Member Info for NewKOTB

TerryMC1, is a self-proclaimed shorter who enjoys aiding and abetting in investors loosing money.

He's spent today posting negative posts across several boards, best ignore.

Cash holdings of £445 million (no margin calls as of 21/6/23), as for debt, SQZ paid down ~25% of ACQUIRED Tailwind debt in ~3 months since completion of TW deal, leaving a very healthy NET CASH position. TW deal DID NOT require us to take on new debt of our own, more it came as part of the TW package that included their debt.

Currently, CASH on hand to MCap is ~58%.

Debt is something Serica has never had for as long as I can remember and with the rate of pay-down, this could be cleared by end of year if they so wish. Debt is common place for virtually ALL O&G plays, SQZ was the exception to rule until recently due to TW deal.

Clearly with ACTUAL CASH on hand of >£450m (~$0.5bn) we are able to complete an acquisition WITHOUT needing to fund any deal via RBL, which is a significantly better position to be in than most.

BB,

At the moment, I don't think there is enough 'in it' for Mercuria to take us private, for me I think they would want to do a deal or two then reap the rewards before it begins to reflect too much in SP appreciation.

What type of deal would Mercuria cut on full takeover is the question, I would have thought a 'fairish' one. Given they already have ~28% in the bag, only need to offer for remaining ~72%. I will look at putting more meat on the bones when I have chance but clearly it would need to be based on our 2P's currently ~122mmboe / Cash on Hand £450m and debt.

In the meantime, assuming no debt and CoH remains roughly in and around £400m with 2P's at a ridiculous $10boe (£7.80boe) on current share issue that's 351p/s. Moving to a more reasonable $15boe / £11.70boe ( but still way below what we paid TW for their 2P's) would make 408p/s, valuing SQZ at ~£1.6bn. Remember, real net cost for Mercuira would be just ~£1.1bn, absolute bargain. Working with the metrics we paid for TW, the value increases significantly to ~620p/s.

aimo & dyor

Thanks in advance

Chariot has made the decision not to renew operatorship of the 2312 A & B "Central Blocks" that comprise the PEL

71 licence. Chariot retains the option to back-in to the 2714 A & B "Southern Blocks" licence @ 10%

SP, don't get me wrong, TW deal was a S H I T S H O W of a deal if there ever was one, but that is history and yes I done my homework thanks. Standard practice to re-structure loans as part of any acquisition, no matter what sector, just the way it is, timing was unfortunate, but could have been worse.

aimo & dyor

Oh btw, interest charges on loans are allowable and set against ring fenced profits.

Beardozer, thanks for pointing out my critically acclaimed (by Labour,) Comprehensive Education.

All da best mate.

"Debt taken on in the HIGHEST interest rate environment for over a decade...."

Please post details of interest rates on our re-structured debt. TIA.

also ...

Cash holdings of £445 million (no margin calls as of 21/6/23), as for debt, SQZ paid down ~25% of ACQUIRED Tailwind debt in ~3 months since completion of TW deal, leaving a very healthy NET CASH position. TW deal DID NOT require us to take on new debt of our own, more it came as part of the TW package that included their debt.

Currently, CASH on hand to MCap is ~55%.

Debt is something Serica has never had for as long as I can remember and with the rate of pay-down, this could be cleared by end of year if they so wish. Debt is common place for virtually ALL O&G plays, SQZ was the exception to rule until recently due to TW deal.

Clearly with ACTUAL CASH on hand of >£450m (~$0.5bn) we are able to complete an acquisition WITHOUT needing to fund any deal via RBL, which is a significantly better position to be in than most.

As for Dividend, the" continuing strong performance of the company into 2023 underpins the intention to maintain or

increase the dividend in future years" ... atm, yield is ~11%pa, if they commence BuyBacks too then yield would probably increase further still.

aimo & dyor

Dickupham,

Think most PI's investors feel the same as yourself .... I also think we have been s c r e w e d over.

My guess is it won't be instantly accretive at all, probably 2-3 year investment period before revenue stream commences, giving Mercuria et al full spoils. !!! If by some small chance I'm won over on the next deal then who knows, right now I know how a lemon feels in a juicer ! atb

aimo & dyor

It's my belief that a deal WILL be completed before year end if not by Autumn.

With current Cash hoard exceeding >50% of MCap, deals are out there to be done. One thing you can bank on, it won't include dilution.

For me, just a case of how instantly accretive it will be !

aimo & dyor

Jiving,

Agree, time critical in terms of loan repayment, so why have we found ourselves in a situation where we await the results of capital and operating cost savings exercise some point in Q4 at the end of which loan repayment is required .... If this report is needed to make an investment decision by a third party no way on this earth will it be done before EoY. At which point anyone's guess where our SP could be. Should of placed sufficient to cover loan, in this weeks RNS, even 20% discount to closing price of prevailing RNS would of resulted in an offer price of 9.96p ... and job would have been sorted. I know I would of taken up the offer if given. Yet we find ourselves yet another ~>20% lower still.

AIMO & DYOR

There is NO WAY that 'IF' mates are involved the SP will be allowed to rise before news .... more likely the 'placing' will be announced as completed (1st, poss 2nd tranche too ) THEN news will be released. ATM we are totally dependent upon market sentiment and this latest RNS has poured freezing ice cold water over the latest, and totally justifiable SP gain.

Lest hope external news stories can put a spanner in their works and get news that can propel us forward again ..... let 'mates' scramble to buy in at well above recent spike..... Gets those dots joined again .... atb

aimo & dyor

M71,

With ZIOC having 'pulled' the same stunt back in June 2020, our board would have know exactly how the market would react to this latest RNS. ZIOC would have known precisely who took up the last lot and as alwayshoping has just stated, will probably know who are getting this latest Brucie Bonus too .... certainly not your supportive PI's that's for sure.

AIMO & DYOR

"The subscription was for a set number of shares not a £ amount, so dilution will be as stated in the RNS...."

Which is exactly why it should of been done at a set price, subscribe or not at all .... atm, we are driven down as anyone who wants to pick these up via Shard know they can 'manage' the situation until the price they want to pay is reached.... will it be above,below or same as last time's average ~6.5p is the question. We now have this 'raise' hanging over us for god knows how long !!! Poor error of judgement or by design (mates rates) !!!

aimo & dyor

Always take lead from SimplyWall St that has SQZ fair value of 820p/s

Xel123,

"They must have have agreed or very closer to agreeing something with the potential parties,.."

FWIW, my thoughts are, an agreement HAS occurred between parties and has been signed off as far as it's legally practical to do, both parties are now waiting on ONHYM to 'rubber stamp/brown envelope' before it can be announced !!

As for AGM on 7 September 2023, one would hope all this uncertainty will have been put behind us, one way or another.

aimo & dyor

CHAR must have something pretty goddamn strong in terms of an offer/s, otherwise surely they would have done a raise PRIOR to the release of results. By default it would of mitigated need for the "corporate overhead until Q4 2023.." statement that would of spooked or at very least made investors 'sit-up and take note', pretty poor mgt of their current situation otherwise.

aimo & dyor

Thanks for that .... although it also states :

"Based on the offers received and the significant historic and ongoing investment on the Anchois project, it is anticipated that the Group will recover a significant portion of past cash expenditure in the second half of 2023.."

So take you pick, fund raise or massive cash injection from one of the offers received in NEXT FEW WEEKS or so.

If funding, then I would expect it to be no more than £7m given where we are in the 'offers' process, which is currently ~5% dilution .... I can live with that.

AIMO & DYOR

Where exactly was this specifically 'CONFIRMED' !!!