Serica Share Chat (SQZ)

I'm sure our board would consider a deal with BP encompassing an asset swap that included Namibia and Shearwater.

I sincerely hope he has done better than most of us !! My play money whilst awaiting SQZ dormancy to end, has led to a large holding, which even when purchasing at 36p and then averaging down, leaves no profit to add to my Serica holdings.
Feel good that you missed that one!!
Apologies for sidetrack, getting back to Serica, the next news will be either a drill in Namibia next year or probable relinquishment of Licence. Now if only BP would come back to the table.

Well done on i3 today ..... no doubt a little profit will wing its way here one hopes.

I missed that one, didn't really have time to investigate, oh well ..... (sad emoji)

atb

Who knows what will happen to energy prices in the future, all I know is domestic demand is increasing YoY.

Brexit ... new tariffs on imports would ensure the UKCS will thrive, come back in a months time to see where prices are. Until then, business as usual for SQZ .... cash rolling in, debt free, strong financials , one of the lowest lifting costs in the NS and a mega deal or two on the near horizon. Even with 8 year gas lows healthy profits are still being made. SQZ in 25 days time will increase its share of the BKR PSA by 20% and continue to benefit from the 35p/therm hedge.

http://www.ipaadvisory.co.uk/media/1139/brexit-implications-for-the-uk-gas-industry-17_06.pdf

Part of the reason why UK Nat Gas prices are near 8 year lows

Must say the price action does look totally out of kilter for a producer throwing off cash at the rate it is, looking forward to the new year and the extra income for no more opex.

A couple of quick reads..

https://www.energyvoice.com/oilandgas/north-sea/213303/focused-team-was-key-to-firms-north-sea-success/

https://www.energyvoice.com/oilandgas/north-sea/213025/serica-picks-bab****-for-north-sea-copter-flights/

Sorry, the bid will only be £2.99. Form a nice orderly British queue/

So from 1/1/2020, in 30 days our share of the BKR PSA will increase by 20% so continually adding to our est c£95m CoH, profits will most likely be up again and our OpEx should also fall.

Since the BKR deal was struck only 2 years ago, SQZ has gone from being a minnow swimming with the sharks to being mid-range producer able to compete with other sharks. The next could be, as Mitch stated, looking at doubling our production.

My concern is SQZ are in effect a free cash machine with a guaranteed 100% increase of the BKR PSA by 2023 as of today. That has to be tasty to someone ..... but when we add in another deal, possibly on similar terms to BKR (40/60) split on striking the deal with improving percentages YOY, for the next 6 years, then you can easily see how we could be taken out shortly after our next deal. The BKR model has been proven .... SQZ will be a fully self-funding acquisition WITH massive FCF ....

Could this be ACW et al retirement game plan, after all the AVERAGE age of our BoD is 69 years, Mitch being the baby at 59.

Will someone take the bait ..... I think so !

2020 will be a massive year, just need the vision to see it.

aimo & atb

NM,

Yes, our BKR revenue increases by 20% from 1/1/2020 and don't forget the hedge is still in place too at 35p/therm

We are then fixed until 31/12/2021 after which it's all ours ........ Muahaha !!!!

atb

receive a higher percentage of revenue next year from oil sales based on the acquisition carried out. If so great news and more ?? in the bank for the next acquisition?
Atb,
Northern

Lets forget about i3 Energy, I'm taking a hit on my holding and its been a sorry state of affairs. Up 25k down 25k twice. Another Aim lesson. Andrew or ETAP for me, lets see what Santa brings. GLA.

Sasa,

Agree, Shearwater would be guilt-edge deal and primary choice of deals for me atm.

Don't really care what would follow, but Shell's Sherwater 28% as a follow on to BP's 27.5% would blown my mind should the deal/s be concluded on similar terms to BKR ..... Mouthwatering and deliciously scrumptious comes to mind !!

Come on Tony and Mitch .... do your magic !

atb

It's a possibility, I suppose but it would run counter to Serica's avowed policy of buying into existing production / ideally as operator, to extend field 'life', etc., not get embroiled in development capex / risks when their existing model is working very well, so far.

BP's Shearwater looks more likely to me, given their close association and they still have a 5% odd stake in Serica, too, if memory serves (not that that's material, mind) - sasa.

Problem with that is SQZ would get in a bidding war with RRE and on that basis they would loose, RRE will look to do a unitised approach with i3e for serenity, i3e currently has a discovery of around 200 STOIP in Serenity expect to be larger to the west and joined to TAIN. I don't think SQZ can afford this one.

Seems they've heard your rumour this morning. We are in a good position to have options

Yep, we could easily make a move on i3 Energy now.

They are in dire need of cash to progress Serenity and Liberator ... probably get the whole lot for fire-sale price should their SP decline continue.

Or we could farm-in and become operator for nothing, giving i3 a free carry.

Great for SQZ to have options with our CoH growing day by day, I estimate at c£95m atm

atb

https://simplywall.st/stocks/gb/energy/aim-sqz/serica-energy-shares/news/a-closer-look-at-serica-energy-plcs-lonsqz-impressive-roe/

From my basic chart point of view, looks like we hit a support level at around 117/118p, a couple of technical indicators have just turned positive & it looks like we could be heading back up, higher lows hopefully will mean higher highs, would be nice to see further rises to confirm this.

inmo
The price is where it is for the following reasons
Unknown pending deal which may require dilution
Rhume element for ethical reasons and or uncertainties with ofac
Brexit

The plus side for holders is that cash is still being accumulated.
Hopefully a decent deal will materialize with zennor and shearwater together with a nice farm in with Namibia.
For the foul mouthed poster
God bless you and I have alerted every financial message board together with the fca .

I bow to your superior knowledge, but does that mean ordinary trade should eventually appear?

Drew, afaik, the UT is the result of the call and determination phase that required ORDERS to be placed resulting in producing an UT trade. If the volume trade during this phase is less than, in SQZ case 10,000 share then no UT is produced. So you have to have orders placed during the call for the determination phase to calculate the closing UT. So, in essence someone somewhere had to initiate the auction. In this case large order ending up trading via the algo bot to max out the orders placed during the call period. So the fact we have had a massive UT tells me we have a DMA MM, that wants shares and the bot delivered them at 125p/s, being the highest price paid today, so is imo a buy. Someone was determined to get this UT away today.

Please tell me where this is wrong. Although reading into the meaning of UT trades is in truth a BLACK ART, aimo

atb

It is not a buy NewK, it is an uncrossing trade.
Google that to get the picture.

£322,000 buy, so we now know the reason behind the 13 red days.

Old just read one of my previous posts. Has a habit of peaking at circa £1.40 then walking down to circa £1.10 and then back up again. Beginning to look cheap again - let’s hope the hedge funds and venture capitalists have something better to spend their money on....

Atb