Member Info for Papegoja

Can someone update me on the present status of UK- politics in respect of Oil& Gas? As I understand it Tory introduced the EPL and then they made it worse by increasing it and extending it. Following that Labor came in and they increased the pain even more. Is there any party in UK that share the view that we have on this Board? Is there any political discussion about it at all or do we have to wait for cold winters and increased costs before this matter becomes a concern for your politicians?

In my view, if the price of oil goes down then fracking in US with its very sl.im margins will not increase so I don't think the oil price will go down. Neither do I expect increased flow from Iran/Russia for the same reason. Trump doesn't care about the american people. He and his small group of real friends (Oil directors and the likes) will focus on their own wealth and golf-hcp and that will mean oil-prices on a level they like and can handle.

On the 1 st of May when the repurchase startedthe share price was 15.68. With that price it looked like E could repurchase 73 million shares.

Today 22nd of Sept. the share price is 11.20 (Down 28%) and if this price holds then E can repurchase 100 milion shares (at todays price). However, in order to achieve that E need to purchase 1 million shares /day since we only have 68 trading days left in 2024.

I didn't expect this outcome, since I expected the shareprice to go up. I will therefore not give any prediction but perhaps someone else can? I hope E can get rid of the free-float and I hope the rest of us can stay cool and not sell out to a low price.

I probably missunderstand you. I know we are 8 million shares away from the 25 million. I am just saying the GBP 9 million remaining will enable E to buy another 65 million shares at today prices.

Hi Pete, I guess you mean 65 million shares and not 8 million! we still have 9,5m GBP left.

Even if Ed Milliband is a problem with zero understanding of economy. My biggest problem is the fact that tories introduced a windfall tax and then increased and prolonged it without understanding the consequences. It looks like your Great Britain have idiots all over the place.

6 million shares traded at the end of the day. Who is buying and who is selling? As long its not AB selling,I am fine with it.

I think that the transfer to LSE from Stockholm (an unpleasant surprice for all retail holders in Stockholm) can be part of the answer to the low trading in E today. In one go you probably got some 20,000 new shareholders on LSE. Most of them now needs to call their broker to buy and sell shares in E instead of trading over the internet and the cost also increased a bit. In my view that reduced the turnover somewhat. However, and more importantly today when it is a super holliday (Midsummer) in Sweden I think no reatail holder will trade since even the brokers are on holliday.

Someone buys shares for 6000 GBP and the share price swings from - 0,30% to + 0,75%.

I try to figure out if it is a strength or a weakness of E when I see the huge swings in SP on a daily basis. Yesterday we fell 12% on news that we all had been informed about before ( I am talking about the Labor manifesto) what also impacted was that one retail shareholder well known at X gave up and exited. If we are so sensitive to a single shareholder selling then I think this is a good time to buy. ML is reducing the free float on a daily basis and although I understand many just had enough of E I think this is the worst time to sell. ML can buy 80 million more shares with the SP we have today and I am not selling. I wish I could buy more!

No RNS today.

Following your comment I looked back on the trades for the last 5 day period 23-24 May 28-30 May (5 trading days) and did a "qualified gues" about the avarge pricewhich I think was around 0,149 GBP. With that said ML could only buy shares for less than 0,1564 GBP/share (105% x 0,149). Today we didn't receive any RNS so I assume they didn't buy any shares on the 31st of May and I guess the reason is that the price increased to something above 0,1564 before they got their act together.

On the 29th of May we were informed that E was going to repurchase shares for MUSD 15. E infomed us that they engaged ML to handle the purchase and that E entered into an agreement with them for the period 29 April 2024 to 30 June 2024. My first impression was that ML was going to repurchase shares for MUSD 15 within the 2 months. That is probably not the case. We are now half way and they have used 900,000 GBP and only repurchased 5,73 million shares. If they intend to repurchase shares for the balance of 13.9MUSD they ned to purchase 3,3 million shares/day (at todays prices). So, then I thought perhaps they intend to repurchase the shares within 2024. In such a case they need to repurchase 467,000 shares /d (at todays prices and given we have 148 days left). Now, even that looks like a difficult task so I wonder if someone who visited the AGM could share some light on the matter.

So three weeks has gone since E informed us about the repurchasing scheme.So far, E or ML has bought 3,1 million shares in E for 500,000 GBP. Paying on average 0,1607/share.

If they are going to spend the MUSD 15 in two months on repurchasing shares they need to speed up their tempo. With 36 trading days left (may-june) they need to buy 2 miljon shares/trading day (at todays prices).

It can't be easy to buy 73 million Enquest shares in less than 40 days shares in an illiquid market as ours!

156,000 shares repurchased at a price of 16.23. Good luck with the remaining 73 million shares in two months. I hope all LTH can keep their cool and not sell too early

I find this comment in the RNS very interesting

"The Company will announce any market repurchases of Ordinary Shares no later than 7.30 a.m. on the business day following the calendar day on which the repurchase occurred"

It will give us a pretty good picture on how the SP reacts on the repurchases. In addition I do agree with Dumbly. I think the message about repurchases in the amount of MUSD 15 was unclear now when it includes shares for the staff/management.

I contacted IR and asked them what kind of oil E is producing and how I could follow the price level. The answer from IR was the following:

EnQuest oil production largely follows Brent pricing, with the following exceptions:

- Kraken crude sells directly into the very low sulphur fuel oil ('VLSFO') market, where it is blended offshore to form shipping fuel. Over the past 24 months, the pricing in this market has been relatively volatile and we have seen significant premiums and discounts to Brent, although I'd note that annual averages have been close to Brent.

- Alba oil generally trades at a discount to Brent of c.%3/bbl, while our Malaysian production from PM8/Seligi tracks at a premium of c.$1.5/bbl.

I also asked whether E needs to issue RNS every time they purchase their own shares or if I could follow the process in another way. This is the answer i got.

With regard to the share buy back programme announced last week, we are in the final stages of putting together the administrative details, but will certainly announce the commencement of the programme as a minimum.

In the beginning of 2023 the Net debt was MUSD 717. E produced 43,8Kboed at USD 82,5/bbl and reduced the Net debt to MUSD 480 (- 330). For 2024 the production will probably be the same accoring to E and oil price will be ?, my guess USD 86/bbl. With that said I expect the Net debt to end up at MUSD 150 (- 330 or same as for 2023) give or take some milions.

In addition

During 2024 E will start to purchase its own shares for MUSD 15 or 85 million shares at 14.00. That represent 4,5% of total shares outstanding. However, the ten biggest shareholder holds 50% and I guess another 25% are LTH (Jan and others on this Board) so with that said 85 million share represents not 4,5% but 18% of the free float and this will have a huge impact on the SP, in my view.

So instead of follwing the SP on a daily frustrating basis I will leave it to AB and his team to focus on the things they control and I will return back to this Board on a quarterly basis to check the development on my 0,1% of the shares. Happy Eastern everybody and especially Kraken since I fully share and agree with his frustration. I note that 2024 has started in a good way so its only 9 more months to go.