RE: Below £1...14 Sep 2020 14:10
yes we might drift downward so take the opportunity to top up, we are on the acquisition hunt so you can risk being out, guidance by Mitch Flegg as below:
Despite the resulting reduction in sales revenues, the Group's consolidated balance sheet at mid-year remains robust. We have no borrowings and limited decommissioning liabilities. Cash and cash equivalents plus term deposits at mid-year stood at £101 million which is virtually unchanged from the position at the start of the year. This is despite the fact that to the mid-year we have already invested £7.2 million mainly on the equipment required for the forthcoming R3 intervention project and the Columbus development programme.
Serica remains in growth mode as it looks for new investment opportunities but this still leaves room for a measured distribution policy to reward shareholders for their continuing support. Our maiden dividend of 3 pence per share was announced in April this year and was paid in July. If Serica's financial position remains favourable then it is the intention that a dividend will be paid annually.
We are looking forward to a very active second half of the year. The Awilco WilPhoenix drilling rig has been contracted to conduct the well intervention work on the Rhum R3 well in the fourth quarter of this year. We look forward to being able to commission the R3 well for production in early 2021. Planning for the Columbus development continues and a contract has also been signed for a Maersk rig which will drill the development well in 2021. First production from Columbus is planned for late 2021.
Although we are prepared for further market volatility, we expect oil and gas demand to recover as economies emerge from lock-down. With our strong cash balances, no debt, full-lifecycle operational capability and capacity to grow, Serica is positioned to play a leading role in the recovery. We will continue to increase our focus on ESG issues, in particular our efforts to reduce the carbon intensity of production. We see material benefits for shareholders and other stakeholders as we continue to maximise production and reduce costs in order to generate increased value from our existing assets whilst simultaneously using our strong position to identify growth opportunities for the company
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