled, 5 operating wells,producing oil(currently 1,300 bpd)
-Schedule (2013)= 2,000 bpd, (2014) = 6,000 bpd, (2015) = 8,000 bpd)
- 2015, revenue = Rm about 1 billion (8000x365x usd 100/bal x 3.15 ex )

So keep shares for 3 years