Member Info for Pelle

Hi MO

Regarding the Enquest producer, do you know when it was last time visit by tanker?
I think it can also hold around 600k, so it might be possible they do a 500k unload as at Kraken

Hi E121

I agree, the oil outlook now for rest of this year and 2019 looks great and with Magnus included cashflow grows fast.
Hope soon shareprice can reflect this also, for me as holding several years the shareprice now at this moment must be the most strange during all this time.

I hope they sign the Magnus deal asap, maybe even before getting the 100 milj from right issue because they should
have that amout of money anyway in cash

I saw Navion Hispania yday outside Sunderland heaading to Aberdeen but now out of range

Good morning

I am checking the timetable page 59
What does the last row "Record date 26th" mean? it also belong to swedish timeline?

Its strange have two different timelines UK/SE and then if I understand correct there should be a 12 p price diffrence
between shares for 1 week between UK/SE

Latest time and date for transfers of Ordinary Shares between
CREST and the VPC system prior to the Record Date 6.00 p.m. on 23 September 2018
Date and time of determination of the Swedish Krona Issue Price 6.00 p.m. on 24 September 2018
Announcement of the Swedish Krona Issue Price 7.00 a.m. on 25 September 2018
Ex entitlement date for the Swedish Rights Issue 25 September 2018
Record Date for entitlements under the Rights Issue 6.00 p.m. on 26 September 2018

Thanks Fernan
This cashflow is really a game changer for Enquest ability to pay down debt in 2019.
Its a fantastic deal for Enquest.
Complexity in deal is maybe needed but with easier and better presentation I think we should have rised on this news instead.

Thanks E121 for explaining the cost of the put options for next year.

Hi E121

Then we have exact same view of it for H2. Lets hope it comes out this way too
Do you have any rough idea of cost of lets say put 5 milj barrels hedge H1 2019?
Today at say 75 usd for H1 2019
Swaps and put options

Romaron, your right
But compared with hegde in H1 at 59 they reliased 59,5 usd
Now with hedge 66 usd for H2 and almost 3 months cleared with average around 75 usd
it looks like a 7-10 dollars upside there

Twalbyoff, the october payment they clear with new loan (Kraken ring fence).
So thats +- 0
So its still down to how much more they can produce H2 and price on oil.
To make cash for next payment that I think was in January

Hello

I can understand they dont like the complexity.
And I was suprised they didnt get more then 59 usd H1 with hegde of 50% at 59 usd.
Anyway there should be upside for H2, just some rough figures
Assume same production 10 milj and now hegde 66 = + 66 milj low estimate
production increase, Kraken, Alma,Galia, Malaysia around 10k/day = 1,8 milj barrels x60 usd = 108 milj
Thats close to the 200 milj they need
Next year hedge should be a lot better then 66 usd + Magnus production
So to me it looks like big steps in right direction

Hi Matrix

Yes, I agree with you.
But the remaining 39 milj should be paid back faster then that. around end year with current price and production.
And the cash flow is much more then 35 usd from Magnus.
Look in the prospect for right issue page 179

And with numbers on cuurent oil prices
Opex Magnus 70 milj GBP = 100 milj USDbased on 16k/day = 5,84 milj barrels/year = 17 usd / barrel

5,84x0,625% = 3,65 milj for Enquest and assume oil price (77-opex 17) = 219 milj usd cashflow
Then minus the 20 milj usd/year first 5 years

So around 200 milj/year cashflow for enquest

So we concluded the 100 milj vendor loan will be finished payback by around end of this year
Second 100 milj will be done with 20 milj/year

So cash flow must be from lets 1 Jan 2019 62,5% minus the (20 milj (+ some interest))

Correct?

Amjad Bseisu

I guess, I'll answer the first question, maybe turn over to Bob for the second, and then Jonathan for the third. And then maybe I'll answer the last one with the first one. So in terms of Magnus, what we can tell you is what we expect up to date obviously because we're not giving forward profit forecast. So from the transaction effective date, which is 1/1/17, so the $300 million consideration, we expect $100 million to be paid back. So we expect the assets, which was cash flow breakeven when we took it over, we expect it to have generated $100 million at the time of completion.

So the vendor loan would then reduce from $200 million to $100 million, would be payable over 5 years. So roughly $20 million per year over 5 years. So that's the expectation. I think Jonathan mentioned the point, which is actually very important, which is there is a notional tax because we have not owned the asset. There's a notional tax of 40% associated with that $100 million payback. And that notional tax will be not there because we have a significant tax carryforward pool. And so we expect our cash flows to be without a tax burden once we complete going forward.

Hi E121,
Thanks, yes I found it in text there. 66 milj and in half year report says they paid back 27 so remains then 39.
Correct? that should be doable for this half year

And about the 100 milj aditional vendor loan, did they not talk about back date that also?

Hi E121
Sorry , but can you please guide me where in the balance sheet I find the 66 milj?
I am looking at the latest half year balance sheet 30 the June

Good morning

L3Trader and E121.
Does your conclusions mean that Enquest will get 62,5% cashflow from Magnus after 75% transaction date around end of this year?

epiphany, yes your right 100% production from Mangus I relised that afterwards when I read my post.
Anyway its not important as I see it

But the second half of your post is important and hard to understand

You mean that enquest will get 100% cash flow back up to 100 milj ?
And after that its 62,5 % for enquest?
Yearly cash flow must be around 300-400 milj /year based on 16k/day for 100% Magnus

Whiteace, check Enquest site regulatory news under investors and you will see Nov operation update last year for example.
They have operational updates in between the reports

Goood to hear Jan:-)
I share that view also about November update staying around 70-80 USD oil price.
I also belive this H2 they should be able generate the around 200 milj USD free cash flow and next year we talking about 600-800 milj free cash flow.
Hope they hedge soon a big part of next year production and play it safe.
If this doesnt do its magic to share price I dont know what will do it