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.

Under starters orders; a final look at the form of the Horse Hill runners

By Ben Turney

29 July 2014 11:35

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Over the last couple of weeks the share prices of the six listed companies participating in the Horse Hill oil exploration project have pulled back. Alba Mineral Resources (ALBA) and UK Oil & Gas (UKOG) have both placed. Solo Oil (SOLO) has been treading water since it placed in mid June. Regency Mines (RGM) looks almost certain to place imminently, despite having raised money in May and the same can probably be said for Doriemus (DOR), though the latter’s financial position is certainly better. This leaves Stellar Resources (STG), which of the six is probably the best funded and might not need a Horse Hill cash injection. Time will tell if this view is correct, but with the spud only days away, now might be the time to place your bets if you fancy a gamble on the madness of crowds. Below I take a look at the runners.

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Comments

wildrides

29 July 2014, 12:38

Nice informative piece and very topical …..cheers
Craig

29 July 2014, 14:20

Thanks Ben. Very informative. that said I personally feel that UKOG has a fairly limited downside from it’s current ask of 1.04. I doubt the placees would sell below their 1p buy price, and that’s even if they are flipping the stock which some/all might not be. Hype/Newsflow/BMD/DH and the DL effect (+ the NOP acquisition) will drive UKOG up IMO (and STG too though). Let’s see what unfolds though, your case was very rational, but we all know AIM isn’t always rational! UKOG’s a punt for me. All the best.
Mohsin

29 July 2014, 14:30

A little bit late for me as I got in DOR around 0.18.. Long time to wait now…

Great article Ben
Striebs

29 July 2014, 21:15

Magellan Petroleum has 35% of Horse Hill and is listed on the Nasdaq .

I’ve been a holder for a couple of years .

They offer good leverage and are not a one trick pony .
Mike

29 July 2014, 22:37

Well researched, informative & topical article. I’m in both UKOG and DOR, didn’t consider STG up until now.
Ben Turney

30 July 2014, 07:45

@wildrides thank you

@craig you could well be right about the downside. The deal last week could help bolster the SP in the event that HH is a failure and enable UKOG to cling onto recent gains.

@Moshin – excellent, well done! I was alerted to HH a while ago and have to admit I was slow in coming to it, but some (like you!) have made some fantastic returns. Can’t hang around in this market

@striebs I’ve been considering having a look at Magellan, but just haven’t had the time. Perhaps next week I’ll take a look, thanks for reminding me.

@Mike obviously it needs more research, but in terms of the financing STG looks the best of the bunch IMO. However, I am a little concerned about the nature of the recent fall. It looks like a fundraising could be in the background, but this is pure speculation on my part. Like I said in the article you can never entirely discount the risk of it.