Member Info for chilting

Bounce back - shows good support for SP at this level.

The main problem is that debt is still the same this year as it was last year - no one can gloss over this.

Future prosperity is now even more heavily reliant on high oil prices and increased production - especially as hedging at a lower oil price accounts for such a large percentage of production.

The fall out from a bid drop is always nasty - its better to get out at first opportunity and then wait to get back in for as long as it takes to see stability.

Luck rather than credibility - we knew about the short term problems at Kraken but expected Malaysia to be up and running and Magnus to be improving - somehow just a few setbacks have made all the difference.

Now, I guess the vultures will be around to pick up the pieces.

In situations like this the drop is always overdone - this has to be taken into account - logic doesn't play a part.

Just wait for the bounce and that could be days away.

We could see 17p again before the recovery.

The production is as bad as it could be and the SP will be punished for that.

Unfortunately SP probably has further to fall - but when it stabilises the company will be a strong buy again with the SP
underpinned by assets - at this stage it will be a very attractive takeover target.

No where close to being another Hurricane but still a sell to take profit first thing this morning.

Wait and see before buying back in.

Magnus was cut price and there were not many other affordable NS opportunities for AB - agree BP did well to dispose but there is still value in the asset but also lots of problems, as we see in todays update.

Not sure an enquiry would help Ammu - AB just seems to have run out of luck.

I guess we all pay the consequences this morning.

We could be close to seeing the end game for Enquest with a sale of the company the best option for all unless AB is up for a long haul fightback.

It has to be said that production problems are the main cause for the poor update with problems at Magnus, Kraken and Malaysia.

its all very frustrating at a time when the oil price has been so high - basically performance was good when oil prices were low - now oil prices have improved performance has fallen through the floor resulting in no net gain with debt still at the same level now as in 2020.

So what now - basically the company has lost a year - there is potential for production to improve but to benefit the oil price needs to stay high.

I am not sure that Ammu is in the Warren Buffet league yet - he has to learn how to do the hokey cokey first.

https://www.youtube.com/watch?v=TMCthi3pFEQ

JDF
I think that applies to all small cap stocks.
Its far better to spread your cash around, that gives you better odds than just waiting for one to take off.
Its very easy to buy more when the stock takes off if required, but even a modest holding will quickly grow in value.

Yes, that could happen Kraken, but if it did, I think it would be a failure with little profit for shareholders - the simple fact is that peak production for the Kraken field came at a time when oil prices were low, so now its just a recovery exercise that will rely on Brent staying high, now AB has to grow production again and that will mean another equity raise.

I think Enquest will need to move production to other parts of the world - increase its presence in Malaysia, look for opportunities in Africa - to get the SP moving.

The NS is a high cost environment for oil production and new emissions targets will increase costs even higher compared to other production areas. It could be that Bressay and Bentley won't even be viable for future production?

If I was AB, I would look towards Malaysia for the next big project - he has to look for more production opportunities now or Enquest will just wither away.

L3
Yes, its data mining, but the central point is that the SP has been on the rise for all that period as it recovers from Covid.
This also reflects Brent's recovery and the improvement in the companies finances as debt is paid down.

The main questions now for 2022 are, can production hold up enough to continue the positive trend and will Brent continue to be a positive influence?

Its actually worth remembering that the SP was under 10p at the beginning of November last year and that it has held a rising trend line since then, with spikes that hinted at greater potential.

At first glance it does look like a poor way of making money but when looking at the website not only does it look like an excellent idea but its also possible to see good profit for M&S. They are pushing 30 day rentals for the Christmas period.

A dress costing £79 is hired out for £15 for 4 days - £22 for 10 days or £25 for 30 days - when returned between rentals it is dry cleaned - after it has been used for rentals it is sold on the site for £34.

I am not sure how many times the garments are hired out - maybe 3 or 4??? - so there is certainly profit if the operation is run efficiently - the reviews on Trustpilot suggest that it is.

https://www.hirestreetuk.com/

https://uk.trustpilot.com/review/www.hirestreetuk.com?utm_medium=trustbox&utm_source=MicroReviewCount

Hopefully we will see some positive feedback from the various trials that are in progress both here in the UK and elsewhere, that will give the green light for usage of hydrogen in the gas grid.
Even 10% hydrogen would be a major advance, with a gradual increase as supply of green hydrogen increased.

How would Enquest know the production guidance had been missed?

Jan is 100% correct.