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What a good deal. Looks like payback will be around c10 months. Paid £25m. Assets returned £32m pre tax in last 12 months (based on 2022 full results)
Interesting. AA is anything but predictable, other than his predictability in finding a deal somewhere.
Old news but, “I expect Mime to be a platform for growth on the NCS and I believe Mime’s management team – whose strategy and goals are aligned with ours – can help us achieve that. Critically, as well as providing us with visibility on a rising production profile over the next few years, principally though it’s oil, the hydrocarbons produced at Balder will also enable us to maintain our industry-leading Scope 1 and Scope 2 CO2 emissions in the medium-term,” added Austin.
There is also, tax relief is available on this expenditure at a rate of 78 per cent.
I’ve posted this because I can’t believe the constant selling. Do they know something that others don’t know?
Kist will be an absolute cash machine next year............Divi's ahoy
See slide 12.
1. Subsea production systems, subsea umbilicals, risers and flowlines over 80% complete. All subsea equipment has been delivered.
2. 10 of 14 producing wells complete.
3. 150mmboe of gross 2P
4. Gross peak production rate of 78k boepd
5. Most eye catching for me was the estimated production cost of ~$5 per barrel
https://varenergi.no/wp-content/uploads/2024/02/Var-Energi-Q4-and-FY-2023-results-presentation_.pdf
I also added my first holding and came up as a sell at 141p. Just wish Kistos and Serica had "merged" last year!! Still time.
Sail away estimated to be August 2024 and first oil estimated to be Q4 2024.
From Var's Q4 results.
"The upgrade of the Jotun FPSO1 is ongoing with high construction activity at the Rosenberg yard. The Jotun
FPSO is more than 90% complete. Solid progress has been achieved in increasing pace of construction work on
the FPSO, with overall progress only slightly behind the revised plan and completion of the project is in sight.
Current focus is on executing the remaining construction and commissioning work. Drilling and subsea facilities
activities are progressing according to schedule.
The Balder X targeted start-up is moved to fourth quarter 2024, based on inshore sail away in August 2024."
The production at Balder has risen from 16k boepd in Q1 to 25k boepd in Q4.
All looks good to me.
aimo
I also added came up as a sell.
KIST now looing to cheap to ignore. Picked up my first tranche since the RR days
There maybe a reluctence by investors to invest in KIST due to UK election unknowns, labour winning wont improve sentiment. The upcoming KIST update will hopefully inform us where they see the business going and current cash position and debt.
We can only hope that patience is the key here. I've been holding since early 2021, and it has been quite the rollercoaster ride.
Mkt cap now less than 2025 FCF forecast. Nuts..
The recommendation A. J Bell gave is information that is from the Kistos website. Looking forward to 2025 which is what I am doing. I expect something to have taken place before then and the sp to have turned. If the right deals come along I’m sure AA will respond. You either still have the faith or not.
I'd still rather is was tipped than otherwise
I would not read too much into an A J Bell recommendation, after all a couple of years ago they gave IOG as a New Year tip and look what happened to them. You can't beat doing you own leg work on a company.
Good luck to the investors here, I was a Serica shareholder when Kistos came shouting, still shake my head today at Mitch Flegg walking away.
Good posts, sound man. We have some excellent posters on here. Pity there is some negativity in some recent posters, we don’t need that.
Thanks for your post. I am very optimistic and have averaged down as I increased my holdings in this company.
I have faith in Directors as well, especially Alan Booth who IMO negotiated a good deal for Ophir (many might disagree) and an excellent sale of Encore Oil to Premier.
Received regulatory approval for the development
of the Victory gas field. As it plugs into existing
infrastructure, including Kistos’ co-owned
Shetland gas plant, this could extend the life
of the company’s own oil and gas assets in
the area, reduce costs and potentially delay
decommissioning.
Kistos demonstrated its financial strength by
paying down a little under €80 million worth of
Dutch bonds early in December, which will reduce
interest costs. It closed out 2023 with cash and
‘near-cash’ of €275 million (though net debt of €73
million according to investment bank Berenberg).
Based on forecasts from Berenberg the company is
expected to generate free cash flow of nearly €150
million in 2025 as new assets come on stream.
This should provide the firepower for further M&A
and is more than the current market value of the
business.
If Kistos (KIST:AIM) had its way it may well not
have been a small cap by this point. It had hoped
a merger with Serica Energy (SQZ:AIM), which it
tried and failed to pull off in 2022, would have been
a ticket to Main Market status and a place in the
FTSE 250.
Having absorbed its failure to get that deal over
the line, some other operational disappointments,
and a significant drop in the high gas prices which
followed Russia’s invasion of Ukraine, the shares
have been marked substantially lower by the
market.
This has created what looks a pretty compelling
opportunity for risk-tolerant investors to buy a
company with enviable balance sheet flexibility,
scope for significant growth in free cash flow from
its existing portfolio and ambitions to target further
deals in the northern European energy space.
The company is run by Andrew Austin, who
may be familiar to followers of the sector from
his previous ventures – including Rockrose Energy
(taken over in July 2020 in a £243 million deal).
Kistos’ current producing assets are based in
the Netherlands and, in line with the company’s
strategy of delivering hydrocarbons with lower
accompanying emissions, the platform on its core
Q10-A field is powered through wind and solar
generation.
The company is also developing assets in
Norway and to the west of Shetland. It received
a boost in the latter region when Shell (SHEL)
Said without a hint of bias ;-)
On the other hand AJ Bell have just listed Kistos as one of 5 Small Cap Stars to Buy Today.
Maybe they know something we (you) don't. I'm an AA believer after RockRose so if it goes anywhere near 100 I'll be raiding the piggy bank.
Afraid to say likelihood is £1 is coming
Big volume of sells today.
Does that mean the major seller is now cleared out?
They are disputing and have provisioned 42m worth of tax with the NL govt. IIRC AA said he was pretty confident the outcome. At todays price the release this provision would b worth 30% of the mkt cap. Crazy valuation here vs the assets.
That said all very normal for LSE stocks. Country is f'd.
So now worth less than before fundraiser to do the Tulip deal.
despite 3 deals since then the company has lost value,,, can’t blame it all on windfall tax as you don’t get taxed at more than 100%!!
Netherlands- been a disaster, no drilling success and even basic work overs not resulted in any better production
GLA- not too bad but no sign of Glendorach and Edrador west getting go ahead to add any value,,, total dragging feet on it (may be as they are wanting out of the whole thing and selling) , scary decom liabilities too
Mime- could be all good but more delays and cost at Balder project,,,, Var already taken big write off,,, no chance of starting up 2024 so company needs to update
so maybe AA not the great dealmaker ppl think,,? if something new deal up his sleeve then may be treat with caution as could be just a distraction from current performance
liquidity concern too? not making much cash at these prices, balder will eat capex, tax bills to pay and they removed comfortable headroom buying those bonds back when imho should have held onto cash
If SP is overeaction then Aa could RNS to reassure,,, fact is nothing yet forthcoming so suggests no good news or reassurance to give
gla
GD
As AA has said before in RNS' and on podcasts investment in UK assets doesn't return the required returns. The only ones hoping for a Serica transactions are Serica holders.
Commenting on the proposed acquisition, Andrew Austin, Kistos' Executive Chairman, said:
"After a period during which commodity price volatility and fiscal uncertainty has made it difficult to agree deals in the UK and the Netherlands, I am very pleased to be able to announce Kistos' expansion into Norway. Kistos has evaluated several transactions in the UK and Dutch sectors, but the imposition of punitive windfall taxes and a lack of fiscal certainty have meant that both countries remain difficult places to commit capital and ensure continuity of shareholder returns."