Member Info for NewKOTB

How many BoT's have been programmed to run whilst their owner is away ......

The rise of the machine is upon us ......

Certainly RRE is run maily by BoT trading.

NB Think boom is happy today as his £500 short from Friday will be ok this morning. He must of been creaming it with the results due this morning.....

Lets hope he knocks heads together ... and gets an agreement to present to the Saudi's, just need Trump then to get shale to reduce too.

RRC really need it before then imo. Lots of companies will need to renew their facilities before June and their debt convent will be broken with POO atm so loans would get called in .... ie go bust..

We could be looking soon to the new OPEC++, with RRC onboard, which tbh is needed to curtail US Shale. ...... toot toot ...

PS Don't see why the whole industry don't agree to a 10-20% production cut now ... that would increase POO. Would it increase sufficiently that revenues are larger with reduced pumping ! .... starting from where POO is atm , I would say most certainly.
aimo

Like I said .....

Now, back to fact ....." Unit opex was $22.1/boe for the six months ended 30 June 2019 and gas producing assets have a unit opex of $12.7/boe" .... note JUNE with synergies applied, not out of date figures from April as you quoted.

So, for the benefit of us all, please explain your need to ignore the latest RNS from the company and keep posting out of date information that does not take into account the synergies of RRE acquisitions.

Ignore my question, didn't read your post correctly, got sidetracked by BoomBaby.

Oh dear .... looks like Boom is needing to fill its empty days now the primary school has been closed.

Once again, the figures you quoted do not include the synergies for acquisition of Dyas.

Now, back to fact ....." Unit opex was $22.1/boe for the six months ended 30 June 2019 and gas producing assets have a unit opex of $12.7/boe" .... note JUNE with synergies applied, not out of date figures from April as you quoted.

TSC,

Not got subs, take it RRE is on there ....

What's their rationale for stopping results being published ..... if anything they should suspend the market as a whole for 2 weeks.

"Rre got debts ???..."

Think he's on about RRE owing the milkman £2.10 for last week ...... remember milkmen, gold top, silver top .... then they started selling orange juice, never did understand that..... .'Orangeman', not quite the same ! Maybe it's now time for these types of community services to make a comeback.

Boom,

Nothing like quoting out of date RNS to back up your trolling.

Now, back to fact ....." Unit opex was $22.1/boe for the six months ended 30 June 2019 and gas producing assets have a unit opex of $12.7/boe" .... note JUNE not April

The figures you quoted was an old RNS, now try using up to date figures as per company RNS ..... yep, thought so, why use factual and timely data.

I would say you are one of the trolls population fake news and spreading fear about Corvid-19. Sad soul, sad indeed.

sasa,

"He also prefers to be an operator (having recently lost out to Taka post that court decision which takes effect in July, I think) ..."

Interesting point that this needs the agreement of the OGA ..... Should RRE takeover or merge with SQZ before July, it may be possible for the operatorship to be re-allocated back to RRE and manage the Brae Area via SQZ team. Just a thought as not sure why MOUK was discharged of their responsibilities in the first place.
atb

Boom,

Your reason for being here is particularly clear for all investors to see .... fyi and you inability to read company releases :

Unit opex was $22.1/boe for the six months ended 30 June 2019 and gas producing assets have a unit opex of $12.7/boe.

Now go and find what hedges RRE have in place and what the production mix is .... that's a goo little boy.

atb

Dick,

$30 would be until markets re-balance and drawdown is seen, after which, I agree, normality will begin to return, with POO moving to c$40. I think $50 is +12 months away, unless there is a war in the Middle East or many producers are forced out of business.

Both Russia and Saudi have now shown their hand in terms of power to shift POO and Trump is on the back foot imo atm. There will now be an underlying worry that the perceived 'spat' between Russia and Saudi could be staged at anytime.... will Trump allow this to be hanging over the American oil industry. Probably not, so we all now await Trumps next move imo.

BOOM or BUST for Trump in the next 8 months .... as we know Trumps liking of bully boy techniques, not sure how he's going to get around this one with Putin and MBS .... probably with a shed load of 'fake news' and Tweets.

aimo

duster,

"Might as well buy if the latter comes in it's game over.."

Should the worlds economies self-combust ..... there will be anarchy, rioting, massive civil unrest that will not be able to contained .... "Max Max V" will be upon us all.

In reality China would, I guess, stage a 'V' shape recovery ... as the rest of the world watches on .... wondering how they managed it !

China, now the de facto superpower for the 21st century.

I give it 2 weeks until the POO is rescued, to settle at $30 or there about, I hope.

The world producers will need to agree a production cut within the next few weeks max imo, otherwise the storage facilities will be full and there will be physically no where to store excess production and producer will have no alternative other than to shut the taps off. Should be viewed as some production is better than none. Demand / supply is totally out of kilter atm so unless the world wants to see a meltdown of the oil sector, in supply, service and refinery companies, let alone contagion to other sectors, action is needed now. The Saudi, Russian and Americans know this .... I do believe its the Americans have the key to this just by simply slashing production followed by a consensus of other to do the same. Should the Saudi go along with their threat to pump like there is no tomorrow from April, there will be no tomorrow for the world's O&G industry .... Trump, over to you !

Many will go to the wall .... don't think SQZ will be one with no debt, low opex and >£120m cash SQZ should be a survivor imo.

Should their be an agreement POO should stabilize at c$30 one hopes.

atb

POO off 2250 low now at 2380, although dow is down just 3% atm.

No new cases of corona in China once more today .... lets see what the w/e brings..
atb

China's economy and manufacturing is beginning its recovery, the rest of the world will need to get this virus under control, otherwise China will emerge with a significant advantage and look to capitalize on this. For the US / EU / UK to let this drag on for more than June / July would give China the upper hand imo.

DOW only 2% down atm

Sasa,

"which it would need to do and then some immediate borrowing to buy SQZ (looking to replace that initial leverage from Serica's own cash pile, if successful)..."

In an interview with Malcy last week AA let slip he was late to the interview as he had just finished a meeting with financiers. In that same interview he mentioned SQZ were looking to pay dividend, so clearly has an eye on SQZ corporate activity.

Or Sasa, our SP could now be lined up for an all impressive t/o of 100% premium at 132.5p.

That would allow virtually all involved in SQZ to come out on top, making the Hardy's et al very happy. That type of offer would get the nod without a doubt in today's market. AA is not the type of guy to mess around imo.

Taking into account the cash AA would be buying (c£120m), it would be the same a offering c87p/s. For that he would add c150% production of >30kboepd, c100% 2P of 60mmboe reserves (c$4.70/boe) and £110m tax pool to RRE. Plus the upside already built into BKR and its PSA. Making the combined business the 5th largest independent on the UKCS, just behind the likes of Apache and Spirit. Plus, still be left with >£100m cash in the bank.

Should he go for a RTO of SQZ, RRE could easily relist at anything between £20-£30/share ..... within 6-12 months be substantially more imo. Don't forget that AA has targeted £50/share personally.

So, on these metrics I would lean towards RRE's RTO of SQZ next week rather than a merger ......

Don't forget, AA has an urgency to grow RRE at atm, with £270m in cash and RRE Mcap at £80m, he knows RRE are a target themselves.

aimo of course.

sasa,

Once again, fully agree.

Interesting that both yesterday and today SQZ finished flat, or as close to that as you can get. I do find it strange given how the markets and other O&G have responded over these past few day esp after we put on 15% this morning, to finish flat. Has our SP been managed to the correct 'ratio' I wonder. Think we will find out next week.

atb

sasa,

Great post ... I would go one step beyond and say should RRE and SQZ not merger now it would be a lost opportunity for both. Our BoD AVERAGE age is 69 years young. Having done a sterling job to get SQZ to where it is, now is the time to pass the reins on. Maybe a position on the newly merged company as NED's .... just to keep touch and guide the young Andrew Austin with the benefit of ACW et al years of wisdom.

Merger now would ensure suspension .... return to market mid to late summer, then go acquisition hunting with their combined cash on hand of circa £400m and $1bn facility, no debt and £110m tax pool. Just the case of agreeing merger ratios ....

atb