Member Info for January2

Pelle,
You lucky lad !
Our pubs are all shut !!!
I am sure we will all meet up, sometime in the future !
All the best

Ammu,
$70 oil, That's Pelle's call !
My understanding on the 60p party is it's open to "holders". So if you are a holder then yes. However not sure if you can hold that long ???

Ammu,
" it took ages to fill my order!! "

Yes my friend, With all that "flippy flopping" back and forth, you do !
I am sure the platform you use were wondering if it was actually worth their while putting the order in for you !
Maybe make a decision and stick with it.
Good Luck Anyway.

Hi Pelle,
Yes you are right. Those impairments caused us to have a negative NAV, when they were done last year. They should adjust them now to the upside, based on a realistic price for oil during 2021.
Finally i will come to your $70 oil party. Thanks for the invite.

-In January. See article.

https://oilprice.com/Latest-Energy-News/World-News/China-Imports-1112-Million-Bpd-Of-Oil-In-January.html

Wait untill Europe and the US really get moving ! At last, good times ahead for ENQ holders ?

All the best
JAN

Thanks guys,
20 recommends. A record, for me.
I am starting to well-up !

Just checked my trading account, yes it has the open offer . Also contains a letter from AB.
AB letter as follows;

" Hi investors. Hope it's OK, but I prefer to call you "Lads"as I know you all so well. Guess you have heard that I've been shopping. Need your help though. The Bank wants us to scrape together a few quid. Lads I need you to search down the backs of your sofa's. for cash. Romaron you don't need to bother because I've been to your house and its spotless. However if you can go to your wardrobe and check the pockets of your old 70's flaired trousers, I am sure we will find a few notes in your back pockets. You know, the times where you were slow going to the bar, when it was your turn.
Lads we need to be quick. My mate Chilting has warned me that the little green men are coming ! We need to do the deal before they come to "Carbon Capture " us. Chilting even suggested that I get Enquest involved in this carbon capture stuff. Well I gave him my answer. I just dipped my hand in a barrel of Kraken's finest, then rubbed my oily hand all in his hair.
He looked a bit like John Travolta in Grease. Though a much heavier version.
Just love the number crunchers on here ! You lads show up all John Sweeney's weaknesses. You should see John's garden at his home. Really smart, except for the hedges, there a mess.
Take care lads, love you all. Sorry can't mention everyone. Oh and don't forget to send me the cash !
Love AB

Guru,
Thats great news, and we want a premium.
However Kraken is around 50% of our production (we get 70% of kraken total) I think some of this premium is negated by this and that Malaysia production is not Brent prices, but lower.
If our overall production is price lifted by 2,3 or even 4 dollars pb, then I'm happy.
Good point though, thanks for posting.
JAN

No L7,
My understanding is that Enquests share of The earnings will be go to the new company that Enquest have set up called Golden Eagle. This company will have the earnings along with the tax benifits that Enquest have transfered into it !
Hnhm- Agreed
Pelle - My understanding too.

Or simple old men, KO
It was always a good deal from my perspective. Indeed I jokingly posted days ago that "With $100 oil we would have paid for it by Christmas". The numbers are roughly right but obviously we will not average $100 oil this year.
Someone else noted it will be paid for in 2 years. Now at todays oil prices that sounds about right. Even better for 25% of that time is before the deal is finalised.
As for Enquest 2021 - At todays oil prices there is a serious possibility our debt will fall from current 1.65b (includes the GE deal) to just 1b at year end. Now KO that's good.!
2022 - 60p Party Anyone ?

Yes Aimsurfer007,
If the Deal completes in late July, with POO at current prices , then We should have knocked 100m off the price !

Hi E121,
I have always found your posts fair, balanced and very informative - so no worries !
Indeed, like others, we have missed your posting during most of 2020.
I agree with your targets on POO during 2021. Oil Demand has held up very well considering the current coronavirus situation. As the vaccines take control of this virus, we are going to see huge demand growth going forward. Supply worries will drive prices higher for 2021 and most of 2022, in my opinion.
All the best
JAN

cheers Mavrick

Great Post Hitman,
Thanks for that.
You obviuosly have a big one !
- Fag packet of course !

I was trying to give an example of how it works , for those that don't know.
The figures I used are just figures to explain the priciple and NOT where I think the SP will be later in the year !
I tried to keep it around todays numbers so it was easy to understand !
Crikey,
I used figures relating to how things are now (if it was done in the coming days) = I am being too neagative for the future !

If I had used a share price of 25p or 30p in my example, some would say I was dreaming = I am being too positive, it won't happen and stop ramping !
I can't win.
I am damned if I do, and damned if I don't.
Anyway, if I have helped just one person understand that there is another choice they may have then I am happy !

Hi Pelle,
I got a few minutes now so will explain with some numbers. I know you understand , but it mite help some others.
OK
Lets assume the share price is at 16p when the "offer" is announced. So the company needs to raise 50m . It sets the offer price for the new shares at a 25% discount to the current share price of 16p. Meaning the offer shares will be at 12p. Therefore the company will need to issue 415m new offer shares to raise the 50m .
The total number of company shares in issue will then go from 1.7b to 2.1b. That means the company will have to issue 1 new share for every 4 current shares. For every 4 shares you own you can by 1 new one at 12p.
Lets say an investor is holding 100,000 shares. He does not want to spend any more money. However he could still gain from the offer deal. Lets say when the deal is announced he sells 20,000 of his shares at 16p and gets £3,200. He holds the money and waits for the offer. With his remaining 80,000 shares he is allowed to buy 20,000 offer shares at 12p . Which he does , only scosting him £2,400 of his £3,200 pot. He now has his 100,000 shares back and £800 profit. If he spends the £800 on extra shares at 16p he would get another 5,000 shares free. Increasing his holding too 105,000 shares. he has gained 5% from the deal. NO extra money put -In. If the SP has fallen to near the offer price of 12p when the offer goes live then he would get around 7,000 shares.
This is what I did when we had the R.I. .
Not saying or telling people what to do, just trying to show options. There are some important points though. Normally (though not always) the share price will move torwards the offer price very quickly when the offer details are announced. So I had to move quick to get my 16p sell price. If you wait and the SP goes down to the offer price then this is not worth doing.(which it may or may not do)

I hope this helps some with there choices.
All the best
JAN

Hi E121,
Good Post, many thanks.
Would like to add to your comments -
Others have "hedged" better, historically, like PMO etc. While this is true and has meant that they maximised their revenue. These company's performed less well further down the P&L. Enquest's revenue could have been greater with better hedging in place. However they made up for it , and overtook the others , the rest of the way down the P&L. Great cost controls etc.
Reducing debt to a greater degree than PMO with less revenue.

Yes Pelle you are right . You gain the discount on that you have sold, which offsets some of the dilution. So if dilution is 20% overall , then by doing this you reduce the effect to say 15%, with no cost.
Better than just doing nothing.
Night night , talk during the week.

No Pelle you end with more shares.

Hi Pelle,
I don't think there was any choice in asking for the 50m.
The deal cost is circa 350m and it will bring back at least an extra 100m profit after ALL costs. That was the figures quoted at $50 oil. We are currently getting more than $50. So are likely to get a much greater benefit.
The 50m to be raised, and i quote the words from the presentation - "Anticipate raising up to $50 million of equity ". Maybe not certain, however lets assume it is . At todays prices (12.5p) that could mean another 400m shares. Taking us from 1.7b to 2.1b shares.
We then have a choice to buy more or not. IF the shares are offered at a discount then we do have the possibility of gaining without adding any more money. I did this at the time of the RI. I worked out the calculation and sold a small quantity of shares at the market price at the time 27p then purchased the same quantity back again at the RI price of 21p . Making a 6p profit.
You could of course do it the other way and not keep the profit but use it to get extra shares. Thus negating the effect of the dilution a bit ! This way you need not spend 1 penny more. This only works IF the new shares are sold at a discount.

All the best

JAN