Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Equinor acquires Suncor North Sea business in $1.1bn deal
https://www.energyvoice.com/oilandgas/north-sea/487408/equinor-suncor-uk-deal/
Worth a reread of the original proposal RNS & seeing how this plays out…. i’d skipped over that it’s 6 months from completion before Mercuria can trade their consideration shares….
Upon completion of the Transaction, Serica and Mercuria will enter into a relationship agreement governing the relationship between them (the "Relationship Agreement"). Among other matters, this will contain provisions designed to ensure that Serica operates independently from Mercuria.
The Relationship Agreement will entitle Mercuria to nominate two non-executive directors ("NEDs") to the Board of Serica as long as the shareholding of Mercuria and its affiliates is 20 per cent or above and one non-executive director for so long as the shareholding of Mercuria and its affiliates is between 10 per cent or above and less than 20 per cent. If and for so long as the Board of Serica exceeds 11 directors, Mercuria may nominate a third NED provided that the shareholding of Mercuria and its affiliates remains at 20 per cent or above of Serica's issued share capital.
Under the Relationship Agreement, Mercuria will agree not to dispose of any Consideration Shares for a period of 6 months following completion of the Transaction (subject to certain customary exceptions). Disposals during the 12 months thereafter will be subject to orderly marketing restrictions.
In addition, Mercuria has agreed not to acquire any additional shares in Serica or announce any takeover offer or potential takeover offer for Serica (subject, in both cases, to certain customary carve-outs) for a period of 18 months following completion of the Transaction.
The Relationship Agreement will terminate if Mercuria and its affiliates hold in aggregate less than 10 per cent of Serica's issued share capital and may be terminated by Mercuria if, among other circumstances, Serica's shares cease to be admitted to trading on AIM.
Newkotb
What’s your thoughts on the possible share price reaction on deal completion & the additional 111m shares being allocated? I know you recently said you’d added to your holdings does this imply little downside or more a case of how Serica plays the announcement…
The well results were above the pre-drill expectation and initial production rates have exceeded 10,000 barrels of oil per day.
Mitch Flegg, Chief Executive of Serica Energy, commented:
"Including the Tailwind Acquisition assets, we have an exciting investment programme of value-adding activities throughout 2023 and 2024 which has started with the Gannet GE-04 well being brought onto production. We are delighted with the strong initial results.
This additional production means that the Triton hub is now producing at gross rates not seen for the last 10 years. This performance is a credit to the outstanding work completed by the Tailwind team, their contractors, and Dana Petroleum (E&P) Limited, the Triton operator. We look forward to welcoming the Tailwind team to Serica on completion of the acquisition which is expected next month."
https://twitter.com/sericaenergyuk/status/1627564221734027267?s=46&t=m-6NUoG504s6FXC-TECdWw
The UK’s unstable tax regime may lead to North Sea assets being ‘mothballed’
https://www.energyvoice.com/oilandgas/481561/the-uks-unstable-tax-regime-may-lead-to-north-sea-assets-being-mothballed/
BP finished up circa 8%.. results & announced 2x share buyback programmes, one of them to offset the dilution caused by shares awarded under their LTIP schemes… now if only our Bod thought a little more of their shareholders… (jokes)…
Genuine question to the more knowledgeable…. has Serica pretty much ruled itself out of carrying out share buybacks for the foreseeable future, if it were to buyback 10% of the stock in the company & cancel them, which it is now permitted to do so, would this increase the Mercuria holding percentage ie getting closer to the 30% mark, also knowing shareholders views on the percentage given to them already…
The PR is moving up a level….
https://twitter.com/sericaenergyplc/status/1622856224742993920?s=46&t=al5hxjGFZI4asORlwuDLRw
What a dire tweet !! they couldn’t even upload a snazzy photo….. the tweet is as flat as the update!!
Operations Update:
Mitch Flegg, Chief Executive of Serica Energy, commented:
"The production performance of both the Serica and Tailwind portfolios has remained strong despite some extremely challenging weather conditions during January. There is an exciting investment programme of value-adding activities throughout 2023 which has started with the work to tie-in the Gannet GE-04 well. I look forward to updating the market with results of this programme as data becomes available."
Apart from MF’s comments, a pretty underwhelming flat update in my opinion, can’t see it having any effect on the current share price situation….
Anyone have access to Peel Hunt Broker notes? I read that they put out a broker note yesterday, 437p target share price if correct….
Energy Voice article, nothing not already known :
Serica backers readying for crucial vote on Tailwind acquisition plans
https://www.energyvoice.com/oilandgas/north-sea/477808/serica-backers-readying-for-crucial-vote-on-tailwind-acquisition-plans/
Upomega
You’ve been here long enough to know Serica has a non existent PR team…… Flegg has only just recently learnt how to tweet.. & I very much doubt he’s the tweeter when his account tweets…
PR is useless… they don’t think they have a need too…
Capricorn CEO, chair quit board in victory for restive investor
https://www.energyvoice.com/oilandgas/africa/ep-africa/477628/capricorn-board-activist-palliser/
For the first time in a while Gas is providing ~ 58% of supply for electricity production..
https://grid.iamkate.com/
NBP DA currently circa - 172p per therm..
Also fears of supply/demand issues later today :
https://twitter.com/nationalgrideso/status/1617198372884205568?s=46&t=r4R5ad9yrdTbWmd8eOUaeA
Mitch Flegg, Chief Executive of Serica Energy, commented:
"Once again we have secured a prompt renewal of the OFAC License for a period of a further two years. We are grateful to the UK government and regulatory authorities who have supported us in this process.
The renewal of this License satisfies one of the Completion Conditions required for the acquisition by Serica of Tailwind Energy Investments Ltd."
Very timely…..
I think it’s fair to say Newkotb, that if that part of the deal changed (which has been stated before) .. the percentage being handed over to a size ie 20% stake (or less) & the share dilution sorted out more favourably, a lot more shareholders could see the potential future benefits… if Mercuria are that keen the Bod should be going back to them & act on shareholders interests… which obvs leads to the question ‘why aren’t they?….’.
Here’s a link to a second Jeremy Raper podcast (if you haven’t had enough already!!) not as detailed as the first but covers a couple of other points..
https://twitter.com/andrewrangeley/status/1616203238998433792?s=46&t=Xms1wt2rqiTNV-pvuG0zuA
Well worth listening to, echoing what’s been said here not just on the current terrible deal, but the thoughts of many of the appalling inaction of the Bod over the last few years…. he (they) has had the same thoughts…. no deal since BKR, no share buy back when the opportunity has been there, no increase in dividends (of serious worth) no special dividend…. all in all - pigs in the trough & total shareholder destruction…
From Harbour Energy trading update :
We remain committed to playing an important role in the continued supply of reliable and responsible domestic oil and gas in the UK. However, while oil and gas prices have reverted to more normal levels we still face a tax rate of 75 per cent in the UK due to the recent tax changes, making investment in the country less competitive. As a result, the EPL necessitated a review of our future activity levels in the UK and reinforced our ambition to grow and diversify internationally.
3x more additions to the thread by Alex Stahel in relation to the Kistos offer :
https://twitter.com/burggrabenh/status/1615770145653415937?s=46&t=qzY-FR4Lm-zrDdjz6mzdBA
Raper on twitter in regards to Stahels numbers, directly to him :
https://twitter.com/puppyeh1/status/1615526580671086594?s=46&t=b9-YzcNYqr17hdtISkS-zA
Plus small exchange with Wshak who calked it a duff from the start :
https://twitter.com/wshak1/status/1615653708976603136?s=46&t=b9-YzcNYqr17hdtISkS-zA