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"Before you consolidate, you have to put a value on the assets, and it’s very difficult to do that if you don’t know what the fiscal regime is going to be,” said Mitch Flegg, the former chief executive of Serica, who has become an adviser to the company."
Pity he did not think this way when buying TW!
Thanks for the link flexmw. Lets hope that the weakling bp bod will support him in his views and be more vocal. Then maybe the war crime supporters of politicians will see sense going forward.inmv and omho.
‘Windfall tax weighs heavy on North Sea producers‘
Before you consolidate, you have to put a value on the assets, and it’s very difficult to do that if you don’t know what the fiscal regime is going to be,” said Mitch Flegg, the former chief executive of Serica, who has become an adviser to the company.
https://www.ft.com/content/ceb1d4af-c1c5-4909-aba4-f967aaaba1c3
Sval Energi would be an excellent acquisition.
However, ads Sval are already partnered with AkerBP you would think they'd have an advantage (and deeper pockets)
A price tag of around $1bn rumoured.
aimo
I'd be amazed if this is true. Sounds a bit too adventurous for Serica. Easier to stay in the comfort zone and keep paying windfall tax.
Copy & paste from BaronInvestments tweet… via Bloomberg…
Bloomberg now saying Serica have bid for the assets...
Serica bid for the assets as it seeks to diversify away from the UK, where it has been hit by the impact of the energy profits levy put in place in 2022. Aker BP, which was created in 2016 by BP Plc and Det Norske Oljeselskap ASA, has continued to expand in Norway, and merged with Lundin Energy’s oil and gas activities two years ago. Deliberations are ongoing, and there’s no certainty the potential buyers will proceed with formal bids, the people said.
'Sval has 70,000 barrels of oil equivalent a day from 15 producing fields, with another six projects in development. The firm has stakes in fields including the Greater Ekofisk Area, Ivar Aasen and Martin Linge, according to its website'
https://x.com/baroninvestment/status/1786331774982746339?s=46&t=uz3in5yMdDdYvqnOjeh9vg
Good post and article. Maybe the deliquent mps should now start to consider voters who are either or approaching retirement age as many of them have true experience of life. For me this lot will not be happy until they finish the n sea off and then come to the rescue by asking the majors to help out. I will not be voting for any of them due to the damage they are causing not only with companies such as Serica and our energy needs, but also supporting war crimes. Let alone with threats of means testing the state pension.
Scum buckets the lot of them inmv
‘Oil and gas seen as ‘devil incarnate’ complains North Sea dealmaker’
https://www.energyvoice.com/oilandgas/north-sea/552748/oil-and-gas-seen-as-devil-incarnate-complains-north-sea-dealmaker/
Https://www.investormeetcompany.com/meetings/full-year-results-139
Very true Maverick7,
David also referred to Kistos as a 'Gas' company.
Not true. Current split is roughly 60% gas 40% oil.
Kistos are operators in Norway, The Netherlands and the UK. Gaining this status in Norway is particularly onerous.
Serica definitely feel threatened by AA, to the detriment of us as investors.
aimo
Interesting that they were quite dismissive about KIST and i thought i heard them say that they were a small company lol. Which i guess they are based on production verses SQZ, however, they are debt free, growing production and probably have more net cash than SQZ imho. Feels like there is still some bitterness from AA trying to takeover SQZ.
I heard Martin state that the TW tax losses available to us were £470m on acquisition, of which £395m are still available to us. He said to expect a lot more to be utilised in the following year.
Good news.
aimo dyor
Both David and Martin came over well, particularly David.
Meeting over .
Mercuria are very supportive and welcome shareholder who operaste globally and can provide help with M&A and provide opportunity if it suits SQZ business model and are in place to help grow SQZ
Question re dividend payment for future ? Bod respond with , clealry depends on cash flow, however, we are far from a oil/gas price that means divi is likley to be impacted.
Mich left as all agreed SQZ is on verge of growing bigger and likely beyond the UK and time to refresh the board ready for the new ventures etc
Meeting notes (wrote as the spoke, so forgive any spell errors)
''Performance so good against backdrop of lower gas prices and high tax, however, we can pay 14p final divi (4% increase) and share buy back, displays confidence in expected cash flow for 2024.
Tailwind brought in oil , essential for keeping cash generation as gas prices plumetted, Oil a great addition
Reserves grown
Production ytd 45000 - guidance 41000 -46000
Well drill programme 2024 expected to be short pay back times
Tax will be less as investment programme covered by offsets.
lower gas and oil prices for 2023
$19 dollar a barrell average cost and under the target of $20 achieved
Tax rate effective of 48% for year (afdter off sets etc)
Bank facilities allow growth etc
decommisioning cost less than peers and advantageous in current tax regime
Dividend cover and cash flow meet current levels
Capex expected to qualify for full tax relief in 2024
Expect to see more benefits of Tailwind tax losses through 2024
Windfall tax is not reflective of oil/gas prices as far from windfall prices
Investing in UK is not for now unless right opportunity arrives, looking outside UK for the right opportunity, will not rush, Norway in focus currently but will take time.
Business in good shape and aim to continue to offer good share holder returns ''
These guys know their business, better than many of us posters imo and sp does not reflect the sp metrics imo and clearly Oil has been a major benefit rather than remaining as just a gas company