Member Info for mrc_mrc_mrc_mrd

I find it a bit of a strange one...we are moving from oil to gas at just the moment oil finally seems to be entering a bull market. And diversifying by swapping NS for egypt?

Will need to see the detail on this one.

Maybe Waldorf will farm in to bressay. Sounds like it would fit their strategy.

Cairn making a strange decision to sell up in the north sea and enter egypt. From Waldorf s website:

"We are focussed on growing the business through the acquisition of long life producing or near development assets and strategic partnerships with like minded companies."

Agreed, Malcy is a paid ramper IMHO. How does he make his money? He certainly seems to eat well.

He pumps any old dog IMHO.

Chris

Absolutely, BUT, they should not sell Ruvuma if they believe (as you do) that it is a 5-10 bagger in the next few years. With debt finance for the new assets they can potentially generate enough FCF to fund Ruvuma.

LTH will never see their money back if Ruvuma is sold for $20 million. We will be lucky to see 3p.

I sort of agree KO, but just makes you realise how much further the SP has to go. We can have all debt repaid in the next 3 years at these prices. At that point we still won't have burned through our tax losses so all FCF will be available to fund future growth or (my preference, dividend)

Where would the SP go if ENQ announced a £100 million dividend this year?

We can certainly afford it - just make sure enough hedged for full year to cover it and any additional capex planned

ENQ will finish blue IMHO. 1400 is usually when the pressure builds and lift off commences

Through $70

Typical of this arrogant BOD to think they can do better than a potential 6-10x return over 3 years.

Hi Chris,

It sounds like you are not aligned with the new strategy?

So your options are....
1. double the SP in the near term, with low risk
2. 5x the SP in 2-5 years with high risk ( holding an unproven asset in a risky jurisdiction)

Option 1 is attractive at current SP but it does screw LTH.

Option 3 is to use a mix of debt and equity to buy the new assets and hold on to Ruvuma, using income to fund development. I think this is the most likely. So say a £10 million pound placing at 0.8p, and new debt facility for £10 million. They don't have a great record of achieving the best price for new equity (e.g. scandalously low IPO for HE1.)

Morning Chris,

So the plan as you see it is sell Ruvuma for your read a cross of $20 million, and make these 5 deals? Maybe need to get rid of HE1 as well to fund all 5 with cash?

Great if it can be done but it seems like an awful lot of work for the BOD we have currently installed.

Beyond that the deals need to be good ones. I'll need to look at the presentation again...did they say what sort of return they hoped to generate from the assets?

Also if they get rid of Ruvuma then that is the high impact asset gone. Basically best case I see is a SP of around 2p and possibility of dividends in a few years time.

Looking absolutely Stonking for next week!

Can we get to 30p by Friday? Re-rate re-rate re-rate

Will $70 brent be breached on Monday?!

Let the roaring 20s commence!!!

Yes it is negative, but it's my opinion of this new strategy.

I will obviously look at any deal that arrives and reassess.

Excellent news indeed!

AA - I believe it is the future and here to stay. However picking up a quality asset right now that will make a good return is going to be difficult. Especially if sCIR use bank debt

I think these boys are coming a bit late to the renewables/circular/vector sectors!

Prices in bubble territory now

Once dana hand over their share of platypus to us and berkshire hathaway we might farm out a bit of it? Another bit of news we should get in the near term. It's getting exciting here soon I think. Very nice of the market to let us accumulate at these prices!

"London-listed Parkmead Group, which is headquartered in the Granite City, has a 15% working interest and CalEnergy, a subsidiary of US firm Berkshire Hathaway Energy, has 26%.

Parkmead and CalEnergy intend to assume Dana’s equity, the letter added.

It is unclear whether they will look to attract another partner to help cover the development costs."

I would be happy enough if ENQ hedge half of production for H2 at around these prices.

That said we now have 2 months of very little opec barrels coming on, and vaccine good news coming in all the time. Think we could easily see a price spike up to $100 in H1 now.

Everyone has been caught with their trousers down with this latest opec+ news.