Evil Diaries: Modest prices for oil

A very longstanding friend of mine who was formerly senior partner of a firm of stockbrokers comments on Pantheon Resources (PANR) since his family has a large holding “Farralon the debt fund took shares in PANR in some complicated deal. As the share register of PANR is so poor Farralon have been selling their shares whenever there is good news and more liquidity. This is really unprofessional. They have no real interest in the equity and should get their shares placed with an institution. Until these shares are in firm hands the shares will not perform. The news from the company is good and getting better and the weakness of the shares in light of the de risking provides a fantastic opportunity to buy.” PANR is now 140p.

In the same theme of undervalued oilers I mention that Rockhopper (RKH) have won their arbitration against the Italian government who will now have to pay up c. 235m Euros or £200m cash. There is still the various oil prospects off the Falklands and all this contrasts with a capitalisation of £85m at 15p and means that RKH is a strong buy. I paid 17p.