Member Info for NewKOTB

"auction" ...

Where's the news ..... in action atm and not looking good !!!

As a holder of SQZ I would like to get your views on RRE completing a RTO on SQZ.

https://www.serica-energy.com/downloads/presentations/Serica%202020%20Corporate%20Update%20Final.pdf

From my point of view, the fit would be perfect and no doubt the deal AA could put together with ACW would please both sets of Shareholders.

aimo

By default RRE will need to do a deal soon to enable their own re-rate otherwise, they may succumb to an approach too, although with their lowish production atm don't think too many would be interested.

Market want RRE to do something accretive with their cash pile I feel, SQZ will do that for sure.

Also, fair to say that an all share/combo offer could easily trump 180p/s and retain their war chest for bigger fish.

Also, at 180p/s that is only circa £477m easily affordable for RRE, particularly as they will be buy cash too at appox £120m.

So in real terms, true cost will only be circa £350m for est P2 55mmboe producing +30kboepd,

THAT'S ONLY circa $8.30/barrel, well below NS historic average.

atb

Been taking a much closer look at RRE ..... Hummmmm.

The company MCap is virtually equal to its CoH ATM, so to me the market is expecting RRE to use most of this cash, probably for an acquisition. RRE have quoted as having £1bn available for transformative acquisition too. No debt, plus Directors' shareholding in excess of 30% so they have massive sway in their next move being agreed by shareholders.
Production 2019, was 19kboepd, looking to up that 'significantly' during 2020 !!!!

Now, as Upomega has been mentioning, given the way our SP 'survived' today, does the market expect either a t/o or merger with SQZ .....
With RRE being an aggressive company and remembering the AVERAGE age of our BoD will be 70 years old this year, logically this could be a finally farewell from our BoD !!! They will however want top $$ for SQZ, this may be the sticking point atm.

I do think there is a real risk RRE are about to snap us up !

If ever the time was right to make a move, it has to be now.

BTW, I would happily take 180p/s

aimo

OBNW,

The impact is on non-production systems. It's the old decommissioned caisson that had been taken out of service in 2009 is the problem. Case of making it safe by all accounts "Engineering work to ensure that the caisson is properly secured has commenced", so it doesn't impact on production or H&S in the future I guess.

BP owe us big time now .... selling lemons should be for market stall traders. (lol)

Interesting how resilient the SP has been to this news ! Volume a lot lower than I would have expected too.

Have SQZ got a rabbit, ready and waiting for action. Be nice to have a deal popup now, I would suspect catch out a few looking for lower entry.
atb

Good point upomega .... I would have thought so as the swaps was for 16% of Q1 production at 46.6p/therm, Erskine's production would be 100% fully covered. Although it would depend upon what % has been taken up or more logically could have been at running at 16%/day. If so, good news.
atb

upomega, a little convoluted, but in general, you are correct. Although to be honest, I don't think SQZ will actually see that occur during its ownership.

In the meantime, be nice to see plans for Rhum3 AND Columbus fast-tracked if possible.

Good thing is, don't think the issuing / timing of our maiden dividend will be altered.

atb

So now we possibly know why the results RNS gain was mysteriously sold down over a few days last week ..... the problem was first identified and a few days to work out a plan, then issue the RNS............ just a guess !
aimo

"The biggest danger is a hostile bid coming in should the price fall any further inmo.."

Agree, SQZ were under priced before, for the next few weeks, it will be open season.

atb

The problem is .... lower production increases lifting costs per barrel. Higher production brings down the lifting costs and thus makes the business more efficient.
Also remember we are in a competitive market so lower cost base the higher the profits.
Providing we replenish our reserves we should pump as much as we can, making full use of Bruce's spare capacity imo .....
There is no value in leaving the hydro's underground, so long as we continue to produce at a profit ( which should not be an issue as operator btw ), then keep pumping I say.
atb

IMO, the Coronavirus will expedite the Chinese into making a deal with Zanaga.

Could the Chinese take a risk of loosing Zanaga at the 11th hour due a virus .... NO.

Risk, loosing the one natural earth element that will power its economy for the next 50 years ...NO

Risk their economy restricting overseas financing and expansion .....NO

ZIOC's future has just moved further up the priority listings imo.

atb

When you are up against these guys ..... you can forget 'normal' trading.

https://www.bbc.co.uk/news/explainers-51265169

"What good will it do?..."

Keep to BoD in the lifestyle they are committed too for another 12 months, aimo

OK, maybe not .... slightly disappointing that .

PME expected today imo

Another 2m traded in just over an hour , 4.5m so far.

News is out ... imo