Member Info for NewKOTB

Just thinking if there is any connection between Shard Merchant Capital Ltd and AT !!

Yes, indeed, strange price action late on, from around 3:40pm the SP just climbed and climbed .... take our 3p div into account and we actual went up 9.4p, with Brent pushing on again, good day. Its as if some Americans were reading our presentation for the first time ...lol
atb

Or +230% since April, now that is a feck me !!!

CJ,

"if they have relatively big decommissioning costs....". Answer in short, no. They have very, very limited decom costs as the deal ACW put together meant that the seller retained bulk of decom costs.

But both companies have the same way of managing these by pushing out the half life for fields by various means. SQZ recently added 2 years to Cessation of Production for Bruce platform.
atb

Need a good blue day here tomorrow .....
atb

Like the statement that OGA are acting to reduce LNG imports to aid UK in meeting its carbon neutral target. LNG is x2.5 more carbon intense than UKCS production, with UK atm importing ~21% reducing that will in help improve NBP Spot prices for all gas producers as UKCS demand grows to offset declining imports. All I can say, it's about time the UK started to look after its own interests.
imo

Interesting to note that SQZ are able to push a massive plus that our BE is well below average daily gas spot prices for 2020 .... right up until 23/6/20. So this reads a little like a market positioning statement to me .... saying 'look at us, we can even make free cash flow whilst in the most depressed market for over a decade, even without any hedging'.
imo.

OK, the presentation / announcement is missing, by design imo, our CoH. Last year we reported our CoH as of 31st May, along with production figures, today .... nothing. My take is they want to keep this 'hidden' for strategic reasons. It's certainly not because we don't have any, in fact I conservatively estimated ~£120m. Then you can also pick out "Serica is ideally positioned to act as a consolidator in the UKCS."

https://www.serica-energy.com/news-update

https://www.serica-energy.com/downloads/presentations/2020-AGM-Presentation.pdf

https://www.londonstockexchange.com/news-article/SQZ/results-of-annual-general-meeting/14592000

Hummmm.... AGM just started and we are in a long auction atm.

IOG,

Hear, hear.

atb

Upomega,

Hang in there mate, POO took a tumble today but is still rising channel, gas is ok atm. Tomorrow we will get 3p divi, or close to 2.6% for first half year dividend. So we could easily be looking at a 6% yield on year. This at a time when many are reducing and big names are cancelling their dividend until 2021/22. My guess is they wanted to get the dividend away and passed at the AGM before the action starts and 'Kiosk Kate' gets enrolled officially. In 18 months this company will be an absolute cash cow of cash cows and for that reason I do think this summer will be very interesting, corporate wise !
PS sorry if my post came across as a concern, wasn't meant to be, just pointing out that despite facing a tornado of unfortunate events, we still managed to come through it. BTW, I have added approx 10% over the last few weeks as I feel confident SQZ will reward us.
atb

I would say we are looking to hit £14 next month imo. Opec+ will meet early / mid July and may well extend 23% cuts for another month if WTI is still not where they want it.

Would hope to bounce tomorrow off bottom of rising channel ....

Tomorrows update needs to be taken in context of probably the worst 6 months in the companies history, none of which their own making. No doubt there will be the usual harbingers of doom cohort arriving but remember, we had 5 week Bruce shutdown (~26,500boe/d), POO war, Nat gas on its knees, Covid-19, demand collapse and a bear market to contend with.
That said, I do think that our financials will be very sound and I would be hoping for a conservative increased cash position, ~£122m CoH (£102m 31/12/19) or there about given the unknown repair bill for Bruce.
atb

"China’s steel association and major steelmakers have called for an increase in domestic iron ore production as well as greater investment in exploration overseas to ensure supplies....." ??

imagine *

Upomega,

Been watching Q1 21 gas futures for months now, actually sat at 37p/therm atm. So not sure how much cash ACW would want to commit to hedging as the gap appears to be closing naturally to our current Q1 21 hedge at 46p/therm. Remember, hedging puts costs and the last thing ACW would want is to be caught on the wrong side. He may well take out some more swaps, but once again, I would hate having to second guess the gas market atm. That said, ACW has managed it extremely well so far, so would expect him to do his 'thing'. Real question for me is ..... are they actually needed ! :-)

PS : Looking forward to Managements usual update on the Company's performance Thursday too. Think it may be a tough one given macro and micro issues during H1, but will have lots of positives too I would image.

At that rate, an acquirer could have their ROI in 65 weeks .... undervalued does not even cover it (assuming CoH of £120m)