Vialogy
Vialogy are supposed to be announcing results today and in fact I would have expected to see them out already, but so far we are still waiting - Stop Press Update : It seems The Herald got the dates wrong, results are expected in two weeks time !
In case you don’t know Vialogy is a company that has developed a better way of discovering oil and gas underground, amongst other things and it has had a lot of success with US company Atascosa.
Atascosa commissioned Vialogy to interpret its seismic data using Vialogy’s QRU technology. As a result Vialogy not only informed Atascosa where to put their rig but also how much oil there was underground.
The Vialogy technology is over 10 times more accuratge than traditional method sfor discovering oil and gas. It is therefore a great way for exploration companies to save money.
As for Vialogy they get paid a fee upfront for its services but also they will receive 5% of any oil that was produced.
Atascosa found reservoirs that hold in excess of 2 million barrels of oil and was so impressed they drilled a second well following on Vialogy’s recommendations. This led to an even bigger discovery.
The press release stated “Under its contract with Atascosa, ViaLogy will receive a 5% Back-In-After-Payout (BIAPO) working interest. This means that after costs ViaLogy will receive over $300K over the life of this first well (assuming oil price at $40 per barrel).”
Other oil companies may well want to make use of Vialogy’s technology, which explains the great potential
ViaLogy may announce further contracts today but it is also expected to announce losses of around £5.6m but Seymour Pierce give the shares as a buy at around 6.12p and expect a rapid increase in business.
The share price has been recovering since around March 2009 and the stock charts are looking positive - above the 200 day moving average.
Comments (0) • Recent Posts • September 2009
The DOW is up 15 at the moment and the S&P is up 3 points. Despite what everybody believes should be happening i.e. some sort of correction, the markets keep plodding their way back up from the lows back in March of around 8600 on the DOW and 666 on the S&P. Of course I know why they keep going up, because I am not invested in anything. I keep waiting for the markets to pull back so naturally they keep going up, and I know that as soon as I buy something there will be an almighty second leg of the crash !
This is why it is much better for you to listen to the Oracle of Omaha Warren Buffett than me ! Warren Buffett bought a pile of shares back in October 2008 when everybody said Capitalism was coming to an end and that Warren Buffett was nuts. Well it turnsout he wasn’t so nuts after all. His investment are now in profit and will no doubt continue to make him billions over the years to come. I read somewhere however that he has started selling some stuff now to lighten up a bit on his holdings.
Warren Buffett has also decided to get into show business, in the form of a cartoon series design to teach kids how to look after their money. He will be doing the voice over for his own character. He will no doubt be teaching the value of long-term investing and how people should avoid using credit cards ! The cartoon series will be called the Secret Millionaire’s Club.
You may also like to check out Jim Cramer in his video on how people (like himself) manipulate the market ! Perish the thought, I thought the stock market was based on good old supply and demand, well it seems not - so check out How Does the Stock Market Work.
Comments (0) • Uncategorized • August 2009