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Philjayones..
Great Post by-the way.
The future ..... I'm more interested in the next two weeks. .... :-)
atb
Thanks for that.
By the sounds of it you are looking for a bit more excitement, with the exception of the announcement of the purchase of BKR, that has not been the company that serica is.
Other companies have made acquisitions in the time that serica have been looking, but none have been on the scale that serica could afford or could see value in, would you prefer that they bought something for the sake of it? Rockrose draw obvious comparison but they in my opinion got away massively with their purchase of the Brae assets, many made good money, myself included but it was a big risk, one that I'm happy for Serica to avoid.
Serica aren't in a position to purchase a multi field large portfolio such as previously held by Chevron, Exxon, ConocoPhillips etc who have been the big sellers, they are looking for smaller options where value can be added and won't result in massive debt or liabilities, I did think they would get andrew from BP and they may yet still, that's the only thing I thought was a real obvious option.
In terms of issuing updates, if there is nothing to update (which there hasn't been) what could and should they say? We all know how the market reacts to something released that's actually nothing.
With regards going through the motions I think you underestimate what it takes to be, let alone become an operating oil company.
Since acquiring BKR they've had major integrity issues both under their control and under the control of others - forties pipeline, Erskine pipeline , the abandoned caisson etc.
They've been involved in the unsuccessful drill of rowallen and are now part of the columbus development. They continue to progress what has become a difficult Rhum 3 resolution, they've reduced operating costs massively, had to deal with the permit issue every 12 to 18 months, been awarded licensing with Eigg a particularly interesting prospect given its location and that its pretty much understood what is already there having been drilled before and they are no doubt making plans for it. They have also continued to search for acquisitions that they see real value in.
This is all on top of the actual operating of a large offshore asset and all the things that entails.
Much have this has been done under the restriction and difficulties resultent from the covid pandemic, personally I think you should be giving a little more credit but that's up to you.
I am in no way discounting your frustrations and where you see issues, I'm simply explaining why I don't see things quite the same way.
Ultimately we share the same major frustration that is the SP, but I think there is little serica and its bod could or should be expected to have done in response.
philjayjones
In answer to your question.
I am still invested in Serica for the reasons which i listed below. No one in their right mind can doubt what will transpire during next twelve months. My problem is that the company seems to have lost its drive in terms of acquisitions and possible deals. It just feels like they are just going through the motions and that is not meant to be little what they have achieved to date.
For me it appears that other companies are managing to form deals where as Serica does not.
Also as other posters have posted the share price is very frustrating in how it is performing which i think is not helped by the lack of updates coming from the company.
Obviously I missed out Rhum 3 there but you get the gust.
You have been asked in the past upomega, but I can't recall any answer, apologies if you have and I've missed it and for my directness , but why are you still invested in Serica? I ask out of interest rather than with any aggression.
You obviously don't think it's a good investment given your constant running down of company, market and industry conditions (though interspersed with brief, fleeting periods of positivity), is it because however poor a proposition you consider it, you can not find a better one or is it simply a "fear of missing out"? I can only think that one or both of these is the case.
Investment choices are personal and there are many many reasons people choose where to put their money. Personally I am not remotely scientific. I only invest in industries I understand and as I don't have the time or understanding to delve too deep, I look at fairly simple and obvious criteria. When I invested in serica I considered there to be a fairly clear number of catalysts for growth. The BKR one surprised me as it did most of us and I count myself incredibly fortunate. As time has progressed these catalysts were and have developed as Rowallen (obviously a fail) Columbus, full ownership of BKR, future acquisitions (not so far, but I still believe it will happen), dividends, move to main market and now Eigg as a prospect.
In your latest post you list some of these somehow as a negative and not exciting for new or lth holders, speak for yourself.
It has been very frustrating I agree but you seem to give little credit to the pandemic and so market conditions. Some of the majors saw a 50% decrease in SP, Serica did drop but not by anywhere near as much and have also not seen any great rise as would be expected this time of year, neither has much of the industry. Personally I am hopeful that things will improve and recover over the next 12 to 24 months to what we might consider "normal", I also obviously hope that the catalysts I have identified will see the value I would like to see over that same period.
Interested to hear your thoughts.
So what is the best we can hope for.
Succesful r3. Net to serica 3 to 4 thousand bod
Columbus. Net to serica 3.5 thous per day
Next year 40per cent uplift
Not forgetting a 3 p dividend. Which isnt guaranteed.also gas now rapidly falling again.
Not really a compelling case for any wood be investor. Let alone fed up lth to continue to hold. Inmv