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TLW basket-case has put on 25% today ..... the bot has restricted us to +8% on a strong up day in the markets and oil storming too.

Except for that darn BoT ... still hanging around ...!!! We should be +100p close today.

Rellim,

Fully agree, to me we are positioning ourselves for an approach.

If, as you suggest, we may be looking to acquire more assets this would not have gone un-noticed by any suitor. Looking like the start of an interesting summer ahead.

atb

Agree, everything is in place for SQZ to be a turnkey acquisition by a PE firm :

Low Opex, very low decom, no debt, fcf, skilled workforce, >60% increase in revenue via BKR PSA in little over 20 months, plenty of 'easy' upside, ie R3 / Columbus, Great prospect in Eigg, Low CapEx 2020, 62mmboe reserves, 30kboepd production net (41k gross),Hedges into Q1 2021, £40m tax pool.... Oh and our newly appointed NED, Kate Coppinger to negotiate with.

If RRE are thinking of a t/o, they will need to move fast, these results clearly show SQZ strengths and potential. SQZ are getting more expensive by the day atm.

Woowww , well done very valuable hedges added for November and December 2020 at 32.55 and 35.55p/therm. That is a great call as they were added in March before the sh$t really hit.

At 31 December 2019 Serica held gas price puts covering volumes of 160,000 therms per day for 1H 2020 at a floor price of 35 pence per therm with no upside price restrictions. Serica also held gas price swaps at fixed prices of; 46.55 pence per therm covering 160,000 therms per day for Q1 2020, 40.75 pence per therm covering 160,000 therms per day for Q2 2020, 37.6 pence per therm covering 80,000 therms per day for Q3 2020 and 45.41 pence per therm covering 80,000 therms per day for Q4 2020. In January 2020, Serica obtained additional gas price swaps covering 120,000 therms per day for Q1 2021 at an average of 45.95 pence per therm. In March 2020, further swaps of 80,000 therms per day for November 2020 at 32.55 pence per therm, 100,000 therms per day for December 2020 at 35.55 pence per therm and 65,000 therms per day for Q1 2021 at 36.20 pence per therm were obtained.

https://www.serica-energy.com/downloads/presentations/Serica%202020%20FY19%20Results%20Presentation.pdf

"During the course of the year we made proposals in a number of initiatives but did so with a cautious approach and an eye on the risk/reward balance. We were not able to identify an opportunity which met the counterparties' expectations in respect of both value and risk when set against what we felt was a very uncertain outlook for commodity prices. In the current crisis facing the industry we feel our caution in this respect has been beneficial and has had the effect of strengthening the Company's position..."

So we didn't need Kate then for us to acquire, but we do now .... so imo we are being or about to be courted ?

A conference call for analysts will be held later today at 11.00 a.m. (UK time), Thursday 23 April. If you would like to participate, please email serica@instinctif.com. A copy of the accompanying presentation can be found on our website: www.serica-energy.com

"Subject to shareholder approval the dividend of 3 pence per share will be payable on 24 July 2020 to shareholders registered on 26 June 2020 with an ex-dividend date of 25 June 2020.."

So, ex-div some time out .... should let the divi hunting funds time to get in.

This is an interesting one .......

"Serica is delighted to announce that Kate Coppinger has accepted an invitation to join Serica's Board as a Non-Executive Director with immediate effect. Kate initially worked for CIBC World Markets as a research analyst before joining Harrison Lovegrove in 2000 where she moved into transaction execution. Following the acquisition of Harrison Lovegrove by Standard Chartered Bank in September 2007, Kate continued in oil and gas M&A transactions ..."

So we have now got someone with a "oil and gas M&A transactions" profile. Wonder Why. !!

"Serica combines robust financial health, increased production levels and no borrowings or unfunded liabilities with a strong operating capability.
This puts the Company in an exceptional position to weather the current market uncertainties and seek new investment opportunities.."

"Combined field operating costs per boe reduced by 30% to US$12.60 per boe".

Excellent, was looking for a reduction of opex .... down to $12.60, magical, one of the lowest in NS. Once we get R3 up and running this will fall further still.

In light of the strong financial position of the Company, the Board is recommending the payment of a maiden dividend of 3 pence per share to be proposed at this year's AGM

Rookie,

" it’s just an insurance against decom liabilitys..." almost, in terms of paying the decom bills, yes. What it doesn't do unlike a insurance policy, is that should the surety get called upon, it will be paid on behalf of RRE, however, RRE will then still need to 'payback' the surety provider. Either in cash or equivalents, including its assets. So basically, for a smallish payment RRE are able to re-allocate ring fenced decom cash on their books for other matters. In this case I do believe that 'matters' to be an acquisition, otherwise, why else bother going to the expense and time of surety bonds when you are a cash rich, FCF, debt free company.
Why did they need surety bonds given they have so much cash, probably to comply with accounting procedures and OGA regulations to ensure future NS decoms are fully catered for.
aimo. atb

A companies 'worth' is not just based on profit ... how about reserves of 63mmboe !

Also a merger with another company with large HMRC tax allowance would also greatly alter the dynamics.

Any how, talk of decomm costs which, half-life has been pushed out to 2030 are imo irrelevant. AA would have packaged RRE up and sold well before then aimo.

https://www.lse.co.uk/rns/CNA/trading-update-7ks8kd77h1x3975.html

Under : Balance sheet and liquidity position

CNA have stated "there are no material covenants on any of our existing debt..." as per RNS

Note they have "NO MATERIAL COVENANTS" ... so no chance of them be called in, none at all.

Thanks Dick,

This is an interesting one for a left of field idea "Is being significantly dependent for cash flow on operating a half-Iranian owned gas field in the NS not enough..."Maybe not !

Now, how about UK gov linking a deal for Nazanin Zaghari-Ratcliffe along with the 'sale' of 50% owned Rhum field to SQZ for a nominal sum, coupled with the 'unseen' release from escrow the million to Tehran. Could easily be managed to paint the UK gov in glory.
Just a thought :-)