Member Info for epiphany121

Yes, you can now see both Normand Ranger and Skandi Hera (Tugs) have started from Montrose, headed for TL and scheduled to reach at 4 PM tomorrow.

We're still unsure of an update next week, but it would be great to get one, preferably with an Alma update, although it's probably a bit too soon to make a good assessment?

MO - Spotted yesterday on Clarksons Platou site that Skandi Hera is fixed to Enquest from 17/08 (tomorrow) and presumably that's when she moves to TL and tugs her off to the Azinor site? Azinor's PSV for TL - NAO Prosper is engaged from 19/08.

If we do get an update next week - maybe that'll include an update on Alma + AK too. Here's hoping....

OK, no doubt they'll have to get in someAK news in that release. Ideally, they'd want to be spinning positive news on that day, won't they? Or an alternative, they'll state that the 'Sign-off is imminent'. At least then AB's (supposed) language and BUMI's, would be safely in sync.

Or here's another speculative thought. Ahead of the H1 update, they don't want mavericks like MO and Chilts snooping around and figuring out load hook up time, and other bits and pieces. And NO had her draught set incorrectly for a whole night and no doubt put MO through a sleepless night. Lol..;-) AB and JS are no doubt reading this board on a daily basis, and trying to stay one step ahead of this enterprising lot..

Morning MO,

Thanks for that update. That 12.6 draught certainly reads a lot better than the 9.6 from last night. If they did ring forward that maintenance shutdown to August, that's even better.

We can hope..;-)

Squif - Talking about significant debt reduction, if you read the AR for 2017, you'll see that there is a significant repayment of circa $270 million coming up in October, on the back of the $50 million repaid early in May. As you may know, any amount greater than $890 Mill on the RCF carries a higher Libor premium of 5.25 PLUS 3.75% interest capitalised as PIK and added back to the RCF capital. Repaying this $320 million saves ENQ circa $25 million in cash interest payments on an annual basis PLUS approximately 8 million capitalised interest.

We're good as long as Brent stays up..;-) And production targets are being met..

MO - it's looking likely that the planned maintenance shutdown for September was brought forward to August, in line with how the planned April shutdown was brought forward to March (because of the weather). That could account for the long gap for this load, along with possibly a lower load too !!

Hopefully, we'll know more during a likely ops update next week (?) - we did have one on August 23rd last year and we may get one next week, ahead of the H1 financials release in early September.

Overlooked today is the fact that we had the first 10 million volume trading day since the 9th of July. Whereas PMO fell circa 8% on similar high volume, ENQ held up pretty well , even in the face of Brent falling hard when then UK markets closed. Here's hoping this continues till we have our H1 update soon!!!

Horribly bearish EIA stats today. Build pretty much across the board. And with all the EM concerns and dollar strength, I won't be surprised to see Brent below 70 today...

Not to jinx ENQ, but once again it's outperforming the likes of PMO, which is down 4.5% today and TLW, which is off 3%. I remember a time recently when OPHR was at 60p and ENQ was 35p - and with oil down more than 10%, OPHR (with it's own issues though) is now down to ENQ is.

Perhaps there are some whispers to the larger players that we'll have a solid H1 and hence the relative strength..

Yes, risk-off is back on, even with the TRY bouncing today and the danger is that once the US markets open, oil sell-off oil deepens. Let's see what the EIA data brings in just over 90 minutes. I'd guess that it'll be bullish than the API report, but it may not be enough to support Brent/WTI..

Yes, not bad at all. Volume is still very poor and that doesn't lend it's weight to a price break-out. However, the fact that SP held up well in spite of Brent falling more than a dollar over the past couple of hours or so, is good...

KO - got your 37p today, eh? Will it on and it may close above that mark..;-) And this on a day PMO/TLW/SIA are all in the red.

Squif - no doubt we'd all like SP as a performance metric for determining bonuses for management, but there's not that many British companies using this a metric, unlike many of the US based companies. I haven't had a chance to review what our peers like PMO/TLW do, but I'd suspect they don't either.

Here's some notes from the 2017 AR that shows ENQ decreasing overall bonus percentages, with more weighting going towards PSPs. The 2017 bonus metrics were Production (30%), Cash Opex and Capex (30%), Net Debt (20%), Magnus Integration (20%). The 2018 bonus metrics were Production (25%), Cash Opex and Capex (30%), Net Debt (15%), Operations (30%). We'd have no doubt liked to see some of the operations % go to SP performance - can we push for this in 2019? Shareholders could try….

JS does have 5 million shares option at this time, both unvested/vested not exercised, and that's the equivalent of circa 6 times his current salary. There's some skin in the game, but could be better..
--------------------------------------------------------------------------------------------------------------------------------------------------

In 2017, we implemented the first phase of the two-year rebalancing of the overall executive remuneration package from short-term bonuses to longer-term Performance Share Plan (‘PSP’) awards. The main updates were as follows:
• Annual bonus award percentage was reduced from 100% to 85% of salary (at target) and from 225% to 175% of salary (maximum);
• Implementation of an additional debt metric into the annual bonus performance conditions;
• PSP maximum awards increased from 200% to 250% of salary at normal award level and from 300% to 350% of salary at exceptional award level;
• PSP awards to include a debt metric if and when required;
• Policy of bonus deferral into shares revised so that the entire annual bonus award above 100% of salary is deferred intoEnQuest shares for two years delivering a cap on the actual bonus paid out in cash;
• Executive Directors required to build up and hold at least 200% of salary in shares; and
• Malus or clawback provisions initiated on 2017 cash andshare elements of the annual bonus plan and on PSP awards.
In 2018, the second phase will see us implement a further reduction in the annual bonus percentage award to 75% of salary (at target) and 125% of salary (maximum).
As a Committee, we believe that the policy, strongly endorsed by shareholders, is aligned with the Company’s strategy and market best practice. We are also clear that variable remuneration should be based on strong, long-term business performance that delivers value to shareholders. We believe we have set threshold, target and stretch levels of performance accordingly.

----------------------------------------------------------------------------------------------------------------------------------------------------

Spot on, Chilts. It looks like an early morning tomorrow hook-up and an 18 day lag this time around and hence, optimistically averaging circa 32-33K BOPD.

Cheers, MO. That's great. This will be another boost to production from Magnus.

And maybe we'll see that 75% option exercise news in a few weeks' time. Here's keeping my fingers crossed!!

Squif - you and I can debate for days whether a statement like 'Signoff of AK is imminent' is material or not. That is vague The reality is I can't see how a signoff of AK is a market moving event in itself in isolation. Yes, it is probably confirming that AK is consistently producing at a certain consistent level, although ENQ hasn't publicly confirmed what that level is. However, amongst other things, it does leave the market to question ENQ's wisdom of selecting a novice like BUMI for Kraken and that's reflected in the SP now.

However, there's nothing we can do about that decision at this point in time though. We'll need to wait on other news points such as actual production in H1 and ENQ's views on production for H2. These are material pieces of information that wasn't selectively discussed at the AGM..;-)

Till then, it's worth hanging out BUMI to dry and pay them reduced rates that come with non-acceptance.

Rom - I had my usual banter with Squif today about his one of many posts about someone at the AGM stating that a signoff is imminent and if so, why it wasn't signed off yet. My point to Squif was asking if there was a public statement from ENQ stating that the signoff was imminent, instead of relying on a someone at the AGM that the signoff was imminent. It wasn't intended at you or any posters in particular, and any assumptions you make from my statement, are purely yours.

If you were at the AGM and AB said so, so be it. What happened at the AGM was a selective disclosure of non-material information to a small group of shareholders who were present physically at the event. And it didn't have any positive effect on the SP in the days after the AGM in any event. However, we still haven't seen a public statement from ENQ to this effect and why would they until the signoff is indeed in the bag.

OK and hence Oil selling off today..OK, makes sense (or not)...;-)

Again, the supposed CEO comments on Imminent signoff is based on 'he said so' comment made by a poster who supposedly was at the AGM. Was there a public statement? I didn't see one. So, why should I really believe in that? I want Trumpty to be the CEO of Enquest, but that's not happening in a hurry is it? Why should I expect AB to reevaluate his current CEO status? I'm certainly not making my investment decisions in ENQ based on that fantasy.

We'll know more about ENQ's operations in the H1 update, but I'm not expecting a miracle in that report. IMO, it will be a middle of the road report that should set the scene for a larger debt reduction in H2 based on stabilised Kraken production and improved Alma/Galia output, hopefully backed by POO near the $70s level.