Member Info for CRB14

Well that didn't last long

Standing down to focus on his health. All the best to Graham. Health comes first.

And there you have it - clarification on why the drill is to be plugged and abandoned, and why the loan facility was arranged.

One part I picked up on was that further appraisal drills will likely be needed running in to serenity production. I'd think that those may well be appraisal leading into production drills though, otherwise things will get costly real quick.

Yes, likely several wells

I think the 50/50 is as to whether this prediction of a larger field is correct and is not as to whether there is any oil at all. As I've said, Serenity is a proven discovery. There is oil there, they are now drilling to assess whether their prediction that the sands thicken as part of a larger field.

So the current drill results could either firm up the low side estimate, or we could be talking several multiples of that.

Try telling the guys at EOG that

Why is Serenity a 50/50 when it's a proven discovery? I get that this drill is intended to prove the extension of Blake / Tain, but it is already known they hit an oil column in 2019. It's not (as some would believe) some wildcat exploration drill.

Great posts from Nomad and Stas. Fully agree on all aspects.

Had i3e not made a complete mess of the Liberator drill I think there would be a bit more excitement.

I was in at that time and Liberator was described by i3e as being as close to 100% success as you could get. I can't recall exactly what happened, but I think they pushed the boundary of the drill and missed by 100m.

So I think it's reasonable given their track record for investors to be skeptical. I however have hope that Serenity will be a success. It's not nailed on, but it sounds positive.

Are headed to the Stena Don - Brage Viking and Njord Viking if anyone is interested

Probably would cost more than £1m, however EOG's drill costs are 46% (or a cap of £15m) so perhaps they've agreed a proportion of the sidetrack costs.

Another question - does a 'loan facility' mean they've actually drawn down the loan, or does it just mean that the facility is there if and when they might need it.

The Serenity drill is a big one and from past experience things like sidetracks can be decided on the fly. It could well be that it was just prudent to ensure this money was available in the event of a sidetrack for a drill which could be transformational for both EOG and I3e.

I'm just spitballing here

I feel that Kistos is leaky, and so something is happening. Who knows what

Maybe Mitch was too busy counting all that cash that he doesn't know what to do with

Personally, I would vote yes if it came down to a shareholder vote.

It's almost as if the market doesn't like companies with huge cash piles an no idea how to use it. Who'd have thought.

Agree with this, as otherwise there will be danger of a repeat in 12 months time with SQZ sat on an even greater cash pile releasing statements / presentations that they are "exploring deals / options".
The greater the cash built, the more this is a target. As said by somebody else, if a deal falls flat on its face with Kistos I can see a large decline - irrelevant of the cash build. Holders will want to know there's a solid growth plan and to hear how that cash is going to be put to use. It otherwise might as well just be distributed to shareholders.

I hold both and I'd fully support a merger. Whilst Serica might be throwing off cash it's pretty clear they have no idea what to do with it. They were always going to be a risk and that's the very reason I bought.

You're saying Kistos aren't profitable? I can't tell if this is a joke or not.

Still digesting, but from what I've read Kistos have made a few offers for Serica which have so far been rejected. This RNS appears to be an attempt by Mr Austin to encourage Serica shareholders to back the deal.

I'm a shareholder of both in fairly equal measures so will be reading this carefully.