Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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#OOTT The Unthinkable Is Happening: #Oil Storage Space Is About To Run Out | Zero Hedge
h1a, bit surprising these geniuses didn't think of this 2 months ago to me.
Hi Squif your post made me think. If a company has good news they're rarely shy in putting it out there. Like many here I have been a tad disappointed at the percentage of hedges at a higher price but could we missing something? Do EnQuest have some fixed forward deals that are commercially sensitive and may mitigate what seems to be hedges on the lower side. I may be straw clutching but I wonder if there are other sales that we do not know about. I just don't know enough about how oil companies sell their production. I know oil swaps exist and that Mexico used to tender for their production but I'm woefully ignorant about this area.
Romaron - I would almost say that Enquest's SP like many other North Sea oilies is priced as if everything that can fail will fail. I think that April will be awful as regards Corona virus and Brent but then focus will shift to the future. I may be completely wrong but I think having paid off all debt and having the PiKs negotiated puts Enquest in a stronger position. Enquest could have hoarded the cash but they decided to pay off the debt early. Everyone knew in advance that H1 2020 was going to be awful (supply overhang but they didn't know about Corona virus of course). I think it was a mistake to just have the hedges for Q1 but maybe something has been negotiated (who knows) or maybe they sold them and made a capital gain. Q2 will be bloody but it will be that for most companies even PMO with 40% hedge. PMO has a break even at 50 and Tullow at 45 not to mention all the shale oilers in America.
https://www.theguardian.com/science/2020/mar/29/coronavirus-survivors-blood-plasma-could-be-used-to-fight-infection
NHS Blood and Transplant has already begun work to identify potential donors, a spokesperson said.
“Plasma from patients who have recovered from Covid-19 will contain antibodies that their immune systems have produced in fighting the virus. That plasma can be transfused to very poorly patients whose own immune systems are struggling to develop their own antibodies. The plasma transfusion is therefore intended to provide the poorly patient with antibodies from a recovered patient to help their body fight the Covid-19 virus.” seems like a very good plan..as data from a couple of days ago indicated 50% of UK people on a ventilator still don't make it..
Really for HMH. I go here to check the HYN rate: https://www.bourse.lu/search . I don't do it regularly but was annoyed when it stopped updating on 6 Mar. I assumed I'd exceeded my freebie limit or something but was still able to access Tullow prices daily. It refreshed on 26 Mar at $29.86 and on 27 Mar $30.591. I'm thinking that this isn't traded very regularly and something has definitely happened between 6 and 26 march. Of course I may be reliant on some manual updating and the movement is to be expected with what is happening in the world. Just thought I'd mention it.
Nearly forgot. The 19 March update was ahead of the meeting due on 26th. On the 26th the FCA, FRC and PRA announced a series of actions regarding financial reporting. Prior to this in the week before there were rumours that this would happen. I think it timely that EnQuest issued the OU as a precursor to the 26th. They had what in these times was quite good news and wanted it out there. RNS's are expensive and EnQuest have been positively parsimonious in issuing them in the past.
I believe the OU was a hedge on the Full Year Results event being cancelled. Judging from the Financial Calendar they still have to have one if TBC means anything. I spoke to IR early on the 24 March and they'd have to be bloody good actors because I genuinely believe that they felt the meeting was still a possibility but naturally everything was (and is) in a state of flux.
*Possibly all the above is garbage but some of you have quite cunning minds and it may stimulate.
Indeed Romaron !;)
No it doesn't. If it did we would not have the ventilators and PPE shortages that exist. The world have been regularly riven by disease and plagues since time immemorial and financial crises are just as common. Experts agree with other experts whilst the outlier is seen as a worrier and out of touch. You cannot predict a black swan event and preparing for every eventuality is cost prohibitive. I reread the 19 March OU and had missed this: " in accordance with the Sculptor Capital facility agreement (previously known as the Oz Management facility" and my heart missed a beat. My worry was that we'd sold on the debt but Oz is now Sculptor and it is a name change. When debt is passed around it never ends up in the kindliest hands. Who knows who's holding our HYNs now? [$30.591 27Mar] The RB is more hybrid [30.25p]as retail investors are involved as well.
My point in mentioning this is that OZ did anticipate "an event" and insisted on the protection on the downside that few ever imagined would be called upon on. It was a handicap when demanded but has turned to be a protection with the collapse of oil. I think this clause indicated the parlous state of our finances in 2018 as most companies want as much freedom as they can squeeze out of a lender. Going forward might we expect more of these with the SFA?
I am still pretty relaxed because I see the pandemic being of short duration and whilst HMH is right about the Darwinism of capitalism the real test for EnQuest cannot be measured for a few months. The glut may be gone in less than a year but as it gurgles down the plug-hole I think you'll get a surprise at what the futures are indicating for oil. AB and his team just have to make sure we're there when it happens.
Don't assume that credit markets are controlled by experts. They may have actuaries coming out of their ears but ignorance really can be bliss. They are though populated by opportunists without morals and vultures really is too kind a word. They really are wheel-clampers in suits. They just follow the script and existing rules. For a few months the financial ambience may be benign but it won't last long. Testing times ahead but I believe our team are up to it.