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Quote from Budget doc 5.20 Scotland "Maintaining the UK’s globally competitive oil and gas fiscal regime – The government is maintaining headline tax rates at their current level. This will help the oil and gas industry continue its recovery from the 2014 oil price crash, protect jobs, and ensure the UK is attractive for new investment, whilst giving the nation a fair return for its natural resources.
Oil and gas taxation: transferable tax history and retention of decommissioning expenditure – As announced at Autumn Budget 2017, the government will introduce a transferable tax history mechanism in Finance Bill 2018-19 for oil and gas companies that will remove tax barriers to new investment in the North Sea. The government will also amend the Petroleum Revenue Tax rules on retained decommissioning costs to simplify the way older fields can be sold to new investors. This will provide further support for an industry that is a vital part of the economies of Scotland and the rest of the UK.
Strengthening the UK’s offshore decommissioning industry – Building on the recent progress made by the oil and gas industry, the government will launch a call for evidence and work together with the Oil and Gas Authority to identify what more should be done to further strengthen Scotland and the UK’s position as a global hub for decommissioning."

ENQUEST PLC 7.00% 15/04/2022 PIK TOGGLE

At 15/02/18 following the amortization of the half yearly interest the amount outstanding was c £172m

Regarding the 'retail bond' this is from the relevant Feb 2018 PDF issued by ENQ

"As a result of the Cash Payment Condition not being satisfied in respect of the Interest Payment Date falling on 15 February 2018, accrued interest on the Notes from (and including) 15 February 2018 will be capitalised and satisfied through the issue of Additional Notes in an aggregate principal amount of £5,811,396"

So the interest was recapitalised in H1 - not paid out as cash (conversely it has already been paid out in cash for H2 btw as the Cash Payment condition was met)

Not at all sure about the groundhog day feeling. Come Friday vs H1 2017 - unless many here are way off the mark - H1 2018 Production will be up at least 45%, Opex and Capex will be down, EBITDA will double and a big chunk ( $200 m ?) of debt will be paid off.

Additionally 2018 H2 and 2019 should be even better than 2018 H1 on all these parameters and we are close to getting all this confirmed on Friday. Maybe this time is different.

Looks like we may finally be there - only 50m apart.

This might help. My understanding is that this is gross output and ENQ's WI is 65%

https://itportal.ogauthority.co.uk/pprslive/production-data?start_date=Apr+2018&production_type=OIL&production_unit=OIL_FIELD_UNITS&operator=ENQUEST+PLC&regulatory_jurisdiction=ANY

In the last 10 mins NO has picked up speed and is now headed towards AK at 6.9kn (before it was drifting along at 2kn). Seems we are going to get some action this morning, at last.

is under way with about 7 kts and a heading roughly in the right direction. Could it be #21 ??

Never seen a floating Street View before but here's one off Chalmette refinery, complete with unloading oil tanker

https://www.google.com/maps/@29.929029,-89.9792157,2a,75y,54.89h,87.86t/data=!3m6!1e1!3m4!1swvyj9fsDL8vxmURMp992Vw!2e0!7i13312!8i6656

Current draught for Stride is 14.1 but before adding Bunker fuel at VLSI it was 13.9. I found this suggesting that maximum draught at NO is 14.3m http://www.bluewatershipping.com/portinfolocations.php?id=2. Who knows? S is currently on a heading for Clacton -on-Sea ! Roll on Load #21.

About £12m pa debt now not incurred as a result

Currently en-route towards AK arriving this afternoon. Hopefully joining the DC4 party with Deep Energy.

We should be getting an RNS in the next few days confirming the switch to cash settlement of the coupon on the 2022 PIK sterling notes. These coupons have previously been capitalised at the rate of over £11m pa for that last 12 months, adding a small but constant drip feed to the existing debt.

The current six month coupon will be just over £6m and the fact that it can be paid in cash shows that the balance sheet is becoming stronger. I know that the amount is small but the direction of travel and the message that it sends out is important.

MT now shows DE just arrived at Kraken Field and she is stationery with status 'Restricted Maneuverability' about 1.5nm nearly due W (268 deg) of AK. Hopefully she has got straight to work.

Just got an alert saying that DE has an ETA at Kraken 2018-07-28 23:00 UTC DE is a Pipe Layer so maybe this has to do with DC4 ?

https://www.marinetraffic.com/en/ais/details/ships/shipid:373378/mmsi:24096/vessel:DEEP%20ENERGY

Tanker Turnaround - Thanks for your detail response MO . We are on the same page, as my tanker intervals are judged from hookup to next hookup - you are judging yours from tanker leaving to next hookup. Either way things do seem to be improving with an improved frequency.

I only have detailed records for the last three tankers but I make this one 14 days. This would still give close to 40k boepd if we get a 550k load . NH is still quicker than the last two tankers - NO at 15 days and HK at 16.5 - so maybe production is improving steadily.

I too am no TA but a look at the chart is interesting. All numbers rounded.

From the low last Nov (24p) we have two higher lows Apr (27p) and Jun (30p) - looks like an uptrend.

However, we have two highs at 44p in Jan and May - got to get past those to confirm longer term uptrend. Probably not going to happen until positive data release from ENQ. Probably needs an increase in production guidance which could happen if tanker watchers are right (I'm pretty sure they are), work-overs are successful and nothing bad that we don't know about has happened.

Following start of the recent flurry of positive broker forecasts the price has moved up from the Jun low (30p) and has been bouncing up and down between the 20d MA (33p) and the 50d MA (35p) . Lets now hope that it can get above the higher one and stay there - it has tried to do this on a number of days but external factors seem to keeping getting in the way.

Absolutely, the bond return is finite from here at around 32% over the next 4 years. If everything goes to plan and POO stays here or higher, the return form the stock should exceed that in the next 12 months - if only we knew by how much!

I noticed that the bond (ENQ1) has started to tick up in price again - it has been a bit flat since Brent topped out back in the third week of May.

It is due to pay out the second coupon of the year on 15th Aug and prior to that (at least 10 days) ENQ has to say if the PIK condition has been met (Brent average above $65). It seems likely then, that the bonds will start paying a cash coupon again and that an RNS will be issued at the end of this month to confirm. This should be good for both ENQ and ENQ1 as it reduces the overall debt.