Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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haha Romaron, I also found that photo choice a little strange! Great post
Thanks Dol03 - I was out last night and you saved me a job. There wasn't a picture of AB in the paper edition and that's probably for the better as it isn't one of his best. He is a far more impressive individual in person. What I also found most interesting was the author, Greig Cameron. He has been a Scottish business reporter for 12 years and there are few bigger businesses in Scotland than Oil. I would imagine his contacts are impeccable as he is currently the Scottish business editor of The Times. People like him value their reputation ans this (for me) adds weight to the article. Even allowing for sub-editor hyperbole we have "ridden the storm". What that means is we are now "boring" and firmly in the rebuilding phase and filling the cash coffers. Hold = boring and that in business terms is good after what we've been through.
*Still confusing myself over terminology. 2P, 2C, STOIIP which leach into each other and don't always have the clearest of barriers. Then you have the sanction, FID and FDP behaving similarly. It was mentioned in the article and almost "sotto voce" at the AGM that the company will add new UK licenses as well as drilling at existing operations. I'm still a little suspicious about the glamourising of potential reserve increases at existing operations as I'm sure it isn't as simple or guaranteed as they imply. There is often an element of subjectivity involved and you'll never meet a pessimistic geologist before drilling commences. The Eagle field might be the easiest to follow as expediency sometimes rules (in Kraken they moved power to the best producing wells when it [power] was limited). Of course, they may also be surprised on the upside with both!
Pelle, in my optimistic view ‘little point jettisoning the shares right now’ means onwards and upwards! :)
Thanks Dol, good article.
terminal on Shetland and has operations in Malaysia.
A trading update yesterday showed that the group’s production was running about 25 per cent ahead, year-on-year. Production equivalent to 69,973 barrels of oil per day was achieved in the first four months of the year and the company maintained its guidance of between 63,000 and 70,000 barrels for the full year. In addition to a strong performance from the Magnus field there was “significantly improved” performance from Kraken, although previous guidance of producing between 30,000 and 35,000 barrels from it was not upgraded. Simon Thomson, 54, Cairn Energy’s chief executive, told shareholders at its recent annual meeting that Kraken had been producing more than 45,000 barrels on some days this month.
Enquest’s net debt was trimmed by $50 million in the first four months of the year to $1.7 billion and Amjad Bseisu, 55, the chief executive, confirmed that strengthening the balance sheet and reducing debt was a focus for this year.
At current oil prices, Mr Bseisu hopes that the ratio of net debt to earnings before interest, tax, depreciation and amortisation can be below two times. That would be the first time since 2014 that the measure had fallen to that level.
He also confirmed that Enquest was looking at adding to its UK assets through new licences as well as drilling at its existing operation. He said: “We are sorting our Kraken issues and I think we have [other] assets which are outperforming. Hence we are feeling quite good about the asset base we have.”
Analysts at Jefferies suggested that the production performance was “encouraging” while Canaccord Genuity predicted that net debt could end the year at between $1.5 billion and $1.6 billion depending on the oil price.
Mr Bseisu’s generally upbeat tone and the trading update appeared to do little to reassure investors concerned about commodity fluctuations, however. Brent crude futures, the international benchmark for oil prices, was set to have its worst week this year, with the price falling below $69 per barrel yesterday. Rising oil inventories in the United States and the tense trade stand-off between China and America were among the factors that analysts cited for the fall.
Even though Enquest has more than 11 million barrels of production for this year hedged at an average floor price of $66, its shares were down 12.2 per cent at just over 20p. The stock had been changing hands for about 44p as recently as last August.
ADVICE Hold
WHY There is little upside in jettisoning the shares now. Operational and fiscal improvements are coming through steadily
In Scandinavian folklore the Kraken is a giant squid-like creature that can sink ships. For Enquest, the oil and gas group, its Kraken is a North Sea oilfield that cost about $2.3 billion and has not quite performed as expected since it went into operation in the summer of 2017.
What was supposed to have been a big beast producing 50,000 barrels a day has been dogged by delays, equipment problems and service outages. Average production has hovered at about 30,000 barrels per day, resulting in Cairn Energy, which holds a minority stake in the field, writing down the value of its interest this year.
Enquest was founded in 2010 through the merger of the UK North Sea businesses of Petrofac and Lundin Petroleum. It is one of the largest independent producers in the North Sea, operates the Sullom Voe
Only got the headline
let me know if you don't get whole article
https://www.thetimes.co.uk/edition/business/north-sea-monster-rides-the-storm-bdxpx8prz