Market's view on Europa Oil & Gas

Published on April 2024

  • A significant buy of 2,680,000 shares is seen as a great purchase opportunity due to the stock’s low price.
  • Clarifications are made on calculating market capitalisation using outstanding shares multiplied by share price.
  • Concerns are voiced over poor decisions regarding the Serenity project, suggesting the company should have never taken the risk given its size.
  • The possibility of selling the Serenity interest to another company like I3 is discussed, as well as focusing on potentially more profitable ventures like Irish gas.
  • Observations indicate a very low market capitalisation of £9.1 million, attributed to failed recoveries from past dilutions due to risky ventures, putting the company’s future in jeopardy.
  • Suggestions include selling the company entirely to salvage stockholder investments, indicating dissatisfaction with the current board’s strategies.
  • Skepticism is expressed regarding the management’s proactive strategies, such as the lengthy process of data room reviews for the Inishkea project, which is viewed as stalling rather than progressing.
  • The use of outside consultants is criticised, particularly when the effectiveness and novelty of their reports are questionable.
  • Frustration is shown towards continuous delays in project developments and calls for significant operational changes to improve company valuation.
  • A director’s stock purchase is perceived as an indicator that no substantial company developments are expected in the short term.
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