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Nothing new, just a quick read :

https://www.heraldscotland.com/business_hq/20293007.serica-quadruples-production-24-year-old-well-takeover-battle-continues/

Flabby

Yes, paid today, my ii account has the payment in.

Malcy’s blog today on the update:

‘Nothing that can be taken away from this detailed update from Serica today. Operationally excellent with a strong commodity price giving a fair wind and very solid finances have led to Serica beating the market whisper. Add to that a potentially huge exploration well at North Eigg and the company is very well placed and should have an exciting second half. ‘

https://www.share-talk.com/malcys-blog-oil-price-chariot-san-leon-pharos-serica-finally/#gs.6by6in

On him coming back & commenting on the proposal once he’s contacted MF & AA, personally I can’t see it happening, MF isn’t going to suddenly divulge anything to Malcy during this period, & can’t remember him mentioning direct contact with Serica outside of this period…

Newkotb

That was my thoughts on not announcing the cash on hand in the announcement, keeping the numbers close to their chest so to speak..

On the Hardy’s, still no declaration from them, also remember MF in an interview being asked about them.. & him saying they’re very personal/private people, aligned with company at the time, also not the easiest to get hold off, or words to that effect…

Newkotb

My rough workings on the figures given in the op’s update has us adding circa £85m to the books post capex, 50 days numbers from the end of May £396m.. no allowance for the well intervention campaign… where are you with your numbers? appreciate I could be miles out … circa 50% of market cap in cash.. £24m to come off my numbers for the dividend payment on Friday.. still close to 50%..

Mitch getting into twitter :

https://twitter.com/mitchfleggceo/status/1549661119513608192?s=21&t=HbG-bsQllqCZi2PS4IrgbQ

Well intervention campaign boosts production over 3000 boepd, Serica's average net production in July has averaged over 29,150 boe/d and YTD average net production is 26,832 boe/d.

Mitch Flegg, Chief Executive of Serica Energy, commented:

"I am delighted with the significant progress that Serica has continued to make during 2022. The impact of the substantial investment programmes undertaken in the last three years has seen increased production levels providing responsibly sourced gas to the UK domestic market, protecting security of supply, and reducing the UK's reliance on imports as part of the transition to a lower carbon future.

Commodity prices have been exceptionally strong during the period with a resulting positive impact on income.

Serica has no debt, limited decommissioning liabilities and with growing cash reserves is well positioned to continue to invest in further projects and other opportunities to add shareholder value. We have just completed a well intervention campaign on Bruce that has boosted net production by over 3,000 boe/d and provides further evidence of the value in Serica's assets that can be realised through measured and expert operatorship.

Operations have also commenced on the North Eigg exploration well with potential for transformational results, while we are now accelerating further well intervention work on Bruce and Keith following the success of the recently completed campaign."

A fair old spread on Kistos by looks of things & a 1 share trade at 500p….

https://www.reuters.com/business/energy/russias-gazprom-declares-force-majeure-gas-supplies-europe-2022-07-18/

Very true Newkotb

That’s what I find even more so frustrating, they must of known what was coming, hence they could of announced a special dividend prior to the AGM to be paid alongside the proposed dividend - GKP style, we’d of all thought they’re finally doing something with the cash pile but at the same time taking defensive action in our favour…

Personally can not get my head around Kistos with a market cap less than a quarter of that of Serica’s is proposing what it is, trying to take the lead on it & forcing Serica into a position…. Serica should be doing the acquiring (not necessarily Kistos) or if being taken over, by a larger peer willing to pay our worth/premium…. I really do hope our Bod are all over this & come out on top.. I wonder how busy our newest director is - Jerome Schmitt, seemingly brought in for M&A activity (going by his record with Total) I’m sure it wasn’t for this though…

Something to look forward to : dividend payment this coming Friday (22nd)….

Statement re. possible offer

Following the announcement by Kistos plc ("Kistos") on 12 July 2022, the Board of Serica Energy plc ("Serica" or "the Company") confirms that on 24 May 2022, it received a non-binding proposal from Kistos regarding a possible cash and share offer for the entire issued and to be issued share capital of Serica (the "Kistos Possible Offer").

Following careful consideration, the Board of Serica, together with its financial advisers, unanimously rejected the Kistos Possible Offer on 1 June 2022, on the basis that the Board strongly believed it significantly undervalued the Company and its prospects and was not in the best interests of shareholders or other stakeholders.

In response to this initial approach from Kistos and recognising the industrial logic of a combination implemented through an appropriate structure, Serica made a non-binding indicative cash and share offer for the entire issued and to be issued share capital of Kistos (the "Serica Possible Offer") on 1 July 2022. On 8 July 2022 the Serica Possible Offer was rejected by the Board of Kistos.

Serica pro-actively seeks opportunities to utilise its strong balance sheet and operating capability to diversify its production portfolio and increase the scope for organic investments. In rejecting the Kistos Possible Offer and formulating the Serica Possible Offer, the Serica Board has taken the following factors into account and strongly

1. Serica's management has an outstanding track record of financial and operational delivery

2. The Kistos Possible Offer materially undervalues Serica and would negatively impact the combined entity's balance sheet and growth potential

3. The Serica Possible Offer would secure for both sets of shareholders the advantages of scale and diversity attained from combining the asset portfolios

Serica shareholders are strongly advised not to take any action

Pretty strong rejection statement

Says everything that needs to be said about the deal when two parties are now exercising their right to first refusal, all at the same commercial agreements…. Scir board are a disgrace, that we all know, this just shows them up even more.. best deal they could of done & all that…

From Surprised Investors Chronicle article earlier :

Stifel analyst Chris Wheaton said the offer in its current form would likely see Serica paying for itself with its own cash reserves, given Kistos would need to take on around £670mn of debt to fund the deal.

"We do not think this offer represents good value for Serica shareholders," he concluded, and added that he did not agree with the "industrial logic" that the companies should be combined at all.

Javier Blas take on European Nat Gas spot price going forward… :

https://twitter.com/javierblas/status/1546808070617153536?s=21&t=mVc2oJPybOHjHGMi22XY8g

Coal is currently providing the UK 3% of our power, Nat Gas circa 50%, Germany are bringing there’s back online because they afraid of what might happen.. surely the chance of oversupply is limited… any over supply would be used to fill there much needed storage capacity… everything I’ve seen points to higher gas prices for the foreseeable….

Rellim

Exactly my thoughts on a special dividend & lowering the cash pile! take away the ability for others to use our own cash to buy us out!!

I’ve read through it all thoroughly, it wouldn’t get my nod of approval, so at this stage will not be urging Mitch Flegg into negotiations….

Kistos plc ("Kistos") is today announcing a proposed combination with Serica Energy plc ("Serica") (the "Proposed Combination").

The Proposed Combination comprises a possible cash and share-for-************** offer by Kistos for Serica, whereby Kistos would offer for each Serica share (the "Proposed Combination Terms"):
· 0.2932 new Kistos shares; plus
· cash of 246 pence, comprising:
o a distribution of capital to Serica shareholders via a cash payment of 67 pence per share (in addition to the already announced dividend of 9 pence per share in respect of the 2021 financial year, which was approved by Serica shareholders at the Serica annual general meeting on 30 June 2022 and is expected to be paid on 22 July 2022 (the "Serica Dividend")); and
o cash consideration equivalent to 179 pence per Serica share.

What the actual??!!

Kistos believes that the Proposed Combination will create a leading independent North Sea champion, led by the right team with the right strategy

· Kistos believes that the Proposed Combination has strong industrial logic, significant value creation potential and achieves increased scale, relevance and trading liquidity for shareholders of both companies

· Kistos considers that the Proposed Combination would position the Combined Company to be a market consolidator, with an optimised balance sheet