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I'm sure they could borrow more from Aleph at 20% interest :)

Stevo is right. There's unlikely to be a saviour on a white horse. Enquest are going to have to drag themselves out from this miserable share price pit through their own production, deals to make quick use of their tax losses and a high oil price.

Any takeover would be on the assumption that Labour's policy proposals (78% tax, removal of enhanced CAPEX deduction) would become the law. Not a bad starting point for an acquisition price.

The pipeline is not and has never been the problem. It's politics.

Actually, I take that back. Make decommissioning deductible FROM EPL.

Tax rate stays at 75%, wouldn't be a big news story. Makes a big difference to money owed.

Make decommissioning costs fully tax deductible before EPL is charged.

The epicentre was a very long way away so I doubt there's any damage.

Hopefully it hasn't damaged their pipelines, wells etc.

What price would you be willing to accept?

"Following the delisting, EnQuest's shareholders holding their shares through Euroclear Sweden AB can continue trading in EnQuest's shares on the London Stock Exchange by first arranging for a cross-border transfer of their shares into the book-entry system maintained by Euroclear UK & Ireland Limited (also known as CREST). Further details of such cross-border transfers will be provided in due course.

The information was submitted for publication, through the agency of the contact persons set out below, at 07:00 UK time on 5 September 2023."

WFT means they're working for debt holders & HMRC. Will get worse under Labour. North Sea is uninvestable.

SDX struggled to sell itself for a while and only got an offer from another tiny company. Do you accept it was in the interests of most shareholders for the takeover to happen? I hope you do.

Aleph are lending money to the company at a 20%+ interest rate with an option to convert at 4.5p. Their interests are not aligned with yours.

Morocco 2P reserves as at 31st December 2022 were less than one year of production. I very much doubt that business is FCF positive after capex and G&A. The drilling targets are just too small. Unless they find much larger targets - which they haven't managed in several years of being there - there's no business there.

They've got some cash from selling assets in Egypt (probably still less than the net cash they had a year ago!)

UNTIL PROVEN OTHERWISE: That cash will be burned just like all the rest before it except now they've got Aleph sucking out interest as well.

No.

"As at 31 December 2022, the Company's working interest share of audited 2P reserves was 4.9 MMboe."

"As at 31 December 2021, the Company's working interest share of audited 2P reserves was 7.01 MMboe."

"As at 31 December 2020, the Company's working interest share of audited 2P reserves was 11.1 mmboe and audited

2C contingent resources was 0.9 mmboe. The 0.9 mmboe of 2C resources relates to the Meseda and Rabul producing assets in its West Gharib concession in Egypt and will be converted to 2P reserves upon approval of a development plan."

"As at 31 December 2019, the Company's working interest share of audited 2P reserves was 12.0 mmboe and audited 2C contingent resources was 2.6 mmboe."

Reserves down every single year.

They sold part of South Disouq so that accounts for some of the fall from 2021 to 2022 but they got cash for it and we've already been through what has happened to the cash pile. It burns money. Every day it isn't liquidated destroys value.

*2023

They had a net cash position of US$12.8 million as at 30 June 2022!

By 31 December 2022 that was down to $4.9M.

By end of July 2022 they were borrowing money at 20% interest.

The company has absolutely got worse since that time because the company burns cash. Total net G&A was $8.830M last year (5.165M natural G&A, $3.665M on transaction costs). Presumably this year's will also be high because they've got all egypt G&A for almost all the year + transaction costs for sale.

It should have been liquidated years ago. Every day has destroyed value. This time 5 years ago they had net cash of $30M.

Problem is that you're not getting the cash back. They're going to pump it into net-zero stuff which probably won't go well because their track record is appalling. They've repeatedly made terrible decisions.

Would be more of a threat if they weren't already producing oil.

A change of strategy for me would be: Buying a share of a good asset or liqudating all the assets and returning cash to shareholders. Getting a cash pile, investing more in Morocco and having blue sky ideas about the energy transition is not good. It'll just burn money. What will G&A be next year? It should come down significantly. I doubt the Moroccan have produced any FCF over their life once you take into account CAPEX and its proportion of G&A.

Maybe they'll pull off a big solar project in Morocco. That could be interesting, but any cash pile must be heavily discounted but of the risk that they continue to destroy value.

I'd like them to succeed btw, but the track record is abysmal. Blocking the takeover was really quite a wicked thing for Aleph to do.

There may be a decent ramp if they reveal a big cash inflow but without a change in strategy they will continue to burn cash and in a few years that cash will be gone.