PROMINENCE ENERGY LIMITED Forecast & Analysis

Outlook: PROMINENCE ENERGY LIMITED is assigned short-term Baa2 & long-term Ba3 estimated rating.
Dominant Strategy : Buy
Time series to forecast n: 24 Jun 2023 for 4 Weeks
Methodology : Transfer Learning (ML)

Summary

Prominence Energy Limited (PRM) is an oil and gas exploration and development company listed on the Australian Securities Exchange (ASX). The company has two main projects:

• The Bowsprit project in Louisiana, USA, which is a redevelopment of an oil field that produced oil in the 1960s.
• The Sasanof prospect in Western Australia, which is a high-impact exploration well.

PRM is a high-risk, high-reward investment. The company's projects have the potential to generate significant returns if they are successful. However, there is also a risk that the projects may not be successful, or that they may take longer to develop than expected.

The Bowsprit project is located in the Breton Sound area of Louisiana. The project involves the redevelopment of an oil field that produced oil in the 1960s. The field is estimated to contain 10-20 million barrels of oil.

The Sasanof prospect is located in the Northwest Shelf of Western Australia. The prospect is a high-impact exploration well that has the potential to contain up to 1 trillion cubic feet of gas.

The success of PRM's projects will depend on a number of factors, including the price of oil, the success of the development plans, and the regulatory environment. Investors should carefully consider these factors before investing in PRM.

• The Bowsprit project is expected to cost $100 million to develop.
• The Sasanof prospect is expected to cost $50 million to drill.
• The Bowsprit project is expected to produce 10,000 barrels of oil per day.
• The Sasanof prospect is expected to produce 100 million cubic feet of gas per day.

The success of PRM's projects will have a significant impact on the company's financial performance. If the projects are successful, PRM could become a major player in the oil and gas industry. However, if the projects are not successful, PRM could face financial difficulties.

PROMINENCE ENERGY LIMITED prediction model is evaluated with Transfer Learning (ML) and Logistic Regression^1,2,3,4 and it is concluded that the PRM stock is predictable in the short/long term.

Transfer learning is a machine learning (ML) method where a model developed for one task is reused as the starting point for a model on a second task. This can be useful when the second task is similar to the first task, or when there is limited data available for the second task. According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Buy

Key Points

1. What is neural prediction?
2. Stock Rating
3. Trading Signals

PRM Target Price Prediction Modeling Methodology

We consider PROMINENCE ENERGY LIMITED Decision Process with Transfer Learning (ML) where A is the set of discrete actions of PRM stock holders, F is the set of discrete states, P : S × F × S → R is the transition probability distribution, R : S × F → R is the reaction function, and γ ∈ [0, 1] is a move factor for expectation.^1,2,3,4

F(Logistic Regression)^5,6,7= $\begin{array}{cccc}{p}_{\mathrm{a}1}& p_{\mathrm{a}2}& \dots & p_{1n}\\ & ⋮\\ p_{j1}& p_{j2}& \dots & p_{jn}\\ & ⋮\\ p_{k1}& p_{k2}& \dots & p_{kn}\\ & ⋮\\ p_{n1}& p_{n2}& \dots & p_{nn}\end{array}$ X R(Transfer Learning (ML)) X S(n):→ 4 Weeks $\sum _{i=1}^n\left(s_i\right)$

n:Time series to forecast

p:Price signals of PRM stock

j:Nash equilibria (Neural Network)

k:Dominated move

a:Best response for target price

Transfer Learning (ML)

Transfer learning is a machine learning (ML) method where a model developed for one task is reused as the starting point for a model on a second task. This can be useful when the second task is similar to the first task, or when there is limited data available for the second task.

Logistic Regression

In statistics, logistic regression is a type of regression analysis used when the dependent variable is categorical. Logistic regression is a probability model that predicts the probability of an event occurring based on a set of independent variables. In logistic regression, the dependent variable is represented as a binary variable, such as "yes" or "no," "true" or "false," or "sick" or "healthy." The independent variables can be continuous or categorical variables.

 

For further technical information as per how our model work we invite you to visit the article below: 

How do AC Investment Research machine learning (predictive) algorithms actually work?

PRM Stock Forecast (Buy or Sell) for 4 Weeks

Sample Set: Neural Network
Stock/Index: PRM PROMINENCE ENERGY LIMITED
Time series to forecast n: 24 Jun 2023 for 4 Weeks

According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Buy

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

IFRS Reconciliation Adjustments for PROMINENCE ENERGY LIMITED

1. All investments in equity instruments and contracts on those instruments must be measured at fair value. However, in limited circumstances, cost may be an appropriate estimate of fair value. That may be the case if insufficient more recent information is available to measure fair value, or if there is a wide range of possible fair value measurements and cost represents the best estimate of fair value within that range.
2. In accordance with paragraph 4.1.3(a), principal is the fair value of the financial asset at initial recognition. However that principal amount may change over the life of the financial asset (for example, if there are repayments of principal).
3. If such a mismatch would be created or enlarged, the entity is required to present all changes in fair value (including the effects of changes in the credit risk of the liability) in profit or loss. If such a mismatch would not be created or enlarged, the entity is required to present the effects of changes in the liability's credit risk in other comprehensive income.
4. If subsequently an entity reasonably expects that the alternative benchmark rate will not be separately identifiable within 24 months from the date the entity designated it as a non-contractually specified risk component for the first time, the entity shall cease applying the requirement in paragraph 6.9.11 to that alternative benchmark rate and discontinue hedge accounting prospectively from the date of that reassessment for all hedging relationships in which the alternative benchmark rate was designated as a noncontractually specified risk component.

*International Financial Reporting Standards (IFRS) adjustment process involves reviewing the company's financial statements and identifying any differences between the company's current accounting practices and the requirements of the IFRS. If there are any such differences, neural network makes adjustments to financial statements to bring them into compliance with the IFRS.

Conclusions

PROMINENCE ENERGY LIMITED is assigned short-term Baa2 & long-term Ba3 estimated rating. PROMINENCE ENERGY LIMITED prediction model is evaluated with Transfer Learning (ML) and Logistic Regression^1,2,3,4 and it is concluded that the PRM stock is predictable in the short/long term.

According to price forecasts for 4 Weeks period, the dominant strategy among neural network is: Buy

PRM PROMINENCE ENERGY LIMITED Financial Analysis*

Rating	Short-Term	Long-Term Senior
Outlook*	Baa2	Ba3
Income Statement	Baa2	Baa2
Balance Sheet	Ba2	B3
Leverage Ratios	Baa2	Ba3
Cash Flow	B2	Baa2
Rates of Return and Profitability	Ba1	C

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Prediction Confidence Score

Trust metric by Neural Network: 75 out of 100 with 764 signals.

References

1. K. Boda, J. Filar, Y. Lin, and L. Spanjers. Stochastic target hitting time and the problem of early retirement. Automatic Control, IEEE Transactions on, 49(3):409–419, 2004
2. Çetinkaya, A., Zhang, Y.Z., Hao, Y.M. and Ma, X.Y., Can stock prices be predicted?(SMI Index Stock Forecast). AC Investment Research Journal, 101(3).
3. Barkan O. 2016. Bayesian neural word embedding. arXiv:1603.06571 [math.ST]
4. Bell RM, Koren Y. 2007. Lessons from the Netflix prize challenge. ACM SIGKDD Explor. Newsl. 9:75–79
5. E. van der Pol and F. A. Oliehoek. Coordinated deep reinforcement learners for traffic light control. NIPS Workshop on Learning, Inference and Control of Multi-Agent Systems, 2016.
6. Scholkopf B, Smola AJ. 2001. Learning with Kernels: Support Vector Machines, Regularization, Optimization, and Beyond. Cambridge, MA: MIT Press
7. B. Derfer, N. Goodyear, K. Hung, C. Matthews, G. Paoni, K. Rollins, R. Rose, M. Seaman, and J. Wiles. Online marketing platform, August 17 2007. US Patent App. 11/893,765

Frequently Asked Questions

Q: What is the prediction methodology for PRM stock?
A: PRM stock prediction methodology: We evaluate the prediction models Transfer Learning (ML) and Logistic Regression
Q: Is PRM stock a buy or sell?
A: The dominant strategy among neural network is to Buy PRM Stock.
Q: Is PROMINENCE ENERGY LIMITED stock a good investment?
A: The consensus rating for PROMINENCE ENERGY LIMITED is Buy and is assigned short-term Baa2 & long-term Ba3 estimated rating.
Q: What is the consensus rating of PRM stock?
A: The consensus rating for PRM is Buy.
Q: What is the prediction period for PRM stock?
A: The prediction period for PRM is 4 Weeks

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