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Thanks for sharing Maverick7,
My takeaways.
AA very confident we will not be paying any EU solidarity contribution tax for 2022 in the Netherlands, he's confident that the threshold for Kistos to be liable for the Solidarity Contribution has not been met. 47m euros provisioned in the results.
Edradour West FID this year, if we proceed we'll be producing next year, reserves 3-4 mmboe net to Kistos.
Glendronach FID to follow, a positive for the project is Shell buying into the Victory discovery which will feed back to the Shetland gas plant too.
Buying a ready made business in Mime saved around £20m of the costs of entering Norway. When first approached in September to buy Mime by Jeffries they were told they'd have to give Bluewater their £135m equity back... we walked away and eventually paid nothing when re-approached at Christmas. He feels we bought Mime at just the right time, the darkest hour is right before the dawn is his feeling.
He was keen to point out the tax credit differences between the UK and Norway. In Norway you receive back 78% of what you spend on exploration and development regardless of whether you are a tax payer or not. In the UK you can only receive a credit if you are already a tax payer.
The Conservatives have killed the UK North Sea and Labour have nailed down the lid on the coffin. He's still keen to invest in GLA because we own the infrastructure, but no big deals in the UK.
Looking at deals inside and outside europe.
Highly likely the dutch bonds will be redeemed.
If they can't find a deal its not because they are rubbish, its just that those deals are not there. In that case we'll get our money back.
UK business worth more at the EPL floor price for gas than it is today.
He's very confident that Kistos will be worth more money in five years time than it is today.
aimo
Italy join Hungary, Spain, the Czech Republic and Lithuania in imposing a windfall tax on banks as well as other sectors.
I think the Spanish banks and energy companies appealed to the high court and are awaiting the decision.
Germany and France are resisting at the moment, but if public opinion forces their hand....
https://www.reuters.com/business/finance/european-countries-imposing-windfall-taxes-banks-2023-08-08/#:~:text=HUNGARY,their%20Hungarian%20government%20bond%20purchases.
If more EU nations hop aboard Rishi will have a decision to make, either drop EPL or apply it fairly to all the sectors that have benefited from 'extraordinary profits'
https://www.cnbc.com/2023/08/08/italian-bank-shares-tank-after-government-surprises-with-windfall-tax.html
Many thanks PiratePete,
The more news the better a far as I am concerned, there were a few bits and pieces I wasn't aware of, so many thanks once again for posting.
The link to our bond listing on the Oslo Bors where all regulated news releases are available is below
https://live.euronext.com/en/product/bonds/NO0011142036-XOAM
The NSTA are finally explaining the folly of reducing NS gas production in favour of LNG from overseas. They issued a press release and data to back it up on the 31st of July.
Come on BBC. do your job.
https://www.nstauthority.co.uk/news-publications/news/2023/north-sea-gas-is-almost-four-times-cleaner-than-imports/
https://www.nstauthority.co.uk/the-move-to-net-zero/net-zero-benchmarking-and-analysis/natural-gas-carbon-footprint-analysis/
Https://www.cnbc.com/2023/08/02/gsk-sues-pfizer-for-patent-infringement-over-rsv-vaccines.html
Dinoken,
Whilst we may be first to be approved, it was with a label limitation and Merck's Keytruda is vying to be the first-line treatment of choice for endometrial cancer.
https://www.fiercepharma.com/pharma/gsk-beats-merck-first-pd-1-approval-newly-diagnosed-endometrial-cancer
A near tripling of production in Norway and the UK and steady production in the Netherlands make our monthly production figures look far more healthy at just over 9000 barrels per day.
Norway (Oil)
Total production of 0.095092 millSm3 or 598,129 barrels of oil up from 0.037063 millSm3 in April. That's 19,294 barrels per day. Our net 10% interest = 1924 barrels per day of oil.
UK GLA (Gas)
Total production of 112.4 mmscf/d or 19922 boepd up from 43 mmscf/d in April. Our net 20% interest = 3984 boepd of gas and 180 barrels/day of oil
Netherlands (Gas)
Total production of 25.338.692 Nm3 or 153,208 boe up from 24.857.296 in April. That's 4942 boepd. Our net 60% interest = 2965 boepd
aimo dyor.
NKOTB,
I agree with your sentiments entirely.
If I put myself in Mercuria's shoes would I want to take Serica private? Hell Yes!
I was listening to their CEO speak at a conference in the middle east recently where he said that one of Mercuria's great strengths and advantages over some rivals is that they are a private company and are therefore able to make decisions quickly.
I am just planning to ride the wave, collect the generous dividends, and get out at the appropriate time.
imho the TW deal will only be truly accretive if SQZ can monetise the TW tax losses. A £470m tax offset was mentioned, utilised over the next three years I seem to recall. If they can do that it will mitigate the impact of EPL and make us 'stand out' from the crowd.
aimo
Hi NKOTB, hope you are well.
We can only hope the bod restrain themselves, I will not be holding my breath...
A maximum of $9 per barrel of 2P should be the threshold they refuse to cross whilst aiming to beat the $4.7 per barrel of 2P achieved by Kistos
In Norway Var Energi have bought 100% of Neptune Energy Norge AS for $2.275bn.
67 kboepd of daily production.
~265 mmboe of 2P reserves and several near and medium term growth opportunities.
If my maths is right that's ~$8.58 per barrel.
That would have been a great deal for us....
https://s29.q4cdn.com/674042470/files/doc_news/att-1-Vr-Energi-reports-second-quarter-2023-results-2023.pdf
Excellent progress being made at Balder and Ringhorne, the Mime acquisition is going to be another superb piece of business the team.
Jotun FPSO re-float and installation of the turret safely completed. On track for >50% production growth by end-2025. Production efficiency of 83% with planned maintenance in the quarter. Restart of the riser at Ringhorne in May with permanent replacement scheduled in Q3. Planned turnaround in Q3 and high-activity period at Balder FPU ongoing. Improved drilling performance with increased drill speed and reduced costs.
https://s29.q4cdn.com/674042470/files/doc_news/att-1-Vr-Energi-reports-second-quarter-2023-results-2023.pdf
Berenberg and Panmure Gordon are our in house brokers so their advice is not seen by many as strictly impartial.
However, I agree with their sentiment.
£196m for all that we have going on is bonkers.
Consensus beat again.
Turnover. £7.2bn vs £6.8bn
EPS. 40.1p vs 34.7p
All they can do is to continue to beat consensus, develop the pipeline, and eventually that re-rate will come.
Consensus estimate: Earnings of $0.85 per share, down 2.3% from Q2 last year. Revenue $8.49bn, down 2.5%.
GSK has beaten the consensus earnings per share number in each of the last four quarters. I think they will do it again.
Stock symbol is CNQ apparently, some refer to it as CNRI and some as CNRL but your CNR makes more sense!
I see where you are coming from NKOTB, with the knock on implications for Mansell and Orlando it is certainly worth the risk if as you said, it can be picked up at a favourable price with little or no decom costs.
65 million proved and 99 million proved + probable is not be sniffed at in almost any fiscal environment.
From CNQ "▪ Primarily as a result of prevailing regulatory and economic conditions in 2022 along with the increasingly
challenging commercial outlook in the United Kingdom, including the impact of higher natural gas and carbon
costs, the Company completed an assessment of its North Sea operations and de-booked 65 million BOE of its
North Sea total proved reserves and 99 million BOE of its North Sea total proved plus probable reserves,
representing approximately 0.5% of the Company's total reserves at December 31, 2022. Additionally, the
Company is accelerating the abandonment of two of the platforms in the North Sea."
CNRL. Now I'm with you!
CNR is Condor Gold?
I agree with you NKOTB, They wouldn't be cheap and capex would be high to get to production.
I was just joining up the dots from Bluewater cashing out on Siccar and Mime and Serica apparently looking to set up a beach head in Norway.
CNR? Do you mean Capricorn, CNE?
Norwegian acquisition?
1. Steve Edwards made noises that private equity owners were not financially distressed but strategically distressed and had reached their monetisation point in the investment cycle.
2. Andrew Austin mentioned that the private equity owners of Mime, Bluewater, sold Mime to Kistos because they were unwilling to put more cash into the company.
3. Bluewater also own another norwegian based O+G company, Wellesley Petroleum.
Are Bluewater ready to cash in on Wellesley?
The negative is that Wellesley currently have no production, but have been very successful with the drill bit.
9 commercial discoveries since 2016.
195mmboe discovered and another 100mmboe+ to be tested in the next two years.
forecast to produce 12,000boepd in 2029.
https://wellesley.no/development-portfolio/
https://www.bluewaterpe.com/investments/