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"up to date costing.... " nothing more than a delay tactic imo ..... These costing should be able to be updated quite rapidly imo after all, majority of the work has already been done with the previous exercise .... plus, anyone considering ZIOP would have their own team crunching the numbers, probably at a more efficient rate than ourselves so would already know the project economics imo.

Tick Tock goes the Grandfather clock ... are we about to chime as ZIOC reaches crunch time !!

aimo & atb

Q1 results due soon ( which I expect to be extremely strong ) .... that will sure to put a rocket up the rear of our SP .... With luck move us up into a new trading range 320-360p. Combine this with reduced net debt and excellent progress on disposals with excess cash going to share buyback .... 2021 is looking like a recovery year for our SP.... I would be disappointed if we don't end the year at +450p. In the meantime, the MM are loading up at sub 300p as much as they can ... so am I.

ATB & AIMO

Hummm .. just noticed this quote in the presentation "2022 Serica has swaps in place covering up to 25% of retained gas sales...".

Now we have swap for Q1 2022 45.8p/therm for 250,000 therms ...... what does this mean, well assuming the 25% is as stated, then SQZ in 2022 will be doubling production to 1,000,000 therms per day !!!

Q1 2020 net gas production was 500,000 therms per day btw ...

aimo

Also, others are getting on with growing their business as seen with numerous M&A's over the past few months. Classic example, newly listed KIST managed not only the get an oversubscribed IPO away and recent placement but also to complete a RTO deal and put on ~90% to it's IPO listing of only a few months ago.

SQZ appear to be going no where fast, there's Steady Eddie... and there's Dead Slow Eddie.

aimo

Saying that, headwinds towards hydrocarbons are getting stronger day by day , the US today has pledged to cut carbon emissions by 50-52% below 2005 levels by the end of this decade.

Really do think that SQZ need to execute an exit strategy for sale of the company. Get R3 flowing and sell ... just my opinion, but it appears that macro events are not going to get any better. Regardless of how profitable SQZ is there will be a growing environmental discount built into any sale price compared to years gone by.

aimo

Using average 50p/therm, $60 barrel Brent and hedging on net production 27kboepd over 46 weeks SQZ gross revenue will be estimated at £253m ($352m) for 2021, verse 2020 YE revenue figure of £125.6m

You can see where I'm going with this ..... H1 Interim Results will re-enforce the massive bounce in terms of not only revenue but profit too....... with 2022 looking likely to be record revenue and profits with 100% BKR et al .

AIMO

Legache,

What you have to remember, this guy is a pro trader and known links to sharePr0ph3ts, which says it all afaic ... as such would talk his own book !

aimo

Legache,

What you have to remember, this guy is a pro trader and known links to *************, which says it all afaic ... as such would talk his own book !

aimo

legache,

I know you have sold out of your position here, so being an ultra Debbie Downer is not a good look ....

It will flow, that's for sure ( fingers crossed lol ) .... assuming that is, they complete whilst gas is still a salable commodity, we should reap the rewards particularly when we move to 100% BKR..

atb & aimo

Once again, numerous BoT trades , buys vs sell, identical, yet we close on day low, down 3.9% (-4.6pts)

When we do finally get R3 up and running (end of month will be day 200 of 70 day drill btw), it will be just in time for annual Forties service .... just hope flow-rate is beyond all expectations.

atb

Maverick,

Do you not mean going ex-divi !

https://www.dividenddata.co.uk/ex-dividend-date-search.py?searchTerm=sqz

atb

Just a thought on another option to move the project forward.

We know that it may well be easier for GLEN to do a deal and get the project off the ground without the poor relation hanging around and possibly getting in the way of the money shot ....

So, what if, we transfer all our rights of the ZIOP over to GLEN for a share and / or cash payment that is there or there abouts' the equivalent to our IPO launch price...... giving control, will enable greater degree of negotiation space and would probably make the deal structure so much simpler. Now here's where the money is to be made .... an sales agreement between ZIOC and GLEN will cover all the bases such as GLEN flipping ZIOP to full mine production.... What's in it for ZIOC I hear you say .... well, ZIOC will de-list and continue as a cash shell company then at pre-determined milestones payments will be made to ZIOP, which in turn will be paid to shareholders as a special dividend. Not sure if this type of mining scenario has ever been done before, but as I mentioned , just a thought ! Could mean that ZIOP becomes our cash cow for many years to come.

atb & aimo

Yep, closed on our infamous 120p, "infamy, they’ve all got it infamy!" .. some 'carry on' is this share !!!

R3 has always been the skeleton key in my book to unlock value here .... really unfortunate or some may say, bad planning either by design or otherwise that R3 is not already up and pumping !!

Old Grandfather Time is ticking along ... although SQZ needs to be alert to these young digital upstarts.

As each week goes by, SQZ slowly becomes a more valuable company, even if our SP has failed miserably to reflect this for almost the past 3 years.

atb & dyor

AS007,

Also, raising RBL finance to supplement / cover any deal could be more difficult / expensive as our BKR agreement small print contains a clause that give BP first ranking on the BKR assets in terms of any payment default.

atb

AM007,

You might not be aware that our BKR agreement, the T&C's contained a clause that prohibits SQZ selling the newly acquired interest in BKR without BP's approval.......... as I say, all in the small print.

So, all I'm saying is that possibly any deal that we may be discussing with BP, would more than likely require BP's approval to flip .... so making the possible sale of 'SQZ' more 'challenging' that it may otherwise be, should we be in talks to sell our business at any point ... !

atb

BP owe us big time, or do they !

What impact would it have on us failing to do a deal on Shearwater / Andrew I wonder ?

What would be the reason for not doing a deal or the constraints placed on us by BP should we take ownership of one or more of their assets.

Contractual small print is critical as we all know .... would we, for example be allowed to flip a newly acquired assets as part of the sale of SQZ, or would we need to retain it, clearly, the latter, would significantly complicate matters !!!

So to look at it another way, unless we get another transformational deal once more, aka BKR, are we best sticking to extracting maximum value from our current portfolio. After all, only ~9 months remain until we complete our original transformational deal adding ~67% to our attributable BKR revenue.

Business is business as they say.

Meanwhile, Old Man Time keeps ticking along ...!!!

aimo & dyor

Decent swaps added for when we receive 100% BKR revenue ..... :-)

"In 2021 to date, Serica has obtained additional gas price swaps covering 50,000 therms per day for H1 2022, 100,000 therms per day for H2 2022 and 50,000 therms per day for Q1 2023 at average prices of 46, 41 and 50 pence per therm respectively..."

Excellent news hidden as respects to our reserves....

"Updated 2P reserves at 1 January 2021 are 61.0 mmboe.." I was expecting in the region of ~50 to 52mmboe

"Serica commissioned a new Competent Person’s Report (“CPR”) effective 1 January 2021
• This identified several upgrades to 2P Reserves estimates particularly due to the successful efforts to extend the prognosed Cessation of Production (“COP”) on Bruce which impacts Bruce, Keith and Rhum ultimate reserves .."

All enhances SQZ value. ;-)

https://www.serica-energy.com/downloads/presentations/2021%20AR%20Final.pdf

Yep, all in all given the torrid time O&G producers endured during 2020, to still come out with a pre tax profit of £12.5m and post tax profit of £7.8m, is in my book, pretty good.
Dividend, I expected SQZ to hold at least the 3p/s and more likely increase it a little by appox 10% to 3.3p, SQZ in fact have bettered that and proposed a dividend of 3.5p/s, market should like that !!.
Closing cash and equivalents balance as I expected too, of close to £90m, in fact a smidgen under at £89.3m.

All in all, very happy .. lots in the RNS to enjoy...

atb & aimo