Could not agree more. I think we need to take it upon ourselves to start making more noise - although I have to say that it is nice to have an AIM share that ticks along nicely without the crowds of rampers! Looking forward to watching the progress here in the coming months.
quiet it is here... im in here as I think this is a very well placed energy producer making money and lots of prospects going forward, with all the upside of the N.Sea now Uk gov right behind us - its a lobotomy of a share - a no brainer!
Good to see a little more noise around SQZ now - I see a few more regular posts here and notice more activity on other boards - could mean more people are starting to recognise the great potential of this company.
In the boom years the relentless pursuit of higher production levels left the market oversupplied and primed for a crash. It also left oil producers bloated with unnecessary costs, inefficient practices and rising debt. The message for the North Sea is clear: learn to cut the fat and operate as leaner enterprises regardless of the oil price. To date the industry remains riddled with inefficiencies and a lack of co-operation. The OGA has intervened in five cases where operators were unable to agree the terms of infrastructure sharing, a key stumbling block for the industry in driving ahead with new projects
The OGA became a formal government company earlier this month and has full regulatory powers to intervene and issue penalties when required. The industry’s recognition that change is needed has generated a greater sense of goodwill than many other regulators receive.
“There was some nervousness at first, but I’ve noticed a shift recently – more and more companies are saying that they’re looking forward to the OGA having its full powers and actually really want us to use them. I think some of that is borne out of exasperation that they haven’t managed to solve some of the issues themselves,” he says.
Exactly. The benefits here are far in excess of the downfalls. We have no shut down planned until 2018 so its just twiddle your thumbs time and watch your position increase in value. If nothing else was going on here i.e Columbus and drill programmes, acquisition, then we would still be in a good position because between no and the start end of 2017 we'll accrue well over $30+ million profit at a minimum.
I hope the board manage to get another juicy acquisition of asset soon though!
Agree with your comment on ELA - to see ELA valued a 2x SQZ makes no real sense to me right now. You are right though - it is more comforting to be invested in a company with sound fundamentals and good cash generation that is undervalued than to be in something that has a huge valuation with nothing behind it. Looking forward to the next 3 to 6 months here and seeing what will happen.
Its a strange one SQZ. like you mentioned yesterday, I think its just too safe for the AIM investor, but for me guaranteed returns each year is what I want, we should easily do 50% over the next 6 months IMO based on cash position on EOY results. That takes us to news on forties pippeline opening up where we could increase production from 3k -4.5/5k which will see us go north again. That takes us into Columbus and drilling programme territory where on good news we could go up again.
One things for sure LEK, ELA etc all produce 3k a day (or will be) which is the same as us and based on todays oil market where reserves arnt valued in because the price is unpredictable. we should be sitting around the same Mcap as these guys
Right now the market capitalisation sits at around £40mil or $50mil. As per the interim results released end September 2016 the company states that the they have a net asset value of $71.4mil.
Even just using the current net asset value as a proxy for what the market capitalisation could and should be we are due an increase in share price of around 50% from here.
At that level we would still be undervalued as the company has a very strong asset producing around 3000 BOPD with a very low cost base. As the oil price continue to rise we will see continued strong revenue growth here. With Oil at $50 daily revenues should be in the order of $150k.
Oh and by the way - net reserves are over 4million BOE and the company is also involved in a number of other programmes right now.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.