Member Info for KelhamKing

Bangrak - I note you refer to WH’s note of last July despite the fact they’ve published at least two New ones since. Have you read them?

Apologies, ‘the future truth’. Derrida said there was no such thing as empirical truth so would also welcome your thoughts on this subject.

‘thelongergame’ asks a fair question and the reality is $35/barrel is not a viable price for some producers. Where I suspect our views diverge however is that RRE can survive at this level and its cash position means it can act as a purchaser of distressed assets in short order. Whilst you pose this as an apparent weakness for RRE, I see it as quite the opposite.

..now on RRE website and via this link: https://d1ssu070pg2v9i.cloudfront.net/pex/rockrose2019/2020/04/07134633/AnalystCall-7-4-20.mp3

I'll go for £8.75 all.

I particularly liked the lines 'progressive dividend policy' and 'full tax relief on all abandonment expenditure/, with the cherry on the cake being 'Abandonment half life has been extended to 2030'. I'm not sure the bears have factored in that the company is that well set-up that it can continue to push out the latter.....

It'd also be remiss of me not to say good morning shorters on behalf of LTHs in the business. Hope you're having a great day.

….results could land with us at any point next week given FCA's two week moratorium. Initially the business said w.c. 23rd, then narrowed it down to 'intended 26th'....which gives the Board some degree of flexibility. Don't get caught out!

...this time with BP. All this excellent work with majors counts.

https://www.teekay.com/blog/2020/03/27/teekay-announces-new-bareboat-contract-for-the-foinaven-fpso/

Only a matter of time before Saudi Arabia reduces production.

https://uk.reuters.com/article/uk-saudi-oil/saudi-struggles-to-find-buyers-for-extra-crude-as-demand-dives-sources-idUKKBN21D2W1?feedType=RSS&feedName=businessNews

I'll pay you £1 to get out of this chatboard Scaramanga, which you could use to burn off your third nipple.

Unfortunately chap you've not read my post, as I agree with you half way down it. Please re-read before disparaging.

Who wrote this?

"I can see SQZ touching £22 by the end of 2021."

Yup, it's Sean Dyche's best mate 'TurfMoor' on the SQZ board. Presumably, given SQZ is now trading in the 60s, you also believe the meltdown in share price has begun there?

A balanced view here:

- A lot of us are pained by this situation but with Brent at nearly 2-decade lows it is what it is.
- A lot hinges on the way the company explains its decom liabilities, how it will wisely deploy capital in this environment and its transition within outlook from oil to gas, as Turf suggests, within next week's results.
- Some have suggested the company puts out a statement to explain SP drops. I disagree. RRE have already made 1 x RNS on Brae alongside AA's interview last week and anything else looks OTT. The reality is.....
- …..AA is above else a deal-maker and whilst he'll be in 'paper pain' from SP fall this environment is absolutely ideal to test his capabilities and he has his hands full. For a start he'll be negotiating Speedwell down. I'm genuinely intrigued what colour he adds on any other targets. I agree with others that an SQZ tie-up makes absolute strategic sense but would the latter want it?

I'm £20k+ down on RRE but I remain a conviction holder and will be long-term, as ultimately I have faith in this management team and its business model.

char333 - it is total dross like your postings that give PI boards the reputation they have.

Will Shell be here in ten years and still be a successful business? Yes. Now go back to sleep.

New KOTB,

I hope you've got some baggy trousers for the cash you'll make; personally I'll be taking a night boat to Cairo once this madness ends.

https://www.ledinghamchalmers.com/news-views/speedwell-energy/

One of the key things hardly mentioned here is that AA is already trying to finalise an acquisition - and one he'll undoubtedly be chipping on in this market!

Genuinely intrigued as to how much RRE reveals on this within FY results. As others have said, if more colour and detail is given on decommissioning timeframe and our transition to gas/CCS in the long-term to put to bed any thoughts this is a 'workout business', then this is to all of our benefit.

GLA and keep the faith!

Some interesting reading for you all this week away from the inevitable carnage on the markets:

https://decomnorthsea.com/uploads/pdfs/newsletters/Issue-39-February-2020-ONLINE.pdf

Ultimately if you don’t have redemption issues it really isn’t worth your while looking at the SP over the next few weeks. Who knows where we’ll end up but I’ll be amazed if OPEC doesn’t come back together in the next two weeks under pressure from a range of global actors...

Strap yourselves in and good luck all.

One of the key things to monitor in the long-term with RRE is how AA gets on in putting their case to Government as part of their proposed ‘Oil and Gas sector deal’, as per:

www.business-live.co.uk/manufacturing/oil-gas-sector-deal-emerge-17810282.amp

I doubt any major detail will come from the Chancllor’s budget this week but for my ten penneth:

- Any eventual deal will include the Govt either part offsetting decommissioning costs or incentivising operators to do so within a specific timeframe.

- Some have suggested ‘CCS’ as a future for the business beyond oil. This is feasible but the first steps have to be taken within this sector deal as part of the Govt getting its act together and agreeing what the UK’s energy strategy is.

Current situation is excellent for RRE to make even more hay with its burgeoning cash pile. 6% divi at this level (!!!) make it my easiest hold across pf. DYOR and good luck all.

"In summer, the Government announced three more PSA tenders, and in October, it prolonged the deadline for the submission of bids until 4 February 2020. These three PSA tenders cover blocks with a total area of 3,800 sq. kilometers: Hrunivksa (Sumy and Poltava Regions), Ichnyanska (Chernihiv Region) and Okhtyrska (Sumy, Poltava and Kharkiv Regions) subsoil areas."

Will we see JKX/UNB bid for that Okhtyrska licence? Other UNB updates (yet again reflecting the importance of JKX's 10% share which - bizarrely - is not focused on at all in current investor materials!) can be found via this very helpful article:

https://www.lexology.com/library/detail.aspx?g=9e329471-d7ab-4d38-aa9b-fdfa4fb7e95a

http://www.scottishenergynews.com/conservatives-pledge-support-to-north-sea-oil-and-gas-transition/

A specific manifesto pledge here which is likely to be extremely good news for RRE in effectively managing (reducing?) future decommissioning costs.

Worth having a look over this news from UNB, posted yesterday - providing additional FY guidance:

https://unb.ua/en/news/37

"PrJSC MC Ukrnaftoburinnya (UNB) has completed well No.48. Upon testing the formation ?-22, a commercial inflow of gas and condensate was obtained, with a daily natural gas production of 200 thousand ?3 and condensate of 20 tonnes.

The well was drilled by Uralmash 4E drilling rig that has a triplex pumping group and a modern cleaning system; well depth is 4,850 meters. Ukrburservice Drilling Company LLC acted as the general contractor in the drilling of the well. Products and services of Voestalpine Tubulars GmbH & Co KG, Smith Bits, Weatherford, LGH Inc were engaged in the drilling process.

For the first time at the field, the productive horizon was drilled at the minimum drilling mud density (1.12 g/c?3). It provided a low level of repression on the reservoir. The productive horizon was fixed with a filter without cementation, which allowed excluding negative impact on the reservoir.

We continue to implement 2019 drilling program and plan to complete one more well in the nearest time. With the intensive drilling program, new technologies and involvement of the international level experts, we expect the production results of 2019 to exceed last year’s results by at least 30%,” stated Michael Bakunenko, Chairman of the Executive Board of PrJSC MC Ukrnaftoburinnya."

More gas and ongoing strong operational performance.