Member Info for NewKOTB

The latest independent CPR (1-Jan-19) indicates that Serica net 2P reserves have increased to 5.7 million boe. This increase has been achieved without drilling any new wells or any intervention in existing wells.
The independent CPR evaluation of Serica net 2P reserves at the effective date of purchase (1-Jan-14) was 3.6 million boe.
Since then, cumulative net Serica production from Erskine has been 2.5 million boe.

The increase is due to improved efficiency (in this case improved uptime due to the bypass pipeline) and focus on reducing lifting costs. Serica believe that similar focus on efficiency, cost and quick decision making can be applied elsewhere (e.g BKR) to extend field life and boost reserves

Rhum is capable of producing over 30,000 boe/d gross from two subsea wells, R1 and R2
A third well, R3 has been drilled but needs remedial work before it can be brought onto production.
Serica is planning R3 intervention work and investigating rig and vessel availability
Inspection and diagnostic work on R3 planned to commence in August 2019

It is estimated that R3 could add a further 7,000-10,000 boe/d gross, making Rhum production capable of producing over 40,000 boe/d. Add in Erskine and BK production and we could bee looking at a substantial uplift in revenue and profits.

Serica Energy PLC at its annual general meeting on Thursday reported a steady operational performance for the first five months of 2019.
Net production for the five months to the end of May was 30,500 barrels of oil equivalent per day, up from 25,800 barrels produced in 2018.
Serica as at May 31 has total cash and term deposits of USD112.3 million, compared to USD54.9 million for the end of December.
Serica's 2019 production guidance stands in the range of 26,000 to 37,00 barrels of oil equivalent per day.

sasa43,

"the promised discussion about a sustainable dividend policy being introduced next year would tie in with that very nicely.."

I do agree with that though and as you mentioned links in very nicely with the recent AGM Chairman's statement on looking to provide "possibility of a dividend policy at a sustainable level". After all, if you want funds to buy in, what better way than to offer a dividend. But as you know a lot of funds are not allowed the enter the casino that's AIM. This is why I do think we will move to Main Market listing "one way or another".

ATB

sasa43,

"but we'll need to see the sp double from today's level to meet the first requirement you mention.."

Think you misread, it's only £700k not £700m that's required for listing, where we end up in that listing will be Mcap dependent though.

regards

Oil to spike on any whiff of Trump taking matters into his own hands with Iran, +$80 in no time imo

Brent up +20% on year atm

With estimated realised revenues of around US$35/boe (latest accounts) against our current reserves, will will bring in around $2,450,000,000.
SQZ are a multi billion dollar business with no real debt, plenty of cash in the bank and no pesky bondholders to worry about.

I do believe the Minimum Mcap is just £700,000 to be eligible.

I see no incentive to remain on AIM.

As far as required criteria is concerned, our accounts show more than 3 years. Our shareholder base hold >25% in public hands. We have more than sufficient working capital for the next 12 months. I don't have any worry about our corporate governance, that I am aware of, in fact the opposite !

SQZ are ready to make the move now. We could apply and move within 3 months .... lets get it done is what I say. After all we have been on AIM for 14 years now !!!

14 years is too long, with the ambitions of SQZ, moving is not an 'if' but 'when' in my eyes.

aimo

Would like to see a move to the main market listing this year, why ....

Would give exposure to funds that currently do not trade in AIM listings, ( for obvious reasons )

SP stability and growth.

Open us to more choice of capital markets, if ever required

Give kudos and will represents a badge of quality and increased profile.

Stop this ridiculous manipulation of the SP

aimo

Up 2.8% yesterday and 7% today so far .

Once more piddly little 'A' trades controlling the SP all day on very low volume again .....

The excellent EoY Results and the more recent Ops update should have been a catalyst to move the SP forward, instead the SP has continued to be manipulated.
Just hope someone is shorting, big time, when the next deal drops and we get suspended.

gla

Absolutely fabulous EoY Results ......

https://www.serica-energy.com/downloads/reports/annual/Serica-Annual-Report-2018.pdf

And recent ops update at AGM

https://www.serica-energy.com/downloads/presentations/Serica-AGM-Presentation.pdf

Try and show me another AIM stock as good ..... !!!

atb

Once again, many thanks to our BoD on behalf of all us PI shareholders for continuing to do a wonderful job during a particular challenging period in SQZ history.

Regards

"As we progress on our strategy and achieve further steps to build on the strong asset base that we have created we will be looking to bring new talent, experience, and diversity to the Board. I imagine therefore that you will see the Board evolve over the course of the coming year to ensure that we have a Board appropriate to and befitting a vibrant, ambitious and talented company. " .........

" we are looking to achieve the next growth phase through UK focused M&A which has the potential advantage of using our tax position to maximum effect as well as diversifying risk from our existing assets..."

"Coming year", signals a deal is being pursued, could Tailwind be the one, I think so, ticks so many boxes !

aimo

"Against this background the Board is hopeful that, early next year, we will be able to review the possibility of a dividend policy at a sustainable level which also gives us the flexibility to meet our prime focus to see further growth...."

So clearly we will have a deal that's cash accretive done before SQZ embark on a "sustainable" dividend policy imo

Watch this space.

https://www.serica-energy.com/downloads/presentations/Serica-AGM-Chairman-Statement.pdf

Cash, cash equivalents and term deposits of US$112.3 million at 31/5/2019 vs. US$54.9 million at 31/12/18.

Given we continue at this rate :

((112-55) / 5) x 12 + 55 = $192

So we could end the year with around $192m CASH in the bank, no debt and tax loss pool of $140m, or in real terms getting on towards 50% of our present MCap in cash ....leaving our 2P's of 68mmboe valued at $3.60/barrel for a NS assets.

With our 2018 Operating profits of $9m anyone who thinks this will not blown out of the water for 2019 is off their rocker imo.

As a very rough estimate I would say that x10 or 1000% increase is not unrealistic for 2019 figures imo

We are adding +$10m per month even with low spot prices thanks to our 60% hedge at 35p/therm for whole of 2019

Once more, American markets open and the SP gets dragged down 4p right on queue.

Manufacture fall imo

That's the thing ..... so easy to do imo.

Large holders have not sold is all we keep hearing, really !!!

Maybe that's because they had no need as short it all the way down make a few quid then launch a t/o.

Still think SDX will not last the summer out.

aimo