Member Info for mrc_mrc_mrc_mrd

Sipp - you are wrong mate.

The price will be $325 million minus the post tax earnings between 1st Jan 2021 and the completion date.

The field is already making ENQ money assuming it completed.

Plethorus - I expect this will be the new normal for the existing assets, with regular drilling required to sustain this level over the next few years.

That said, and as always, I suspect AB is underpromising here and we will easily hit at the top of this range.

https://uk.reuters.com/article/uk-global-oil-hedgefunds-focus/hedge-funds-bet-on-oils-big-comeback-after-pandemic-hobbles-producers-idUKKBN2A70I4

We will see how it goes E121. Like everyone if the price is right then I will sell.

I've been negative about ENQ since alma galia days, but ENQ has grown up now. Totally different company. I think AB has learned a lot and made some really good decisions with the options he has had.

As chilting said earlier, it's really down to the disrupted cycle in the oil and gas industry. Many other points in history ENQ would be raking in cash and no debt.

I think we are well placed now to make a lot of money. I really can't see the open offer being at any significant discount. The current SP already significantly undervalued the assets and cash flow.

I can see an II using it as an opportunity to take a big stake.

Thanks E121 - that sounds sensible to me. So possibly an incentive to close soonest from the companies perspective. From a SH perspective may be better to wait to let the SP rise and minimise dilution. It sounds like we are 2 months at least away from a placing, which seems good to me. POO up closer to $70 by then and SP around 30-40p IMVHO

Jan - for once I actually think 60p party may be feasible in the medium term. You will need to get a more rampy figure soon IMHO! 100p party?

That would be no fun KO. Best part of ENQ is trying to work out what's going on! Of course also part of the reason we are priced this low IMHO. Will be good to become a nice boring company and finally get the SP motoring.

Think next week will be a blue one as the initial shock wears off and people get their head around what is happening.

I suppose that is another good thing with the deal - the contingent payment is not due for a couple of years. So if POO rises rapidly this year we have done a stonking deal.

Wow, if true that is big news AMMU. Chilting has been a detractor here for a long time but some years ago was ABs biggest most number 1 fan.

If AB can woo back guys like chilts then this is a great deal.

I think an II might try to snap up the full $50 million here.

So I assume that suncor on completion date will work out how much earnings since the 1st of Jan using the assuming no tax losses can be used, and deduct this from the sale price?

If ENQ Heather ltd buys the GE ltd directly with effective date 1st of Jan, I assume we still get to use our tax losses for the earnings?

Any accountants in?

Lol, posting a related news article on a Sunday morning is ramping now?

I doubt there will be a discount if ENQ is still 13p.

Someone with 50m cash will take the opportunity to buy in. Might even get it away at a premium.

BP vendor loan is at 7.5%

Hitman - I believe BP vendor loan has interest

It will be much neater once the deal goes through.

It is confusing working out the debt and which barrels are actually ours.

So after this am I right in saying we will have all cash flow from Kraken - 70% (no ring fence for sculptor with crap hedges)?

62.5% of magnus for FCF purposes?

The RBL of around $700 million

The various asset facilities (which don't really count in my mind)

And the Bonds.

Pelle - if you don't buy your allocation in the OO then you will only really be diluted by the value of the discount (if any). The actual 50 million is added as an asset.

This does feel like 2016 - market will realise this deal is positive after initial shock.

Much derisked IMHO.

Bit of a late start but it looks like the roaring 20s are coming soon!!!!

Ammu - get yourself back in m8 - you have made a valiant effort but 12p looks solid and Brent bullish. Think you are on the wrong side of the market IMHO

All of these tankers will need some VLSFO as well!

Squif - you don't have the details of the deal yet.

No offense, but you just sound foolish. Why not wait until you see the full prospectus?