Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Enq used to have a habit of breaking out fast and I think those days are within touching distance again.
Below 1.5 leverage is game on imho
Boring steady North Sea production along with a mundane CMD presentation is quite possibly EnQuests strength!
Tullow lies, lies, and damn lies.
How much debt has Tullow got? Tullow production ambiguity in Africa versus EnQuest in the North Sea. Difficult to compare.
Traded volume picking up today... could be better but progress nonetheless.
ExxonMobil, EnQuest hire Stena drillship and semi-sub
Offshore drilling contractor Stena Drilling has recently signed drilling contracts for the Stena Don and the Stena DrillMax rigs.
The second contract secured by Stena is for the Stena Don semi-submersible drilling rig. The UK player EnQuest has hired the Stena Don for drilling operations in the UK for a dayrate estimated by Bassoe Offshore at $185,000.
The contract, expected to start in February 2020, is a two-well, 90-day term. According to MarineTraffic, the Stena Don is currently moored in the Orkney Islands, UK, with its next destination set for the west Shetlands.
https://mobile.offshoreenergytoday.com/exxonmobil-enquest-hire-stena-drillship-and-semi-sub/
This hire must be for the Kraken drills?
It’s a buy!
Morgan Stanley labels Hurricane Energy share price drop 'overdone'
Sharecast News
Sharecast News | 04 Dec, 2019
Analysts at Morgan Stanley reiterated their 'overweight' recommendation for shares of Hurricane Energy, labelling the recent drop in the share "overdone".
While disappointing, since the oil explorer's update on its discovery at Warwick West, the stock had fallen by roughly 25%, so that they were now assigning no carrying value for the Greater Warwick area and pricing-in an approximately 20.0% discount to the value of the Early Production System at Lancaster.
Under the assumption of a price of Brent crude oil of $60.0, Morgan Stanley estimated a net asset value for Hurricane of between 54.0-214.0p, depending on the valuation for the contingent resource base in place at Lancaster and Lincoln.
A 54.0p NAV would mean zero value for the contingent resources, with the valuation fully dependent on the 2P resources at the Lancaster EPS (48.0p) and Lincoln (9.0p), they said.
"Whilst the update on Warwick West can be considered disappointing for the overall Greater Warwick Area, we note that both the Warwick wells (Warwick Deep and Warwick West) were targeting prospective resources [...]," they said.
"We believe these have limited bearing 1) on Lincoln 2C resource base of 604 mn bbls (gross) and 2) on the Early Production System at Greater Warwick Area."
The analysts also termed Hurricane's update on the Lancaster EPS the day before as "reassuring", highlighting how it followed a series of positive data points.
"There is nothing in yesterday's update to suggest any negative read-across to Lancaster EPS and any reduction in its valuation."
In terms of the likely next catalysts for the shares, Morgan Stanley pointed to a technical update on the Lancaster wells expected by year-end 2019 and further details on production at Lancaster to help determine the contingent base at the Lancaster field in the first quarter of 2020.
Major disconnect just doesn’t make any sense whatsoever....
EnQuest PLC, 4 December 2019
EnQuest awarded Block PM409 PSC offshore Malaysia
EnQuest PLC ('EnQuest'), an independent oil and gas production and development company listed on the London and Stockholm stock exchanges (ENQ.L and ENQ.ST), is pleased to announce it has been awarded the Block PM409 Production Sharing Contract ('PSC') in partnership with PETRONAS Carigali Sdn Bhd ('PCSB') by PETRONAS. Under the terms of the PSC, EnQuest will operate the block with a participating interest of 85.0%, with PCSB owning the remaining 15.0%.
Block PM409 measures approximately 1,700 km2 and is located offshore Peninsular Malaysia in water depths of 70 to 100 metres. The block is in a proven hydrocarbon area containing several undeveloped discoveries and is contiguous to the Group's existing PM8/Seligi PSC, providing low-cost tie-back opportunities to the Group's existing Seligi main production hub.
Within the initial four-year exploration term of the PSC, the partners are committed to the drilling of one well.
EnQuest Chief Executive, Amjad Bseisu, said:
"We are delighted to have been awarded the Block PM409 PSC and to expand our presence in Malaysia. The block contains several undeveloped discoveries providing future opportunities for EnQuest to demonstrate its proven capabilities in low-cost drilling and near-field development. We would like to thank PETRONAS for their confidence in awarding us this block and we look forward to continuing our productive partnership with PETRONAS Carigali."
“...Our valuation gets to 139p risked, 456p unrisked, using US$65/bbl. This implies that the shares are currently good value, and shows considerable upside if the resources are proved up...”
Buy, 90p target.
I’m a buyer at these discounted prices Cyber Monday on AIM!
We have natural declines on one hand but more producers being drilled across the portfolio.
Any estimates on production upside on 2020?
Malcy is often ‘paid’ to cover companies from an IR perspective. Nothing wrong in that but if Enq don’t want to pay to play then it is what is is.
CMD was insightful and debt coming down nicely could be faster but still a decent chunk off this year.
Anyone thinking institutions would start buying immediately after the CMD is being unrealistic.
The value is here institutions will come just need a little more patience.
Debt below $1.5B by end of year is an achievement in itself if you think where this company was a couple of years back.
BOD need to work the institutional investors now.
Great news for all holders!
If EnQuest deliver free cash flow of circa $300 Million that’s roughly 75% of the current market cap.
The market cap valuation is just plain wrong.
Debt reduced by $136 Million in H1 (35% of the current market cap). Net production up 27% and EBITA to debt ratio down to x1.8.
The current share price does not make any sense.
Additional Malaysian wells, Magnus wells and Kraken wells could push this to +90k by H2 next year.
HMHn, thanks for that.
What are your net debt estimates at:
30/09/19 (we should hear about that in the opps update late Nov / early Dec possibly in the CMD)
And what is your estimate at year end?
Atb