The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Now that NSTAbz has made his little request we can get on with living in a free world where people can post what they like.
What’s the weather like with you all? A bit grey here.
Last chance to get out
Of course with hindsight it wasn’t as good a deal as it first appeared. At least Enquest didn’t give away all the upside like Waldorf did when buying Cairns stakes in Kraken and Catcher. The deal could have been a lot worse.
We’ve had 3 years of income from GE at annual average of $70, $100, and $82.5. I’m not convinced GE has been the financial failure that some think.
Anyway If we can swap the remaining reserves for a different field where we can add real value then that works for me.
Bressay and Bentley are going to be developed over the next 40 years. A lot of the capex will be up front cost, but we will not be spending $10bn to get to first oil
Stevo
Unlikely AB would be interested…ticks the gas box, but non-operated stakes would make it unattractive IMHO. Lesson learned fro Golden Eagle.
If the price is right then I don’t see why this type of acquisition wouldn’t be considered.
Twallbyoff
You could probably work out some rough diesel costs. Eye watering I think. Gas is mostly going to be a capex cost then very cheap to import (not sure what the deal is with Rockrose on gas pricing). Buys some time for alternative fuels to become viable for decarbonisation.
https://www.netzerotc.com/wp-content/uploads/2023/09/1130-REP-044-R1-AFGT-Kraken-Case-Study-Report-Public-Summary.pdf
https://www.wartsila.com/energy/solutions/engine-power-plants/wartsila-50df-multi-fuel-engine
https://assets.publishing.service.gov.uk/media/5a81a3b4ed915d74e6233591/EnquestKraken.pdf
My guess is a subsea tieback to produce the gas cap.
Heavy oil will need a (heavily modified) Enquest producer
Stevo - early production of Bressay is more or less nailed on irrespective of the change in government. Diesel for Kraken is very expensive and carbon intensive.
A RTO is unlikely to realise value.
Once this delists it required almost no effort to run the company so can be very low cost.
Stevo - Bressay gas is highly likely to happen. Kraken needs it.
What are you on about Stevo?
Stevo
Buying a producing asset shouldn’t affect shareholder returns. Debt will be used but the income from the asset will balance that out.
It’s hilarious what this BOD get away with.
Most shareholders now own a tiny amount and probably think it’s not worth voting.
Allows a select few to control the company with a large minority holding and make a lot of money through fees.
My view is that some of what has gone on here would warrant an investigation into whether the directors are acting in the interests of all shareholders.
I expect the BOD to win this one as well and we could see a rinse and repeat until all value has been stripped.
Veri is a wholly owned subsidiary and has an exclusivity agreement with SIC. They basically have access to a site that has pipelines shooting offshore, and a nice jetty for construction and offloading . It is also a COMAH site so wouldn’t imagine there will be any issues with planning consents.
If the existing infrastructure is used then the JV partners will get some income, or ownership percentages will be renegotiated I would guess. But anything Veri choose to build would be 100% Veri and they would just pay rates to SIC.
It’s a long term project…the work being done now keeps the existing infrastructure viable and prepares the site for some of these longer term businesses.
I wouldn’t get too excited about it but AB is doing the right thing and setting the company up for the transition…and the decades ahead
Seems obvious to me now that the transaction was purely to generate fees and salaries. Buy high sell low. Fees pay just the same. Outrageous really.
Perhaps downing tools is the only way for the public to understand the harm that this tax and policy will do.