Member Info for mrc_mrc_mrc_mrd

Through $73 and looking strong.

Re-rate on the way here

Mav - there was cash in the bank 6 months ago.

Just looking at the deal....the BOD assumed cash flow of about 13% from these deals. So operating profit after tax maybe around 5%?

That obviously gets swallowed up by corporate overheads, fees etc.

If they are going to do this then it needs to be with cheap money and at huge scale.

They’ve been feeding garbage to shareholders for 3 years so this might just be the perfect business for them!

We will see how the market reacts but for me this demonstrates that the BOD can’t secure funding for a deal of any meaningful scale. At current pace we might see about 1 investment per year. No mention of value this deal is adding.

This looks a little underwhelming.

I think we might see a drop here.

Chilting - a prospectus is required for the deal as it is an RTO.

https://www.bloomberg.com/opinion/articles/2021-06-13/climate-change-bashing-big-oil-won-t-save-the-planet

Some sensible opinions starting to come to the fore.

Media need to start challenging these hippies.

LBE just raised £35 million at 6.8% discount.

They have no producing assets or cash flow, and are taking on debt to fund exploration licence farm ins and drilling.

I think anyone expecting a big discount in the proposed placing for ENQ will be disappointed.

10 years away?

37.5% of Magnus is probably earning $70 million a year at current brent, and they get up to $1 billion.

I doubt anyone will buy Scott now. Maybe a couple of years ago, or as you say with PMG licences in the mix. In theory ENQ doesn't need Scott and could buy into Perth and develop stand alone with the Enquest Producer.

Slap a sweetening module on it and off you go?

Tax is 40%

Unit opex for 2021 is $5 /bbl

Capex is an unknown. Potentially chunky if we are paying for the 4 new wells? Say $10 /bbl.

97.3p paid.

Equity will wake up at some point

Stonking

https://www.reuters.com/business/energy/oil-rally-has-more-room-run-brent-expected-hit-80bbl-goldman-2021-06-11/

95.75 paid today

“Up to” is an interesting point. There seems to be a clear ceiling to the OO.

It does imply there was still some room for negotiation. Maybe even some agreement in principle to waive it or reduce depending on POO, hedging, or cash generation?

Oxygen- things have changed with the POO. ENQ might have a bit of power to negotiate on the OO requirement, potentially by hedging further out?

It was always stated as /up to/ $50 million so it’s not set in stone IMHO.

It doesn’t make much sense to have an OO and the additional costs associated with it if we don’t need it.

Lol, AA can only make predictions one way. He is right sometimes at least but not a fool proof investing strategy predicting price drops in a rising market!! LMFAO.

Jan, I can confirm AA is not a novice. Different type of investor though I think. More of an AIM / all on red man than a serious investor.

The SP has been on an upward trajectory since November 2020. From the chart I would say we are due a higher high sometime in the next couple of months. Lots of good news and clarity in the pipeline to drive it.

I suspect it will happen but remember this is also a RTO so not sure prospectus=placing. Shareholders consent is needed for the deal as far as I understand.