Member Info for mrc_mrc_mrc_mrd

Very difficult to do AIM - geographies, currencies, reserves and resources, prospects, local regulations, taxes and debt burden all feed into the SP. The value is whatever the market says it is.

One of the criticisms that TLW trolls have made about Enquest in the past is the age and costs of the assets, and the relatively short reserves life (around 9 years last I read but may have changed since the GE acquisition). Also the relative lack of big impact exploration targets.

In the end cash generation is really all that matters. Enquest are proving themselves as the debt gets paid down.

It’s all relative Little_me.

If that has taken a lot of time to save then it is a big blow. Especially if you bought the hype that the BOD were going to turn this into a mid cap (which would have been 20 bagger minimum)

They sell electricity not biogas

I suspect it is on a feed in tarriff / PPA. Mostly fixed price.

I doubt a bid will happen without ABs support (E.g.. a merger or management buy out). Perhaps there is a perfect deal out there but I can’t see what we need from another company at the moment. Debt was the one weak area but that is now manageable. Strong management, good business model, focus, ambition. What’s not to like.

I think AB has big plans for the company and won’t be satisfied with surviving (which is a big accomplishment if you look at some of our peers).

In total ENQ makes up about 70% of my assets. There is a risk, but Big rewards are much more likely IMHO.

Lol yes what a useless way to measure debt burden. Essentially they are saying the share is unpopular (some might say undervalued!)

That’s great SoTB, but I was hoping for someone with a bit of knowledge about FIT and PPAs. Maybe wait and see what is said in November.

I suspect if the impact were material it would have been mentioned in the last update.

Does anyone know how the electricity we generate is priced? If it’s an older asset or not on a contract for difference then we may be getting a good price (and opportunity to get anew long term Gov contract).

Not a game changer but will add to the cash generation.

Statement on Her Majesty The Queen from Amjad Bseisu, Chief Executive, EnQuest

It is with profound sadness that we learnt of the news of the death of Her Majesty The Queen at Balmoral Castle in Aberdeenshire on Thursday. On behalf of my family and myself, I should like to offer our deepest condolences to the Royal Family on the passing of Queen Elizabeth II and all those who mourn her loss.

Her Majesty lived a life of service and devotion to her subjects and was a constant figure in British public life for seven decades. She brought together the people of Britain and the Commonwealth and through her extraordinary reign she travelled more widely than any other monarch earning the love and respect of people of all faiths and backgrounds around the globe.

Amjad Bseisu
Chief Executive, EnQuest

A nice message posted by AB through the ENQ LinkedIn. Better than a standard corporate message.

AOK - agreed ENQ a much safer bet (and IMHO similar rewards)

I will also look at buying in the 40s if it gets there. At 70p a lot of the potential was priced in. GPA is unlikely to ever be developed IMHO. Best chance was in 2018 when CNOOC were interested. Skerryvore might happen but it’s not what got me interested in PMG (platypus and GPA were basically development ready).

I think this could be the start of a run up. Some very favourable news coverage of Enquest in particular off the back of results. Uncertainty about government removed. Debt position comfortable. Dividends coming down the road.

EP or Kraken FPSO will never be electrified IMHo. Burning gas instead of diesel or heavy kraken would improve emissions big time though.

SP did very well today given POO weakness.

The Results presentation was very interesting. It will be interesting to see if Barclays change their view. My feeling is that ENQ are confident that if bond refinance is not possible they can get by with the RBL.

Producing and exporting gas with an FPSO is unusual but not impossible. Would need a bit more of a custom solution IMHO, and I’m not sure that it would be justified for these mainly oil plays.

Sorry Tigar, I guess you meant if using Kraken (in which case we could use the gas for power gen).

I like the early production system using EP for a few years to confirm the field performance and pay for a proper development project.

No gas if they are using EP unless you want to see it go up in smoke.

SPR has satisfied 1m barrels per day, and it won’t be doing that from November. It’s part of the equation.

Indulging in a little scare mongering Jeffrey?

Lol you are some lad L3!

Why would the RBL be extended?

Yes the EPL in some shape or form is a done deal IMHO. Reversing It would be too big a gift to the opposition for zero political gain (the damage is already done) I don’t think the legislation Is passed yet so possibility of some tweaks to the allowances etc.

Truss is making a very clear break from the Rishi years which is encouraging. I think it is the time to be bold.

I am expecting some watering down or additional incentives. She clearly thinks the EPL is counter productive.

Maybe some help with finance so we can accelerate all these projects?