Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Just want to point out, my last link wasn’t one I’d read before, but the date I thought was 2020, when in fact it was from Feb ‘19, sorry if you thought it was recent!
Here’s another I’ve missed before, regards Columbus & some nice quotes from Mitch “ We now have this fantastic operating capability that we can use elsewhere, so we are looking for more opportunities to bring more assets into the portfolio.”
https://www.energyvoice.com/oilandgas/north-sea/192228/serica-preparing-to-go-to-tender-for-columbus-project/
Also, just found this, I’m sure I’ve not read this one before either, Rhum work over well planned for September start.
https://www.energyvoice.com/oilandgas/north-sea/225408/serica-books-awilco-rig-for-rhum-well-jobsqz/
Just came across this quick read regards what was the planned shut down of the forties pipeline for this year.
https://www.energyvoice.com/oilandgas/north-sea/233383/forties-pipeline-shutdown-postponed-until-next-year/
I didn’t realise Serica Energy had their own YouTube channel, perhaps they may surprise me yet with their PR.. Twitter next maybe...
https://youtu.be/r_aqfDqaKFY
Thanks, RELLIM - you and me both, then, in the class of '43!
Keep well and keep safe, all of us - sasa.
Thanks flexmw - will enjoy Sunday, I'm sure, with the family all e-mailing / phoning me then...
Re: views on this, just hope that one's own thoughts & expectations prove useful and not too far off reality, in the event - sharing is what life's all about, really... sasa.
Hi again sasa,
There's yet another coincidence, I am currently the same as you, however only just reached it a few weeks ago.
Have a brilliant day on Sunday, make sure you contact all those who are dear to you, party can be held once this situation is behind us
Not too long for the results now.
Actually appreciate all who contribute to this board, by far the best for information shared!
Happy Birthday Sasa,
Really appreciate you sharing your views & the knowledge you have gained!
Hi NewK, RELLIM & Jack - all useful observations on the SQZ / RRE possibilities and appreciated.
NewK - you make a very valid point about the age of Serica's BoD, notwithstanding their excellent stewardship of the company, especially in recent times.
However, because they're seasoned individuals and know what the company's worth / what it would be to an acquirer, especially in todays climate of many peers getting into serious trouble if the attrition continues, I'd expect them to consider SQZ to be a safer / more productive asset to buy than most others - hence a decent premium to be added to the price you suggest as a takeout level to gain their support. Otherwise, they'll happily pursue their own expansion plans.
That aside, the 300p I intimated is predicated on, say, 30p eps being reported shortly and if achieved, todays p/e of 3 x is no starting point - even in todays conditions and allowing for the usual AIM discount v the main mkt as a whole, a multiple of 5 x looks quite justifiable, so I start from there. Adding in the list of the many other attractions, achieving an exit multiple of 10 doesn't seem too fanciful to me but that's just my take if things crystallised into a serious offer for them to consider; anything much lower, I'd expect the usual dismissive statement of the proposal being issued that, as it 'seriously undervalues the value of the company' etc...
Echo the sentiment about this evil bug reminding us all that good health is the true wealth and to enjoy our families and friends while we can - I'll be the same age as TCW on Sunday, btw, so I can empathise with him on that score! - sasa.
One thing that SQZ can probably be termed experts at in recent times is reducing OPex and increasing life of assets. That's certainly a trait worth its pound of flesh in current climate.
As mentioned in AA chat yesterday transportation/liquidifacation costs of Gas from the states is touted as~$18 so putting a firmer floor on the price of gas over oil, again positives taken from the current production mix SQZ has. (However both need to increase to realise a greater MCAP) the O&G is fortunate to be producing whilst the world economy halts just unfortunate the commodity price hit rock bottom otherwise you could have turned these 1 month charts upside down :-)
Hi NewKOTB,
Your comment "how little time we do have to do things we want", i something that I think that we all try to push to the back of our thoughts, but in times like this, it is so true.
Keep safe
Sasa,
Forgot to add, that our BoD average age this year will be 70 years young !! ACW 77 years young !
One thing the virus has done is cause havoc with families around the world, but what it has also done is focus on how little time we do have to do thing we want with the people we love. Could this be an influencing factor in getting a 'compromised' deal done .... maybe!
Our BoD have done a stunning job, particularly over the last 4 years ... I would not begrudge them 'early' retirement.
Mitch at 60 this year, would I guess find a place alongside AA as a key facilitator in the bedding in process too.
Hi sasa,
That could certainly be a base for discussion between the two companies. There would certainly be many advantages for RRE, one of which would be the experience of SQZ as operator of their licences, which I personally believe is lacking in RRE, SQZ have the staff to back that up.
I would personally like a higher bid than the one you suggest but in today's market I have to be realistic and say that would be reasonable.
To reduce gearing the offer may not be all an cash offer, but a combination of share and cash. To me that would be more acceptable and allow us to retain interest in the Newco.. RRE do only have a relatively low number of shares in issue and such an offer could make them more liquid.
Whether any of this is even being muted who knows? However it does excercise our imagination in this strange environment of isolation.
Keep safe one and all
sasa,
Always appreciate your expert eye and views
From my point of view, think we would be hard pushed to get much above 180p, in fact if I were to put money on it ( which I have btw) its 49/51 in my view on either merger or straight takeover.
The t/o has the edge, but only just, solely due to AA as you mentioned retaining 'control' and hence major influence on the final destination of RRE in a few years and AA cashing in.
An cash/equity offer may be the best way forward for AA. 140p cash offer plus a 50:1 equity.( still leave AA with ~22% of voting equity) Just so SQZ holders still have some upside from the deal. Sum of deal worth circa 158p.
Many, including me would cash out on that deal.
From a merger angle, don't see how AA could retain anything near his 30% equity .... but he's a numbers man and eye for a deal, so I'm sure he's calculated the optimum approach and end game.
Have thought and expressed so many times here my preference for a merger, but it's AA shot, black ball middle pocket !!!
Should the OPEC / G20 go well on Thursday / Friday, we could be waking up Tuesday to the beginning of a new era or the end of an old one. That is unless the timing and agreement reached of OPEC concluding allows for an RNS after close on tomorrow.
Could be 'Game over'.
atb & imo
Hi flexmw - roger that...
It has been mooted, of course, that a merger or T/O attempt of one for the other might well be considered, as a 'half - way' house to their expansion plans in this volatile oil mkt, notwithstanding whatever the forthcoming OPEC production cuts are agreed / whether they 'stick' for long, etc.,
Such an amalgam would create a group producing some 55k boepd currently (50% /50% oil &gas) with op. costs around $15 per boepd I calculate, following RRE's revised forecasts yesterday and there must be some merit in that possibly...
However, that highlights two of their differences, though - management style and 'skin in the game' (AA owns 30% of RRE's equity) and he'd want to have the 'whip hand' in such an event. SQZ has eschewed borrowings to fund their growth plans so far, whereas AA isn't phased by it; indeed, we're told that he has already lined up substantial credit lines if the right opportunity presents itself, so I guess that he would be more likely to go for Serica than the other way round.
Which begs the question (which I was asked recently) - what would be required to tempt Serica's BoD to seriously consider an offer and recommend it to shareholders? I reckon 300p ps might be in the ball park, here. If SQZ reports 30p eps in a few days time, an exit multiple of 10 would be about right, imv, given the continuing benefits of the BKR terms / higher prod. share to come from that, inc. operatorship, Columbus coming on stream / a successful side - drill into Rhum 3 (60% of the total gas reserves are located there) and all the other licensed acreage elsewhere to be considered, not to mention their existing £120m cash on hand / prospective cash accruals, etc., - such an offer would cost some £800m (net gearing of 50% for the combined group afterwards?) and be well within reach, given RRE's existing position. He's probably already run the numbers...
All pure speculation, of course but it's an indication of the possible potential for both of them - sasa.
Hi Sasa,
Much appreciated, good to see moves in both yesterday, interestingly it seems share price wise we have fared the better of the two, maybe to do with being ~80% gas, we need to move circa 45/50% to get back to around all time highs, where as RRE need to move circa 130/135% to get to somewhere around theirs, but their management style being different to ours has them talking about targeting a £50 share price overtime, it will be interesting to see how this plays out, I also look forward to upcoming 2019 results.
Hi flexmw - I like both; they have very similar characteristics, of course, not least their huge cash accumulations over the past couple of years which is a near unique advantage in this climate.
Just on this comparator, RRE is exceptionally strong with more than 2 x its sp represented by cash in the bank at current price levels v SQZ's sp comprising some 50% cash - both debt free, of course and both on the lookout for attractive deals to exploit - ideal conditions, right now...
The terms of Serica's BKR deal provide more comfort than RRE's marathon purchase and the longer term outlook for gas seems more appealing than oil (80% gas for SQZ v 40% for RRE) and their op. costs are much lower, too ($13 boepd in Serica's case against double that for Rockrose) but both are looking to screw these down even further if they can.
RRE reported good results yesterday with some other positives and SQZ's 2019 figs. are due out shortly and they should be impressive and, one hopes, will include their maiden divd confirmation to join RRE on the divd list.
SQZ 'aspires' to move up to the main mkt at some point, whereas Rockrose is already listed on there. Ergo, many pros in each case, albeit different ones and it's difficult to list all of them but if I had to opt for one over t'other - I'd just marginally go for Serica, I think, as I've been invested there for much longer and know their steady approach / management style better but very little in it, tbh. Hope that helps - sasa.
Sasa,
Seeing as you’re in both, do you like one more over the other, or fairly equal so to speak?
I read a lot RRE are worth around £21 per share on cash alone & have had their share price higher than this, so it will be interesting to see the latest figures for SQZ to see what true values we have.
Good figs. out today from RRE (as expected+ further positives) with intention to pay their 2nd divd for 2019.
I'd expect SQZ to do at least as well when they report shortly, inc hopefully, following through with their intention to get onto the divd list with their maiden distribution. What they have in common, of course, is an abundance of cash in the bank.
Until very recently, being over capitalised was considered to be an inefficient balance sheet profile but now, everybody is clamouring for liquidity as a form of 'life support' - how times have changed and in so short a time. Both remain amongst the safest havens to be involved with right now, imv - sasa.