Member Info for 34adsaddsa

I think Tenaz are going to harvest the corpse: Take the cash pile, take the other working capital, sell the investment in Brentford Oil Tools LLC (Egyptian oil services), slash G&A, invest in West Gharib and run off South Disouq, sell the equipment and do the same/shut down Morocco.

We've got years of proof that trying to force those assets to work by massive investment leads to capital incineration. The Canadian tax pool is a big boost for them. It's like free money as long as they don't throw it away on capex.

In fact our advantage could increase. Let's assume there are no capex offsets on M&A acquisitions.

We get 75% of profits. We used to get 100%.
Competitors without tax losses get 35% of profits. They used to get 60%.

We've lost 25%. Competitors have lost 41.67%.

To be honest I don't think it'll have much impact on strategy going forward. Developing the reserves/resources we already have clearly still makes sense given commodity prices, tax losses and ability to offset tax with capex.

M&A in the north sea becomes less attractive because we go from paying 0% tax to 25% and can't offset much with capex. But it also becomes less attractive for everyone else so asset prices fall, we pay less and the economics work out about the same.

https://stockhouse.com/companies/bullboard/t.tnz/tenaz-energy-corp

They absolutely love the deal.

The dilution should already be priced in because that's part of the deal.

If you mean a mechanical fall in the share price as SDX holders start dumping Tenaz shares then I'm sure that'll happen. WAHA want out for starters..

Yep, I should be able to sell them.

Fair point, I'll see what they say..

I don't think it's possible to squeeze out minority shareholders or force a delisting with ~51% as long as the minority shareholders actually vote to oppose.

A scheme of arrangement requires 75% to force the sale of minority shareholders. In a crude takeover offer, 90% are required to force the sale of minority shareholders.

AIM requires 75% to vote to delist. I don't know what the number is for LSE but it's probably the same or higher.

Just got another reply from AJ Bell.

"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."

So it looks like I'll be transferring my SDX to AJ Bell!

No, because Enquest doesn't pay the 40% due to historical tax losses.

Looney seems like an absolute fool. I have no idea why he's running BP.

But I don't think it will because of the Canadian listing. AJ Bell offer Canadian stocks and you can find Tenaz on their website but they said the following:

"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.

If you have any further queries, please feel free to contact us."

I've asked them about the following quote in 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."

Hopefully they'll say they will be able to handle those..

Up another 5.5%..

Don't you think that's a bit OTT?

Not really. They have AWFUL hedges on.

BP produces ~5% of its oil and gas in the UK.

They justify it by touting shell/bp mega profits when almost none of them come from the UK, then they hammer tiny UK producers no one has heard of.

Seems enquest are getting really screwed here.

Thank you for the inquiry regarding the announcement. The 2.7 announcement does make reference to April 27th, however that date is the date we’ve set out which is the worst/longest possible case given that we are subject to Egypt/Morocco’s governmental conditions. We’re working toward it being much sooner, in late July/early August, and we expect the two shareholder meetings to approve the deal to be held in early July 2022 but at this stage, there can’t be any certainty on dates but we will announce them as soon as we possibly can. Assuming both shareholders approve the combination Tenaz Shares will be delivered, at the announced exchange ratio, to holders of SDX shares and once issued the shares of Tenaz will be fully tradable on the TSX. Hopefully this clarifies the point but please don’t hesitate to reach out if any additional questions arise.

GOOD NEWS!

I've sent an email to Tenaz asking for clarification. I'll let you know if I hear anything.