Member Info for NewKOTB

Shale gas outfits will be going bust soon too particularly ones with debt to service.

Plagued by the BoT is SQZ.

Circa 90% of trades today and closer to 95% the other day, the BoT has now been running the SP for well over 2 years. How can a natural market exist with so much automation ?

Also, the UT drops the SP 3.4pts, otherwise finished up !

Gas ended the day down just 0.8%, 22.6p/therm for futures, so almost flat !

Also, NI chart link he posted shown gas at 52.7p/therm in late June 2019, however, his post from that time quoted as "The gas price is now below 25p a therm...", just wondering how you square this !!!

Yep, thought so, just using scare tactics once again.

upomega,

Companies with large debts to service and those trying to refinance will be the ones to watch for fire-sales.

Those with NO debt and LOW OpEx, free-flow CASH generative and nimble companies such as SQZ and RRE will be fine .....

Large majors will continue to sell-off fields that do not suit their investment / operational profiles.

So, like you, I also believe there are likely to be options available, large and small, just the case of ACW getting the right deal done for SQZ and shareholders.

atb

So, NI needs to post on his pet subject once more, otherwise his boss will not be happy.

Never posts with such glee on any other BB about gas futures as he does here, so once they close their shorts and load up for the next leg up he will be gone. Until then, please ignore him.

So just for balance, NI, what are the groups overheads atm and how do you calculate their cash generating capacity going forward.

Although I do agree that SQZ should move forward with additional acquisitions .... which imo, will not be far way.

Taking the macro and micro 'climate' into consideration, clearly the only way forward for energy firms is to be involved in Renewable's !

SQZ imo will need to either be sold or merge with another highly free flowing cash generative company that can together forge a way forward to reduce exposure to hydro's.

Be the answer not the cause !

Be a mini BP not mini me !

https://www.bp.com/en/global/corporate/sustainability/climate-change/renewable-energy.html

aimo

Bid 'n' Ask, both been flying around all over the place today ..... BoT still very active too.

From 1.5pt to 6.75pt's, in a flash !

First, please do not help NI with his negative thread by re-posting using his header ... start a new one, or better still ignore him.

As for RRE, just acquired Cotton field 100% ownership. Deals are still being done.

atb

Buys 105k vs Sells 98k

upomega,

"Has anyone a idea as to how much it would cost to moth ball the platform. Would it work out less than current production costs...."

Are you seriously asking that question ..... regardless of cost to operate, the SP will be destroyed.

Also, the market are clearly continuing to persecute RRE by not making their cash work imo .... The market does not like to see companies sitting on a large cash pile. Not only would SQZ be a bargain for RRE, but more importantly, force the market to re-rate RRE correctly as cash is now been seen to be used for accreditive acquisitions. It would also move RRE to becoming the 6th largest independent operator on the UKCS, just behind likes of EnQuest and Repsol Sinopec.

Should a RTO occur, after return from suspension, I can see RRE shares trading easily circa £50-£60/s range.

atb & aimo

GL,

"non core field ...." SQZ supplies >5% of UK requirements. Plus you have Rhum3 / Columbus coming online in next 12 months or so adding est c8-12kboepd. Then Eigg P50 of 626bcf to tieback to SQZ owned Platform during 2021/22

SQZ is no subsidiary of BP, although BP do own 5% of SQZ due to their deal on Erskine

Still think SQZ given their operations as a whole would be ideal at this point in time for RRE to instantly ramp production upto >60kboepd before year end and double reserves.

My money is on both AA and ACW having, if not to have talks, be it merger or RTO by RRE soon.

aimo

Also, at 180p/s offer for SQZ ( 50% Premium ) that is only circa £477m easily affordable (from the £1bn available), this would include buying cash too at appox £120m.

So in real terms, true cost will only be circa £350m ($460m) for est 2P 55mmboe producing +30kboepd.

Munch, note sure where you get "we could probably acquire 25,000 bopd for around $250m" from, too many variables for my liking for that to hold and be suitable for RRE.

RRE + SQZ provide a natural fit imo, may even be the option to merge !!! Who knows

atb

The important thing to note is return of capital would be less than 4 years, probably closer to 3 imo.

"STATS mechanical lifting tools have been used regularly in the North Sea, UK to facilitate the removal of caissons on behalf of operators and engineering contractors..."

https://www.statsgroup.com/case-studies/post.php?s=caisson-securing-recovery-north-sea-uk

Mommur,

My first thought was 2 months is a long time to resolve this issue particularly as "This caisson had been taken out of service in 2009".
So here's hoping the issue is resolved earlier, I'm sure as you mentioned SQZ have incorporated 'wriggle room' within these two months.
atb

Guess someone wants to load up lower awaiting the restart and dividend payment.

Trade Time Trade Price Trade Size Trade Value Trade Type
16:35:29 115.60 22,454 25,956.82 UT
16:29:51 118.00 173 204.14 AT

Well, that UT trade was a surprise .... down 4.4pts (-3.6%)

Is this the drop before the mega rise ! or just the drop ?

Volume nothing to talk of so far ....

out of auction ... down -15% atm,