We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Hi Stevo et al,
I listened to the meeting earlier. I've tried to find a transcript but I am fairly sure I heard AB mention Indonesia (as hinted at Davos) fairly early on and in relation to an increase in gas in the mix. I think this year a "late life operator top quartile everything" confidence in the North Sea was balanced by an increased future outlook NOT in the North Sea but abroad with "core capabilities" (drilling, interventions and decomm) being mirrored in Malaysia and possibly elsewhere. I don't remember the "we could go elsewhere" proposal being so prominent before even if that is maybe 5. 10, 15 years away. Tie that to the comments on lack of investment and it is politic. Nice work.
GLAXXX
EnQuest plans ‘funnel’ of UK North Sea’s largest oil projects
Boss says EnQuest will "prove up" heavy oil capabilities on Bressay before targeting Bentley.
EnQuest (LON: ENQ) will push ahead with a pipeline of some of the UK North Sea’s largest developments, with plans to “prove up” its heavy oil capabilities.
The “funnel of opportunities” cover Bentley and Bressay in the east of Shetland, some of the largest untapped developments in UK waters.
First on the list, due for a field development plan and final investment decision this year, is a gas project at the Bressay field, before moving in to a phased approach to recover its heavy oil.
That initial stage will produce the gas cap at the oilfield before tapping into its wider resources, estimated at around 200 million barrels of oil equivalent.
EnQuest North Sea manager Steve Bowyer told Energy Voice: “We’re moving forward with the gas development of Bressay, which is effectively producing the gas cap on the Kraken emissions reduction project.
“We’re looking to move that through field development planning phase and FID through the latter part of this year.
“That will create the fairway of the phasing of the oil development which will follow thereafter. So key priority at the moment is getting the gas development moving and then we’ll look at timings on the oil development phase.”
Bressay’s initial gas project will be used to decarbonise the Kraken FPSO, displacing diesel power generation.
Bentley
Once that project is going, it will open the next opportunity in Bentley – an even larger field which has been estimated to be able to produce up to 300 million barrels using enhanced oil recovery techniques.
It sits within 10 miles of Bressay and the Kraken field.
Mr Bowyer said: “As you move through your heavy oil developments, Bressay’s the next logical one in terms of its heaviness.
“We think we’re the right operator to take Bentley forward but we clearly want to prove up our capabilities on Bressay next.
“So it’s almost like a funnel in terms of progressing. We’re looking at potential enhanced oil recovery on Kraken and keep optimising the Kraken asset. We’ll then take Bressay through via the gas development, then a phased oil development. Then we’ll see Bentley following thereafter.”
More M&A
Even with those projects – rivalled only by Rosebank and Cambo in the West of Shetland region – London-listed EnQuest is still focused on striking deals to grow its portfolio, said Mr Bowyer.
“We’ve got a really strong portfolio of assets. Kraken, Magnus and SVT and also internationally in Malaysia.
“We’re very focused on M&A so, having de-levered the balance sheet we’re looking for transformational growth. UKCS focused, then we’ll pivot internationally once we successfully grow the UK business.”
Https://www.energyvoice.com/oilandgas/north-sea/550918/enquest-uk-oil-bentley-bressay/
And still we have plenty of shareholders willing to sell out.
Thats fine by me, let the buybacks take that advantage
Stevo, for good measure can you do your FCF calculations at $86 average Brent for 2024 and 2025 where we are trading today? Struggling to understand EPL at $175m.
Good call and in particular the new CFO and Ops Guy came over very well. Key takeaways for me:
1. On the last call there were 3 or 4 M&A deals on the table. Felt more remote on this call but still a potential due to tax losses
2. No info on massive gas opportunity referenced at Davos. Malaysia is mainly a lift fee for Petronas gas.
3. Good news that Unions are getting involved.
4. CCS and hydrogen opportunity feels very distant - 10years plus
5. Bressay and Bentley still a possibility to develop but requires labour to retain investment allowances
6. EPL effective tax rate is closer to 60% ($175m for 2023) due to disallowable costs (primarily interest and ABEX)
7. 2024 an investment year but great to see start of shareholder returns.
Need to rerun numbers for 2024 FCF forecast now we have details on 2024 lease payments and EPL. Management have used $80 oil as their assumed rate. I will start their and easy to flex for higher oil price.
Well $15m is there to take advantage of any weakness going forward
It all looking good. I was initially disappointed by the buybacks. But they will need to spend around $100,000 every trading day to get through $15m by the year end. The net debt reduction to $409m was pretty good and even with the EPL payment we could get to around $300m by the year end assuming no M and A. I liked the idea of making money from the decommissioning team.
I thought the new production guy was good and even with his dour style, still managed eloquent answers and and a higher degree of confidence and enthusiasm than AB and the new FO.
Given the good news story from ENQ, I thought AB was hesitant, but overall, this is a team that is delivering and has clear but perhaps cautious plans for the future, which on balance is good.
Well Brent up at $86.81, a good results by any standards and all the sp can manage is 2.5%, let's hope for a little more by close following some new targets from the analysts/brokers.............?
First impressions..
As the Jefferies guy said I liked the look and feel of the new refreshed team.
I'm anticipating a large(for ENQ) UK M&A deal to be announced this year.
I am more positive on the forward direction than I have been over the past couple of years Irrespective of the UK fiscal regime.