Member Info for mrc_mrc_mrc_mrd

It is not enquest specific.compare charts for most of our peers and they are the same. At some point sentiment will change.

What news is that?

Hope everyone is out burning through oil and pints!

I’m doing my bit down at the local ‘spoons

100% agree with Chris. Tanzania are the best hope for any meaning ful appreciation in the SP.

The margins on the new deals look very poor and we are going to be taking on a lot of debt and new equity up front based on the slides and projected enterprise values.

Common factor here I think slift is your good self?

Stick that in your equation?

Slift - get yourself away back to the HUR bb. They can use your expert input over there perhaps. You have been found out here and not man enough to admit you were wrong it seems. Now back peddling with working capital *******s.

Amundsen Spirit close to hook up

We have a very good example from the Magnus transaction.

“The economic date of the Magnus Transaction is 1 January 2017 (the “Economic Date”) hence, on completion of the Magnus Transaction, cash flow since the Economic Date will be reclassified as accruing to EnQuest’s account and reduce the amount of the BPCO vendor loan. Based on Magnus’s performance to date and assuming current oil prices persist until the end of 2018, the amount of the vendor loan is expected to be reduced by approximately $100 million by 31 December 2018. If current oil prices prevail, the Group will benefit from the asset’s cash generating capability significantly ahead of that assumed in the original acquisition case.“

AB is right.

I am right.

You are confused.

Slift - the purchase price will be adjusted by post tax cash flow FROM GE from the 1st Jan 2021.

Right or wrong?

Will Slift admit he is wrong?

The effective date of E&P deals usually occurs before the closing date. Therefore, revenue and costs related to the period between the effective date and closing date that are associated with a property acquisition are often accounted for as a purchase price adjustment.

https://www.iasplus.com/en/publications/us/industry-spotlight/og/issue-3

Oh dear Slift - egg on face pal. I'm not surprised you are angry with me!

I'm not here to "clash" with anyone. I'll continue to post my views.

Happy Sunday to you.

Slift - ENQ need more than $325 million. If that was all they needed then there is no need for debt or placing given hedging in place, realised POO to date, and cash on hand. Of course we also have a reduction in the purchase price due to the FCF from 1st of January.

The placing has nothing to do with “need” - JS suggested a facility of around $700 million based on transaction plus refinance / consolidation of various debt facilities. The facility can be about half that with the better pricing we have seen for oil since the announcement.

The equity component is just a condition of getting a loan. It’s a token amount of it ends up being $50 million.

I agree with Romaron. I don’t think a placing is inevitable. If it happens it could easily be at zero discount if somebody wants to pick up a chunk.

Hanging around Kraken

I will participate if I can free up funds at the time. Jan I have a similar shareholding...didn’t realise I owned such a high percentage!

Can’t think of a better place to put my money....especially if there is a chunky discount!!

Sipp.

Keir are raising more than 100% of their market cap. ENQ are raising around 20%.

I doubt the discount for ENQ will be 17%.

Bank debt is also being refinanced and we are buying a producing asset with the additional funds. Keir are repaying debt only and seem to be in a more distressed position.

Fair enough Big D.

Not sure I would be expecting the SP to rise with drilling. We know there is gas there.

My view is 5 years of dilution to first gas. Hopefully they get some of the placing away at a higher price but I can’t see the driver to get above say 2.5p on confirmation that the HE1 stake is sold. Placing will have to be done soon after that if the BOD want to get it away at the higher SP. much easier to raise money if you don’t need it immediately!

Hi big D - this is a high risk company so I hope all your money is not tied up here!

How will the next 5 years be funded do you think?

I think it was yourself that thought the next placing would occur at market cap of £50 million. Could you tell me how you think the current BOD can 5x the market cap without further investment?

Shouldve - I would love for investors here to be rewarded. Some will be I don't doubt. Nothing wrong with reasoned discussions about what might be a good entry point. Obviously some don't like that because I point out the SP can go down as well as up! If you are secure in your decision then it should not matter.

I am quite astounded that experienced high net worth investors like Chris and BD are still chasing dreams here, and seem to be getting led down the garden path by the BOD...

You have to ask yourself - do you trust salesmen like AA and Chris who would love nothing more than to offload their shares to you at a healthy profit? These are the guys who were calling it higher and egging on the ramping crews in the last 2 spikes!!