Member Info for NewKOTB

Real pity we were not able to pull off another BKR style deal before the covid / poo crash. The structure of the deal with the in-built safety net of putting a floor under gas sales would have really shown its worth given today's environment.
Think the days of having such a valuable floor built into any deal has now passed unfortunately. That said, any PSA would still need to work for both sides.
We now have Kate onboard and I'm sure its not just to up our wage costs either. Interesting that Kate has been 'listed' as number 3 on our website, just under ACW and MF.

https://www.serica-energy.com/board

Lots more 'chunky' +10k orders going through recently ... definitely more interest in RRE than a few weeks ago imo.

ColdJoe,

Wouldn't worry about decomm costs as abandonment expenditure is likely to be ~$30.0 million for 2020 (before tax relief) tax relief on abandonment expenditure, fully covered by HMRC tax paid history, so nil net value for 2020 decomm. Also full decomm liabilities and therefore payment of said, runs until 2038, with half-life being in 2028. Oh, all O&G's have decomm liabilities of various amounts, PMO have decommissioning provisions of $1.1bn.
atb

Yep, GLEN has 50% plus 1 share of the project (so controlling share) and is potentially worth multi-billions. News is expected soon on the projects development, just wondering if anyone here has any more thoughts / info.
atb

"or any person acting in concert..." that is always the difficult one to prove. All about timing and nod 'n' a wink imo.

MM could be 'asked' to obtain and hold stock, which is then 'sold' at a latter date to the target buyer, whoever that may be !

Just to be clear, I am in no way suggesting anything untoward has happened / happening with RRE btw

Anyone have any thought on how the Zanaga Iron Ore Project is progressing give recent events with China's relationship with the developed countries atm

Interesting .... AA will increase his voting % held.

As far as buyback is concerned, I don't see that as best use of our cash atm tbh, unless they get used on an equity swap at a much higher price so would need to go into treasury and not be cancelled. Only cancelling shares bought back would increase the SP. Yes, demand increase in buying may move the SP up a little, but no where near where we should be trading at. aimo

I believe the market are 'waiting', rightly or wrongly, to see how AA uses our mega cash pile ..... will it be a wise and considered deal/s that adds significant value or have to take on considerable debt to complete a massive RTO.
One thing for sure, taking into consideration both Capex and Decom commitments for rest of 2020 we still have more cash in the bank than our SP's MCap given the status quo. Oh, for sure Cavendish (along with many other investors) see value here, as Cavendish added to their holdings recently to take it to 11%.
aimo

Really think the AA's should revisit this quote (considering the stress testing recently carried out) "harsh environment of sub-$50 oil..." either that, or drop it. Doesn't give a very good impression imo for those new to RRE that maybe wanting to buy in and don't know the full story. .... aimo

So long as our BB stays quite and the SP slowly re-rates, I'm happy.
atb

RNS Update from RRE today ....... so good news for us regarding Columbus progressing.

"The Seven Borealis pipelay and heavy lift vessel is mobilising to the Shell-operated Arran gas / condensate field and is expected to commence laying the 55km pipeline to the Shearwater platform shortly.

· This pipeline will connect the two Arran drill centres/subsea manifolds to the Shearwater facilities for processing and export and is a key milestone in the development. RockRose has a 30.4% interest in the 31 MMboe Arran field, which is forecast to come onstream in the second half of 2021."

Really shifting the bid/ ask all over the place today ... very unusual ...definitely working the SP hard to create a market without moved the SP too far.

crude inventories came in 2m barrels lower than expected.

https://www.investing.com/economic-calendar/eia-crude-oil-inventories-75/

Lonestag, little early I think for news. It took 3 months to complete the first well, 11/12 to 10/3. We had notification the rig was moving straight to 2nd well to commence operations, so I would guess mid June although it may be earlier as we did have some nasty NS storms this year. RRE stated "The first of these came onstream in Q1 and the second is due onstream in Q2".
atb

The problem is those fund mgr will want capital gains too, not just dividends .... so will want to enter at the lowest they can. So a bit of a double edged sword atm imo

Never said a deal has been made, just the timing of AA making a move, two different animals.

AA's would want to be sure RRE are able to ride the commodity wave upon re-listing from any suspension imo

"Cna rising so maybe they’ve sold Spirit to rre ?..."

Humm, CNA have certainly moved up a gear today +10% .... very unusual for them imo.

Would have thought RRE would have reacted too tbh. Lets see how we close out the day.

atb

Think AA's next move is all about timing ... not too early and not to late ..... do the deal just right !

Too early and the market will not appreciate the deal, too late and the market will also not give due valuation. We need to emerge out of any deal when the Covid recovery is well underway and POO is back above $30 imo .....

Thing is, when POO falls, we then tend to follow it with renewed vigor. Never seems to follow when POO rises.

ATM, the market is playing silly bu&&ers with us, not really knowing what to do, either believe in AA's next RTO will happen, or to let the cash sit in the bank earning 0.01% pa interest .... imo.

PS, the 0.01% is what we mortals have now been given not what's commercially on offer, that can be 100 times this at >1% ..lol

In the meantime, we stay static while PMO, HUR TLW once again, like yesterday, put on a decent percentage.