RE: Presentation 2021 FYR27 Apr 2022 19:47
Thoughts on today’s presentation?
Personally thought it was pretty good, presentation itself was a run through of the FY 2021 presentation pdf & same as Analyst call on the day.. Q&A covered all questions that have been raised here.. good to get a feel on it all from Mitch.. a few takes :
Strong profits every level (2021) whilst an increase of reserves 61m boe start of 21 to 62m boe start of 2022.
2022 Capex anticipated closer to £60m, N’Eigg & intervention campaign to increase production & reserves. 5 wells, late life maintenance, clean up, revisit old perforations & complete new perforations, target new reserves (increase)
N’Eigg on success case.. project close to own infrastructure, would enhance & extend life of platform, P50 60m boe.
No mention of GCOS by company to date, a explo well has 1in5, good explo well 1in3 chance..
2022 Strong production to date.. guidance 26-30k’s boepd.
M&A looking to grow portfolio, primarily Uk still, seeing plenty of opportunities & working hard at vetting the potentials. Prospect of repeating a BKR style deal - Yes good opportunities..
Dividend - regards 9p decision by Bod, Serica is a growth company not an income based stock, so growth comes from share price, continuation of existing policy, however if no M&A success and cash on books grow to a point, further distribution to shareholders is not ruled out - interim/special..
Sharebuy back is just for an option, no desire to use at present.
Preferred option for cash on books is to be used for M&A activity.
Main Market move - Pros & Cons.. Pros - more interest, tracker funds etc, negs IHT & stamp duty : Increased Regulatory burdens, extensive prospectus would need to be completed & published & costly, not saying No but at the right time, possibly to coincide with success in M&A activity..
Going forward: in a really strong position, exciting position to be in, add further value & extend life of assets.
Will post link to recording when available & if possible..
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