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So that's our new head of exploration in Malaysia just joined with a substantial track record.
Has just come from the Sapura-OMV joint venture after 5 years.
Before that over 5 years with Sapura.
Interesting that he was involved with SK310, SK408 and our own block 2C in the last decade which just never got drilled.
The Sapura-OMV JV was created in 2019 and OMV sold their 50% stake in the JV a few weeks ago for $900m.
TotalEnergies Signs an Agreement for the Acquisition of OMV’s Upstream Gas Assets in Malaysia
PARIS--(BUSINESS WIRE)--Jan. 31, 2024-- Regulatory News:
TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has signed an agreement with OMV to acquire its 50% interest in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn (SapuraOMV) for a consideration of $903 million (including the transfer of a $350 million loan granted by OMV to SapuraOMV), subject to customary closing adjustments.
SapuraOMV’s main assets are its 40% operated interest in block SK408 and 30% operated interest in block SK310, both located offshore Sarawak in Malaysia. In 2023, SapuraOMV’s operated production (100%) was about 500 Mcf/d of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 7 kb/d of condensates. On block SK408, the development of the Jerun gas field is on track for startup in the second half of the year 2024
https://markets.ft.com/data/announce/full?dockey=600-202401310912BIZWIRE_USPRX____20240131_BW403455-1
and
'Block SK 408 contains seven discoveries from eight wells drilled. Five of the seven are understood to be commercial, and three are in the development stage – Gorek, Larak and Bakong, which have resource sizes ranging from 0.5 Tcf to 1.5 Tcf.
The jewel in the crown in Block SK 408 is the 2016 Jerun gas discovery, which contains up to 3 Tcf.'
https://sapuraenergy.com/sapura-ep-keeping-low-profile-high-rewards/
Basically that's a $900m sale of 20% in SK408 and 15% in SK310 equal to net production of around 18,000 boepd.
SK310 (B15 field) has produced about 68% of its reserves according to one energy report.
Are we talking about 1.2 - 2 tcf net sale ? There's also a small interest in a Mexican oil discovery of which they are a minority partner.
LBEs Block 2C with Kertang estimated at 9 TCF mid recoverable. Multiple other prospects and 2 are each half the size of Kertang and covered by 3D so perhaps 15 TCF and if 20% retained on farmout could mean 1.8 - 3 TCF net target.
Good news but another on the wage bill with little cash coming through the doors. Get a move on Helge...
Head of Exploration, Malaysia
https://www.linkedin.com/in/choo-matthew79?
Zilch. Disgruntled to say the least. It's now one of those shares i have to let ride in hope...
I agree. 5 years and what material success do they have to show for it?
5 years+, that's all i have to add :(
Yep it was a long time for the reversal at 4p Deeko. Have a small holding here and tempting to add, especially as outwith the UK .
Serica looking for a new CEO and oversea's holdings (hopefully) so you never know. Maybe the long term Institutional Investors won't wait for 10 years like FPM before capitulating - again who knows.
We seem to be back into a cycle of concentrating on MC at the expense of SP again, and its not only Longboat. GLA
> When is it Longboats turn?
It seems reasonable JAPEX jumped aboard because there was an opportunity and something was brewing (requiring their finance)
Let’s not forget Mommur, Serica was saddling at 10p for what felt like ages. Then low teens, then high teens. Absolutely nothing was going for a while and then BOOM… the RNS landed.
Hopefully we don’t get taken out for petty cash!
When Serica buys them with petty cash??
Well that's my JSE shares suspended due to a 28,000 boe potential acquisition (gutted really, was hoping to average down a little more). When is it Longboats turn?
Zengas, i agree that noone saw japex jv coming or the production purchase but they've been 5 years in the making so one would have expected there to be more if the company is to deliver its initial corporate strategy.
I would like to have seen 'meaningful or material' cash generation by now.
Seperately this has to be one of the biggest assets landed for a company of this size - ie Block 2A (not counting the hunt for other Asian production assets).
To have 52.5% of a 12,000 km2 block of this size with over 6,000 km2 of 3D seismic not to mention 17,500 km lines of 2D is phenomenal.
The cost to carry out that amount of seismic would run into the tens of $millions alone along with the extensive geochemistry work confirming very high concentrations of methane and low CO2. That can't be understated.
At about 17 mins into the interview James Menzies says they beleive there could be in excess of 9 TCF recoverable for Kertang.
At 18:30 he states that 'there are multiple structures surrounding Kertang that are also extremely big - it's just that they are dwarfed by this giant.'
When you refer back to the Topaz slides particularly page 6 you can see '3 main identified prospects' which includes Kertang. The two other structures are in very close proximity to Kertang with the other 2 combined having an area roughly the size of Kertang itself. All 3 are covered by 2,900 km2 of 3D seismic.
Given the analogue description to the smaller 6 TCF Kasawari field - taking into account the 3 main structures, there could well be potential for 15+ TCF recoverable here.
Retaining 10-20% post farmout would be potentially huge given a ready gas market.
Not since Cove acquired 8.5% offshore Rovuma from struggling Artumas in 2009 has there been an opportunity as big imo.
Their share price was 9p in 2009. If you were patient, Dolmens Brian Gallagher called it a speculative buy on tues 9th March 2010 and a target of 59p.
By the time Shell had bid in Feb 2012 there was an estimated 20+ tcf recoverable estimated. Shell bid $1.8b while PTTEP of Thailand pipped them with a $1.9b takeout at 240p post tax.
Coves 8.5% share of 20-30 TCF = 1.7 - 2.55 TCF.
Reataining 10-20% of block 2A for LBE could mean on the 3 prospects covered by 3D, there might be 1.5 - 3 TCF net to play for here irrespective of all other assets.
Rather than a SERICA in the making, I would suggest it is a direct comparison to Faroes Petroleum, where a number of management came from. They increased the MC fourfold, but share price increase was abysmal over the 10 year period I held 100,000. Initial offer at 100p, went to 50p, recovered and touched over 200p, fell again then sold to DNO finally for 160p.
Another comparison would be Parkmead, being a "lifestyle" company for folks who have made their money to play.
Serica painful at moment, but its not on its own with such negativity in this country re oil/gas - but just perhaps its time will come - needless to say I am a LTH holder in Serica from 60p down to 4p and up to 443p - and now languishing at the 200p mark.
So did anyone know beforehand exactly when the JAPEX JV was coming 2/5/23 - (9 months ago) ?
or the first production assets on 3/7/23 ?
Likwise nobody will know until the next announcement when the current assets under review are agreed upon and announced to the market.
Japex did not get involved for fun. They have to be mutually agreed assets and there is a sizeable pot of $100m which can effectively be doubled through debt or RBL lending. With a 5 year window and for the ability of assets to be potentially paid down in 2-3 years from the effective transaction date, we could be looking at $3-400m available in total 2 years on.
Shows that they’ve identified a possible extension of the prolific Carmen discovery in the same license as Kveikja and are working it up as a drill target.
Have to agree. This company has all the makings of a SERICA but the board are currently failing to hit milestones.
I can’t help but feel something big is being worked though
Exactly my thoughts Stanaccy!
Fully expected the management to prove themselves last year, and yet it was generally a year of little achievement
I am not sure I will give them beyond this summer to start bringing in income, the board are yet to prove themselves as being able to deliver and at some point you have to move on if the company is being lead by incompetence.
Lack of progress a real concern and the lack of honesty in an RNS to acknowledge frustrations with company development is a red flag.
In the meantime ongoing corporate costs continue
Well let's hope they execute soon
> This has been their focus for nearly 5 years now!!
The difference now is they have the Japex funding to execute on transactions
Helge states, "We are now focused on adding further assets to our portfolio to build a full cycle E&P company with material production interests".
Same old. This has been their focus for nearly 5 years now!! Outrageous stuff...
> Both RNSs relate to Norwegian-related transactions.
Apology - I stand corrected.
The farm down on Kjøttkake/Lotus & Jasmine and Sjøkreps was just on those Norwgian assets.
Serves me right for skim reading first thing in the morning.
Both RNSs relate to Norwegian-related transactions. They haven't yet farmed down their Malaysian asset.