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Thanks that makes sense .
I do wonder what AA will do next , another deal on the cards? Or will he be giving shareholders dividends ?
Plus serica , will they try and buy us out again ? I see they have recently had a new finance deal announced.
Diamondguru,
In my humble opinion there are benefits and drawbacks, I suspect Total insisted that we take our share of the SGP along with the producing assets.
The main benefit being that we are not paying a third party to process our gas via their infrastructure.
However, we also are now responsible for our share of decommissioning costs.
From the interims...
"In the UK, the Group's share of the estimated cost of plugging and abandoning the producing and suspended Laggan, Tormore, Edradour and Glenlivet wells, removal of the associated subsea infrastructure, and demolition of the SGP and restoration of the land upon which the plant is constructed."
I don't know what the costs are for the UK, but for all of our assets the abandonment provision currently stands at 198m euros.
aimo dyor etc etc
Ah yes they are , my apologises , can I ask you a question in regards to the Shetland gas plant . What are the benefits of kistos owning a portion of the asset?
Diamondguru,
They are included.....
The Norwegian assets of MIME are the Balder area.
Any reason why you havnt included Mime's producing assetts? I believe they produce 2k
Production in October rose again to 9.6k boepd (September 8.5k boepd)
Production split equally across our jurisdictions and a gas/oil split of roughly 60/40.
GLA
Edradour and Tormore offline.
20% Net production from Glenlivet and Laggan = 3378 of gas and 147 b/d of oil.
Balder
10% Net production = 3030 barrels per day of oil
Q10-A
60% Net production = 3064 boepd
Bought in for the first time today as I’ve been bargain shopping :) looks like a great buy but you never know in this stock market GLA
I bought at over £4 and watched the share price go to 665p. Foolish or not but still here. I Still believe in AA and a good future.
A dividend and/or buyback would be very good for 2024
I know many don’t like buybacks but when you only have a small share pot it would have a decent impact. Doesn’t seem that long ago everyone moaned how low AAs share incentive scheme was priced at, £4.45 ? Oh for the SP to get back there again, he must be spinning some plates in the background I doubt he’ll be sitting idle
Maybe the government will take pity on the smaller cap O&G companies and reduce the theft tax, but with Labour on its way that seems very unlikely.
Interesting to see m&a activity at HBR and ENQ, and increased interest at SQZ. Hopefully this provides a bit of life to Kistos. We really do need the management team to provide something to the market to get interest back in Kistos
I do agree with you Maverick, but for comparing this to SQZ is total different beast, you cant expect Mitch Clegg to own 30% of it, its worth circa £800m, a 30% stake would cost £240m
Short to medium term the negatives outweigh the positives. The UK government has killed the sentiment for oil and gas shares and the acquisitions haven’t performed as expected. This is where we now see what AA brings to the table in these difficult times. He has a healthy holding so he had skin in the game unlike the likes of Mitch Clegg over at SQZ.
I’m in a very similar position. Made a decision last year to increase my position here rather than open one in Rolls Royce which at the time was around 70p… I’m crying into my mince pies.
Thanks for your balanced post... I am over 50% down on this dog and not sure whether to throw in the towel. My worst investment this year. Wish I had got out sooner. I can't see when this will turn if ever. So much opportunity scuppered
This 170p - 175p range has been too tempting for me to resist, I have doubled my investment but still average £2.24 per share.
The investment case here has soured somewhat since my first buys.
Negatives
1. GLA and Q10-A seem to have a higher rate of natural decline than I anticipated.
2. Capex spend for Balder X has increased by $38m and rumours persist of further delays
3. FID on the Orion oil field has been postponed, production is not expected until late 2025 or early 2026 compared to the 2024 production planned start up.
4. FID on the Glendronach has been postponed, the company plans to launch Edradour West first.
5. Benriach.
6. Abandonment costs of ~193m euros.
Positives.
1. Production in September at Balder was the highest it has been since 2019.
2. Var energi's Q3 results reiterated start up of the Jotun FPSO is still on target for Q3 2024.
3. Management have skin in the game ~20%
4. Management history of allocating capital successfully.
I may have to wait until late 2025, but I'm reasonably certain £2.26 will seem cheap by then.
aimo
Sounds good how does the shareholder bid for the price? Surely the shareholder will want maximum amount?
Same thing than buybacks but organised as 1 sole transaction, the company decides the amount of shares it wants to acquire and the price range of the tender, then shareholders can bid their shares at their desired price within the given range
Whats a tender offer?
Andrew needs to step up here now not I gas Andrew Rockrose Andrew pls
Macy talks crap sometimes
We don't want any share buy backs what's that going to do here zilch
Tender offer or a special divi prefer a tender offer over 2. 50 Rockrose did it a few times
Https://www.malcysblog.com/2023/12/oil-price-kistos-reabold-chariot-and-finally/
"This is good news for Kistos shareholders and there is little doubt that they will recognise the strategy this time being adapted by Kistos. It goes without saying that the company has chosen to move cash trapped in the Netherlands by paying down all the outstanding bonds.
This saves the 9% coupon and as mentioned above gives Kistos the flexibility to distribute cash should they choose to. As always this could be via dividends or share buy-backs but either way I would suggest shareholders will benefit from this move.
Finally I notice that last week there was a shut-in at the Shetland Gas Plant after a minor incident in which no one was injured. I understand that production should be restarted before the year-end and that it will not affect guidance issued by Kistos."
Glad to get those dutch bonds off our backs, 9% in cash year on year was quite a drain.
Agreed on returns, I think one of the covenants prevented dividends being paid.
The NL2 bonds were split into two tranches. One of €90 million, which had a coupon of 8.75% per annum and a maturity date of November 2024 and one of €60 million, which had a coupon of 9.15% and a maturity date of May 2026.
We still have the $225m MIME bonds which are mainly PIK.
o US$120MM of Super Senior bonds, which will attract interest of 9.75% per annum, 4.50% of which is payable in cash and 5.25% of which is payable-in-kind in the form of additional Super Senior bonds. The maturity date of the Super Senior bonds is 17 September 2026.
o US$105MM of so-called "MIME02" bonds, which will attract an interest rate of 10.25% payable-in-kind. The maturity date of the MIME02 bonds is 10 November 2027.
aimo
Definitely
Clearing the way for capital returns?
Yeh possibly, but in the current environment could become an even better opportunity