Member Info for DennisThePennis

I don't think it's possible to backdate tax changes. If it is, it shouldn't be.

What he says and what he does are entirely different things.

COP gets more farcical each year.

Eco loons demand immediate cessation of oil and gas production.

Government leaders threaten to tax oil and gas companies to oblivion.

No-one is working with energy producers to develop sensible, workable solutions.

SQZ and other NS operators should suspend production until our government gets its act together.

IMHO.

I think collective representation and bargaining is required to prevent the government destroying the industry and the country's energy security. I would hope Offshore Energies UK - the industry body - is brokering discussions between operators and government. Like the government have stated, nothing should be off the table, including pausing gas production. Maybe this would help to bring the government to its senses.

The board are too risk averse. Four years after the BKR acquisition, they're looking for a similar deal which is never going to happen. Paralysis by analysis.

The KIST offer when shareholders were "strongly advised" not to do anything. And here we are, less than 4 months later sitting on a 30pc share price drop.

The SQZ share price tracks the gas price pretty closely. Gas price has dropped as supply comfortably meets demand at present, but as the European winter progresses and storage depletes demand is likely to ramp up again, the gas price will rise, and the share price will do likewise inmv.
That's fine in the short term, and I'm happy to hold for now, but longer term the company needs to grow to secure its future. North Eigg might come good, but I'm not counting on it, and I hope the BoD aren't either.

Ben van Beurden is retiring from Shell with an overflowing bank account and a pension that could support a small country. Suddenly he has realised that companies like Shell should have more of a social conscience. Strange that.

Upomega, I'm sure you're right about M&A. I'd be amazed if anything is announced on Tuesday. The BoD will never find their perfect deal and will continue sitting on their hands as other companies like HBR hoover up all the opportunities. I think they'll be coming for SQZ soon.

By now, I hope they have firm investment plans for all that cash. I'd prefer to see the company growing rather than paying out bigger dividends.

Market cap currently around £995m. CoH must be around £500m. So certainly more than 50%. Insane.

I've been invested in Serica on and off since the BKR deal which was transformational for the company, thanks to ACW. Since then, I feel the BOD and exec team have rested on their laurels. I've been happy with SP gain but conscious this has all been the result of the BKR deal and the Ukraine crisis rather than anything done by the BOD. They must have considered acquisition and merger opportunities but clearly haven't felt inclined to invest. Other companies in the NS like HBR have been very active during this period. I wonder whether our BOD is too fussy, too complacent or too lazy.

Maybe people should think more carefully before posting quasi ****** comments. There's zero tolerance these days.

NewKOTP, thanks for clarifying the WFT situation which I hadn't fully appreciated. It's all very well for the government to incentivise investment through tax benefits but if investments don't prove fruitful you might as well save yourself a load of hassle and pay the tax. Most investments in this industry are costly and high risk, and without significant potential upside I'm not sure why companies like SQZ would bother. Maybe best to invest outside the UKCS.

If the North Eigg drill is positive, SQZ should postpone development until 2024 with production to commence in 2025. I assume investment costs can be offset against the punishing windfall tax, and hopefully this will cease to apply in 2025 as production ramps up.

My gut instinct was that the WFT is a huge blow for O&G, and SQZ in particular with such a large and growing cash pile. However, it depends how the company responds. If they actually use their cash to invest, it's a golden opportunity to grow the business and reap the rewards in future years. Time for the BOD and execs to get their fingers out and earn their share awards.

Siccar Point are in the same building as Serica. That would be handy for the eco-loons.