Member Info for mrc_mrc_mrc_mrd

Chris - full sale of HE1 and the £4 million or whatever it's worth now in the bank would be huge for SCIR and give them breathing room.

The BOD also need to start delivering these cash generative assets soon or we will be in the same position in 12 months time!

The only info we have is the $5.8 million required for the work programme - duration and content of which is not 100% clear.

We know that SCIR do not have that as cash. And we know that there will be G&A costs on top which have been extravaganza in the past with this BOD.

I think everyone is being a little conservative on the ENQ SP.

40-60p is achievable with refinance, completion of acquisitions, and details of capex plans. Need POO to average mid 60s.

We are still waiting for a re-rate here based on derisking the debt situation. 5 months ago there were big question marks about ability to meet obligations due this year. With realised prices and hedges in place that is really not a credible concern now. Maybe we need to see an upgrade from moody's to really light the touch paper?

AA - of course ENQ have liabilities. They also have assets (I.e things which generate more resources than they consume).

SCIR have cash in the bank to cover overheads for another year. Shares in an inflated wildcat driller. And the man liability of ruvumawhich requires huge cash investment way beyond what SCIR can afford.

Caddy- the problem is that you need to sell to realise the gains. Better to have shares in a company with a solid growth story and plan to monetise assets.

What SCIR and HE1 have at the moment are liabilities.

Indeed, value will shine through in the end. I think we could see 25p in fairly short order.

Hi caddy - you mentioned that HE1 is doing well. the SP certainly is but that is not quite the same thing!!

Has anything happened to make HE1 shares 15% more valuable today than yesterday? Or 800% more valuable than a few months ago? This could all end very badly for holders, so sooner the BOD exit the better IMHO.

Tasty. Brent pushing on.

Undoubtedly, but I think we have a few boom years in store before it all comes crashing down again. Particularly in commodities where I think we are at the start of a long period of high prices.

No we don't know where it will go but surely the risk is to the downside now. The way it is priced is more like a funded development project than what it actually is...wildcat exploration.

Can the SP defy gravity? Not for much longer IMHO! But as AA likes to point out I have been wrong before

Hopefully they have Chris- HE1 price is ramp city and will end in tears. Getting rid at 23p will look like a good decision when all this pans out I believe.

If they fully sell up then current prices start to look very attractive. My opinion of the BOD is low, but that is mainly a function of their undelivered promises. Get some cash in the bank and start being a little more honest about the growth prospects here and I would be happy to invest.

Also any more payments to Gneiss will be a massive red flag. Hopefully the BOD have learned their lesson with that lot...

Craig - we know for a fact that the only income since the last cash position is the sale of the He1 shares last week.

Therefore we know that SCIR does not have cash to fund the work programme for 2021 that has been announced.

Hi Chris - as has been mentioned before they need $5.8 million for this years work. They do not have that as cash.

This of course is the planned expenditure and cost overruns are not impossible. Even with the death spiral facility which they may be able to draw upon, it is very tight whether they can meet the commitment.

Full sale of HE1 now would be the prudent thing to do, to ensure enough funds for the next 12 months. If they can get shot of it at 20p then they redeem themselves (more luck than anything, but would at least show they are not totally asleep at the wheel!!)

And what a valuable contribution you have made Craig!

Even Chris and AA will admit that the cash is just not there for the work programme.

Sorry to poop on the party but them are the facts and sometimes you have to face up to the real world!

Unfortunately not, should have sold

Alterra Wave now steaming in.

I think we can afford it. We have a great new asset in GE but I think we need more. EnQuest are in a unique position and have the scale and focus to hoover up more assets cheaply in the current climate.

Banana - you talk very specifically in your original comment about fuel for heating.

At current market rates for electricity (in the UK for example) it is not competitive with heating oil. Otherwise everyone not connected to the gas grid would be dismantling their oil fired heating. Which they are certainly not doing!!

You seem to have just pulled your assertion out of an orifice.

In 20 years time we might start to move away from oil for heating but it is one of the more difficult uses for oil to replace with renewables.

Once again, will you admit you are talking nonsense?

Banana - a little misleading to say that renewables are competitive with heating fuel. If there is that much sunshine then there isn’t much need for daytime heating! What evidence do you have that electricity (produced from renewables or otherwise) is competitive in countries which burn liquid fuels for heating?

Will you admit that it’s nonsense?

Banana man - if renewables are competitive then why are they not displacing oil?

What technology are you referring to when you say that renewables are competitive for heating? Ground source heat pumps? Electric heating (from renewables or otherwise) is certainly not competitive.