Member Info for NewKOTB

Dividend, is 9p/s enough !

Given current cash situation and failure to show any interest at all in an accretive acquisition, I would say no, it's not enough.

I know it's not quite apple to apple, but here we go !

GKP have just announced an increase in dividend that would yield ~26% pa vs SQZ of ~3%.

GKP had as of 23rd June ~£200m CoH, vs SQZ of ~£398m 31st May (probably closer to ~£420m as of last week)

Cash flow generation in 2022 YTD for GKP ~£222m vs SQZ ~£200m

Like SQZ all revenue is country specific so risked aligned, with no known plans for acquisitions, hence GKP have taken the route of returning significant cash to shareholders.

SQZ produce ~60% boe to that of GKP guidance of 44,000 – 47,000 bopd although the mix is quite different.

As I asked at the start, is 9p/s dividend enough !

aimo & dyor

BB,

"They need to consider :
- one off capital return or much higher dividends
- acquisitions
- investments which qualify for 90% relief..."

Agree, last thing we want to happen with our money is the easy option that has no benefit either operationally and/or that's suitable for 91% tax relief .... I will be soooo angry if they, our board who we employ, elect to waste ~£80m (or any amount for that matter) on share buy-backs, would, in this environment show utter stupidity, lack of direction let alone contempt for shareholders that would achieve little more than massage the SP for the benefit of ensuring current LTIP's are fully vested and improve business metrics against which more LTIP's / bonuses are awarded to BoD's.

aimo & dyor

Volume of 1m, guess it was someone who missed out on the request for those extra shares at 18p now buying their 1,000,000 on the open market... lol

In all seriousness, great buying if you managed to get any at or below 18p.

Just had 3 Spitfires fly over our house also a WWII bomber yesterday too, heading east ! (LOL)

What a great sound.

PS Should of booked tickets for local airshow, must try and remember next year.

No complaints from me if NBP is 227.00p/therm... although I would say that's Mystic Meg's price.

NBP / TTF has and will be all over the place for sometime to come, in the meantime looking forward to a positive drill result at N Eigg and 'loads a money' from our SP going Ex-dividend this coming week.

Currently >50% of MCap in cash, zero debt and interesting few months ahead. Remember, summer is when gas stocks are replenished ... atm EU are struggling to do so. All Putin needs to do is turn off a little more then watch gas prices climb going into Autumn..... about time we are due a harsh winter anything akin to 1963 will be the last straw.

aimo & dyor

BB,

It's to do with IOC's 50% ownership of Rhum and how we operate it, the services / goods we acquire for it and to ensure the revenue received from Iran's 50% is put into escrow account.

https://itportal.ogauthority.co.uk/eng/fox/oga-report/PED300X/offshore-licence/?LICENCE_TYPE=P&LICENCE_NO=198

Rhum Partners: Serica (operator) 50%, IOC (UK) Limited 50%

OFAC License Renewal and Corporate Update:
London, 21 January 2021 - Serica Energy plc (AIM: SQZ) is delighted to announce that it has received a renewed License and secondary sanctions assurance from the US Office of Foreign Assets Control (“OFAC”) relating to the North Sea Rhum field, in which the company has a 50% interest. The License and assurance will allow certain U.S. and U.S.-owned or controlled entities and also non-U.S entities to continue providing goods, services and support to Rhum beyond 28 February 2021 when the current License was due to expire. This will enable operations and production from the Rhum field to continue unaffected. The previous OFAC License was valid for a period of 16 months. In this case OFAC has issued the License for a period up to 31 January 2023. The License may be renewed on application by Serica assuming the conditions continue to be met.

https://www.serica-energy.com/downloads/releases/SQZ_OFAC%20License%20Renewal%20and%20Corporate%20Update_vF%20210121.pdf

Please note, to-date Serica have been successful in renewing the licence and as it stands, I fully expect them to do so in the future.

aimo & dyor

Our OFAC Licence is due to be renewed within the next 7 months ... normally SQZ have this put to bed well before the deadline. What is interesting is the talks soon to be resumed to resolve outstanding issues between US and Iran. Now wouldn't that be wonderful if all sanctions / conditions were removed and subsequent OFAC Licence no longer required. For sure it would make Rhum a less 'complicated' asset not only for us but others too!

https://twitter.com/JosepBorrellF/status/1540657448939388934?s=20&t=BtZ_B1vGXmtzAiuYbIARyg

aimo & dyor

"a UT trade of 17.70p at the close, points one way.." As mentioned by n1shares, as being odd, how can the UT be an indication when the total value for the trade was 71p for 4 shares !!! UT's are to 'tidy' the books at the end of the day, nothing more nothing less. Although I do agree, it was a very strange amount given we are so close to the CPR, I can only guess that we had no one willing to sell. So in that case, an 'indication' it may be to sellers having dried up !

AIM shares are notorious for manipulation , CHAR is no different .... we have close to 1bn (~£170m) shares in issue, yesterday only 1m (~£170k) shares traded and closed >4% down ... CHAR SP could go anywhere on any given day should anyone with a half decent holding or cash want it too, fwiw, my take is serious, controlled accumulation has been happening for many many months now and when this share begins to rise, volume will show our true direction.
On announcement of Anchois-2 in Jan we traded around ~40% of our shares that month in the range of ~7 to 12p. So you can understand 'lack' of buying on run up to CPR .... investors have already positioned themselves and have probably de-risked to some extend ( given placing's ) up until now !!

No doubt, there will be a lot of technical traders eyeing ~22p, smash through that and hold above into the close will be a massive result and leave many traders wonder 'what if'.

Sell, hold, buy or try your luck trading on RNS CPR spike, your choice .... I know my plan ... :-)

One thing over the years CHAR SP has never been guilty of is being .... BORING !!! don't think that is going to stop anytime soon. atb

aimo & dyor

UK oil and gas producers warn Sunak over windfall tax. An executive from Serica Energy told Sunak the windfall tax would disproportionately harm smaller oil and gas producers compared to their larger rivals, which have big global portfolios of assets.

https://twitter.com/BurggrabenH/status/1540096963785506821?s=20&t=yGVfrxnrIxelz-WSQPG0sQ

Of the >$5bn paid in taxes by BP for YE 31/12/21, of which $119m was attributable to the UK. Only weeks ago the press continually ran the story of vast profits for BP to drive their narrative. What they didn't make clear to the stupid public, that figure was Worldwide profits. Still not sure where Rishi will get his £5bn in tax levy from ... certainly will not be much from BP / Shell et al once they have worked their books imo.... I'm not even sure let alone Joe Public whether it will be £5bn per year, or it will be £5bn over the 3.5 year term of the levy. As for Rishi urging banks to keep the cash flowing ... don't think many will want to take out £millions£ in loans against the backdrop of high interest rates, rising costs as well as being taxed 65% whilst being forced into 'greening up' the industry, ie electrification et al or risk being shutdown. Dog's mess of a levy and dogs mess of the world atm.

https://www.lse.co.uk/rns/BP./report-on-payments-to-govts-9wt9r4tdiqw3c0t.html

https://www.theguardian.com/business/2022/jun/23/sunak-urges-banks-to-keep-funding-oil-and-gas-firms-after-windfall-tax?amp;amp;amp

aimo & dyor

aimo & dyor

It would be logical to assume the YF Finance holding in CHAR has been split equally 50/50 between Yevginiy Feld and Askar Alshinbayev.

aimo & dyor

Yes, YF Finance reduced their Rurelec holding by 50%, at the same time Askar Alshinbayev acquired the whole 50% .... so straight transfer via arrangement .... It follows that the same has occurred with CHAR, just that we have yet to find out who acquired that 50%.
Haven't got time to delve into any deep connection between Askar Alshinbayev and YF Finance but as Askar is linked to YF Finance (Yevginiy Feld) and are also linked to Hong Kong who are linked to British Virgin Islands / Kazakhstan / London, the share have not traveled very far imo.

So as I mentioned in an earlier post YF Finance 50% in CHAR has, imo been 'moved' to someone or an entity linked to YF Finance.

aimo of course & dyor

https://offshoreleaks.icij.org/nodes/240030251

Same old ... same old !!!

The other day we got taken down -2.5pts with UT .... today also -2.5pts with UT ... :-(

Now sat at ~53% cash and equivalents.

Looking like rig set to leave shortly ( est probably next week ) en-route to N Eigg with Rem Arctic alongside atm.

https://www.marinetraffic.com/en/ais/home/centerx:-4.062/centery:57.687/zoom:14

Very, very odd .... exactly 50% reduction to the share .... no more, no less !!

My guess is they have been 'moved' into another company, which if the ownership trail was ever followed through a web of off-shore companies ... would result in the same owner, YF Finance Limited. Why, well now they are free to load-up more without notification, in effect doubling their position whilst remaining under the radar with probably tax avoidance in the mix somewhere too.

Just my thoughts on this stranger than 'Stranger Things' transaction.... !

aimo & dyor

Exactly what I was banging on about. With the GM of ~89%, even if that falls into high 70's / low 80's we will remain one, if not the, market sector leaders in terms of GM .... High margin is the route to profit, so long as costs are kept under control.

aimo & dyor

Market manipulation is everywhere .... not just on stocks.

https://www.sfo.gov.uk/2022/06/21/serious-fraud-office-secures-glencore-conviction-on-seven-counts-of-international-bribery/

https://www.euronews.com/next/2022/06/22/glencore-britain-corruption

sasa,

Think the heat is getting to me !!! ..... You are of course correct that patience is the key, but like others, really don't fancy having to wait for several more years to see our SP recover to >430p. That said if NE comes in with reasonable pay zones and our SP fails to respond then given there will be more than 3 years remaining on WFT tax breaks until sunset clause, SQZ will be taken over and NE fast-tracked by someone.

As you mentioned, which can not be argued (although Mr Market will have to play ball) is, "The value here remains self evident; whether that'll be optimised by a T/O approach for us, post a successful Nth Eigg drilling outcome hopefully, or a long overdue acquisition by Serica, remains to be seen..."

PS I will be all smiles in a weeks time btw ..... lol

aimo & dyor

Wish you would please stop peddling "Until it turns a profit.." . Check last year accounts for final 6 months ... we shown a profit on Ops, gross and net .... with 2022 growth accelerating and out-performing expectations I think the market and yourself will be pleasantly surprised.

aimo & dyor

SP,

Real issue is he never properly consulted FULLY with industry .... and you think these think-tank(ers), 'advisors' and Martin Lewis know enough about running such an investment intensive business. Of course action was needed, but not this knee-jerk, short on critical detail response.
Trust me, there will be many amendments to the draft bill in favour of E&P's otherwise they will vote with their 'drills'.

Yes, we can ride it out, but what Flabby and I allude too is this has setback real capital growth, possibly 4 years or more imo .... add in inflation / recession and the picture looks bleak.

You say it intentional, if so for what reason ! Appease Joe Public, kill off O&G or take it into public ownership, accelerate green agenda, energy security who knows, all I know the apple-cart had been turned on its head and the markets are having difficulty adjusting to it imo. atb

aimo & dyor

Flabby,

"Big mistake in hindsight £4.20 looks a really good price now.."

Fully agree ... regardless of how high NBP goes, unless it reaches stupendously stupid amounts for prolonged period ... a re-rate to >400p is along way off ... don't even think great results at NE will move the dial to much as many will abandon ship on any real spike. T/O is the way to go imo.

PS Wonder who invented the word 'hindsight' actually had hindsight !!

aimo & dyor