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Petroceltic - First well in Tunisia to be drilled in July

June 2004

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

With no cashflow, small oil exploration stocks are incredibly difficult to value which is why we’re not keen on many, certainly not those in the penny share category. But with the oil price forecast to remain at historically high levels of over US$25 a barrel, the sector has recently enjoyed a renaissance. One such is Petroceltic (7p). Formerly known as Ennex, the group has moved full circle between minerals and oil exploration many times over the last two decades.  This time last year it had effectively been reduced to a cash shell with a market cap. of £1.5m and a share price dead in the water. But just one year later, a number of clever deals have transformed prospects and following a fundraising its market cap has gr ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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