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Oddie needs to do another interview ASAP to steady nerves and talk about next steps!
Has anyone asked SO directly as regards this tax relief, for sure the company must know, anyone ever email them and ask these type of questions?
Serenity can still be a company maker for small mcap EOG who own 25%, the oil in the Eastern play is still there, they have £5m in cash, and will only pay 25% of costs in any future developments, all the while their coffers are growing daily from wressle oil sales.
Hope for 91% relief on drill???
"My only concern here now is what will Oddie do next, the guy is reckless."
And yet had serenity come in you would all have been signing his praises. You can't have it both ways, he has protected the company with Wrestle and gave you an opportunity at a transformational event, it didn't work, but think about how you would have felt if it did.
Very easy to slam someone when they make a mistake, look at how the i3e were hated by many shareholders after the liberator failure, since they bought into Canada they have been nothing but Golden.
It's an oil company, they do what they do, this is exploration - you are lucky, you have production that is increasing and soon all this episode will be forgotten, you will again have cash in the bank, the sp will rise back and other than what ever development might come out of serenity in the future, everyone will be saying how Wrestle is the cake, serenity just a cherry.
Oddie like this comment
"This is unlikely to be the end of Serenity activity.""
I don't think you'll be too far off. Let's be honest the reason this wasn't shifting was uncertainty, not body wanted to hold this result and the timeline caught a lot out, including myself. They have a cracking resource in Wressle and they don't need to go risking it with 50/50 punts. Pay UJO their money back and forget about Serenity. My only concern here now is what will Oddie do next, the guy is reckless.
This from SP Angel:
"I3 Energy (I3E LN) 25p, Market Cap £295m & Europa Oil & Gas (EOG LN) 1.3p, Market Cap £12m: Serenity dry • I3 (75% WI) and Europa (25%) have announced the Serenity SA-02 appraisal well is dry, with the targeted Lower Cretaceous Captain sand not present at this location. • The data recovered from the well will be integrated into further reservoir modelling to optimise a development plan to exploit the oil volumes in the eastern area of the structure proven by the discovery well. This is clearly disappointing news, especially for Europa which farmed-in on promote terms to gain access to the potential ‘company-making resource’ on drilling success, and certain of the shareholder base are clearly looking to exit their positions. Nonetheless, the well came in significantly under budget and both companies have access to positive cash flow from their existing production operations to soften the blow. This is unlikely to be the end of Serenity activity."
Then 1.8p tomorrow
1.6p finish
Well MC just before raise was ~£20M, this was on Wressle and other assets alone. Share buy back would be brilliant...but even without current share price should be ~2.10p dilution priced in and seller no longer present, (BGF)... and that's not pricing in the cash made to date from Wressle alone and any other cash returned.
Well as much as I can understand the sentiment from LTH's, of course its hard when you see large dilution and then loose out on that opportunity, however, sometimes it helps to reassess with fresh eyes.
I take very much Jungmana's view here, in that I can see he has done just this, and on this basis, he is now in profit on those shares bought today. I expect that profit will increase several times over the coming year, thus reducing losses from originally bought shares at a higher price. Bearing in mind, he also purchased several times his original holding then I expect he will be in profit overall pretty quickly. I did similar. Each time their is a transformation whether it be in SP or fundamentals then the share has to be reassessed from that point and not clouded by historic thought, imo of course.
I calculate we are making approx. £700K per month at $85 per barrel.
Unless we buy into another project like Serenity then I think we should buy shares back; expect the SP to fall further during the week once the bad news is absorbed.
One way to get some shareholder confidence back..but can't see this BOD doing that.
" A year of just collecting Wressle money, building up the bank balance and then seeing what is available, working on other assets rather than massively diluting this. We were sitting at 3.8p before this dilution was ask for. We probably be at 5p giving lots of LTH the chance to pull out if they wanted. It’s LTH that’s lost out here."
That is what is peeing a lot of people off, as you said LTHers were coming into play to offload or get out on their average...then Serenity came along. Not sure we would still be at 5p mind but not 1.37..that is for sure.
As the adage says...sack the board
I think buying back shares is acceptable, even today assuming of course it is within the current articles of association.
unfortunate that we hit duster. i lost some too. now am focusing on ANGS which just started gas production and also ORCP with tiny mcap and about to announce massive projects. also has other players i am in as well.
nevertheless, EOG has been oversold and hopefully recover from here
It takes ages to sort a share buy back to cancel (UJO already sorted court case etc) unless they do it in a treasury account at such a low price and then maybe sell back later once the panic is over, or maybe on the next drill if that's what happens with another serenity appraisal somewhere else.
So many ideas and should not jump into this without digesting the Serenity news first before making any decisions.
Probably cant buy shares in own company so close to issuing bad news RNS, would not be acceptable I think.
Then buy the shares back asap at a low, that will cancel out a large part of the dilution suffered and we are back to square 1, within reason.
The 800k is monthly revenue
Eog is generating £800k revenue from 300bopd of net production.
Current cash level is about £5m
Buying back shares with this excess would have been a good idea considering they raised at 1.8p, a 1.3p - 1.6p purchases would be a good deal, if they have no need of the cash at this time.
As we did not spend the full £7M on the Serenity leaving us approx. £2.5m spare, can/should we use this money to buy back shares?
Simon Oddie, CEO said :
"The well performance at Wressle continues to exceed our initial expectations and once the planned connection to the local gas distribution network is completed by winter 2022 the well will be able to produce at unrestricted rates which will materially impact the cash flows associated with the field. This will also allow the field to be further developed by targeting the contingent resources located in the *****tone Flags reservoir and I look forward to updating the market in due course with details of this work programme."
Grey - refer to the 27th Sept RNS