Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Thanks L7, I had forgotten about the Sep hedging date reply. I do remember several discussions at the time about non-Kraken oil being sold in an environment where the screen price and actual price achieved might have had a $10 discount in the general market for everyone, so will be glad this segment ends in September.. that bodes well for Q4.
Very impressed with the interview i just saw regarding the Russian vaccine. It has 2 vectors so can be used for the second dose too.. is different from Oxford vaccine as it's already using a base approved years ago so already tried and tested on Ebola patients.. so no need for 3rd phase.. Apparently 20 countries have placed orders with the Russians for 1m doses. and it will be manufactured in 5 countries..
Personally i'd like to see a tablet form that can be produced and taken much easier.. like Malaria tablets.
L3
It was simply a reaction to the negative macro factors at the time - rising US production - US and China trade dispute - Trump talking down the oil price - Saudi being pushed around by Trump and Russia raising production regardless.
Hi Londoner7,
Thank you for that observation: SVT loan. I expect they can refinance it in similar terms... There is also the Malaysia loan being repaid, but they are also getting cash back from Malaysia. One thing I wanted to say in previous messages was that the share of the Malaysia production will be higher this year because the POO is low, and the Tanjoram field is now history.
Kraken: VLFSO is stuck below $350/Mt in Asia. So, repaying pace of Oz loan will be slower since April. But, there is hope VLFSO will rise...
gkb47: I no longer have any idea of what their business model is. They talk about "differential capabilities." To me that is mumbo-jumbo, unless they are properly identified. They do that when they show they can drill at lower costs (some smart engineers and geologists sitting at desks in Aberdeen I suppose. Hope ENQ can keep them.) When it comes to lowering OPEX costs of aging fields, the evidence is not so clear in the sense that there are limits to how much they can lower those in some fields (Heather/Thistle) apparently. Success with Magnus and in Malaysia.
chilting: May I ask you to share why you started offloading last Autumn when the SP and the POO were increasing? What was the thinking behind it? (Ex-post it was an excellent decision). But what did you foresee at the time?
GLA
Has anyone else noticed this id “mansardman” only post abusive comments. Maybe some in here got couple of accounts to vent their frustrations....
Don’t vent it out on me and pick up the phone and call investor relations....
Ammu. tuck your blouse in and get back to your Mister Men books. This board is for grown ups.
Chilting you’ve made yourself look stupid again. The other day you were comparing enq with bp and shell and it tracks the them....well, both of them are up and enquest flat....
There is definitely something going on behind the scenes... my worry is another placing to buy some old asset
Hi hitman1a, I don’t see any new news, but your post prompted me to look back to an exchange here in June on hedging which followed a reported comment by IR that their hedging programme ended in Sept. I concluded that the IR comment referred to their $31 swap but didn’t extend to the $52-$70 hedging programme required under the terms of the Oz loan.
As of the latest update I see two hedging programmes in place, the $31 swap and the Oz related $52-$70 hedge.
$31 swap
I estimate that this hedging represents about one third of oil production April through to end Sept, or roughly all North Sea production excluding Kraken. While a $31 swap looked a panic response to the oil price turmoil last Spring, I recently posted a view that this action may have been prompted by terms under the credit facility. Above an oil price of $31 this hedged production represents an opportunity cost which will be reflected in a profit/loss line in the accounts (earlier hedge programmes have been positive so I don’t know which side of zero the final outcome will be).
At an oil price of $45 I estimate ‘cost’ of this swap at c$10m/ month through Aug and Sept, after a cost of c$8m/ month through Jun and July, and, on balance, flat through Apr and May.
I’m sure you’re not suggesting otherwise, but to be clear, Enquest are benefitting from a higher Brent price on the remaining two-thirds of production along with any Kraken and Malaysian price premiums.
Oz related $52-$70.
This hedge roughly covers the repayments, including interest, due under the Oz loan which is to be fully repaid within 5 years. To date, Enquest repayments are ahead of the curve, helped by a $16m repayment during the first two month of 2020.
In today’s price environment this requirement of the Oz loan contract is benefitting Enquest.
SVT working capital facility
Unrelated to hedging I recently read that this facility, $32m at last update, is repayable this year – shame as it’s their cheapest borrowing.
“On 1 December 2017, EnQuest NNS Limited entered into a £42.0 million revolving loan facility with a joint operator partner to fund the short-term working capital cash requirements on the acquisition of SVT and other interests. The facility is able to be drawn down against, in instalments, and accrues interest at 1.0% per annum plus GBP LIBOR. The facility is repayable three years from the initial availability of the facility.”
Ammu
Its blindingly obvious why the SP is just flatlining at the moment - the SP is simply following Brent - as it has for the last few years.
When Brent goes up, Enquest will follow.
It actually shows what a solid investment Enquest is, unlike most of the other small oils companies listed.
Even at 100 dollar a barrel enquest would stay in the range 13-15p lol....
In my portfolio every share is up except this Shyte....
Ironpyrite,
Thanks for the link. I think most people must agree that at some point the POO will go to $100+ again. It's just WHEN ?
1 year, 2,3 ,5 or 10 years time.
As sure as eggs are eggs, and Ammu is a silly young fool ! It will happen !
The question is can we hold out waiting long enough for the magically day ?
I know I can ! I have a view it will come soon.
All the best
JAN
Ammu,
How old are you ? sorry how young are you ???
James Hunt was a British formula 1 racing world champion in the 1980's. However, sadly for you Krakenoil did not mean that in your case ! He was using a modern form of ****ney rhyming slang ! lol
The share price has been flat of late considering the rise in Brent, though I feel from Sept onwards we may start to see the sp moving upwards again (imo).
https://oilprice.com/Energy/Energy-General/Heres-How-Oil-Could-Skyrocket-By-138.html
Short term SP problem is we have hedging at $33 and $45.
For the full year, EnQuest has hedged approximately 8.1 MMbbls of oil with an average price of c.$45/bbl. In the first four months of the year, c.2.9 MMbbls of oil hedges with an average floor price of c.$65/bbl, c.0.5 MMbbls with an average floor price of $52/bbl and a further c.0.7 MMbbls with an average price of c.$31/bbl were settled. From May, EnQuest has hedges in place for c.4.0 MMbbls with an average floor price of c.$33/bbl.
Thinking we could still reduce debt by $200m to $1,100m by end of year and then more substantially next year, perhaps to below $500m by 31 Dec 2021. Albeit I expect the FDP on Bressay to be submitted in early 2021 and some cash to be used in 2021. Say 1m bopd /mth at average of $41 ( 45+45+33) : is that say 50% of monthly production? The Sp should still move up with Brent, but only when nearer the $48-$50 range. Brent wants to make a move to $50 over the next 10 weeks.
I have actually been steadily selling since last Autumn and only have a minimal holding at the moment.
When Brent looks like moving up - instead of trading sideways - I will buy back in, especially now that AB has ensured the companies long term future with Bressay .
PMO and Tullow are bound to be volatile after all their trauma, so comparisons are invalid.
Where is Jan when you need him...
Who’s James hunt ?
What’s your take on enquest sp stuck in the 13-14 range ?
I am sure they are looking to raise some money
Ammu, Go away FFS you’re an irritating James Hunt.
If he bought back in at a lower price than what he sold for then he’s done well.
Chilting bought back in the 16’s after deramping in the 9’s.
Need to learn a lot
Navion Oslo is now on her way to Scapa Flo for a STS with the tanker FRONT SAVANNAH.
The load looks to be in the region of 500k.
AIS is very poor today but it looks like we have a hook-up timed at very roughly 07.00BST.
NO is waiting just over 10 nautical miles to the south east of AK, she is now not expected at Scapa Flo until late Sunday evening, so it like we can expect a hook -up later tomorrow morning or early afternoon.
Navion Oslo is now slowly making her way towards AK for a hook-up that still looks to be scheduled for late today or first thing tomorrow. Arrival at Scapa Flo after hook-up scheduled for lunchtime Sunday.
Saturday hook-up would be 11 days since the last tanker left.
Navion Oslo is due at Scapa Flo on Sunday at about midday so if all goes to plan hook-up is likely early on Saturday or maybe even late on Friday.
She will probably leave Aberdeen early tomorrow.
Saturday would be 11 days since the last tanker left.
Spare a thought for long term Hurricane holders - it looks like they have a very difficult decision to make.