Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Rose Petroleum; hope, hype and hysteria

By Ben Turney

2 July 2014 10:44

More:

After Rose Petroleum’s (ROSE) recent dodgy placement (which, yes, I do believe the charts strongly suggest was forward sold by some), I wanted to take a closer look at the company. At the weekend, my colleague Chris Oil drew a furious response on Twitter after he wrote this piece, suggesting Rose was a short. Thankfully not all of the comments were moronic abuse, and reader Scott Winter submitted this riposte to Chris, in defence of the company’s prospects. Now valued at £30.7million, with a share price of 2.35p (last seen), I have to admit I lean more towards Chris’ assessment of the company, but accept that Scott could be proven right first. The passionate following behind Rose certainly looks an indicator of further share price gains to come and 4p is as good a target as any. However, it would a mistake to view such a move as being driven by anything other than sentiment and certainly not sound fundamentals.

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Comments

catempire

2 July 2014, 11:09

cue wildrides…..

Good article James, well written and not bias for un justified reasons…

I note the link in your article for Utah oil is 2 years out of date… a little more research needed as I think you might find the reserves have increased quite substantially over the last 2 years due to US energy Independence reform and government legislation.

Ryder scott are very credible indeed although most should know that the COS for 1.4 billion barrels is pie in the sky… the gas cos on the other hand is not unlikely to be nearer the upper end target, Gas reached new highs this winter in the US, for reasons outlined above and extreme weather…

I remain a Bull …
Ben Turney

2 July 2014, 11:12

@catempire “I note the link in your article for Utah oil is 2 years out of date… a little more research needed as I think you might find the reserves have increased quite substantially over the last 2 years due to US energy Independence reform and government legislation”

Sigh…
catempire

2 July 2014, 11:44

Ben FYI

https://oilgas.ogm.utah.gov/Statistics/PROD_opers_OIL_yr1.cfm
Ben Turney

2 July 2014, 11:55

@catempire – much better and thank you. That link is very useful and helps confirm Fidelity’s production (not that we needed it as I do believe we can trust Ryder Scott).

I accept that a result like Fidelity’s would do a lot of good for the share price, but my point still stands about the targets many are claiming.

If I have time, I might do a follow up on Fidelity’s local production, as it is of interest
wildrides

2 July 2014, 12:21

I like Rose …… although I dont really know why ?…..one of those rare gut feelings that one tries very hard to ignore and usually end up buying anyway .

However at the moment I prefer LGO and UKOG for likely strong near term gains and also longer term with LGO . No doubt I will end up chucking some profits in Rose before to long .