The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
I know how to pick them. What kind of oil producer drops heavily when oil prices are at 15 Yr highs. This is dire stuff.
*Reinvesting in Nth Sea
"Re. Windfall tax, there's no rule that says Hurricane are obliged to invest only in Nth Sea "
"There is - it will be ring fenced"
Incentivised to keep reinventing in Nth Sea which they will probably do ....but its not Mandatory. Enquest rumoured to be seeking new overseas opportunities. If Hur have 75 million cash and building post July , they might take a view that a Microcap with some frontier international acreage with Billion + Prospectivity might be worth snapping up or taking a stake in.
Re. Windfall tax, there's no rule that says Hurricane are obliged to invest only in Nth Sea ? If for example they can't source a good value way of re investing further in Nth Sea then why not look overseas? Anyway I expect the Halifax story is still in its early days
There's 3 or 4 Nth Sea juniors that might make good merger candidates. Prob too expensive to buy producing assets in current climate. Or they could diversify and buy a tiddler with big exploration upside overseas. Or they could be a t/o tgt themselves . And people here seem to be forgetting they still have Halifax . Lots of options
Yeah I remember that. They had fallen to around 5p in 2009 ?
Assuming the Bonds will now be cleared without any hiccups , a quarterly Dividend would be a nice way to repay Shareholders who were nearly wiped at 1p. I wasn't in this at the time but believe me I know how it feels ( Afren )
Or even a monthly Divi with option to have it auto reinvested to avoid dealing costs .
Merger with Tullow. Had thought they might bid for Pharos being in Egypt and Israel. Probably good for Pharos all the same to have a bigger entity as a partner .
Surprised by this , had thought Cairn might make a bid for Pharos Energy as they share 2 license areas. Or Trinity Exploration, or Tower Resources. Can't see what Cairn get out of this . So another big boring slow mover then like Harbour Energy. E&P Mid caps with multi bag potential getting harder to find on LSE
A few posts on Advfn re. Merger possibility
Going the Cameroon production / Farm in route would surely be much much more rewarding mid to long term
but if one was to speculate who might wish to acquire TRP at current mkt cap then of the bigger UK mid caps Tullow Cairn Harbour or maybe cash rich Serica who were v. early into Namibia in 2011 & relinquished Namibia in 2020 due to perceived lack of progress. Think AOI and ECO have plenty acreage there by now
Only 6 trades so far today in Pharos versus 60 at Hurricane Energy . Yet both produce similar amounts. Seismic from Vietnam Exploration blocks due soon, might light a fire under this
Some Frustrating news tbh but at least the license extension is out of the way & debt financing is usually only available to companies with proven reserves so if that's on the table then it implies confidence in the production prospects.
Afentra ex Tullow management has signed a deal for 4,000 bopd from 20 million 2P reserves ( 20% share of a block with 100 million current 2p reserves . That equates to 13.4 years of production.
$80 million + $50 million in contingent payments .
The Block contains a large amount of remaining OIP ( 1 Bn or so ). Also in deal is 100% of a large exploration license with a discovery ).
How much of the 130 million cost to AET can be attributed to the 4000 bopd / 20 million p2 reserves element is hard to quantify but perhaps some read across can be made, & it shows the appetite for buying into production assets in the region. I had wondered last Yr whether Afentra with their 40 million in cash might look at Tower . Aet looking like a good buy shortly after suspension lifts but they need to secure debt financing for the balance of the 80 million I understand. One to watch
Should add I'm familiar with RKH. bought it at 8p in 2009 although sold at 35p and missed the Sea Lion Mega run. Used to hold BOR and Fogl too back in those days. Unbelievable how RKH got all of FOGL acreage and Sea Lion appraised and years later the SP and cash balance is where it is. Priced as if the whole thing never happened. Lesson being if you hit the jackpot on an exploration well sell as high as you can and come back a decade later. Development cycle is a whole different kettle of fish
Hi , took a punt on this last year around 8p thinking an Obrina Mare award might triple or quadruple the share price but sold it a few months ago It now seems that an award decision if any, is 4 to 6 months away from today's date. With 3.8 million in cash and no near term prospect of income it seems to me that the SP could drift lower in next few months. Could see fundraising at 5-6p area imo. Bit of a disaster for LTH . Shouldn't have sold the Egyptian production. It was 2000 boepd I think? That would have kept the lights on.