Member Info for mrc_mrc_mrc_mrd

Get a life quest

We just won’t develop Bentley and Bressay. NS took one for the team with WFT first time around but second time invites a third time so why the hell would anyone invest in a multi decade project. Can’t even predict the tax treatment in 3 months, let alone 300 months.

Very nice article. The government need to change course.

Seems like positive changes could be made. They can’t really make it any worse.

Lol Chilting saw it all.

What’s going to happen next year Childling?

Markets are quiet because the Americans are on holidays.

It’s rarely boring being invested in ENQ/ oil in my experience.

Possibly another relative on the payroll?

Yes I was thinking I might contact IR.

Looking back at the competent persons report in the prospectus the plan was…” EnQuest is currently targeting a total gas injection rate of 22.3 MMscfd until the end of 2023, of which 5 MMscfd is Magnus produced gas and 17.3 MMscfd WoS gas. There are currently no plans to blow down the gas beyond 2023; full reservoir pressure maintenance by continued water injection is planned until 2030.”

Interesting - are those boe? From OGA data?

Producing about 14mmscfd

Do we know what “used” refers to? Does that include flaring? If some is reinjected then is that classed as “produced”? Does used include gas for power gen? (Presumably it does)

It will be interesting to see if the produced numbef increases in the coming data releases.

They are not interested in domestic production SoTB. You don’t F about with taxes on an industry you want to encourage. Now 75% headline tax rate, and labour chomping at the bit to take away the investment allowances when they get into power.

Neither is the Perth development. We need a farm in partner with lots of cash. Then we need them to get off their ass and do a concept, FEED, submit FDP, take final investment decision, detailed engineering and procurement, construction, commissioning.

It is minimum of 4 years from farm in to first oil IMHO.

Anyone investing at that valuation is speculating and unlikely to see a future stream of dividends. I would rather ENQ do buybacks. It will take some balls but I would also invest in growing production (preferably not in the U.K.).

Once Scott platform moves to decommissioning there are no good options for developing Perth on the cheap. A separate development with an FPSO is unlikely to be viable IMHO.

Will he be giving himself and his nephews a pay rise to celebrate?

Hi L7 - check out Pelles post for the calculation advised by IR for ENQ WFT liability and plug in your own assumptions.

On PMG - the market takes a long time to get the price right. Finncap are paid by PMG to produce their “research” so my view is that PMG are involved in its production and hence numbers are reliable.

Vast majority of PIs were unaware of this liability (12m or 19m). For me the MC needs to reduce by 19m plus the lost opportunities that could have otherwise funded. A placing also has to now be factored in.

Stevo - Pelle received an answer from the horses mouth. 19th Nov post:

https://www.lse.co.uk/profiles/pelle/

Any challenges I would take up with IR and if you could then report back to us!

Your production looks too high for U.K.

5kbpd (of 12k gross) goes to BP for Magnus
6kbpd is Malaysian

So Uk production is 36kbpd

Stev0 - Jeffries estimated $73m for ENQ in 2023 with the 25% rate. Your calculations look out to me.

It is a profit share after tax I believe

If they export at full capacity (20mmscfd) then it is 700k per day revenue at current gas prices. It won’t all be new gas and they may not have enough gas to hit that capacity, but they have obviously been limited with how much Magnus gas they can export and have debottlenecked that somehow.

Good for the green credentials too if that has been going up the flare since gas lift stopped.

Davde - My original investment case in 2017 was that decomm costs wouldn’t be a big deal because it would be paid for out of GPA / Platypus cash flow.

TC should have been more clear that the cash in bank was ring fenced to cover decomm.