Member Info for flexmw

JOG update out this morning : worth a quick read, a couple of snippets from it where Serica get a mention -

Strong industry partners: endorsement and funding from two major UK North Sea operators, NEO Energy (Operator) and Serica Energy, the fifth and tenth largest producers in the UK North Sea, respectively

Andrew Benitz, CEO of Jersey Oil & Gas, commented:

"2023 was a watershed year for the Company. We delivered on our key strategic objectives - completing the GBA farm-out process and securing a fully funded, material 20% position in the Buchan redevelopment. Our partners, NEO Energy and Serica Energy, are hugely competent UK North Sea operators and we are delighted to be working alongside them on taking the Buchan project forward. With the draft Field Development Plan now submitted, we are well on the way to obtaining regulatory approval later this year and achieving the target of first production in late 2026. As a result of the 2023 transactions, JOG's value and investment proposition has been transformed. The value of the business is firmly underpinned, with the planned FPSO development solution delivering robust economics and providing the route to full monetisation of the GBA portfolio."

Serica Energy plc

("Serica" or the "Company")

Completion of New US$525 million 6-year Borrowing Facility

London, 23 January 2024 - further to its announcement on 18 December 2023, Serica Energy plc (AIM: SQZ) is pleased to announce the completion of its new reserves-based lending ("RBL") facility following satisfaction of the conditions precedent.

Shortest Serica Energy RNS to date… hmmm

Last years update was all production related & no financials..

That has always been a bit of concern Dennis, MF seems stuck in the ways he’s always known, long termers know the drill by now & there never seems to be any deviation from it….

The last op’s update says the Tailwind guys are departing end of March 24, I was hoping after reading last years Capital Markets presentation by Steve Edward’s on setting up a ‘bridge head’ in Norway or the like, we had some new fresh impetus that might of started delivering on the potential that Serica has & get us moving again!

Can only hope a lot is going on behind the scenes on this front…. Next news - early Feb update.. then the drilling campaign to commence…

Cybertron

Last years dividend was an 8p interim with 14p final, the latest interim dividend increased to 9p…final dividend to be announced alongside the final results in April, currently looking at 10% dividend yield..

‘UK Government makes ‘concession’ on North Sea windfall tax’

https://www.energyvoice.com/oilandgas/north-sea/545157/uk-government-concession-windfall-tax/

Nothing not already known…

Here’s a link I’ve just seen with what must be the Jefferies research note with all their recommendations & guidance from a poster on twitter/X :

https://x.com/lairdelmski/status/1744713189957267500?s=46&t=uz3in5yMdDdYvqnOjeh9vg

London Broker Ratings :

Jefferies cuts Serica Energy price target to 280 (330) pence - 'buy'

The only oiler with a price target increase is Harbour for obvious reasons..

Https://www.proactiveinvestors.co.uk/companies/news/1036599/capricorn-to-acquire-north-sea-interest-in-revised-deal-1036599.html?rel=scroll#0

Capricorn Energy PLC (LSE:CNE, OTC:CRNZF) will acquire a stake in the North Sea’s Columbus gas field under a revised deal with Waldorf Production UK PLC

Following its sale of stakes in the Catcher and Kraken fields in 2021, Capricorn will now acquire Waldorf's 25% non-operated working interest in Columbus, alongside being paid US$72.5 million.

Some US$50 million of this will be paid by the first quarter of next year, Capricorn said in an update on Tuesday, before US$22.5 million is transferred in January 2025.

“The acquisition of the Columbus field allows the company to maintain its presence in the UK North Sea where it has been active over the last decade through continuous exploration and production activities,” Capricorn said.

Columbus should deliver consistent cash flows upon its transfer into Capricorn’s hands on 1 January, the company added.

Capricorn also said it had agreed to release US$48 million of restricted cash held by Waldorf “related to a residual liability on the Kraken field”.

Malcy’s comment on todays news :

This is a very good RBL from Serica in a sector that banks are allegedly refusing to lend to, their bad as Mitch Flegg and his excellent team have been doing great things in the M&A area lately, banged on for the 2024 Bucket List when surely investors will be rewarded.

I haven’t looked into the last facility & how it’s made up, the hedging structure in this new set up caught my eye, appreciate lenders require security when lending….

If 50% or more of the amount available is drawn, the minimum commodities hedging requirement is equal to 50% of forecast production from the Borrowing Base Assets in year one and 30% in year two. The hedging requirement is halved if less than 50% of the amount available is drawn.

Serica Energy plc

("Serica" or the "Company")

New US$525 million 6-year Borrowing Facility

London, 18 December 2023 - Serica Energy plc (AIM: SQZ) is pleased to announce the signing of a new US$525 million secured Reserves Based Lending ("RBL") facility.

Mitch Flegg, Chief Executive of Serica, commented:

"I am very pleased to announce the signing of a new RBL facility which substantially enhances Serica's financial firepower. This has been achieved in a challenging market for upstream financing. The standing of the international banks in the lending syndicate reflects the quality of Serica's asset portfolio, strong balance sheet and ambitions for further growth. The new facility, combined with our existing attributes, means that Serica can approach acquisition and investment opportunities from a position of considerable strength."

The new RBL facility replaces Serica's existing RBL and Junior facilities. The existing RBL facility has US$271 million drawn and will be fully repaid upon completion of the new RBL facility, which is expected to occur in January 2024. The Junior facility remains undrawn.

Mitch Flegg, Chief Executive of Serica, said:

"I am pleased to report the successful conclusion of the planned summer shutdowns on Serica's Bruce and Triton hubs and the re-establishment of strong levels of production at both. During the last month Serica has been consistently achieving production rates in excess of 50,000 boe per day. Overall production guidance for the year is unchanged reflecting delayed production restarts and slower than expected production ramp-ups after the summer shutdowns.

I am also pleased to report successful well campaigns on the Bruce and Guillemot fields during 2023. These are further proof of the benefits to be had from low cost, short cycle investments in our existing asset portfolio. The full impact on production of the well work carried out this year is expected to be felt in 2024, aided by the work on the Bruce facilities deferring the need for another major shutdown until 2025.

The LWIV vessel used on Bruce is already booked for a third campaign in 2024, which will target wells on both the Bruce and Keith fields. We are also looking forward to the start of a four well drilling campaign in the Triton area, with the first well on the Bittern field scheduled to begin around the middle of the first quarter. 2024 is anticipated to be a very busy and impactful year of investments in Serica's North Sea portfolio.

The levels of production achieved and the range of organic investment projects undertaken underlines the attributes of the Tailwind acquisition. The Tailwind founders will substantially cease their involvement in Serica during the early part of next year. We are grateful for their openness and support during 2023. Each has made important contributions to Serica including pivotal roles in our Greater Buchan Area acquisition and achieving important milestones in the Triton area. Their achievement in creating and building Tailwind speaks for itself and we wish them further success in their various endeavours.

I am very pleased to be announcing Mike Killeen's promotion to Chief Operating Officer. At the end of November, we passed five years since Serica became the operator of the Bruce, Keith and Rhum fields. The manner and results of Serica's operatorship have been crucial to establishing the Company as one of the UK's leading independent oil and gas companies. Mike's promotion is richly deserved. Moreover, it demonstrates the capacity within our organisation for career development, which I hope will help us attract and keep talented people."

Production up as hoped for ✅

Group Production

Serica's overall production entitlement during the last four weeks has averaged just over 52,000 boe per day. Guidance for the whole year remains at 40-45,000 boe per day reflecting a slower than planned ramp up of production following the end of the planned summer shutdowns on the Bruce and Triton hubs.

Upomega

Also will be nice to see production increases from any of the Well intervention works that’s taken place, even though it may be a little early for this …

Mitch’ tweet also :

As we celebrate the 5th anniversary of our company-changing deal to take ownership of BP’s Bruce asset, I’d like to applaud the hard work, focus and commitment of our brilliant team on and offshore, who have helped to build the Company into the multi-asset operation it is today.

https://x.com/mitchfleggceo/status/1730169238487216313?s=46&t=uz3in5yMdDdYvqnOjeh9vg

Latest Serica Energy tweet :

https://x.com/sericaenergyplc/status/1730170372870246609?s=46&t=uz3in5yMdDdYvqnOjeh9vg

Today staff on & offshore at Serica are celebrating the 5th anniversary of the groundbreaking deal that took the Bruce asset into Serica operatorship. Since then our superb team has worked relentlessly to grow our business into a multi-asset operation with a strong future vision.

Fairly unusual, yesterday a fair sized 400k odd late trade, but that’s the biggest UT trade i’ve seen for a while… :

30-Nov-23 16:35:15 229.00 684,078 Buy* 2m UT

Spondulicks

First post on SQZ board is a copy & paste of my post, what’s that all about??

Looks like you’ve spammed single posts across a number of boards…

Malcy’s take on the deal :

JOG first ….

This is a truly awesome deal by JOG who continue to deliver on its promises to shareholders whilst maintaining the intense focus on proving that substantial developments in mature oil provinces can be closer to net zero than almost anywhere else worldwide. It will leave them with a 20% non-operated stake in the GBA, a development that others now share their faith in and a great deal of incoming cash.

In my conversation this morning with Andrew Benitz it was impossible not to detect considerable pride in the trust and perseverance of his team who have negotiated a deal which is a rare thing, a genuine win-win for not only JOG but also for NEO and of course Serica. With some $38m due to come in by the time of the FDP, JOG get a fantastic return on their investment but also for their partners this is a genuinely significant tax efficient investment opportunity.

For JOG shareholders the time has come to stop worrying and to enjoy the ride, they have great value to unlock thanks to this deal, with FDP next year and first oil in late 2026 they have protected any downside and opened up the upside and of course are in an enviable financial position with material value yet to come.

I have been a consistent believer both in JOG and of the GBA, today might be the crystallisation of all those notes and suggested values so it will come as no surprise that I genuinely believe that my Target Price, previously believed to be somewhat absurd at £10 per share to be easily achievable, I remain a big fan of JOG, its management team and of course the GBA.

And Serica:….

Having said extensively above that this is a good deal for both sides I can hardly add much to what I have already said. Serica has availed itself of 30% of the mid-case contingent resources from the Buchan field which alone are estimated to be in region of 70 million barrels of oil equivalent, making it the third largest pre-development field in the UKCS.

It is also worth bearing in mind that the figure above does not include potential upside from either J2 or Verbier which will likely add to the development via a tie-back to the FPSO. Serica along with NEO and JOG are set to make GBA an outstanding part of the portfolio in a tax efficient way and as already mentioned at the forefront of the reduction of carbon in the North Sea.