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Rookie,

We then have the pantomime 'spat' between Russia and Saudi !!

Are these two looking to take the opportunity to overthrow the old guard of the seven sisters, to become the terrible twins.

We all know the world is looking to curtail its reliance on fossil fuels, so is this an attempt to completely destroy all producers outside of Russia and Saudi. Terrible twins to then control the POO and deliver a cartel business model. Bad news if that is the case.

We know the Opex for Saudi's is just a few dollars, not sure how low Russia really is, although they must be happy for it to drop atm.

We also know that both Russia (+30% increase in reserves since 2017) and esp Saudi have vast reserves of gold. Interesting that gold has not raced away over the past month. Clearly someone is selling reserves atm to suppress the price imo. The only problem is the US have enormous gold reserves too.

atb

Don't forget the gearing for available debt if needed, currently neither company have any debt. Also RRE already have secured $1bn facility. £350m cash on hand, plus £800m facility and additional gearing, what a warchest for a mid-tier producer

Yep, Hardy's down only £14,500,000 this year.

Should a PE outfit want us, then Tailwind is the logical suitor imo

Upomega,

Looking from the point of view that POO will recover and the world will come to terms with the virus a merger with RRE will need to be completed before the end of the summer imo. That way the new group will be able to use its considerable financial firepower to grab several distressed UKCS assets.
Likewise should RRE want us, this to will need to be completed during this window of opportunity.

atb

If we look at SQZ as an investment case, it's a no brainer. However, the Saudis and Russians unknown end game is the massive variable atm .... the virus will be a distraction (all be it, a massive one), it's the collapse of POO that's the problem, even though only 20% of production is oil, SQZ are 80% gas.

Right, until end of H1, SQZ have 40% of BP's BKR hedged at 35p/therm. Plus swaps for 16% of all gas at 46.6p until end of Q1. For Q2, 24% of gas production at 40.8p/therm. Current gas price is 24p/therm.

So, Q1, 56% is hedged and Q2 64%

imo, we just need to get the dust to settle by end of H1, until then, SQZ continues to throw off cash and build on it >£110m cash on hand with no debt.

aimo

RRE would only need in real term c£170m .... for us, gross production>40,000boepd, >60mmboe 2P

They have that cash in the bank atm.

Sorry to I agree with you atm, although should the markets improve late summer, normal service will resume afaic, back to >180p

Notice the BoT is still very active ..... !

n/m

So guys ... not woken up yet .... that was an old news item ...lol

Although there does appears to be moves in Italy / Spain to do so !

March 13 (Reuters) - Italy and Spain have both issued bans on short-selling of dozens of stocks, after European stock exchanges posted their worst ever losses on Thursday.

https://www.reuters.com/article/europe-stocks-short-selling-idUSL8N2B61BG

Looks like we may have some rest bite soon ....

Italian and Spanish securities regulators have today implemented a ban on the short selling of a number of stocks following record losses yesterday.

"The UK declined to comment on if it would consider a ban on short selling all UK stocks, although Germany admitted it was under consideration after its benchmark index plunged 12 per cent yesterday. The FTSE 100 also slumped to its worst day since 1987". The US may follow too.

https://www.cityam.com/italy-and-spain-ban-short-selling-after-record-sell-off/

Not sure on that one .... one would guess so, profit all the way to zero, bth, I have no idea.

The obvious way this stock could be played comes to mind in that case.

One thing I would love to see is a total ban on shorting, but could start with an auto close on any short at end of trading day.

I would fully expect the Opex cost to fall considerably as the assets bed in.

The should easily be sub $20 boe imo, SQZ mange <$13boe and continue to reduce this further.

All starts again tomorrow.

As soon as this oil spat is over the O&G companies will put on 30% overnight. But it has to be a decisive move and committed one by OPEC+ , with Trump at the table too. The problem is no one can see the woods for the trees atm .... and Trump, well, you are just waiting for his next gaff ...... he will probably bomb the Saudi too support his shale, he's that stupid.

No one wants to see their wealth disappear ... sure when these idiot look at their portfolios, things will change. That super yacht, may not be super for very long if things continue as they are.

atm, it appears as if every single equity stock is being priced to fail, indeed the way the world economies run .... all this over Bat eaten in a the backstreets of a city in China.
Is this the solution to the pending world climate disaster .... reduce world population by 50%, kill off fossil fuels, leaving the remaining 50% able to be sustained on current green technologies ... make you wonder !

So, just saying that $3 occurs ...... demand would take an eternity to clear the storage as no doubt the economy of the whole world would need 10-15 years to recover, if ever. I would even fill my pool.

So the Russians and Saudi better re-think their war with Trump, and sharpish imo.

$3 barrel would decimate the whole world production capacity.

Trump just needs to join an opec ++ and curtail shale before the US have no production capacity left.

When is sanity going to return .... just unbelievable the way all stocks have fallen 30-50% in last few weeks. Why the hell would BT fall ..... everyone is tied in on long term contracts nowadays, fixed prices etc etc. If anything more people working from home should add to their coffers.

US trade suspended as global stocks plunge ... once more ....lol