Member Info for mrc_mrc_mrc_mrd

I think I worked it out at about £150 million reduction in net debt for H1.

The interest on the debt is an absolute killer. And there will be some small hedging losses.

I think L3 worries too much about the kraken Diesel costs. Someone with some time could work out the cost as I think we know how much diesel it burns. It definitely will push up opex but I don’t think it will be by a lot. Fairly safe to assume FCF break even of $35 per barrel as a conservative estimate. (It was $32 in 2020 with higher capex and old fields with high break even)

That gives you $214 million FCF before debt costs.

Interesting to see how debt costs have come down in the prospectus. Real eye opener to how much cash goes to service that.

I’m guessing we will be paying cash to the bond holders in August.

The last time TLW was at 47p ENQ was at 17p back in April.

Things have changed here. Very strong.

I note that Barclays forecast POO back in Feb for 2021 was $62. Presumably their price target for ENQ of 33p assumes that POO with potentially some additional risk applied.

I am very comfortable that we will see a decent rise this year with Brent $60 plus.

Some monster trades reported after close.

Did well today compared to peers. And on a day when we probably had a few locking in the profit from the OO.

Indeed all looking good at Kraken. I suspect we won’t have any problem hitting the middle of the range this year. They will likely narrow the target range inSeptember update.

Debt rating change today also very positive.

We now have a very nice recovery narrative. We don’t need POO to go up for SP to rise. Every dollar of free cash is derisking so the higher we get our hedges on as per the lending conditions the better!! Hopefully if we hit $80 POO in August they can get a range $75-$85 hedge.

Also as discussed, dilution at ENQ is 5%, dilution here over the last year has been 16%.

Hi Big Pot - Enquest are a great company

I’ve been in. Since 11p, now at 23p. Stonking!

Barclays yesterday upgraded to overweight with target of 33p.

The kraken heavy oil actually commands a premium as it is sold unrefined as marine VLSFO.

Moodys have today upgraded the debt to “B”.

All looking rather good!! Up 8% today.

GLA - still plenty to run if you want to jump in!!

Could see ENQ go to 10% by close IMHO

KO - all good assuming the other members rubber stamp it

https://www.energyintel.com/pages/eig_article.aspx?DocID=1111241&utm_campaign=top-story&utm_medium=site&utm_source=1&utm_content=UAE-Saudi+Arabia+Resolve+Quota+Deadlock-1111241&ts=1

Agreement reached apparently

Page of cups - I read this that they need production data before they will plan and execute the drills. Everything has been demobbed so it’s going to take considerable time to get suppliers re-engaged etc.

My understanding previously was that everything was drill ready and drilling would be executed as a campaign.

Perhaps it can be done in 5 months but seems unlikely now to me. It’s a shame really - always a red flag for me if a company’s targets are not realistic. Under promise over deliver is the way to go.

The market appears to have spoken.

Looks like we may not see this production target hit until well in to 2022. More delays to cash flow and meantime money continuing to fly out the door.

Indeed and every little helps.

Interesting to see that the vast majority of the income from the Netherlands assets come from the field that we have the smaller stake - Drenthe VI licence, containing the large Diever West gas field.

Maybe with the royalty gone there is scope to invest and increase production from these fields?

The ex rights day was the day after the prospectus came out. Anyone who owned stock on that day has been offered 5 shares for every 89 held on that date.

We have had the time since then to decide whether to take up the new shares. We will have to have cleared funds in our accounts to cover the allocation on the final date (not sure when that is and might vary between providers)

Pretty awful news. Very expensive finance...hard to see how any money will be left for shareholders from the 4 new wells.

On top of that, am I right in saying that there are still unknown obligations from the Bahamas drill? Seems uninvestable to me until that is quantified.

Carry on flying, says government green plan https://www.bbc.co.uk/news/business-57830168

Now we just need the media to stop pandering to the tiny minority who choose to sacrifice themselves by drinking marigold tea and wearing cabbages on their feet.

Ultimately growth, innovation and a free market with strong regulation resolves problems.

Here we freaking go lads.

Cheers Pelle

It shrugged it off

Let’s see what the official figures tomorrow say.

August is going to be tight AF

Decent sized draw

$76 breached

Could be on for $80 with no opec increase in august and record inventory declines.

It’s looking stonking lads

Or, as per Chiltings analysis we are headed for $65 Brent. PMSL.

Place your bets lads

IMHO. Broker upgrades. Finances secure. Throwing off cash. Big UK tax credits. Great GE deal negotiated at sub $50 oil.

Winner.