Member Info for deeko

Looks like the Fool likes us. shame they didn't realise we have £8 million cash.

https://www.fool.co.uk/2025/09/28/up-334-in-a-year-this-fledgling-energy-company-might-not-be-a-penny-stock-for-long/

Said it before and I'll say it again, these guys could easily deliver a 7.5%-10% dividend based on today's SP. £7.5 million is easily offereable.

Revenue will be well ahead of$500 million this year :) GLA

Thanks Thunder, glad there are people out there looking out for our capital. Particularly on a day like today, we've all been waiting for BG to TR1 patiently, glad you selflessly came here today though to tell us of an issue that came out 2 weeks ago and the company has already responded to.

Fantastic,

just need Inpex to supprise the market with a drill decision in March! that would be fantastic

Arguably a bigger RNS than the Skua-11. No reason for this not to increase back to the 25p range

Crazy to think that in 9months we 'could' (using that loosely) be spudding the giant field that is Kertang. When is the decision expected from Inpex?

No even sure why we are speculating on things that aren't going to happen. It will be silly things like 'engineering wraps can only be applied for 6 months before a temporary repair is implemented', yet everyone in the industry knows these are good for years.

Mothballed equipment not being removed after X years. Despite it not actually creating an issue for anyone onboard or environmentally.

The regulator is there to uphold their standards, regardless of how petty they are. JSE just need to comply and jump through hoops.

Market cap has now dipped below £100m.

In the private sector, you’d never find a business going for less than 1/5 of its revenue. Yet on the London market, opportunities like this are everywhere. The real question is: who’s going to benefit? My guess is private equity, swooping in with a so-called “substantial premium” that’s still a lowball in reality.

If I had the full £100m, I’d take this one over myself.

Yeah we had similar on SEA. Those folks are now 'gutted' they didn't buy more at the lows of 7p.

Suspect Charlie will be similar.

I'll be adding JSE to my list of uncorroborated claims in 12-18 months :)

SQZ - 10p to +60p then 68p - 125p (well over 800% profit)

TLW - 7(ish)p to 63p (+700%)

I3E - 12p - 36p (+200%)

SEA - 7p - 80p and rising. No intention to sell until the big drill hits. Looking for a sell somewhere in the range of 200-400p, that'll be revised upwards depending how the company evolves.

EAE - 45p - 100p (>100%)

Many many more.

It's really not difficult, find a company that's undervalued... buy

Wait...

wait a little longer...

Price increases...

Idiots turn up to talk it down...

Price goes up...

Idiots turn up to talk it down...

cycle continues and I sell when it's either maxed out or something in the story changes for the worst.

I'm also never too proud to turn down a tip either. I'm in this for the money, if the initial tips comes from a fortune cookie then great. Every tip that comes along I'll always look into. Most are thrown away quickly but every now and then an SQZ comes along.

Thought this was worth posting, it's AI (don't shoot me), cross checked 3x with financial reports. But worth clarifying on the $40 million per year in debt servicing costs.

2023 (Total finance costs: $41.8m)

ARO accretion (non-cash): $20.2m

RBL interest (P&L): $8.1m (of $10.2m incurred; $2.4m capitalised)

Cash interest actually paid on borrowings: $5.0m

Lease interest: $2.8m

Upfront financing fees (amortised): $2.7m

Warrants expense (non-cash, from 2023 equity raise): $3.5m

Other small items (fair-value, VAT accretion, derivatives, etc.): ~$4.5m

Takeaway: The $41.8m headline is inflated by non-cash ARO accretion and one-offs. True cash debt servicing was only ~$5m.

2024 (Total finance costs: $45.1m)

ARO accretion (non-cash): $22.6m

RBL interest (P&L): $16.4m (all cash, no capitalisation in 2024)

Lease interest: $2.7m

Financing fees (amortised): ~$1.9m

Other finance costs: ~$1.5m

Takeaway: In 2024, the “debt servicing” element grew as the RBL was fully drawn. Still, only $16.4m was actual RBL interest, not $45m.

Yeah, Charlie, it’s called doing some research and being open to changing my mind if the facts point that way. You should give it a try — might actually help you make some money instead of just tossing out random comments and never backing them up.

Legache - I get it, debt isn’t just a number, there’s interest and obligations, sure. But honestly, every oil company carries leverage. If that debt is being used to grow, I’m all for it. Like, if JSE took on $200 million but bought 21,000 boe that brings in $100 million free cash flow a year before servicing, that’s just smart business. And right now we’re producing around that level with a lower level of debt, but you are worried? Again, I find the concept of being debt free for the sake of it pointless.

The fact of the matter for me is, I'm (call me selfish) invested to make money. It's generally mutually exclusive that if I'm invested I want the company to do well. And I stand by the fact that the company could easily offer a dividend. $7.5 million from an expected FCF $270-$320 million between now and 2027 isn't crazy

If the updated financials indicate a worsening position, then again, I'll change my mind. Sorry, Charlie, I know you like people to be rigid and closed off to other views.

Indeed, good shout Zengas! I'd be more than happy with an acquisition. But just brining debt down for the sake of claiming to be debt free feels like a waste.

interesting to hear all the opposing views.

Appreciate the opposing view. I'd just rather see debt at say $27.5 million vs $20 million (or $17.5 vs $10 million) and actually benefit as an investor in the company. Debt free is great but at a certain revenue stage (i.e. us) it's just accounting because it can be paid at any stage no significant Capex layouts are needed.

It's a healthy debt level in my opinion. Tullow at $1.3 billion or 2020 Enquest's $2 billion debt was clearly wild. But these guys are churning out something like $40 - $48 million in revenue a month.

Interesting take, I guess you haven't been investing in oil and gas for very long?

Decom is 6 years away for Montara assuming no well work, no infills, no opex improvements, no forecast changes and no change to oil price. The well work is usually the most expensive part, Enquests thisle has 50+ wells, BP's Foinaven has 50+ wells, Shells Brent 200 wells. Jadestones Montara has 15 wells according to sources.

Decom takes a couple of years from COP to any work actually starting, floating away an FPSO is simpler than removing a platform. But the general time line from COP to Decom complete is 10 years. Even at 5 years, Jadestone should be producing somewhere in the region of 30 - 35 mooed. At 21 moboed we are brining in revenue of $500 million. At 30 - 35 mooed we'll be closer to $800 million.

That's before we get to depreciation, tax deductables etc, the money Montara has brought in has allowed Jadestone to grow to the point they are now. Yet people complain that at some stage we'll have to pay a fraction of our revenue towards decom.

Hopefully, the company puts forward a special dividend alongside first half results. Mcap now ~£100 million. No major Capex due, $41 million monthly revenue and steady operations ongoing. every £1 million is now 1% dividend, 7.5% special dividend and 4.5% annual would keep everyone happy IMO.

Agreed,

Divi will also stoke institutional investor appetite.

Enquest purchased assets in Vietnam producing circa 5.7 mboed. 'The headline value of the transaction is $85.1 million and, net of interim period cash flows (generated since the effective date of 1 January 2024), the consideration paid by EnQuest was circa $25.7 million.

Seascape are easily able to purchase something smaller or similar scale IMO, surely this is what Geraldine was brought in for? Hopefully something soon on the horizon.

Yes but when you layer in the fact that this is an FPSO with limited storage capacity and bad weather conditions (based off the RNS's) they weeks is what this can sum upto.

A single example that can delay this start-up would be weather. If the rig has only just moved they that would suggest the weather has been poor. You can't start up a well with a rig above it for obvious reasons. Again, I don't know the reasons or where the rig was sitting but it was suggested it was only moved from the well site on Friday.

Another example of poor weather impacting a start up would be not being able to get an offloading tanker in, sometimes entire fields are shut-in for this so a new well start-up gets canned until the tanks are empty.

Hopefully, we'll get something this week. Tomorrow would be preferred though.