Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Divi - No, but Share Buyback - Yes. It does not need to be a huge but regular amounts given the current low sp and the need to support the sp as most long termers are under water - it is important. Unless we see some shareholder return and preferably in the form of a higher sp, what is the point of being invested here, and may I say supporting our NS O&G industry.
Changing the subject, if the Government is going to announce supporting licencing and growth of the NS O&G, how is that going to happen without a modification of the EPL tax, surely Hunty's Autumn statement must address this to allow investment/finance to be available to the industry.
Another subject, that article stating only 19 days of gas has been discovered etc etc - is that true?
Divi - No, but Share Buyback - Yes. It does not need to be a huge but regular amounts given the current low sp and the need to support the sp as most long termers are under water - it is important. Unless we see some shareholder return and preferably in the form of a higher sp, what is the point of being invested here, and may I say supporting our NS O&G industry.
Changing the subject, if the Government is going to announce supporting licencing and growth of the NS O&G, how is that going to happen without a modification of the EPL tax, surely Hunty's Autumn statement must address this to allow investment/finance to be available to the industry.
Another subject, that article stating only 19 days of gas has been discovered etc etc - is that true?
Smokin, don't point the smoking gun at Stevo until we see the operational update in approximately one month's time. At that point either Stevo will have been proven right or something is off.
Personally, grateful for those that number crunch and chew the cud on ENQ, as I am desperate to see some sp progress and unless there is EPL, higher POO or a deal/offer of some sort, the only thing on the horizon that will underpin the sp is the November update.
Romaron - pretty stark comments and good find:
"Deceived British Public"
"For many years, the wind industry has claimed that they had seen a dramatic fall in costs, and signing “Contracts for Difference” (CfDs) to deliver power at extraordinarily low prices. This was subsequently revealed as a scam, with windfarms refusing to activate CfD contracts, and making hundreds of millions in windfall profits as a result."
"The Government’s decision to close this loophole led to the complete failure of the last CfD auction."
"Electricity prices ‘must rise by 70pc to pay for more wind farms"
Saved the best to last:
"The truth is that wind power is expensive, and becoming more so. The energy “transition” is a transition to poverty, but few in Westminster seem to have the guts to say so.”
So basically, let us destroy the one industry that will help us through transition and pay for most of the extra subsidy! People are slowly waking up to this big con and I just wish someone would tackle the government and take them to court and challenge EPL as unjust, unfair and likely discrimination in some form, hopefully illegal to boot.
If you accept climate change, then unless a miracle occurs perhaps with AI, the whole globe needs to act and levelling down will be the name of the game to achieve net zero in a fair way. At the moment the UK is leading or trying to lead by example which is failing, misleading with unsubstantiated rhetoric and making the UK noncompetitive which means our economy will shrink and then who pays to subsidise the transition?
Great - an energy security conference here in London.
It makes me laugh that the UK wants to "maximise" NS production whilst the UK is taxing what was a viable industry to a standstill.
The conference is next year, I wonder by what percentage the NS production will have fallen by the start of the conference?
Come on ENQ, what news do you have for us and I hope you are already drafting a decent operational update for November.
Has anyone asked ENQ IR for a copy of the evidence they submitted.....................and has anyone asked when exactly will this quango report?
If you read this BB and work for Hunty, please slip into his Autumn statement some of the common sense EPL revisions suggested on the board.
If Hunty did quit early, the next incumbent can't be much worse, then again...............
Typically there is a rally in the sp around now and running into December, but so far it has not started, expecting an upturn soon.
Dumbly, sadly I fear you are right..............your last point and phraseology made me laugh on this dull and wet morning and sadly, from personal experience, you are right again.
Just hope that JP Morgan's 30p target takes your points into account, it is a shame they don't put a timescale on it, but I am hoping end of November with the ENQ update.
Good news - Hunty is going to quit which probably makes him a bit lame for the rest of this term, oh sorry lamer.
The trouble is that he will be elevated to the House of Lords for ever...........
Hunty, do the honourable thing and sort EPL out before you go, preferably next month. It must of dawned on you by now that you have made a massive mistake or are you just guilty of an expedient, unwarranted and unjustified grab for cash whilst destroying an industry.
Well, POO is still above $92, so ENQ should be making progress on debt reduction and we'll see what happens this week. Will Israel gamble on a prolonged war on all fronts and full blown Middle East crisis or is there another solution and what will Iran do and what will be the response, which will determine near term POO going forward.
In the absence of ENQ news, the key date is the update in November.
Dumbly, excellent article basically saying what the posters have been saying on this board for months. The narrative is slowly changing and so will sentiment towards the necessity to have home grown Oil and gas through and even beyond the transition to renewables. I frankly do not think that our global society could run without some oil until someone invents a viable and non polluting alternative for all the plastic products we rely on.
The slide from the article that showed this tax is overly punitive is the one detailing the destruction in MCap.
Well, at least ENQ had a better week, if POO remains high, the sp will continue to improve and we'll see the effect in the November update.
Looks like the Energy Secretary needs to receive some enlightening letters about the impact of EPL, still think a spreadsheet looking at the trade off between EPL and all the other taxes needs to be researched. If NS Oil production is falling so rapidly, so will all the tax revenues........... I presume that taxe revenues will actually decline quicker than the decline of oil production, so urgent action to moderate or remove the impact of EPL is required. The Government has stolen or leached £7bn extra out of the industry with EPL and higher oil prices - enough is enough!
Voice - two good points.
Enjoying the rise today!
Could 20p be on the cards soon?
Ramaron - "fertilized by EPL" - very good.
I read an article yesterday that stated HMRC had received the highest tax revenues from the NS ever this year, partly due to higher POO but largely due to EPL, an increase of £7bn, £800m of that by my calculation is our/ENQ's lost MCap!
The figures are so huge and the Government deficit so large, I can't see any government (short termers) giving up that prize without the lights going off regularly.
The following article is well worth a read: https://oilprice.com/Alternative-Energy/Wind-Power/Dutch-Energy-Minister-Admits-That-Wind-Power-Agenda-Is-Pricier-Than-Anticipated.html
Ooo - surprise, surprise and reality is dawning, questions need to be raised here in the UK.
Dutch Minister of Climate and Energy Rob Jetten admits that wind power is facing serious financial headwinds.
Jetten: consumers should expect substantially higher electricity prices than initially anticipated.
The increased costs are not primarily linked to global market developments but rather to the extra €10 billion required for connecting offshore wind farms at sea to onshore infrastructure.
Romaron - good effort .
This line made me laugh: "NSTA also asked leading operators to supply details of their production and investment plans
and to look at how they might go further and faster wherever possible."
I am not sure I would provide a body such as the NSTA with my business plan.............! And if the NSTA want to get things going, they should get of their backsides and lobby for the abolition of the punitive theft tax - EPL.
I wish AB had come to me for a few bob loan at 13%, I would have inflation beating income and would not have lost a bundle on ENQ!
I am slightly surprised that POO is not higher today, but on reflection I don't think the West has an appetite for fueling inflation and interest rates with higher oil prices, Iran's next move may be the precursor to a $100 barrel price. Even at $90+ ENQ still did not manage to hold onto 15p - the November update is going to be key to improved sp.
Dumbly, good find and here is another sensible article: https://oilprice.com/Energy/Energy-General/The-UK-Needs-A-Public-Buy-In-Into-The-Energy-Transition.html
Surprised oil has not responded to the Israeli situation, although calls for more measured action are growing.....it is what happens next that may move POO - invasion and the response on Israel's northern border.
I am expecting the price of Brent to hit US$100 on Monday. The situation in the Middle East is escalating and the wild card is Iran. The nature of Iranian rhetoric has turned aggressive and that could manifest in several different ways, direct action or more likely indirect action through third parties against Israel or aligned allies. The action against allies does not have to be military in the offensive sense but simply closing the Straits of Hormuz (even just posturing/threatening to do so will be sufficient), through which 20-30% of the World's Oil passes. To give you an idea of how physically constrained the Straits are, they are little more than the English Channel at their narrowest and the in and out shipping lanes are just two mile wide with a two mile buffer in between. The Iranian smugglers pop over to Oman daily in their speedboats. If Iran chooses to close the straights nothing moves. Iran does not need big warships to close the straights and alternatively, it could just put hundreds of thousands troops across the Gulf in small boats and the gulf states would be overwhelmed.
For the West, Ukraine is "worrying" but the Middle East is right on the edge of extreme catastrophe and I am seriously worried.
One of the worrying signs is that the US is hitting record oil production and suddenly inventories are not declining, last week they were up 10.2million barrels. What are they expecting?
I am not sure we will be worrying so much about ENQ sp next week, we will have other matters attracting our attention, but if Sunak needs a smoke screen to reverse or moderate EPL in the energy security their will be a window to help improve the investment environment for the NS, the headline windfall tax can stay in place just modify the price of oil at which EPL is payable to say $90 which would ease the banking constraints.
We will see 15-16p next week due to at least a spike in POO, but unfortunately at the cost of global security.
“The war in Ukraine compounded by last week’s attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships,” Jamie Dimon warned CEO JP Morgan.
Interesting he mentions energy first in his list, may be Sunak will take note and tell Hunty to make amends to NS O&G in his Autumn statement and then JP Morgans 27p target may just come true.
Meanwhile, Brent hovering around US$91, providing there is no global meltdown over the weekend, Monday should be good for ENQ. Apologies, my global focus is on ENQ, I sadly can't make sense of anything else outside my bubble, but DImon echos my own thoughts, as I articulated in a recent post. It seems that the posters on this board are ahead of the game, but those in positions of authority and power are finally catching on.
Romaron - classic!! Keep burrowing away........
"The truth will out" - the trouble is politicians have usually moved on by then...........
Brent just gone $90+.........