Chris Heminway, Exec-Chair at Time To ACT, explains why now is the right time for the Group to IPO. Watch the video here.
"Under the terms of the Serica Proposal, Kistos shareholders would receive for each Kistos share:
· cash of 90 pence; plus
· 1.29 new Serica shares."
The best use of Serica resources ? Surely the BoD can do better.
Malcy's thoughts -
"You couldn’t make it up, the bad luck that has rained on Mike Buck and his team at MATD recently but at least is is surely transitory and that the company is doing everything they possibly can to be ready to move fast to ensure that Heron 1 will be up and producing as soon as is possible.
I have written a good deal about China’s current woes in recent blogs but in the oil price section as the lockdowns in Shanghai and more recently Beijing have concerned markets with regard to Chinese economic growth. Now we have evidence of more micro problems and to add to the Covid problems they now have social media warriors getting involved.
Despite all this I remain confident that Mike and team will overcome the problems and backed by the Government will before long get Heron 1 on stream and get the longer term programme up and running, this is no time for faint hearts…"
Food for thought from a poster on the other Board-
"I think there are two parts to this: Production - Heron and Exploration - Raptor.
With all the storage facilities full when shipments can restart, I have no doubt that PetroChina will be wanting to try and catch-up lost production. If Heron is brought on line it may not be so simple to keep it producing. If PetroChina can ship oil out a lot faster than they produce then this will only be a slight hold up. Even with the Govt. permit MATD need to get the locals on side - thanks for the research TGM. This might be a bit harder and take a bit longer. How long will the Covid restrictions from China remain in place? Who knows. So production this year may be a big ask.
However I think that an exploration well or possibly two could well be on the cards.
Making this a tough call.
If neither were to take place, then the price will drop - not particularly insightful- should they drill the exploration well there could be a good run up and obviously if they find oil in the quantities they hope for then it could be the moonshot.
What to do."
Per RNS
"Discussions with MRPAM on oil processing, transport and sales options were concluded with their full support and we are now in discussion with PetroChina's Mongolian affiliate on the commercial details of sharing infrastructure and logistics. "
"PetroChina's export of Mongolian oil production across the border into China is also suspended because of the Covid-19 controls and there are no Chinese oil rigs operating in Mongolia at the moment."
"China is maintaining tight control on movement across its borders and there are currently no signs that these controls will be relaxed in the short term."
In April 2021 CEO said -
"Whilst we see significant benefits and potential in our existing portfolio we continue to look at new opportunities to expand our operations to diversify risk, provide new growth prospects and achieve economies of scale. We are confident that we have the resources to deliver this strategy and the platform to create additional value for shareholders."
Perhaps the BoD are getting too old to look for new growth prospects outside the Serica portfolio.
" In the event of a sale of the Company's interest in the Duyung PSC, the net cash proceeds of such disposal(s) will be utilised to first repay the capital and rolled up interest on the Notes and thereafter to distribute 20% of remaining net proceed(s) to Noteholders. The remaining net proceeds of any sales will be retained and/or distributed to shareholders by the Company"
Blingybird I would suggest that Telemachus is nearer the mark when he said "Value of $10+ per share will likely require a couple of years to be fully justified, however."
Further price movement could be expected after the Webinar and the hoped for success at Alkaid.
What a difference a year makes !
"Commenting on the results, Mitch Flegg, Serica's CEO stated:
"We are reporting solid results after a challenging year and a severe industry downturn. Despite the many obstacles 2020 presented, Serica has continued to strengthen its financial and operational foundations and also to deliver returns to its shareholders. COVID-19 caused disruption to global markets and threatened operations during 2020 but Serica responded rapidly to protect its personnel and ensure continuing supplies of oil and gas into the British market. The impact of a substantial fall in commodity prices during the year plus a 45-day shut-in of BKR production in 1H to repair a damaged caisson on the Bruce platform was mitigated by the flexible structure of the BKR net cash flow sharing arrangements and the Group's gas price hedging programme. This financial and operational resilience enables the recommendation of an increased dividend of 3.5 pence per share."
"The Company has now suspended testing of the LBFF formation due to the onset of a severe storm in the area.
Testing operations are now suspended due to the extreme weather, with a possibility that testing may resume if the conditions improve before the conclusion of the Arctic operating season."
Patience!
"Production from Bruce, Erskine and Columbus has consistently averaged over 10,000boe/d net to Serica so far this year. We expect these rates to continue during the Rhum shut down and we will look for ways to optimise the Bruce production rates during this period.""
to get 15k production means someone must have pulled their finger out. Long may it continue.