The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Aberdeen Drilling School Ltd. recently facilitated 2 x DWOPs for Eni's Rowallan HPHT well. The DWOPs took place on board the Ensco 121 and involved delegates from Eni, Halliburton, Weatherford, and Ensco. Feedback from the two events has been excellent and we are proud to continue to support Eni and its partners on this project. hashtag#DWOP hashtag#HPHT hashtag#Eni hashtag#Aberdeen hashtag#training hashtag#AberdeenDrillingSchool hashtag#oilandgas hashtag#drilling hashtag#delegates hashtag#instructors
Not according to their asset swap RNS, it states
'The Transaction is anticipated to add 7-8,000 boepd net to Faroe during 2019 with the potential for further upside through reservoir outperformance. On a preliminary basis, Faroe estimates its 2019 production will rise to between 18,000 - 22,000 boepd representing up to 83% year-on-year growth from the current 2018 forecast full year production of ~12,000 boepd.'
I believe Serica is 12,600 boepd. I'm not knowing FPM in any way, I really like the company. Just an observation
Fantastic stuff, can't wait for this to spud. I can only imagine the excitment when the drill bit reaches TD and ENI release results. Hopefully Rowallan comes in a monster and they pen up some plans to explore the other targets identified in the block.
I'm not sure why Barron was needed to tell you SQZ was a great company.
Anyway, RPT, I fail to see the investment case. Three assets in Ukraine, just over 3,000 bopd at present, $40 mill in the bank and Mcap £160 mill. Overvalued in my personal opinion.
Especially when you consider SQZ, 34,000 boepd (Net ~13,000), Erskine at ~3000, maybe 60 mill in the bank, additional 10% of BKR in four weeks, drill in the next week or two, R3 workover ASAP, Columbus and the company has already stated they are looking to continue the growth momentum inorganically. Plus the tax relief from profits.
SQZ is currently less than 2x RPT. Admittedly, I haven't researched them much. FPM is current around double SQZ yet we are producing more, although FPM are a very busy company with lots of drills and the recent asset swap puts them ahead in January (I think). Any point being, I see much more potential in almost every other oiler than RPT
I was under the impression no wells were sunk in Guyana? Hence no 'discovery' just yet? If thats the case I wouldn't describe them as cheap at a mcap of £80 million and no revenue stream. But certainly one to keep an eye on for any decent sized in the share price.
Also do they have confirmation of drill or is this projected for Q3 2019?
Jag, thanks for the post. From the RNS, and I may be wrong here, the deal hasn't been struck just yet hence no details for us to feast our eyes on. I would have assumed the suspension would occur once the actual deal has been struck. No problem here, its just an observation that has been bugging me for two reasons;
I have a general interest in oil and gas M&A and the ever increasing creativity that occurs in striking these deals
and two, I'd like to work out the value to SDX so I can weight up how much value I can make out of it.
It seems to me the suspension was premature. I posted here back when the deal was announced that the timeline was likely going to be significant and from some of the snippets here it seems to be heading that way. Its possible the team have jumped the gun here, when Serica announced the BKR deal, that was almost a year after the initial 'media speculation'.
All they have done is locked in investors and locked out new money for apparently no good reason. Surely they should have suspended this after the deal to await shareholder approval?
Anyway, although I'm not in on this one... sadly, I'm still looking forward to listening for the announcement of the deal. If Serica has taught me anything, its that the quick money is made from selling when suspension is lifted but the cleaver money is made from holding until true value is realised.
ATB
As a former SQZ'er (Sold out on the Iran sanctions at 900% profit). SQZ sentiment was at rock bottom, despite the company pulling in around 3.5 million a month, this was because of scaling issues Erskine intermittently shutting off production for many months at a time.
The share price was rising because it was fundamentally undervalued and once the cash pile grew to 30+ million, people started to take notice. Interestingly speculation around another deal with BP emerged around 6 months before the deal was detailed in an RNS... unfortunately people were short sighted and didn't take notice.
I would be very surprised to see this come out of suspension any time soon since these deals take a significant amount of time to finalise. But I'll be buying some SDX once suspension is lifted.
*to the toilet :)
Seems that way. ELA seems to attract the very weakest of investors for some reason. the type of folks that need the company to RNS 'everything is going well' every morning and the CEO to hold their hand two the toilet.
It's an oil company, they are producing oil. They have a great activity plan and cash in the bank to fund it. Chill
In saying the JV is owed <1 billion $ in capital expenditure? Or $750 million from the 75% working interest? From the presentation this is depretiated at maximum 20% per year upto a maximum of 15% of production. Would be great if someone can clarify this. If this is the case and the company can get production up to 100,000 then GKP becomes a very serious cash cow from the backlog of capex never mind the profit made from the actual production
Hi NewKOTB, TBF that was November and things have, as you know, changed since then. BP has openly deferred R3 because, whilst many believe the Iran sanction will not impact the deal, any involvement with Iran directly or indirectly will have a significant impact on their Gulf of Mexico assets. BP produces from its GoM assets (from the top of my head) 600,000 bopped which include Thunder Horse, Mad Dog, Atlantis and Na Kika alongside exploration blocks. Additionally a further 500,000 boepd from Prudhoe Bay in Alaska. IMO and only my opinion (not meant as any form of advise) BP would rather shut the field in for the sake of 17,000 boepd and defer the deal than become a target of Trumps adimistation, an open itself unto billions in fines especially after the Macondo incident that has dragged on and on. Therefore, yes 65p was a joke and I was hoping that the deal would transfer before sanctions because Serica doesn't need to abide by those sanctions however, BP has a significantly portion of its upstream business in the US
But production isn't close to 20,000? Much closer to 6000 with Erskine offline and BKR at around 16,000. 170 million is far to expensive if you include the risk of losing the deal, the 2 million per month we are paying out towards Erskine costs with no money coming in (Cost RNS from last shut in). 170 million is extortion IMO but hopefully once things are made clearer we will be back on track
Ohh I see, As said, I traded recently. I was planning on buying and holding for the longer term however, seems sentiment has changed here with the recent "sell" just trying to figure out the logic behind it. Seems to me someone sold their holding for. a nice profit and someone bought the holding to make a nice profit