Member Info for NewKOTB

"combat coronavirus, which is crippling the world’s economy......" along with my son crashing the price of oil and starting an oil war with Russia.

DOW is up 300pts so doing well considering record US unemployment rise. Maybe a glimmer of hope from G20 to come.

degsy,

"Can’t see the poo staying this low much longer, certainly won’t go lower fingers crossed of course...." it will should the Saudi's start pumping more into an already over supplied market in 6 days as they have stated.

RRE need to re-balance their production ratio gas/oil imo, just in case POO is held lower for longer. I would be amazed should AA not be addressing this atm.

aimo

Forgot to add that the market will also want proof that the last Marathon acquisition is adding value. It usually takes 8-12 months for the synergies to start to appear on the bottom line .... so it may be waiting for this too.

The problem is the market see NO VALUE in cash, in terms of it performing for the business. This is where the issue is imo. Until RRE show the money working for them (ie acquisition / merger) or POO rallies >$40, I think RRE will struggle to get anywhere near its £22 CoH ..... totally unfair, but that's the way the market thinks imo.
In the meantime, take the view as a buy one get 2 free ..... BOGTF ...lol

Degsy, But SQZ has better mix 20% oil and 80% gas with more valuable hedges imo and a PSA that limits downside so no loss can occur plus large uplifts in BKR receivables and production going forward.

Degsy, other than the oblivious CoH, why is RRE very cheap !

Really do think AA will pull off either a substantial strategic alliance or acquisition within days / weeks should the Saudi' playball.
aimo

Sorry duster, but you need to include ALL hedges .... not just the ones that run until Q1.

Think you will find we are making well north of $30/barrel after Q1

Only be an issue if POO continues to fall substantially....

Don't think to many will trade this ..... way to much upside here imo.

Boom, you really are an troll .... your quote was "i assume average costs are $45 per barrel."..... so your were in fact way off.

If you want to start with your rubbish please continue .... now you have gone long with your £500 you will pump this all day today no doubt.....

Oh no .... boom is back .... with his £500 investment ..... how did your shorts do on the banks this week ...lol

Should have gone long here like I told you to on Monday .....

DANA, well that done it !!! back below the 7's ... probably realized that selling of wine and alcohol was now Boris's allowed list.

Also .... "anticipated that at least $50 million of this capital expenditure will be deferred.."

So now RRE are not spending their cash hoard as much as anticipated, will we see the $50m savings reflected in the SP increase today ...... $50m, equivalent of £3.26 ...... lol , yep, don't think so. Although, I would be happy to see up put on >100p on close today.
Not sure what else AA needs to do to get our SP moving. Financials are needed to turbo boost us, but the bloody FCA who have done nothing since being created managed to screw us over the day we were due to release out EoY.
ATB

Would have hoped AA timing of this means he anticipates some deal on oil with SA / Russia / US soon, otherwise this ops update would have been a waste.
Nice to see AA thinking out of the box once more .... can not issue financials due to FCA ... so lets do an ops update .... well done again.

JAdam, with their hedges in place for both OIL and GAS ..... (both of which are excellent hedges) opex quoted at c$30 for 2020, I would say they are. Hence the mention of status quo .... will need to work it out again, but the other day using even lower POO it was ;

So, using this oil hedge and existing Q1's, we are receiving average of >$52.00/barrel atm ..

Using just the 3,000 boepd hedge alone of oil production at $69, we still sit at >$37.50/barrel

Then on top, we have gas hedged, 40% of production split, ~63 million therms at ~45p/therm for the whole of 2020. Which is >200% of current UK therm pricing atm

The main point to take from this is on 29/2 we had £272m (£20.75/share) ..... now ONLY 24 DAYS later we now have £287m (£21.89/share) ..... even in these low POO conditions.

£15m CASH added in 24 days ...... and we have not been eating through our cash like some on here have been shouting about. Yes bills still need to be paid, like revenue still need to be received .... but on the whole, I would say the status quo exists atm .... amazing.

Well done AA and the BoD.

On your page it states : "It is traded electronically via the ICE futures exchange" which matches to your screen the link below:

https://www.theice.com/products/219/Brent-Crude-Futures/data?marketId=5049366

Spot, so I can't explain the difference !

Direct from IG Commodities