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Amazing deal:
- Cost: 2.15B cash + 4.15B shares + 4.9B bonds (with 1.8% coupon rate!)
- Production: + 320kboepd (+178% increase!)
- 2P Reserves: +1.1Bn boe (+275% increase)
FY FCF (post-tax, pre-dividend) in 2022 = 2.1B + 3.9B (6B combined!)
Possible future options for the inherited portfolio:
- Sell non-core areas like Algeria, Libya, Egypt & UAE (~47kboepd & 25% of 2P reserves)
- or Sell Argentina + Mexico (~66kboepd & 22% of 2P reserves + significant 2C resources)
- or Sell their CCS stakes
Excellent news: https://gulfnews.com/business/energy/abu-dhabis-mubadala-energy-confirms-major-gas-discovery-in-indonesias-layaran-1-exploration-well-1.1702968968630
Carlos better speed up his purchases
Some details on the area in this article:
https://geoexpro.com/major-drilling-campaign-planned-for-the-new-mega-gas-trend-in-indonesia/
Halwa seems to be the one to look out for
Unfortunately i think HBR is on one of the hedge fund's short basket despite HBR's huge hedges, so there is no benefit of hedging to the share price. The main worry for HBR is a very small 2P reserve for a 200kboepd company, they need to acquire something that will double or triple it in the short term. Exploration prospects will take 5-10 years before they can move over to 2P.
It was reported in August that talks have broken down: https://www.ft.com/content/c3598452-5466-497c-8b7c-c626210a57ed
There's an update here: https://www.legislation.gov.uk/ukpga/2022/40/section/1
Https://www.basf.com/global/en/investors/calendar-and-publications/reporting.html
note BASF still very keen to "monetise" Wintershall DEA but will probably need to wait until the Russian part of the business is fully separated...
Follow welligence on LinkedIn, this is what they wrote:
On 30 October, the North Sea Transition Authority announced the first tranche of awards in the UK 33rd Licensing Round. 27 licences have been offered to 19 companies, including 14 as operator, with this first tranche focused on discovered resources that have the potential to be fast-tracked for development.
Production replacement is the leading strategy, with awards as both operator and partner dominated by the large producers, including Shell (11), New European Offshore (nine), Ithaca Energy (five), Equinor (four) and TotalEnergies and bp (two each).
The lack of firm commitment wells, which has hit a floor in recent rounds, is balanced by 13 (48%) of the licences offered moving straight to second term, typically requiring an FDP. This is by far the most since the initiative was offered and these are set to boost the pool of new UK development projects.
Shell seems to be the big winner in this licence round
https://www.ft.com/content/1a219f8c-5b23-497f-8db6-5fda92caacbd
One of Britain’s biggest oil and gas producers has said it would not enter the UK’s first exploration licensing round in nearly three years as it reviews its investments in response to an increase in the country’s windfall tax on fossil fuel producers.
The decision by Harbour Energy not to submit bids for new licences in the North Sea comes after French energy major Total earlier this month said it would cut planned investment in UK oil and gas projects by 25 per cent — or £100mn — next year following the government’s decision to increase the tax burden on the sector.