Member Info for hitman1a

I thought I would have until Friday to get a few top ups in under 22p but looks like the train is leaving the station a bit early due to Brent moving a bit higher earlier than expected as well. I agree once GE is signed, a step up is expected.. so 10% return .. take it while it's here.

I'm thinking 63k in Nov and Dec.. the initial flush in Malaysia will help and GE is clearly doing well. But Enquest won't advertise it as it never discusses the actual monthly numbers... just the average for the year. We need advertising/ PR campaign in Nov if things are going well. if not.. keep quiet.

60k at the start on 2022 and then tapers down.. but we have drilling.. Perhaps 4 on Malaysia.. 1 or 2 of GE and another 2 Magnus..?. Average 55k for 2022 imv, but market might be thinking 50k.

Pelle
1. Enq IR already confirmed to me we will see additional deferred tax recognition in accounts once GE asset is in the portfolio.. It's on p67 of the prospectus. It's not a secret.. analysts just don't talk about it.. but It just happens to be a huge amount which is why I keep mentioning it.
2. Barclays analyst did include the equity raise and GE acquisition in his 2H numbers.. and shows a movement of $256m. It moves from $92m on 30 June 2021 to $348m 31 December 2021 . He has not imv adjusted for the deferred tax recognition on including GE in portfolio and of course wouldn't have included the negative 1H adjustment Enquest made re Magnus. Still we have the 1H accounts which show equity at $38m.. Barclays movement number of $256m is still valid.. Even I the other day for 2H 2021 estimated $100m profits, plus $58m due to higher oil price and $14m x 3 for post GE completion. Others reminded me of the $50m fund raising.. so that was $250m.. similar to Barclays.

So I still say our equity position by the end of the year will be something to look forward to.. Shame we have to wait until next March to see it... but now is certainly not the time to exit.. I estimate $600m .. something Marketscreener can't see at the moment either. We have $3b in tax losses.. so at somepoint were going to start to use them.. ie when we expected taxable profits to arise to use against them. GE gets us to this zone but as we can all see, the SP hasn't reacted kindly to the 1H 2021 accounts.

Hi Pelle
1. I agree Marketscreener hasn't included GE..
2. Enquest have penciled in Brent $70 for rest of 2021 and $68 for 2022.
3. Marketscreener can't talk about deferred tax and effect on financial statements with GE included. p67 prospectus.
11. Financial effects of the Capital Raising and the Acquisition
On a pro forma basis and assuming that the Transaction and an RBL drawdown of $600 million had taken
place on 31 December 2020, the EnQuest Group would have had net assets of $278.7 million, compared with
net liabilities of $64.6 million reported as of 31 December 2020. This is before the recent adjustment at half year so starting from $38m plus movement on GE from 1 July 2021
4. I agree 55k for 2021 is a better assumption, given 2022 drilling and current fixes.

I think sentiment and projections are weak because our weakest assets have already been shut down and our best assets don't look they great either once you take into 2022 depletion without drilling and GE.

Think you need 90% to do a takeover here.. which is why AB holds just over 10%. Also confirms why he wanted the extra shares to keep his holding percentage intact.

Bought £5k at 21.5xp . sideways travel for another week imv.

Target 26.5p on GE completion : Brent looks solid. £500m market cap.
China releasing some reserves just confirms the tight market..

Lots of 20,000 buys ?

It’s all about the positive effect the deferred tax computation adjustments have at the end of the year on the equity part of balanced sheet.

that's bs KO, you were looking at your trouser area.

It's no mystery.. Dave.. "....." I've joined the dots.. isn't your real name Davy Jones. I've seen you before in the Curse of the Black Pearl.. .... more voodoo and black magic.. Compass points to what you desire the most..

Black magic and voodoo being used to suppress the sp.. see it sometimes in Bond films too. Premiere 28th , general release 30th Sep..... same day as GE slated to be signed... coincidence or voodoo.

The subtle signs are there..

The deferred tax working from note 11 of the prospectus indicated a movement of $343m for GE and new RBL. But they have just adjusted the deferred tax 2020 accounts for Magnus and now have net equity at $38m for 300621. This projects us at say net equity of $581m at 31 Dec 21, if we allow $200m net profit for 2H 2021. A transformed company....just need Enq IR to confirm .?

I watched the presentation and Q&A again today, and would still expect it to return to 26.5p upon signing GE.

Bodyguard said it looked alright . 2nd batch.

Save some ammo for later. Will buy into Friday 17th , as I believe it will start to rise on 20th.

Thinking the deferred tax adjustment on GE completion and profits in 2H 2021 get our balance sheet equity value near $500m by end of year and $1b by end of 2022. That's a big improvement .. certainly not reflected in the last 1H 2021 accounts or any news articles..

Good points Pelle,
Sometimes we think the oil is running out in 2 years time when the bonds expire, but the real lifespan is probably nearer 8 to 9 years.. with some low cost annual 1yr payback drilling,... a model which I like very much.

But need more evidence to justify a higher SP.. which even after GE is signed and Malaysia fixed, will be on the 1H 2022 accounts this time next year..

We got our "normal" update.. never quite seem to get over the hurdle . GKP had its results out on same day and motored on upwards.. good recovery there since 2 Sep..

I think we just got ahead of ourselves.. GE is end of month, so not imminent, so gives a chance for people to sell and rebuy lower down... Deleveraging is still a priority , but as the Bonds are expiring in Oct 2023.. how do we get interest savings.. seems like our cash position will improve dramatically and we will still be paying the same bond interest which makes up most of our annual interest payments... I doubt Enquest would buy bonds in the market at par/below par before Oct 2023.. but I would certainly try to do it .

If we start 2022 at 60k/day and trend down over 2 years to 40k /day at the end of 2023.. that's average of 55k for 2022 and 45k for 2023.. 2024: 40k/day with virtually no debt is a good position to be in.. and dividends are possible.

I just did..

Bought £1k at 21.83p

Looking at the chart, I think we need to wait until Monday 20 September to see the SP start to rise again to 26p in anticipation of the GE deal being signed at the end of September and the value it will add.