KLSE: REACH (5256)       REACH ENERGY BHD Main : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
0.375   0.00 (0.00%)  0.37 - 0.385  1,136,900
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Market Cap: 411 Million
NOSH: 1,096 Million
Avg Volume (4 weeks):1,725,905
4 Weeks Range:0.35 - 0.44
4 Weeks Price Volatility (%):
52 Weeks Range:0.35 - 0.745
52 Weeks Price Volatility (%):
Average Price Target: 0.83
Price Target Upside/Downside: +0.455

Financial Highlight

Latest Quarter | Ann. Date 31-Mar-2017[#1]  |  29-May-2017
Next QR | Est. Ann. Date: 30-Jun-2017  |  29-Aug-2017
T4Q P/E | EY: 4.33  |  23.09%
T4Q DY | Payout %: 0.00%  |  - %
T4Q NAPS | P/NAPS: 0.92  |  0.41
T4Q NP Margin | ROE: 123.34%  |  9.41%

Market Buzz

Date Type Subject
13-Aug-2017 Blog 李文龙.油气股筹钱碰钉
10-Aug-2017 Blog “On Our Radar” Tracker Review - Cautious Mode Still On
10-Aug-2017 Blog PublicInvest Research Headlines - 10 Aug 2017
16-Aug-2017 Forum 6 New Comments


Date Subject
13-Aug-2017 李文龙.油气股筹钱碰钉
10-Aug-2017 “On Our Radar” Tracker Review - Cautious Mode Still On
10-Aug-2017 PublicInvest Research Headlines - 10 Aug 2017
13-Jul-2017 PublicInvest Research Headlines - 13 Jul 2017
30-Jun-2017 Mplus Market Pulse - 30 Jun 2017
27-Jun-2017 油价影响REACH股价/万年船
05-May-2017 Reach Energy - Kazakhstan Asset – The Cash Cow
17-Apr-2017 Mplus Market Pulse - 17 Apr 2017
04-Jan-2017 Reach Energy Bhd - New Oil Junior in town
29-Dec-2016 Technical perspective: Poised for a downtrend resistance breakout to retest RM0.64-RM0.71 territory
21-Nov-2016 REACH能源成功突围/万年船
17-Nov-2016 PublicInvest Research Headlines - 17 Nov 2016
14-Nov-2016 Reach能源展延特大 股东需时评估收购
01-Nov-2016 估值偏低.具现金潜能.REACH购资产料亮绿灯
01-Nov-2016 Reach Energy Bhd - Reaching SPAC graduation day?
31-Oct-2016 Reach Energy's EGM
30-Oct-2016 REACH股权变动增胜算/万年船
26-Oct-2016 Reach Energy - Eyes on Kazakhstan’s Black Gold Prospects
24-Oct-2016 Reach Energy Bhd - Reaching new heights

Business Background

No description available for this stock.
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  4 people like this.
feelhoney very low entry. huat lor..
13/08/2017 19:56
TheContrarian If indeed 10 million was done @ 37 sen over the counter, then it looks like the force sale is over or coming to an end because easily at least another 10 million was force sold in the market earlier.
13/08/2017 20:11
LEEKS7 http://www.thestar.com.my/business/business-news/2017/08/14/reaching-out-for-financing/
14/08/2017 11:15
LEEKS7 TheContrarian .. its continue force sale again ?
14/08/2017 11:29
Indra Mian Force sale continue....what management can do on it ?
14/08/2017 11:38
longvalley Ajibul leh help...........!!!!!!!!!
14/08/2017 11:47
longvalley Waiting n seeing on the GOOOOOOO............!!!!!!!!
14/08/2017 11:48
adamdacutie Its so painful to be reach share holder
14/08/2017 11:48
oppa already 30% paper loss...come on Reach management
14/08/2017 11:55
adamdacutie Those who voted yes and stayed are victimised... N reach board did absolute nothing to cushion the blow
14/08/2017 12:01
Seng Thye Ng nothing to hope for this counter for now on......wish them can overcome soonest.........than re start again........
14/08/2017 12:04
DisC http://www.thestar.com.my/business/business-news/2017/08/14/reaching-out-for-financing/

Just to share with everyone on the Company's current issue.

Still believe in the management team and the Company's QA
14/08/2017 12:16
Indra Mian B4B4 : Please comments....
14/08/2017 12:30
TheContrarian Looks like force selling not over yet.
14/08/2017 12:35
stockraider PETALING JAYA: Reach Energy Bhd has decided to call off its private placement exercise and is likely to gear up as it explores funding avenues to raise some RM180mil.

For now, Reach Energy still has zero gearing and does not require any external funding for its operational expenditure for its oil field in Kazakhstan.

The funding of RM180mil is largely to pay the dissenting shareholders who did not approve of it acquiring the Kazakhstan oil field.

Even if Reach funds the entire RM180mil in debt, its gearing ratio is said to be manageable at under 20%, based on its shareholders equity of RM1.01bil or book value of 92 sen per share, as of March 31.

A source says Reach is exploring bank borrowings, and is in the midst of speaking with some banks.

A direct funding from banks is viewed as an alternative from the potentially dilutive effect of a placement exercise, not to mention the fact that it would have to be done at a discount to market.

The potential placement has been among the reasons why Reach’s market capitalisation has almost halved to RM472.94mil over the last eight months.

On Friday, Reach closed at 37 sen.

When Reach shareholders voted for the qualifying asset (QA) last November, shareholders had the chance to walk away with 75 sen a share if they voted “no”. The majority had voted “yes” as the company secured 81.07% shareholder approval for the QA.

A combination of a weak oil and gas (O&G) outlook, coupled with uncertainties on how Reach was going to raise some RM180mil to pay off dissenting shareholders, had caused sentiment on the stock to turn sour. RAIDER DO NOT UNDERSTAND LOH...DURING QA VOTE TIME REACH CRUDE OIL ONLY USD 43 PER BARREL...NOW CLOSE TO USD 50 BETTER MAH..!!

So if one reckoned that Reach’s challenge was gathering factions of shareholders to vote “yes” for the purchase of its QA last year, it does seem that bigger challenges lie ahead.
The problem was that Reach needed to raise RM180mil to pay off shareholders who had voted “no” for the qualifying asset.

Last November Reach obtained shareholders’ approval to acquire a 60% stake in Palaeontol BV, the owner of the onshore O&G field called Emir-Oil LLP in southwestern Kazakhstan for US$154.9mil (RM638.2mil).

The vendor of the stake in Palaeontol is Hong Kong-listed MIE Holdings Corp. MIE owns the remaining 40% in Palaeontol.
Emir-Oil owns the production contracts for four producing oil blocks and an O&G exploration contract that extends over 850 sq km.

Reach will have four producing oil blocks, along with two development fields and six prospects within the Emir-Oil concession block.

Upon securing shareholders’ approval for its QA, Reach had proposed a share placement to raise as much as RM180mil, being just enough to settle the outstanding amount. The response for the placement exercise, however, was lukewarm, and thus in March, Reach obtained a six-month extension until Aug 22 to carry out the proposed share placement. YEAH NOW PLACEMENT NOT BETTER MEH ? IF THEY PLACE RM 0.20 PER SHARE LAGI PANIC MAH..!!

In the meantime, Reach’s share price had started falling. RAIDER THINK COULD BE OPPORTUNITY LOH...RAIDER SMELLING LOH...!!
14/08/2017 12:38
adamdacutie Paper loss 40%....
14/08/2017 12:40
stockraider “Calling a placement would mean more dilution, and Reach’s share base is already large at some 1.2 billion shares. A placement would also mean giving a further discount to the private placees, and this would again be negative to Reach’s share price,” said one observer.

“Calling for a rights issue was also not doable as management’s 20% stake was locked up, and they would not be able to participate. Thus, the best option was to drop the idea of fundraising through equity markets,” says the observer. RIGHTS ISSUE MEANS MORE MONIES LOCKED OUT IN A FALLING MKT...VERY DANGEROUS LOH...!!

Thus it was good news on Wednesday when Reach announced that it had decided to abort its placement exercise.

Reach said the proceeds from the placement were earmarked mainly to settle the remaining purchase consideration of 60% equity interest in Palaeontol, and 60% of the shareholder loans from MIE, which was completed on Nov 25, 2016. CORRECTLOH...THIS SHAREHOLDER LOAN CHARGE 10% INTEREST PA...QUITE HIGH LOH...!!

“The company has the flexibility to settle the remaining purchase consideration, subject to interest being charged in accordance to the terms of the sale and purchase agreement as disclosed in the circular to shareholders of Reach.
“As such, the termination of the placement does not have any effect on the acquisition,” said Reach.

The Emir-Oil concession has proven reserves of 89.4 million barrels of oil equivalent. While it was producing some 2,500 barrels in 2015, this will be increased to 5,000 barrels in 2017 before doubling to 10,000 barrels in 2019.

Using the oil price assumption of US$40, RPS Energy Consultants Ltd has forecast the Emir-Oil concession to be profitable for its year ended Dec 31, 2017. WHY USE SILLY USD 40 PER BARREL, USELAH MORE REALISTIC LIKE USD 48 PER BARREL.

However, none of this is likely to matter until Reach figures out a way to settle the outstanding RM180mil.THE LOAN PAYDOWN BCOS OF COST SAVINGS PURPOSE LOH...IF CAN REFINANCING ANYTHING BELOW 10% PA ...MAKE MONIES ALREADY LOH...!!

In a press conference in July, Reach’s chief executive officer Shahul Hamid Mohd Ismail said Reach only took full control of Emir-Oil in May this year.
They are now introducing their methodologies, and according to Shahul, who is now based in Kazakhstan, results are already showing.

Notably there has also been board changes in Reach last Friday.
Tunku Nooruddin Tunku Shahabuddin, 52, was appointed as non-executive direct

14/08/2017 12:45
Kareemabduljabbar Sell now. Before the problems start.
14/08/2017 12:52


14/08/2017 12:57
LEEKS7 The company can propose Buy Back
14/08/2017 13:05
stockraider WHY BUY BACK LEH ?


14/08/2017 13:20
Indra Mian Buy and hold....if rebound nobody can tahan maaa....ignore all negative perception....oil is there maa...
14/08/2017 14:28
feelhoney good analysis stockraider
14/08/2017 15:06
LEEKS7 no choice, most ppl goin 50cts++, avg paper loss 30%-40%, hope its can rebound a day !
14/08/2017 17:47
Indra Mian oil price drop more than 2% but still above 50usd pb. What next for Reach Energy today ?
15/08/2017 07:13
dtkl91 Stupid counter
15/08/2017 08:57
WhoKnows share placement cancelled, rights issue not viable, so ultimately no dilution which is good for existing shareholders. once this 180mil issue is settled (most probably via loans), would expect interest buying again......
15/08/2017 09:21
B4b4 Have to wait for Reach to settle the RM 180 m problem first.
15/08/2017 09:28
WarrBuff Consistent 10%++ average monthly drop in value for the past few months.... MD's announcement to scrap PP also not able to stop the downslide. Really tempted to buy more now, but again, no indication of rebound soon. Probably will spiral down further upon release of QR. Gonna hv Mega Deepavali sale. Patience has its rewards
15/08/2017 14:11
TheContrarian I think force selling has eased today
15/08/2017 15:21
Indra Mian Time to accumulate
15/08/2017 16:17
TheContrarian Managed to buy at 37 sen.
15/08/2017 16:27
sampool hope it can stable at 0.5
15/08/2017 19:16
setia2u Why the current price is so low? A BIG question that the MD couldn't understand too... let me put it a simple scenario from a trader point of view, my 2 sen view:
1. When the private placement was announced, investors are waiting for clearer picture of the private placement on the price (although management wanted it at 59.0 sen) and quantity, this waiting period causing the uncertainty that dragged the price down to around 40 sen
2. Weak oil price, although REACH's production cost is only USD40, but how many people cares, what in their mind is just that weak oil price is no good for REACH
3. When the private placement issue cancelled, people taught that the company will be having problem to raise RM180mil, but forgotten that there is other avenue like borrowing/loan or even getting a partner
4. BURSA market sentiment is real weak for second/third liners, more so O&G counters, people just lost confidence or fearful

The above 4 points that I can think of at the moment have created an imbalance of SUPPLY & DEMAND which subsequently causing a 50% off from fair value of 75.0 sen.

NO worry, the price will recover soon, if yesterday price (35.5 sen) was not bottom, then how low can it be?! I believe .... when people are fearful, we shall be greedy!!! Cheers.
15/08/2017 19:44
sampool many ppl thought 0.45 is the low.. but ppl never expect it will go even lower to 0.35...
15/08/2017 20:37
TheContrarian I am going to explain one last time. Long, long time ago in year 2014 to 2015 one chap bought over 20 million shares on margin at an average price of around 60 sen. Then recently he couldn't service the monthly interest. So the lender force sold his shares until 35.5 sen.
15/08/2017 21:12
longvalley To risky when u buy on margin facility.........hee....!!!!!!!!!
15/08/2017 21:49
TheContrarian That time before Qualifying Asset was purchased, so there's a cash backing of 76 sen. But that fella voted Yes at the EGM.
15/08/2017 22:00
sampool he is greedy..
15/08/2017 22:57
TheContrarian But all retailers also suffer when price crashed due to one person's shares been force sold.
15/08/2017 23:17
Indra Mian gradually will increase...be patient....the key is holding power....they will announce 2nd qtr result probabaly next week.....result will better than 1st qtr.....sure fly.....
15/08/2017 23:21
TheContrarian Don't expect 2nd qtr results to be good, probably still loss as production was probably still way below 5,000 barrels a day. Actual control of management only took place in May. Anyway present price should have discounted all this.
15/08/2017 07:48
TheContrarian If tomorrow price doesn't fall anymore then it's confirmed selling is over.
15/06/2017 11:01
apolloang that fella's name is mr daya ar? hahaha
15/08/2017 23:42
goldisgold Hope is dead
16/08/2017 06:02
newbie_2016 if hope is dead then there is no tomorrow? yes? ;)
16/08/2017 11:46
TheContrarian Star Wars : A New Hope!
16/08/2017 12:38
newbie_2016 @TheContrarion, you are which side? The evil Empire or the Rebellion?
16/08/2017 13:52
TheContrarian I am with Yoda.
16/08/2017 13:55
Winnergetitall Reaching silver lining
16/08/2017 15:17


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