Member Info for NewKOTB

Why did we need to retain the RBL loan facility ( £277m) when we have more than sufficient cash to close-out the facility ? Therefore no need to hedge 11,000bbl/d at US$58/bbl. Without that hedge would mean ~£300k p/d (~£9m p/m) additional revenue. Should an acquisition mean we then need to acquire another RBL make b l o o d y sure it's at better rate than $58, we have Mercuria ffs as a strategic partner .... lol, HBR hedged at $74 for 2023 and $84 for 2024.

As I have also mentioned before this TW deal, stitch-up from start to finish afaic until proven wrong. To top it all our SP has now gone negative too, guess plenty took the +250p to exit SQZ.

Following TW (Mercuria) modus operandi atm, load up debt and draw as much cash (dividends) and benefits-in-kind (hedging / loans etc) as possible via backdoor.

aimo & dyor

On the plus'ish side, dividend of 14p/s is a considerable improvement on last year (9p/s), however this was to be expected tbh given Mercuria et al will grab ~29% of the dividend pot for themselves.

aimo & dyor

Yep SP, Mercuria have won hands down !

The off-take agreement was for the pure benefit of Mercuria Energy Trading SA that's all you need to know as agreed on 22/3/23. Yes for RBL it was required but re-negotiated off-take at $58 needs to be explained as to why it appears no other party was approached other than Mercuria Energy Trading. Question for investor presentation I think.

Also, I would like to know what the PREVIOUS off-take agreement rate (both in terms of barrels and $) was at, did SQZ improve them or as I guess, comply to Mercuria's more favourable demands.

Our hedging losses are running down on NBP only to be replaced with Brent !

For comparison, HBR hedged for 2023 @ ~$74/barrel and 2024 @ ~$84/barrel and yet Mercuria are supposed to be our strategic partner .... really, one-way street afaic atm.

aimo & dyor

Into auction atm ..... ;-)

sasa,

Although I and others, including yourself it appears would love a decent dividend hike for reasons expressed by SP it would be sufficient for me to see last years final dividend of 9p per share held at a cost of ~£35m vs ~£25m for last year, anything less and the much hailed TW deal by Mitch would once again come into question. This would leave scope for a special or improved interim, we could even get a surprise of quarterly.

Mercuria will have final say on the dividends as this would need to be voted through at our agm, with founders plus Mercuria controlling ~29% of voting rights, what Mercuria wants, Mercuria gets. Lets see how they want to play this, eyes down it's Number 9, Doctor's Orders ( btw, number 9 was a laxative pill given out by army doctors in WWII, lol)

aimo & dyor

Long old auction this afternoon, will it last into the close, let's hope so !

atb

Basil Brush. (boom boom)

Upomega,

Of course, on all expenses paid, money no object office holiday celebrating our wonderful TW deal.

You are of course correct, funny how things like that slip your thought process, well mine at least !

atb

Big gap between results date 13th and Investor Presentation meeting 24th ...

Results and presentation last year were on 21st and 27th... interesting !

aimo & dyor

"Is there any way of sending a message directly to someone on here?..",

Only if you are a Premium member, majority are not ..... :-(

https://www.lse.co.uk/premium-services/

Unbelievably, we are still way off our year high. Given all the +ve newsflow since our 12 month high, many will be looking at CHAR and thinking, good choice for my ISA.

aimo & dyor

SERICA ENERGY PLC will be holding a Investor Presentation meeting on 24th Apr 2023 at 4:00pm BST.

Plus hit resistance on the nose this morning too.... hence the technical sells.

Nothing to worry about here afaic.

aimo & dyor

New 2023/24 ISA buyers will be looking to load-up here because if second farm-out completes then JOG is a slam-dunk afaic.

aimo & dyor

"Following completion of the transaction, operatorship of the licences will transfer to NEO..."So the ball is now in NEO's court ..... question is, how badly do NEO want to start pumping !

"The statement said: "When we announced the review, we said that as a result of the energy profits levy, which results in an effective tax rate of 75% in the UK regardless of the level of oil and gas prices in the market or realised, we have had to reassess our future activity level in the UK," the company said..."

"At our full year results in March, we explained this would 'lead to a significant reduction in our UK workforce'.

"We are working hard to mitigate the impact of this reduction, by for example, a recruitment freeze and opening a voluntary redundancy scheme. These figures do not include UK-based corporate and international roles, which are still being reviewed.

"Nor do they include our offshore organisation, where we expect the impact to be significantly lower. We are very conscious of the impact of this news on our people, and we are carrying out the review fairly and with consideration for everyone who is affected."

https://www.bbc.co.uk/news/uk-scotland-scotland-business-65178626

If that doesn't ring alarm bells for Hunt / Sunak, not sure what will tbh.

aimo & dyor

Heavy volume in last 20 minutes too .... hummm !

flexmw,

"I recently asked MF on this & he said it would coincide with end of year results as normal, so yes nice to see an effort to separate news & what should be a positive effect..."

So, begs the question why release one today when in a weeks time you would of included it within the YE results anyhow, RNS's cost money !
Are SQZ looking to add more reserves via an acquisition / farm-in between now and next Thursday.... Plenty of 'oven ready' deals to pick from JOG / HUR / CHAR etc ? News upon news to help drive the SP forward maybe.

Given release of today's RNS you would have thought, putting aside additional reserves, SQZ are confident that results even with now known uplift in reserves will please Mr Market, lets hope so.

aimo & dyor

"Downward revisions in 2P reserves associated with the Columbus field (poor well performance) and the Orlando field (possible cessation of service from Ninian host facility at the end of 2026).

As I stated the other month ..... we paid good money for a known future ( apparently by our BoD, but not by investors) downgraded CoP from Orlando (Mansell also an issue btw) with production life of now only 4 years !! At time of negotiations last publicly known date for Orlando to reaches its economic limit date (estimate in May 2022) was ~2038, now it's 2026 !!! Mitch also stated, "he believes that the proposed date for the cessation of production on Ninian is unlikely to have a significant impact on Orlando production.", which is very different to impact on future valuation / revenue stream. Of course it will have impact on eventual production / valuation when cessation occurs as there will still be hydrocarbons left behind, just the matter of how many 2P's imo. No mention of how many today !! See no field by field breakdown either, maybe in EoY presentation due this month.

On the plus-side, there appears to be an effort to promote the +ve's atm as this is the first time I know of that a separate RNS to announce our EoY reserves has been issued..... hummm !

aimo & dyor

"Viaro Energy has agreed to buy the majority stake in a series of North Sea fields from Hartshead Resources (ASX: HHR) in a "landmark" A$196.3m (£105m) deal."

"Equinor (OSLO: EQNR) and Harbour Energy (LON: HBR) have exited their stakes in the Bressay oilfield due to the windfall tax. ..."

Off book transaction .... so who took them ?