KLSE : REACH-WA       REACH ENERGY BHD Main : Industrial Products
Last Price Today's Change   Day's Range   Trading Volume
0.135   0.00 (0.00%)  0.13 - 0.14  47,702,400


Listing Date:Aug 15, 2014
Maturity Date:Aug 12, 2022
Issue Size:1,277,822,225
Exercise Price:MYR 0.75
Ratio: 1:1
Underlying Stock:
Avg Volume (4 weeks):28,715,205
4 Weeks Range:0.125 - 0.16
52 Weeks Range:0.02 - 0.17

Additional Info

Announcement: [Aug 13, 2014] Profile for Warrants
Description:Eight (8)-year - 2014/2022 Warrants
Trade this stock and win a FREE I3investor T-shirt after 5 trades. Find out more.

  kchue1 likes this.
HYG What happen with the Reach?
18/11/2016 08:03
ktsk88 Reach gonna call for Private placement and that's why the private investors want a lower entry for this block purchase. Hence, you will notice once the price is trading at a level for some point of time, then that is the rough price to determine the PP issuance.

But definitely the stock will trade lower for days to come because it is full-fledged biz based on oil revenue. The longer the company drags on with the oil biz and reported lower earnings or losses then the stock will trade lower and lower.

Therefore, you guys better bet it reported good earnings to sustain the price at it is.

Based on the current stock price, and a reasonable PER 12x, the earning or profit should be 68mil per year or 17mil per quarter.
18/11/2016 09:36
ktsk88 The price of warrant now trading 28% premium which is still acceptable.............but once mother start downtrend..............the warrants will follows


if investors think that it shouldn't command that high 28% premium...........then it will falls rapidly.

Many now trapped hoping after the QA is approved the stocks will rally up....................but forget that once you accepted the biz............it takes years to report decent earning to sustain the stock price or better price...............but now too late........you need to hold longer term unless the assets churning good results immediately in the coming months but that still need at least 3 to 4 quarters to fully evaluate the fair price of the stock.
18/11/2016 09:46
HYG Thanks 88 for explanation.
Should Reach in bottom already?
18/11/2016 13:12
ktsk88 No ones really know the bottom but the price will suffers more downside due to private placement and also re-rating of the stock based on biz and earning fundamental now comparing prior to QA approval which at that time all the hype is the QA will fails and the yield return is +-0.77sen.

Now the scenario is completely opposite and only those big ticket holders will determine the supports for the price artificially.
18/11/2016 13:21
speakup Reach mother and warrant are moving in opposite direction. Warrant premium getting larger and larger.
25/11/2016 23:30
speakup warrant still 37% premium to mother despite warrant dropping 12% today.
30/11/2016 16:55
kmtan88 Reach's mother share up these few days & warrant is sure to follow
05/12/2016 10:34
jeffrey1969 happy new year 2017! anybody know this counter still can UP UP UP? thanks
01/01/2017 13:41
Raymond Tiruchelvam major breakthru after many many moons :-)
05/01/2017 23:22
stockraider Reach Energy Bhd - New Oil Junior in town
Author: HLInvest | Publish date: Wed, 4 Jan 2017, 11:12 AM

Now an O&G Junior. Upon getting vote acceptance for QA on 16th Nov 2016, Reach will now become a full-fledged oil junior with final adjusted Purchase Consideration worth US$175.9m. Acquisition has been completed on 27th November 2016 with dissenting shareholders already being repaid.
Emir-oil a balanced portfolio with high quality crude. Situated in Kazakhstan, currently Emir-oil possesses 4 producing fields coupled with 2 development fields and 6 drillable prospects, pointing to high potential growth in pipeline of reserves. In addition, it also produces high value light and sweet crude oil and possesses high condensate yield in one of its producing fields, indicating more room to further monetize the acquired asset.
Oil asset was bought at low. While the oil market has been subdued for a long time, we believe the upstream asset acquired by Reach was at the lowest price possible. The acquisition price was determined on 4th March 2016 when Brent was at US$37/bbl, not far off from its multiyear low of US$27/bbl. This shows that Reach would be able to reap full benefit of long term oil price recovery with minimal downsides. Current Brent price is at US$57.5/bbl.
Building CPF to unlock oilfield potential. MIEH (vendor for the QA) has already invested in a Central Processing Facility (CPF). Phase 1 is expected to be completed in several months time and upon completion of the pipelines in 2018, Reach could easily double its oil production to more than 10,000 bbls/day by executing more well completion and drilling more wells in its proven areas. Phase 2 would again bring its oil production to level in excess of 20,000bbls/day upon completion, indicating vast opportunity to reap more value from its oil reserves.
Market ‘under pricing’ its long term prospects. At the current share price of RM0.66, market seems to have only price in long term oil price of US$67/bbl (for 20-year time frame) - based on our backward calculation of assuming other variables being constant. We are of the view that oil prices would eventually recover to US$57/bbl beyond the implied level as oil market rebalances while cost of oil production is expected to rise in the long run.

Direct beneficiary of oil price rally.
Entering into production asset early stage providing more upside possibility.

Oil production natural decline, oilfield operational risk, country risk.

Minimal downside risk at this price point while the company is expected to escalate to the next level by tapping into the reserves of a young oilfield with limited risk of straining balance sheet.

Our discounted FCFE (10% discount rate) approach has yielded a TP of RM0.83 at fully diluted level (assuming dilution from potential placement and full exercise of warrants). Near term exercise of warrants is unlikely as the expiry date has been extended for another 5 years to 2022 post acceptance of QA by its shareholders. To illustrate, excluding dilution impact from warrants, our TP would be at RM0.91.
05/01/2017 23:31

05/01/2017 23:33
Author: HLInvest | Publish date: Fri, 6 Jan 2017, 12:08 PM
• Our fundamental pick is our recently initiated oil junior, Reach Energy (refer to our report dated 4 Jan 2017) with a target price of RM0.83. Reach has graduated from SPAC and became a full-fledged oil and gas company after the completion of an acquisition into an O&G field in Kazakhstan on 26 th of November.
• Technically speaking, soon after the breakout of the RM0.64 level with high volumes, we opine that the recent correction phase has ended reinforced by a higher high formation. Also, the MACD Line has crossed above the zero level – indicating share price has potential to trend higher over the mid to long term.
• We called a technical buy on Reach Energy on 29 Dec and it has hit our LT objective target of RM0.71 (+13.8%). Following the continued bullish indicator on the stock and upside to our institutional TP of RM0.83, we revise our technical target to RM0.735-RM0.765 levels.
• On the cut loss strategy, we move our trailing stop level higher at RM0.68.
• Reach-WA is a cheaper entry which offers gearing of 5x. The implied warrant value is at 25 sen per warrant based on mother share target price of 83 sen.
Source: Hong Leong Investment Bank Research - 6 Jan 2017
06/01/2017 17:34
newbie_2016 15 sen already... used to be 8 sen.. jalan already loh
06/01/2017 17:55
shan75 0.18 soon!
09/01/2017 11:12
musangfoxking 0.165 sold!!!!! tks for the Starbucks!!
09/01/2017 16:29
de_investor like hibiscus....moving.....
09/01/2017 17:00
donfollowblindly Not Reach still don't own oil company yet why big jump?
10/01/2017 06:00
speakup musangfoxking u satisfied with just Starbucks? While the rest here are making at least minimum 4 figures profits!
10/01/2017 06:40
musangfoxking congrats if u made at least minimum 4 figures profits! am here just to make a few cups of Starbucks! have reached my destination ,... so happy beecos of the contra gain!
10/01/2017 06:55
speakup warrant syndicate operator haven't done yet. still got upside
10/01/2017 09:28
musangfoxking hope so...hope semua untung!
10/01/2017 10:23
speakup speakup believe everyone holding paper profit, only how big paper profit only
10/01/2017 12:00
hian949372 if reach. 0.21.. I can buy 2 Porsche Cayman . cash
10/01/2017 13:52
hian949372 pls reach 0.21
10/01/2017 13:53
musangfoxking hian949372 , buy toy Porsche Cayman?
10/01/2017 17:17
de_investor 2moro wil rebound back.....touching new highest....
10/01/2017 22:05
nickthebest cham going down.
11/01/2017 09:28
Andrew62 now going up 105 continous buy @0.150
11/01/2017 10:15
Andrew62 turbo charge go go go
11/01/2017 10:23
Andrew62 sharks trap
11/01/2017 10:27
punchkkk TP 0.155 today?
12/01/2017 15:35
de_investor tp 0.20
13/01/2017 09:25
de_investor will...
13/01/2017 09:26
RapidBeginner run for your life.....
16/01/2017 10:37
RapidBeginner shark is trapping ikan bilis????
16/01/2017 11:24
amet2017 Go go. 18 tomorrow
16/01/2017 21:03
amet2017 Brent closed at usd 55.86 up by 0.73%.
Source : Rigzone
17/01/2017 07:03
RapidBeginner 0.18??????? asap pun tak boleh bau la.... cheers.....
17/01/2017 15:03
Darren Lim so quite recently
17/01/2017 15:52
amet2017 Bg semangat sikit la rapid beg
17/01/2017 15:55
hian949372 guys. yesterday oil drop. cause USA holiday. demand weak lah
17/01/2017 22:19
amet2017 Friday oil price up. Somemore positive note from this weekend opec meeting. Tomorrow oil price will further improve
23/01/2017 00:25
BrahmaBull this is why! http://www.msn.com/en-my/news/national/harga-minyak-%e2%80%98mungkin%e2%80%99-naik-esok-kata-pengusaha/ar-AAmr8ZP?li=BBr8Hnu
31/01/2017 19:12
10/02/2017 11:17
musangfoxking amm still down 1 sen! nothing to wolly leh!!!!
10/02/2017 20:44
derrickinvestor fock! what happen to reach? cannot reach already?
13/02/2017 11:30
Andrew62 Everyday high volume but no price movement.
16/02/2017 12:25
darkxfs sell this buy mtouche 0092 only 0.085 ><
18/02/2017 11:02
musangfoxking darkxfs, u r a lousy salesman!!!!
18/02/2017 11:03


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