Member Info for messer3

Prefer to see SQZ use paper to buy KIST and preserve the cash for capex etc.

I'd prefer SQZ to use its free cash to finance growth rather than pay hefty divs which IMHO may not achieve the same return if invested elsewhere.

Some people have very short memories. The growth in net cashflow only started in the fourth quarter last year. Serica is a growth stock and should be given time to deploy its cash to further grow the biz. If shareholders need cash now, they can always sell some stock.

I estimate that SQZ could have £535 mln cash+advances at end 2022. Based on a share px of 355p and 268 mln shares issued, the market cap is currently £951 mln and the year-end enterprise value could be about £416 mln. Based on current reserves (62.2 Mln boe, about 6 years at current production rates), the market value works out at about £6.7 per boe or £9.1 per boe if advances are excluded. These values appear extraordinarily low given current production, costs and market demand/pricing. And would be doubly so if Eigg delivers.

I would have a lot of sympathy for management's apparent strategy of building up cash balances before making any acquisitions. The longer it holds off, the bigger the cash balance and, provided it can hold off predators, the more significant the acquisitions.

Would prefer SQZ to stay independent and use its cash in a way and at a time of its choosing, not when a predator appears. Bye Kistos.

Maybe management would consider offering script issues as alternative to dividends.

For what its worth my CoH est at ye is £254 mln.

Many thanks for that. Will study.

$5.12 / boe hedged gas exposure (20%) = $102k per day (based on 32p per therm as per interims)
$80 / boe unhedged gas exposure (80%) = $1.6m per day (based on 125p per therm as per market average)

Would you be kind enough to explain these calcs and sources of assumptions in more detail?

IceMax spudded Iolar for CNOC/ExxonMobil on 28th May - drilling now for 69 days. How does this compare with other similar drills?