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What is the benefit to the Iranians of selling an asset only to have the proceeds go into escrow as their share of the Rhum revenues currently do? OFAC would never approve the release of the funds
Also any negotiation s would be held with the trustees.Which would mean there would be no Iranian contact.
Sasa
Surely with IOC share of Rhum held in trust and in s escrow account it would not cause problems as the proceeds would simply go there.
Thanks Sasa.
I thought there was a sanction issue there.
But, If SQZ were able to purchase the licence (hopefully on the cheap) would that not release sanctions?
Or, I suppose, the purchase itself would be a breach?
Not a chance of Serica trying to buy the IOC half of Rhum, Danno, unless they want to jeopardise their licence for access to using US equipment if necessary - sasa.
Is there any value in SQZ buying out IOC at Rhum?
GLA
Danno
Wow,
Some chunky buys after close today, inside info in
My opinion......how fortuitous!
if the SQZ BOD are not careful, they will get some activist funds/ companies buying in and looking at the cash position and wanting it distributed
There must be all sorts of prying eyes on this mountain of cash and its growing everyday, gas at record highs and oil increasing, no debt, costs miniscule and limited capex.
Can you imagine what would happen if the ruskies invaded Ukraine
dickupham,
I agree that a special dividend could be issued this year which would be on top of my 7p, which would leave them room for future years.
I share the concern about the future as we have had the statement that looking for appropriate opportunities and not over paying for them in several updates. My worry is that they are judging these "opportunities" against the BKR deal which as we all know is not likely to be repeated and as such "our" cash is just sitting idle .
Just to add if there is nothing in the pipeline.Then why not simply invest the cash pile back into BP or something similar. Maybe a renewable company investment trust.
I think the i.c article was complete b...lls up on their part. This should have happened after the ops update inmv
Let's hope the ops update is positive. As like yourself and dickupham it is starting to look like one to not hold going forward. Having said that a attractive dividend would keep me on board until eiggs have been put to bed.
dickupham,
Wonderful post, fully concur in all that you mentioned esp "Great returns have been produced for shareholders over the last 5 or 6 years but nothing carries on forever...."
Our Board would do well to place emphasis upon this quote :
"Do not spoil what you have by desiring what you have not; remember that what you now have was once among the things you only hoped for." - Epicurus
SQZ should lock-in gains for all shareholders by doing a deal, +300p/s. Our cupboard is virtually empty in terms of drivers and the markets will punish SQZ in anyway they can, gone are the days of known SP drivers (BKR) that would ensure our valuation kept climbing. We are now back to being your bog standard AIM share, with all the volatility that it encompasses. Remember how the market 'rewards' drill failure in any shape or form, just have to look at CHAR today! N Eigg will be a massive cash drain with a risk / reward firmly in the risk category afaic and no doubt the markets too.
As for CoH, if our FCF for 2021 was in the region of ~£140m add on 2020 YE CoH and we should exit 2021 with circa ~£230m, or almost 40% of current MCap in cash. With 2022 revenue, CoH should, as of now be >40% of current MCap. That said, really hard to fix our CoH as R3 was a nightmare and Black Hole for cash that Stephen Hawking's would of been proud to have discovered, God Bless him.
aimo & dyor
its..........not it's
269m shares in issue @7p p/s = c.£19m.
SQZ should have £200m+ in the bank, n'est pas? And with more rolling in daily. What's your estimate, NK?
7p? They were due to pay out 5p (I reckon) before Covid came along and it was decided to be ultra cautious. Then they stayed ultra cautious when there was no need for it. Directors love cash in the bank and all options open to them, including helping themselves. SQZ's directors no longer seem to me to be focused on what shareholders want. If they're trying to find another BKR to increase production and reserves, they might do well to think again, because it ain't gonna happen. BKR was a one-off, never to be repeated. SQZ was chosen; we got to benefit in spades. My concern is that if they do manage to make an acquisition (perhaps in the process blowing a lot of the cash that's been accumulating for a while now - and is set to continue or even increase if Russia carries on as it is) it will dilute margins and weaken the model. Acquisitions rarely manage to deliver the synergies projected in advance. It's just what happens (or rather 'doesn't happen')
Great returns have been produced for shareholders over the last 5 or 6 years but nothing carries on forever. My preference would be for the directors to take a good offer and leave future growth to someone bigger. I have concerns about the market failing to ascribe what many existing shareholders would see as a fair price to the shares moving forward. The facts are all very well (production massively increased now that BKR's complete, great extraction cost per boe etc) but there are many factors outside the company's and the directors' control, not least the wildly fluctuating price of gas. However good things might look, oil & gas investment always involves above average risk. Period.
All the above might conspire to make future SP growth slower than anticipated by many. I hope it won't happen but it might.
In the meantime let's at least have a decent dividend PLEASE. 10p is minimum afaic - preferably more. It doesn't have to be inked in for the future - sensible directors acting in everyone's best interests would find it easy to offer guidance about future expectations. I'm no longer sure that what the directors have planned would match up with what I and others would prefer SQZ to look like. Greed always seems to rear it's ugly head at some stage, which has become an increasing concern of late.
GL whatever your aspirations for the Co
jmofwiw
always dyor
Last years dividend was circa 3% of the share price at the time of announcement in April. On that basis and with the increased earnings over the last few months, a dividend of 7p could be possible.
Flexmw. I think you are probably right,but you never know.
Flexmw. I think you are probably right,but you never know.
Upomega
The next update I feel will be telling, whether a dividend of any sort will be mentioned or the wait until April for the dividend announcement, 3.5/4% would be welcomed, however why do I have the feeling the Bod would be happy increasing the existing dividend by say 25-30% & think that’s more than satisfactory - circa 4.3 - 4.5p instead of to a percentage of our share price as you mention….
What is going to be interesting is how much the dividend will increase by as we are currently yielding a little over 1.4 per cent.From what I can see most profitable o & g companies are yielding around 4 percent.On that assumption we could have a full years dividend approaching 10p.inmv