Member Info for 34adsaddsa

Amjad is the largest shareholder. Can't criticise him on that front.

I assume there will be some kind of AGM statement.

Should help to clear up some of the inevitable selling and cushion the downside.

"Our Board of Directors has approved the establishment of a plan to repurchase shares through a normal course
issuer bid (the “NCIB”). The NCIB will allow the repurchase and retirement of up to 10% of the issued and
outstanding common shares of Tenaz. The NCIB will be subject to the approval of the TSX and is intended to
be effective upon closing of the SDX acquisition. "

https://static1.squarespace.com/static/6164cf34a8e54b2e687f89e3/t/629584fda61311382a62dd12/1653966077808/TNZ+PR+20220530+Q1+2022+Results.pdf

"Separately, Indonesia’s Palm Oil Workers Union (SPKS) said in a statement on Thursday that prices of palm oil fruits in ten provinces were yet to recover to pre-export ban level after falling by about 75% as palm mills scrambled to sell locally to cope with the export ban.

SPKS said in some places independent palm oil farmers had to wait in line for two to three days to sell their fruits to mills."

Such a stupid, self-destructive policy from the Indonesian President. The man is an idiot.

Pharos wouldn't be attractive for them - two minor positions in Vietnam and Egypt. They already have 1/3 of Israel and we have no idea if there's anything there.

I agree it makes sense for this to be sold.

End July/early August

I kid you not, I almost wrote exactly the same thing earlier today on the Serica board. I didn't because I thought I'd just get abuse for it. I think an all-share merger would make an awful lot of sense.

More diversified producing both oil and gas
Serica's cash would reduce the leverage of the combined entity, leading to an equity rerating.
Serica could take advantage of Enquest's tax losses.
Greater scale is beneficial for financing, profile, p/e etc.

Probably won't happen though. It would reduce Enquest's torque to commodity prices and Serica shareholders might not want the risk of Enquest's liabilities.

The plot thickens. Do II offer some kind of direct market access and AJ Bell CREST only?

You can see them on the AJ Bell platform, but you can't trade them. I'm going to assume you can't actually trade them on II until someone actually does it.

TENAZ ENERGY CORP COM NPV (POST REV SPLIT) Buy
2.65
Currency
CAD
Sell
2.56
Day change

I haven't completed the Canadian tax form NR301 yet.

Have you actually done it?

Mine are with IG and they don't either! Hence the move to AJ Bell.

Yes. Probably part of the reason why the shares are where they are. I should add that when I said "You'll be able to hold and sell the new Tenaz shares we get because they will settle by CREST" - I'm assuming your broker handles Canadian shares. AJ Bell do.

You can't hold them either until they settle by CREST. That's why you can't buy Tenaz currently.

You'll be able to hold and sell the new Tenaz shares we get because they will settle by CREST. It happens immediately by virtue of what they are.

Yes, I think so.
AJ Bell offer Canadian shares but only those which settle via CREST. Tenaz shares don't currently settle via CREST.

"Please be advised, while Canadian shares can be traded on the AJ Bell platform, it is dependent on whether the stock settles via our custodian CREST.

CREST is a UK-based central securities depository that we use to settle all US, Canadian and European equities - if a stock from one of the regions does not settle via CREST, then we are unable to trade it.

Unfortunately, Tenaz Energy does not currently settle via CREST."

HOWEVER I then put this quote to them from the deal announcement:

"Unlike SDX Shares, Tenaz Shares are not capable of being directly held, transferred or settled through the usual UK settlement systems, such as CREST. For this reason, it is intended that Scheme Shareholders who hold their SDX Shares in uncertificated form through CREST will not be issued with New Tenaz Shares directly but will instead (subject to the position of persons in Restricted Jurisdictions) be issued with depositary interests to be delivered, held and settled in CREST. Such depositary interest arrangements will reflect the economic rights attached to the New Tenaz Shares. However, while holders of depositary interests will have an entitlement to the underlying New Tenaz Shares, they will not be the registered holders of the New Tenaz Shares."

And they responded by saying:

"It is worth noting that Canadian shares are held on the AJ Bell platform as CREST Depositary Interests, rather than directly. Consequently, provided the underlying New Tenaz shares do settle in CREST as the announcement says, then we would be able to hold them on the platform."

after another prod they added "Once the shares settle via CREST, you will be able to sell them."

That's your explanation.

I think this talk is pretty silly to be honest. No one serious is looking at this company. There are no "arbs". Just people taking a punt.

Markets aren't rational or perfectly efficient. No other explanation is needed.

I can't see any evidence of progress towards a ceasefire. A ceasefire also won't lead to removal of sanctions.

They're not going to repurchase shares with debt at this level. Don't waste your time on it.

I can't tell if you're missing something because I don't know how much you know, but here are some possible reasons:

1. It's not a cash offer. It if were then we'd be around the offer price.
2. The deal may not go through.
3. The company whose stock we would get is listed in Canada. Institutions and retail holders may not want or may not even be able to hold those so they have to sell now. I'm going to have to transfer mine to a different broker. It's a hassle.
4. The company buying SDX is very small and produces only 1,250 boepd. It's a real company with cash and without debt. It doesn't seem overvalued but it's not like getting an all-stock offer from Shell.
5. SDX has a market cap of ~£17M. It's tiny. Hardly anyone cares about it. If one person with enough shares wants to get out for whatever reason then the price will stay low. Seemingly obvious mispricings are much more common in smaller companies.

If markets were rational and perfectly efficient then the gap between SDX and Tenaz wouldn't be nearly as large as it is. Buffett made his initial cash poking around in dingy companies like SDX. "Cigar butts" - just one puff left in them.

I haven't claimed the tax is good for the assets we already own - it isn't. I've claimed it's not necessarily a negative for future acquisitions because purchase prices should reflect the tax. Yes, you could make the same argument about lower oil prices.

Oil prices are different as they could go back up and a purchase during a temporary fall would benefit us - although not our existing assets. Clearly if oil prices fell 50% in a month - and we made a mega acquisition at a price which reflected those lower prices - then oil went straight back up, that would benefit us. It's not how things generally work though.