Member Info for Maverick7

I see that all the UK Natural Gas Futures are now well above 150p per therm up until Q1 2022. I dont think the market believes that gas companies will be raking in the associated revenue, otherwise our share price would be over £3. Same applies to the other gas companies listed on the market

Another reason - but this article doesn’t give the full picture

https://www.stockopedia.com/articles/after-a-strong-run-whats-next-for-investors-in-serica-energy-239239

the reason it may have fallen is because the russians are looking to bring on stream Nordstream 2 - the sky high gas prices are obviously causing a concern in Europe and the regulators may bend the rules for fast tracking it :

https://www.bloomberg.com/news/articles/2021-09-08/gazprom-plans-to-start-nord-stream-2-gas-pipeline-next-month

"Gazprom PJSC is planning to start flowing natural gas through one of the world’s most controversial pipelines next month, according to people with direct knowledge of the company’s plan.
The Russian gas giant wants to begin shipping the fuel through the first leg of the Nord Stream 2 link to Germany on Oct. 1, said the people, who asked not to be identified because the information is private. The timing of actual flows into Europe’s gas grid will still depend on a decision by the German regulator."

Anyone know what % of production SQZ would be wanting to hedge at these current sky high gas prices. Are they allowed to hedge >50% for instance.
If I recall correctly, SQZ board were criticised in the past for not hedging enough last time gas prices were high (obviously not as high as now). Would they wait and see what the gas price will be in winter?

Never in his wildest fantasies will Andrew Austin (& other gas energy companies) have dreamt of gas prices this high!! And they are still going up. The biggest risk to these companies is now probably Nordstream2 and the Ruskies.

Anyway, surely these sky high gas prices will involve reviewing strategic strategies which include:

1. Size of acquisitions - we will have more cash available and a higher share price to raise more funds
2. We weren't due to pay a dividend until 2024 from memory - has this changed
3. Could we pay off debt sooner or will the cash only go to dividends and acquisitions
4. I cant see any mergers as AA wants to control his own destiny but don't rule it out

Just some thoughts as no one would of foreseen these crazy gas prices

from the 13th July Trading/ Operational update:
"§ Kistos is continuing to evaluate a number of business development opportunities in the energy transition space, in line with its strategy.
Commenting, Andrew Austin, Kistos' Interim CEO, said:

"Kistos is well placed to generate substantial value for shareholders. We have a busy schedule in the second half of 2021, which we hope and expect will result in strong organic growth in our production from 2023 onwards. In the meantime, we will seek to deploy our balance sheet strength to make further acquisitions that meet our criteria. We look forward to reporting on further progress as the year unfolds"."

Was that £805k trade at 1644 really a buy or was it Morgan Stanley selling?

looks like they are, good job so i can buy some more, the survey should be complete by month end so we may be stuck at this level for a while longer, however, the hols finish today so volumes should pick up from next week

Interesting thread on Twitter by Javier Blas on a coming winter gas crunch. If it’s another harsh winter who knows where gas prices could go - I don’t think the gas stocks have been replenished

https://twitter.com/javierblas/status/1433523517719408644?s=21

upomega - why is farming into other assets a shame, we are after growth - we need to increase production, increase our reserves which will ultimately lead to increased cash pile and sustainable dividends. Don't forget the existing BKR assets will be depleting over the coming years
North Eigg isnt enough, its got to be proven up. We know the board are pretty conservative and wont want to overpay, but we have tonnes of cash which is growing daily. That cash needs to be used - whether its to farm in, acquire or pay out to shareholders, lets see which one it is

Totally agree Sasa. One of the negatives pinpointed towards SQZ has always been the size of reserves. So another option could be to use some of the cash to farm in elsewhere. There’s plenty of good assets held by juniors in the North Sea ready to be drilled and proven up. Just look at JOG, DELT, PMG & I3E.
An interim dividend would be good

What do they know - follow the money

Those were buys - reported as “sells”

As we all know we are producing tonnes of cash and its increasing daily. This is on top of the healthy cash position we were at. At the current oil and particularly gas prices has the boat already sailed in terms of further acquisitions at a reasonable value. My personnel opinion is yes - its too late. Prices will be too high now. Who knows how long these crazy gas prices will be around for, winter is coming and gas stocks are still depleted.
So, what happens to the massive cash pile? I wasn't in favour of a "special dividend" because i thought an acquisition was preferable. However, i think i have now changed my mind. Pay a reasonable special dividend, the cash pile will grow again over the next year

Well unless there is news on the Orinduik drill timescales, the share price here will be stagnant or lower for a few weeks and then the rise into late October. No doubt there will be a leak somewhere, so I’m going for atleast 40p by end of October pre drill results.
Then it’s time to sell up or derisk ahead of any news. It’s a buy at around these levels, should be an easy 50% ahead of results

HE1 never got above 29p

Possible significant delays to Nordstream 2 due to German courts - gas prices gone up again and if these delays persist winter prices could be higher still. No idea how long the delay could be

https://www.bloomberg.com/news/articles/2021-08-25/nord-stream-2-won-t-be-exempted-from-eu-rules-german-court-says?utm_source=url_link&utm_medium=social&utm_content=energy&utm_campaign=socialflow-organic&cmpid%253D=socialflow-twitter-energy

This is the time to be accumulating and buying as much as your risk appetite allows ,no brainer for me. Patience is required to hold for the next several months, atleast a 5-10 bagger from here. Difficult to buy in large chunks.

thinking about it again, Awilco probably not part of the post drilling OPs and bringing the well into production?

This article states that drilling was completed by Awilco for drilling operations on the rhum3 well - so why no RNS? See link below
“ During the reporting period, the WilPhoenix rig finished its drilling work on the third production well on Serica Energy’s Rhum field in the northern North Sea.”

https://www.energyvoice.com/oilandgas/north-sea/343648/market-signals-more-north-sea-drilling-work-and-higher-contract-values-awilco-says/