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https://www.energyvoice.com/oilandgas/north-sea/decom/487543/dana-submits-draft-plans-for-western-isles-decommissioning/Dana Petroleum has submitted draft paperwork for the removal of the Western Isles FPSO, though the fate of the vessel is yet to be decided.....Given its design life of 20 years on station – of which only seven have been used so far – potential re-use would appear likely, especially on the back of record demand for newbuild floating systems in 2022.Originally designed for a 15-year lifespan (achieved 7) for base case of 45MMboe reserves, is this the impact of EPL?
what to do next? sell?
https://www.bbc.co.uk/news/business-64833390.amp
time to exit LSE and list elsewhere
https://www.energyvoice.com/oilandgas/north-sea/487372/cnr-international-ninian-oilfield/
CNR International has decided to shut down Ninian, one of the greatest oilfields in the North Sea, due to “challenging” UK market conditions.
The Canadian oil firm cited “prevailing regulatory and economic conditions in 2022, along with the increasingly challenging commercial outlook in the UK” for the move.
CNR International is “accelerating the abandonment” of its remaining two platforms at the 45-year-old oilfield: Ninian South and Ninian Central; the latter being the largest platform ever constructed for the UK.
The company has also written down 65 million barrels of oil equivalent from its proved reserves, as the field has become “economically unsustainable”.
be prepared...HBR should withdraw from Acorn asap!
Note Rosebank is 2C resource, no FID yet so it should be valued less. $5.2B CAPEX still required and the OPEX might be high as well due to the operating conditions, risk of sour gas, etc. In my mind, I would say the value/bbl of Rosebank reserves is ~20% that of Buzzard's.
Equinor has additional incentive to progress this ASAP before Labour comes in power as they have already committed to spend money on the FPSO (Knarr) and they need to balance out the UK business with the low return wind and the blue hydrogen business they are just getting into.
Suncor Equinor deal still puts it at 1B valuation! I guess they really want those tax breaks.
https://www.msn.com/en-gb/money/other/equinor-closes-in-on-1bn-deal-to-buy-suncor-energy-s-north-sea-assets/ar-AA186fKa
40% of high cost Rosebank next door to Cambo and 22kboepd Buzzard production.
https://www.ft.com/content/8a631e65-b68d-41b9-9b70-982b1e5a34fe
UK oil and gas sector warns windfall taxes are deterring investment
Energy analyst Wood Mackenzie has also warned that the energy profits levy has wiped an average of 40 per cent off the value of North Sea producers.
...
Ashley Kelty, analyst at Panmure Gordon, said the windfall tax was inequitable as “pharma and tech stocks, which also benefited massively from the pandemic, are only subject to UK corporate tax of 19 per cent despite the supernormal profits they realised”.
https://www.ft.com/content/d4202685-9ef4-484f-a3f3-a7c731418935
Citadel Securities: how the Wall Street outsider became ‘the Amazon of financial markets’
One way Citadel Securities trades in equity markets is by paying brokers like Robinhood a fee to receive retail investors’ orders, competing with the likes of Virtu — the publicly traded market maker — and Susquehanna to trade those orders at or better than current market prices. It’s a controversial practice known as payment for order flow.
Once the order is received, it offers the market maker unique information unavailable to its rivals. It is able to use this, alongside a broad array of other market data, to compute how best to price trades and maximise profits.
...their AI probably picked this share up as the most unusually traded share in the LSE.
https://www.galp.com/corp/en/investors/publications-and-announcements/investor-announcements/investor-announcement/id/1430/galp-to-divest-from-angolan-upstream-assets
$830m for 13kboepd!
why is no one showing their calculations? because it will still show HBR as super undervalued and that explains why lots of value investors end up here and get frustrated (me included)...
However, HBR management needs to show signs of growth - the UK is written off, the international production is small, so a deal has to be done ASAP or a drastic change like delisting and moving the HQ to Indonesia before the business degrades further!