Member Info for colebrooke1972

I’m not short by the way but use CFD’s long so will have a nice profit on the leveraged rights! From my CFD provider about the rights: What this means for your open positions For standard positions and positions with non-guaranteed stops, you have a number of options. If you have a long position, you can: -Take up the rights. Please reply to this email or call our trading services team on the number below to let us know you’d like to take up the rights -Do nothing. The rights will then lapse with no profit (this is the default) -Trade out of the rights by calling our trading services team. You must do this during regular trading hours If you have a short position, you can: - Buy back the rights to close out the short position. Please call our trading services team during regular trading hours to do this - Run to Expiry and you will risk having your position taken up automatically depending on the result of the offer. This will mean potentially having a new short position booked on your account around the paydate of the offer at the subscription price under the terms of the offer.

You can buy back the rights to close out the short position. If closing out at 21p a tidy profit to be made.

Cairn had their AGM on the 15th May earlier this week. In the presentation Kraken stated as: Optimise production up to 50,000 bopd  Completion of firm development drilling (25 wells) https://www.cairnenergy.com/media/2269/agm-print-presentation.pdf All on track with Kraken it would seem?

Phoenix from the ashes: Investors pile into smaller European oil groups Shadia Nasralla LONDON (Reuters) - Investors have sent shares in European oil exploration and production (E&P) focussed companies like Premier (PMO.L), Tullow (TLW.L), EnQuest (ENQ.L) and Faroe (FPM.L), soaring, and some fund managers say they have not peaked yet. FILE PHOTO: A worker walks at a Tullow Oil explorational drilling site in Lokichar, Turkana County, Kenya, February 8, 2018. REUTERS/Baz Ratner/File Photo Shares in smaller and mid-cap British oil companies are outperforming the London FTSE blue chip index .FTSE and their larger competitors .SXEP, riding the wave of rising oil prices LCOc1 much higher than oil majors. “The sector has performed quite well, but not as well as it might have done, we’ve only just started the rally,” said Paul Mumford, senior fund manager at Cavendish Asset Management, who is invested in Faroe, EnQuest, Tullow, Hurricane Energy (HUR.L) and Cairn Energy (CNE.L) and other smaller E&P groups. “I tend not to do majors. You’re not going to make ten times your money with BP and Shell, whereas with some of the (smaller companies) you will do that. It’s a very interesting undervalued part of the market.” Smaller E&P companies have direct exposure to oil prices, reflected in benchmark Brent futures which have risen by around a quarter towards $80 a barrel in the past three months, levels last seen in late 2014. Morgan Stanley, which sees oil prices rising to $90 a barrel in 2019/20, said in a note this week it was “time to increase E&P exposure”, raising E&Ps’ rating to attractive. An index of 20 larger European oil and gas companies - most of which include refining and marketing operations known as downstream - rose by around a fifth in the past three months. Meanwhile, pure E&Ps like Premier rose by around 60 percent, Tullow by 50 percent, Faroe by 40 percent and EnQuest by almost 30 percent. An index of smaller oil and gas groups rose by around 35 percent. https://uk.reuters.com/article/uk-oil-companies/phoenix-from-the-ashes-investors-pile-into-smaller-european-oil-groups-idUKKCN1II1T7

Exactly folk need to up their short term targets IMHO

Break 38p and we are away...

The company’s flagship Kraken development is online, and the producer is now guiding for oil production of 50,000 to 58,000 barrels of oil per day for 2018, up from last year’s figure of 37,405 bbl/d.

Perhaps Delek could be interested again although for a bit more than £162 million! It would add to their ever increasing stakes in North Sea production (they bought Ithaca last year) DEALS SEPTEMBER 15, 2016 / 7:41 AM / 2 YEARS AGO EnQuest, Delek Group end Kraken oilfield stake sale talks Reuters Staff (Reuters) - Oil producer EnQuest Plc (ENQ.L) said it ended talks with Israeli conglomerate Delek Group Ltd (DLEKG.TA) regarding a potential stake sale in an oilfield in the North Sea. The companies said in July they were in talks for Delek to buy a 20 percent stake in EnQuest’s Kraken oilfield, in a deal that could have been worth $162 million.

From Motley Fool: Ever since the price of oil began to grind higher last year, small-cap North Sea oil producer Enquest (LSE: ENQ) has been on my value radar. After several years of rough trading, it now looks as if Enquest is back on track. The company’s flagship Kraken development is online, and the producer is now guiding for oil production of 50,000 to 58,000 barrels of oil per day for 2018, up from last year’s figure of 37,405 bbl/d. Cash flow growth According to Enquest’s full-year 2017 numbers, which were published today, this year the firm expects its production cost per barrel to fall to $24, compared to 2017’s figure of $26. Meanwhile, capital spending is set to drop 47% to $250m. The group has hedged 7.5m/bbls of oil at an average price of $62/bbl. 2017’s average realised oil price was $52.2/bbl. Put simply, during 2018 Enquest’s oil production is set to grow 55%, and the average cost of production will fall approximately 8%. All in all, this implies Enquest’s profitability should jump during 2018, and it should be able to start meaningfully reducing its debt. Net debt was just under $2bn at the end of 2017 or around 6.6 times EBITDA. According to my calculations, if cash produced from operations jumps 55% during 2018, (in line with the higher level of production to $471m) Enquest could be on track to report free cash flow from operations of $221m this year. That’s enough to pay down 10% of the debt mountain (in the long term City analysts are forecasting a free cash flow of as much as $700m). These figures do not take into account higher oil prices, nor the lower average production cost of each barrel, so they are highly conservative estimates. https://www.fool.co.uk/investing/2018/03/20/2-top-value-stocks-id-buy-in-april/

'Family Day' a public holiday in Canada. Markets closed in Canada which could explain slight drop in the UK AIM pricing.

Worth buying at 117.25 better percentage than in the savings account! I can't see this going for 120p Delek will be forced to up their offer. Even at 150p this is cheap...

However, two of Ithaca's largest shareholders, Artemis Investment Management and Cavendish Asset Management which together own around 8 percent of the stock, said the offer was too low, considering the potential of Ithaca's newest field, Greater Stella, which comes on stream later this month. "We would like to have a chat with the management of the company to understand why they recommended a bid which we see as disappointing," Mark Niznik, co-manager of the Artemis UK Smaller Companies Fund, told Reuters. The deal requires that holders of more than 50 percent of shares not held by Delek accept the offer. "As things stand I would be voting against it unless something crops up in the meantime to convince me otherwise," Cavendish fund manager Paul Mumford told Reuters.

Could well flush out some other interested parties?

Ithaca Energy Inc. Recommended Takeover by Delek 6 February 2017 Ithaca Energy Inc. (TSX: IAE, LSE AIM: IAE) ("Ithaca" or the "Company") is pleased to announce that it has entered into a definitive support agreement (the "Agreement") with Delek Group Ltd ("Delek") on the terms of a cash takeover bid for all of the issued and to be issued common shares of Ithaca not currently owned by Delek or any of its affiliates for C$1.95 per share (the "Offer"). Highlights · The Offer is for a cash consideration of C$1.95 per share - this equates to £1.20 per share based on the exchange rate on 3 February 20171 · The Offer is unanimously recommended by the Board of Directors of Ithaca (excluding the Delek related party Directors) and values the entire issued and to be issued share capital of the Company at C$841 million (US$646 million) · The Offer provides shareholders with the opportunity to crystallise the value of their holdings in cash and represents a 12% premium to the TSX closing price of C$1.74 per share on 3 February 2017 and a 16% and 27% premium to the 30 day and 60 day volume weighted average prices respectively · The Offer price represents a substantial premium to the average analyst consensus target price of C$1.60 per share2 · The Offer implies a total enterprise value of approximately US$1.24 billion · Delek is an Israeli listed conglomerate with significant natural gas exploration and production activities in the Eastern Mediterranean and an existing 19.7% shareholder in Ithaca Brad Hurtubise, Non-Executive Chairman, commented: "We are very pleased to announce the Offer, which provides an attractive opportunity for all shareholders to secure a premium cash value for their investment following a sustained period of share price growth and at a favourable point in the Company's evolution." "A Special Committee of independent Directors has fully assessed the Offer, with input from the Company's financial advisor and an independent valuator, and believes the Offer is fair and in the best interest of the Company and its shareholders and unanimously recommends that the shareholders tender their shares to the Offer."

Equivalent 105p GBP Nice

From the Canaccord Broker Note I posted earlier this week: Furthermore, we believe that that company has identified other previously 'stranded' accumulations in the vicinity, which may be added to the company's portfolio at attractive entry price levels.

Perhaps there will be other news on the horizon a field acquisition perhaps? Pure speculation.

Yet at the same time, we think investors can expect more significant market returns than for many in the sector if the oil price continues to strengthen during 2017. For example, at long term Brent $55/bbl our current valuation would still be 67p/sh, while at $75/bbl our valuation (pre further Stella derisking) would be 142p/sh. We maintain our BUY rating but with a raised TP of 110p/sh.

http://www.investorvillage.com/uploads/11814/files/IAE.Canaccord.170106.pdf A year of transformational production growth. Stepping up production Ithaca is on the verge of a significant step up in production once its UK North Sea operated Stella field comes onstream. The development, which is expected to deliver first oil in January 2017 should provide the company with multiple benefits. We expect it to increase Ithaca's production from about 9 kboed in 2016 to over 20 kboed average in 2017. As a newfield development, the field has quite low operating costs of about $12/ boe during peak production. In combination with the rest of the company's portfolio, where operating costs have benefited from macro service costs deflation and sterling exchange weakness in addition to Ithaca's own cost cutting initiatives, we expect overall company operating costs to decline to c.$18/boe, compared with over $40/boe two years ago. Balance sheet strengthening The production increase together with reduced unit operating costs and lower capex are expected to translate to a rapidly improved balance sheet. We anticipate, based on our $60/bbl Brent assumption for 2017, that net debt will fall from about $600m at end 2016 to about $400m by the end of 2017. Operationally, the higher production levels and reduced debt should allow the company to push ahead with other developments in the Stella 'hub' area. These will have the benefit of lower development costs (tie-ins to existing infrastructure), maintaining a flat production profile over those facilities for many years (so extending the lower operating cost structure) and in some cases provide for partner tariff revenue across Stella. Two projects at least have been identified - Harrier and Vorlich - and we expect advances in field development planning for at least one over the next 12 months. Furthermore, we believe that that company has identified other previously 'stranded' accumulations in the vicinity, which may be added to the company's portfolio at attractive entry price levels. Valuation and rating Our risked NPV10 production and development value (which includes balance sheet adjustment) is 106p/sh at our long run $65/bbl Brent assumption. Once Stella is onstream, and provided production delivery is as anticipated (the field is expected to build to close to 30 kboed capacity by late Q1/early Q2), then there is scope for full derisking of the project which could increase our valuation to over 115p/sh, all other factors being equal. The stock is also geared to the oil price, though a combination of increasing gas output and a more 'manageable' scale of debt compared with other more highly leveraged peers means that it is not the most geared to oil prices. We think the company strikes a good balance between 'sensible' oil price gearing together with more reassuring downside equity value protection than its geared, more leveraged peers. Yet at the same time, we think investors can expect more significa

£1.03 GBP equivalent nice 👍