Q: Hello Peter et al.
What do you make of the recent run-up through April from a low of $0.50 to now $1.07 for Ithaca. The oil price recovered a bit in April to around $65.00 for Brent and Ithaca has its 2015 1stQ earning coming on May 14th. We should get an update on Stella's progress and the Ythan well. Since my last question they have sold their Norwegian assets and renegotiated their RBL. They expect to have at least $100M of borrowing room from peak debt from their RBL prior to Stella start-up. The largest uncertainties I see affecting this stock are:
1. The OPEC meeting in early June. If OPEC decides to keep production the same or increase it, it will have a negative effect on Ithaca as well as all oil stocks.
2. Any delay with Stella. Based on the past it is not improbable that there would not be another delay. A lot of oil projects have delays. For example here in NL the Hebron project has been delayed by at least an year to 18 months.
3. Markets this year appear to be showing the sell in May and go away and return in September trend. I have cash available and am looking to make strategic purchases through-out the summer.
I plan to hold this stock through to mid to late 2016 and have held it for a while now. I have made money on it in the past and have bought more on these pullbacks. Any comments would be greatly appreciated.
Regards,
Brendan
What do you make of the recent run-up through April from a low of $0.50 to now $1.07 for Ithaca. The oil price recovered a bit in April to around $65.00 for Brent and Ithaca has its 2015 1stQ earning coming on May 14th. We should get an update on Stella's progress and the Ythan well. Since my last question they have sold their Norwegian assets and renegotiated their RBL. They expect to have at least $100M of borrowing room from peak debt from their RBL prior to Stella start-up. The largest uncertainties I see affecting this stock are:
1. The OPEC meeting in early June. If OPEC decides to keep production the same or increase it, it will have a negative effect on Ithaca as well as all oil stocks.
2. Any delay with Stella. Based on the past it is not improbable that there would not be another delay. A lot of oil projects have delays. For example here in NL the Hebron project has been delayed by at least an year to 18 months.
3. Markets this year appear to be showing the sell in May and go away and return in September trend. I have cash available and am looking to make strategic purchases through-out the summer.
I plan to hold this stock through to mid to late 2016 and have held it for a while now. I have made money on it in the past and have bought more on these pullbacks. Any comments would be greatly appreciated.
Regards,
Brendan