If they can get Kraken to 35k / 40k boped with DC4 online then we could see overall production close to 87k boepd later in the year.
Production has averaged 67,700 Boepd in the first two months of the year. The market cap here is ridiculously undervalued.
http://www.valuethemarkets.com/index.php/2019/03/18/enquest-worth-punt-ahead-full-year-results-week-enq/ Is Enquest worth a punt ahead of full-year results this week? (ENQ) by ValueTheMarkets • March 18, 2019 ValueTheMarketsMarch 18, 2019 Last week Enquest (LSE:ENQ) shares dipped to a three-year low after its Kraken project partner, Cairn Energy, reduced its estimate of reserves for the field by 19pc. Enquest was quick to dispute the 2P reserve downgrade, stating it’s estimate remains ‘materially unchanged’. Enquest highlighted it uses different technical approaches to Cairn for the production forecasting of Kraken and assured investors that it does not expect to recognise any impairment charge related to the field. At today’s share price of 15.5p, Enquest’s Market Cap is just £260m. That seems pretty cheap for a company expecting to average 63-70k barrels of oil per day (bopd) this year. It is, of course, the company’s debt mountain which, in addition to a poor performance from the Kraken field, has continued to stump sentiment in the stock. At the end of December 2018, debt stood at $1.774bn, an improvement on the half year levels of nearer $2bn but the company is very sensitive to oil price movements and as a result, is not attractive to the risk-averse. However, things are looking up, with the firm significantly increasing its ability to generate positive cashflow after the acquisition of a number of assets from BP including the Magnus asset. In an operational update in February, CEO Amjad Bseisu made it clear debt reduction is the company’s key focus saying: “We expect material production growth of around 20% in 2019. Our capital programme includes new wells at Magnus, Kraken and PM8/Seligi as well our pipeline projects at Thistle/Deveron and the Dons and Scolty/Crathes. The successful delivery of this programme will underpin production during 2019 and beyond. Our focus on cost control and capital discipline, combined with our improved cash generation capability enables further repayment of debt, which remains the priority for the Group.” Amjad Bseisu has certainly put his money where his mouth is. The CEO bought Enquest stock in November and January at 23.3p and 19.4p respectively, collectively worth £663.5k.This takes the director’s interests in the company up to pc via a trust vehicle set up for his family called Double A Limited. Enquest’s recent share price action is ugly to put it mildly. The sharp pullback in the oil price together with the rights issue at 21p in the last quarter of 2018 saw the stock price halve. Cairn Energy’s reserves writedown for Kraken pushed Enquest below 18p support with the price now stumbling along a weak support trendline (red). However, unless there is further bad news, it seems likely the worst is now priced in. When sentiment becomes this negative on a stock it can often be slow to turn, but there may just be a suitab
Moody's upgrades EnQuest's rating to B2, stable outlook Worth reposting the key point from the Moody’s upgrade in November (posted by AI on ADVFN) Assuming a Brent price of $65 per barrel and capex of $250 million, EnQuest should generate EBITDA and FCF of around $950 million and $450 million respectively in 2019. Moody's expects that this cash surplus will be used to reduce adjusted debt, including inter alia the amortisation of the secured term loan, BP vendor loan and BP's profit share. Overall, Moody's estimates that this will help bring leverage down towards 3.0x at year-end 2019.
EIA inventory saw a drawdown of 3.862 million estimates were for a build of 2.655 million oil moving up to new high on day. This won’t stay at 16p...
As outlined at the time, the addition of Magnus was expected to add 60 million barrels of oil equivalent in 2P reserves, 10 million boe 2C resources and approximately $500 million of net present value (NPV) to the group.
You need to look at total production from all assets. From the February operations update: 2018 performance Average Group production up 48% at 55,447 Boepd compared to 2017; above the mid-point of revised guidance. 2019 outlook 2019 average Group production expected to grow by around 20% to between 63,000 Boepd and 70,000 Boepd
The CEO bought £400k worth of shares at 19.4p in January. Even he can’t be that stupid!
If POO keeps on rising and Magnus overdelivers against expectations whilst Kraken is sorted out this will turnaround. I think the market has over reacted here somewhat.
When was the last time an AIM CEO bought £400k’s worth of company shares? Massively bullish statement.
I’ve been in this for about two years and just about even again. Have added today there is a real appetite for Bio tech stocks in the US again. With the markets up today on China trade news we should break 40p.
Poor journalism no mention of the three-way collar options for c.3.0 MMbbls of oil in place for the first quarter of 2019 at an average floor price of c.$70/bbl and the call spread between c.$78/bbl and c.$84/bbl Yet the Enquest bonds keep rising...
HOUSTON, Jan. 16, 2019 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced full year 2019 operating and financial guidance ("2019 Plan") and provided an update on recent events and well results. Zama 2 appraisal well: drilling of the first appraisal well of the Talos-operated Zama discovery is currently ongoing. This is the first of three penetrations expected in the Zama reservoir and progress will be reported shortly. The goals of the first appraisal penetration are to (i) look for a full section of Zama sand in a downdip location, (ii) find the oil water contact within our expected subsea depth range, (iii) understand the rock properties of the aquifer and its potential impact on recovery, and (iv) deepen the well approximately 500 meters to test the Marte exploration prospect. https://www.talosenergy.com/news/press-release-details/2019/Talos-Energy-Announces-Full-Year-2019-Operating-And-Financial-Guidance/default.aspx
HOUSTON, Jan. 16, 2019 /PRNewswire/ -- Talos Energy Inc. ("Talos" or the "Company") (NYSE: TALO) today announced full year 2019 operating and financial guidance ("2019 Plan") and provided an update on recent events and well results. Zama 2 appraisal well: drilling of the first appraisal well of the Talos-operated Zama discovery is currently ongoing. This is the first of three penetrations expected in the Zama reservoir and progress will be reported shortly. The goals of the first appraisal penetration are to (i) look for a full section of Zama sand in a downdip location, (ii) find the oil water contact within our expected subsea depth range, (iii) understand the rock properties of the aquifer and its potential impact on recovery, and (iv) deepen the well approximately 500 meters to test the Marte exploration prospect. https://www.talosenergy.com/news/press-release-details/2019/Talos-Energy-Announces-Full-Year-2019-Operating-And-Financial-Guidance/default.aspx
("Premier" or "the Group") Statement re: Market speculation 14 January 2019 Premier notes the press speculation regarding the possibility of the Group making a UK acquisition. Premier will continue to look at opportunities to acquire UK North Sea assets in line with the Group's stated strategy. There is no guarantee that the Group will bid in any process or that any process will complete. Specifically, no firm decision has been taken to bid for all or any of the assets currently being marketed by Chevron and how, in the event that the Group were to be successful, the acquisition of such assets would be financed. Current operational performance remains strong with production in the first two weeks of January averaging above 90 kboepd.
How long before the sp reflects the value? The Magnus acquisition added approximately $500 million of value including a significant increase to both existing 2P reserves and annual production.
Appraisal underway how much will PMO’s stake be worth?
40% of Zama discovery being sold: https://www.dea-group.com/en/press-releases/dea-acquire-sierra-oil-gas-mexico-including-stake-world-class-zama-discovery#overlay-context=en/press-releases/dea-acquire-sierra-oil-gas-mexico-including-stake-world-class-zama-discovery DEA Deutsche Erdoel AG has signed an agreement to acquire Sierra Oil & Gas, a leading independent Mexican oil and gas company. Sierra holds interests in a portfolio of six exploration and appraisal blocks in Mexico, including the world class Zama discovery. Sierra holds a 40% non-operated working interest in Block 7, containing a significant part of Zama, one of the largest shallow water discoveries in the past 20 years globally. As a whole, Zama is estimated to hold 400 million to 800 million barrels of recoverable oil equivalent and expected to start production by 2022/23.
US oil demand of 20.774mbpd is the highest October level since 2004 -EIA
first OPEC December production survey JBC: OPEC OUTPUT FALLS 825K B/D TO 32.43M B/D IN DECEMBER