Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Good news!
We have not been offered any licences in tranche 3, presumably because we did not bid.
Not exactly a list of nobodies but there's a definite lack of interest from the big players
https://www.nstauthority.co.uk/media/t40pqogd/tranche-3-awards-by-company.pdf
Sval Energi would be an excellent acquisition.
However, ads Sval are already partnered with AkerBP you would think they'd have an advantage (and deeper pockets)
A price tag of around $1bn rumoured.
aimo
On the 3rd of May the NSTA offered a further 31 licences in the latest phase of the 32rd oil and gas licencing round.
Some applications are still under review, so more licences may be offered in future.
I guess we'll find out next week if we are one of the "lucky" ones.
Oil and gas firms are being framed as the “devil incarnate” as general election rhetoric ramps up, a top North Sea dealmaker has complained.
Andrew Austin said is firm Kistos Holdings (AIM: KIST) is one of several which has pulled out of deals due to political uncertainty and that the windfall tax is being seen as a “victimless” crime as the UK gears up for an election.
Speaking to The Herald, he said: “Part of the problem is both parties are rightly trying to chase the 18 to 24 year old vote and in their minds climate change and oil and gas companies are the devil incarnate, therefore taxing them is effectively a victimless crime; that’s what’s driving it on both sides of the house.”
Investment ‘off the table’
Mr Austin, who built up his former company RockRose Energy into a £250m business, said committing fresh capital to projects in the North Sea “is definitely off the table” until there’s certainty as to “the Government and the Government’s position”.
There have been four changes to the windfall tax since 2022 under the ruling Conservative government, while Labour, which is leading the polls, has promised a “proper windfall tax” should it win power.
Last month, the CEO of Hartshead Energy told Energy Voice the uncertainty on Labour’s plans have led to it cutting project team jobs.
Meanwhile the party’s pledge – which includes cutting investment allowances while hiking and extending the levy – has led to warnings it will kill off North Sea investment.
Kistos’ partner in the West of Shetland, TotalEnergies, told Energy Voice last year that the uncertainty is impacting potential Final Investment Decisions for their projects in the region.
Mr Austin told The Herald that the windfall tax is not making Shell or BP the victim.
“The victims are the small independents who effectively have become the mantle-holders for the North Sea as the majors and super-majors have exited.
“You’ve seen it with Harbour, with Ithaca with Serica and us. These are the guys that are getting hurt.”
I have done a bit of digging and found that the rig for drilling the five wells at Bittern, Gannet, Guillemot, Evelyn and Belinda is the COSL Innovator.
The rig is currently drilling in Norway for Equinor.
The other client listed for the Central North Sea UK is Petrofac.
cosl.no
https://www.offshore-mag.com/subsea/article/55020788/serica-energy-serica-commits-to-north-sea-belinda-triton-tieback
As far as I am aware, Petrofac carry out the well management services for all of Dana Petroleum's North sea assets, including the Triton FPSO and Western Isles FPSO.
So, I would guess they are heavily involved in Bittern, Gannet E, Guillemot NW, Evelyn and Belinda.....
Production came in at 7.4k barrels per day, down from 8.8k in January. The fall is due to production in the Netherlands falling off a cliff, why I have no idea.
Breakdown.
UK (GLA)
Net production from Edradour, Laggan and Tormore was 3442boepd of gas and 234b/d of oil.
Norway
Net production from Balder was 2734 b/d of oil.
Netherlands
Net production from Q10-A was 970 boepd.
aimo dyor
Very true Maverick7,
David also referred to Kistos as a 'Gas' company.
Not true. Current split is roughly 60% gas 40% oil.
Kistos are operators in Norway, The Netherlands and the UK. Gaining this status in Norway is particularly onerous.
Serica definitely feel threatened by AA, to the detriment of us as investors.
aimo
I heard Martin state that the TW tax losses available to us were £470m on acquisition, of which £395m are still available to us. He said to expect a lot more to be utilised in the following year.
Good news.
aimo dyor
NKOTB,
Over £200m of that is owed in debt.
I should have been clearer, net cash in excess of £100m is where I would like us to be.
I agree with your sentiment regarding Mercuria's influence NKOTB.
Due to EPL we are simply not generating enough profit to justify a 23p dividend.
A more sensible split of the £103m profit would have been £40m divi, £20m buyback, £43m retained as cash.
Cash in excess of £100m would give us adequate breathing space to consider an acquisition from cash only.
aimo
£103m profit after tax was what I was expecting, give or take. £92m of that will go in dividends and another £15m on the share buyback will eat the lot, and a nibble of our cash.
aimo
No worries flexmw
https://assets.publishing.service.gov.uk/media/66211762651136bd0b757e2b/PR_2441.pdf
Approval received from OPRED on the 18th of April for the tieback to Triton.
Drill production well via semi sub rig.
5km production and gas lift pipelines from Triton.
7km control umbilical from Evelyn.
aims dyor
Steve,
Slide 22 of the aquisition presentation was very clear, taxable losses expected to be used in the next three years.
Will be interesting to see IF they answer my question, I'm not holding my breath.
I have submitted three questions for the Investor meets company next week.
It might be an idea to continuecthis thread to share questions and prevent duplicates?
My questions were to ask...
1. Do they still stand by the £470m taxable losses available to us following the TW acquisition and how much has been utilised to date
2. Do they still want to expand their horizons into Norway? (or The Netherlands/Denmark) and if so what progress have they made.
3. With hindsight, do they now regret turning down the Kistos merger approach.
Var have announced a small discovery at Ringhorne North. It isn't a licence we have an interest in but just goes to show that there is still potential for more upside in the Balder area.
https://varenergi.no/news/new-oil-discovery-in-the-north-sea/
I don't consider it misleading, the enlarged group is pretty clear to me. All production guidance for each jurisdiction was in last September's presentation...
https://d1ssu070pg2v9i.cloudfront.net/pex/kistos/2023/10/03092620/KIST_Interim-Results-2023-Presentation-final.pdf
dyor aimo etc etc
Apologies Surfit, damned auto correct changed your name to Surfing.
Surfing,
Your post said "Baring in mind Mime / Kistos has 10% of expected production estimated once started up 15,000 boe/d"
Do you realise that the figure of 15,000 boepd is not just for Norway but for the enlarged group, the UK, Netherlands AND Norway?
At this stage Balder and Ringhorne are forecast to be at around 10,000 boepd in 2025 and then declining in the following years to 8000 boepd by 2029.
aims dyor etc etc