Member Info for mrc_mrc_mrc_mrd

AA - Energy is the capacity to do work.

Helium is unreactive so does not participate in any reactions which could release energy (for example hydrogen reacting with oxygen releases energy).

SCIR are participating in many energy related sectors (fantasy deals etc). But even they have not mentioned helium as part of that strategy. Fair to say it is non core IMHO. Which was sort of my point on original post!

AA - helium is not energy. You are disagreeing with physics if you think helium is energy?

Craig - any exploration drill is risky and that is reflected in the chance of success. The CoS on these drills is not especially good. It's a gamble. The way you talk about it it sounds like you think it is a dead cert that helium will be produced in commercial quantities?

Chris / AA - apologies if that came over as "deramping" - not my intention at all. Just offering an explanation for why the market is not pricing in the value of current HE1 SP.

Congrats on the small rise - hopefully with a bit more speculation on HE1 you will be able to get out with a loss that is a bit more bearable.

Hi Craig - they will be forced to sell in all likelihood, or diluted to oblivion, or have their stake reduced to nothing if the risky drills fail to find helium.

I'm sure you are aware that helium is not energy and therefore this stake in no way fits with their strategy.

Investment required to bring any discovery to market is massive.

Chris - let's see what price they get for their stake.

I think SCIR spunked about 2 million in fees the last time they were "monetizing" assets?

Is being loaded onto NS Africa

Walter

To answer your question. I don't think 2 months production numbers matter for finance discussions.

Enquest have a track record of producing in line with guidance. Usually towards the top end.

What I think is interesting is that they have gone in to some detail on the issues faced this year - this is unusual for ENQ so it may be to support financing.

They were short term issues with minimal impact and are now fixed. Last offload was 14 days which is back to normal.

Well that all sounds like speculation to me.

I'm not convinced regular reporting of net debt is actually very useful as we don't know how costs are spread throughout the year, or when payment is received for sales. For example last year it seems there were some kraken loads which were not sold until they reached Asia, and we often have 2 loads on one tanker.

Better way to do it is to look at the opex, capex, and production guidance and work it out yourself based on different oil price and production assumptions.

There is of course downside risk. Personally I am optimistic about Covid recovery and POO so think the upside is much more likely.

So we know that the fact is that ENQ production this year to date has been in line with guidance.

Walter you also claim that "Slower paydown of net debt is also a fact, hence why they didnt report net debt on results day."

This is wrong again mate - you don't know the net debt because it hasn't been reported, as you actually admit!!!

I don't mind a balanced view, but I do think you need to stop posting wildly inaccurate information.

In fact ENQ Q1 production has been in line with guidance despite problems which are now fixed. I would add that winter is typically where outages and downtime are seen so it's not unusual for Q1 to be lower end. From the results:

"Year to date February production averaged 46,635 Boepd, affected by outages, repairs and opportunistic maintenance at Magnus and Kraken, which are now complete

Full year average production expected to be between 46,000 to 52,000 Boepd, excluding Golden Eagle which will add c.10,000 Boepd on a pro forma basis"

Walter

Settle down with your "facts"

As you have all the facts, can you tell me the average daily production for Jan and Feb please? And where this sits in relation to the production guidance.

Walter - what are you on about "decline concerns"

Enquest have confirmed a couple of weeks ago that there production guidance has not changed.

SCIR getting dragged up but really HE1 is irrelevant.

Does anyone trust the BOD to monetize their shareholding at current value of higher? And if they are lucky and sell at a good price, can they be trusted not to spunk the cash on fees to their pals?

https://www.independent.co.uk/news/imf-upgrades-forecast-for-2021-global-growth-to-a-record-6-international-monetary-fund-washington-joe-biden-china-japan-b1827316.html

https://www.energyvoice.com/oilandgas/north-sea/312565/weather-conditions-bring-evacuations-of-multiple-north-sea-platforms-and-dozens-of-cancelled-flights/

EnQuest also carried out a “precautionary partial downman” of 38 workers from its Heather Alpha platform on Saturday.

More than 50 crew members are still on board the installation, north-east of Shetland.

In a statement released on Saturday, an EnQuest spokesperson said: “EnQuest can confirm that a precautionary partial downman of 38 personnel from the Heather Alpha platform has taken place on 3 April 2021 in accordance with the severe weather action plan.

“Personnel will be returned to the platform once the predicted poor weather passes. The platform continues to operate with 53 personnel remaining on board.

“Heather Alpha is located approximately 144 kilometres (90 miles) north east of the Shetland Islands. Further information will be released as soon as it becomes available.”

https://www-energyvoice-com.cdn.ampproject.org/c/s/www.energyvoice.com/renewables-energy-transition/312481/geothermal-north-sea-rigs/amp/

https://www.bloomberg.com/news/articles/2021-04-04/saudis-hike-oil-prices-for-key-asia-market-in-sign-of-confidence

Chilting - enquest are already doing all of this.

They were a case study for using offshore wind to power kraken

They are modernizing power generation at sullen voe.

They are committed to meeting the goals for carbon reduction set out by the UK Gov which will involve reduced flaring and more efficient use of generation.

They are part of the shetland renewables group that I linked to yesterday.

Why can't you acknowledge that they are doing as much as they reasonably can? What specifically would you have them do. I'm afraid use of wells to store CO2 is also years off - there is no commercial scale facility doing this in the world as far as I know and it comes with massive (expensive) engineering challenges. Should enquest really be blazing the trail on this?

Chilting - I agree with you.

BUT it is not something ENQ will be producing any time soon. Nor is it reasonable to think they could or should.

It's all very interesting but what is the relevance to ENQ?