Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
The board have openly committed to reduce debt as their main priority which is a most wise decision. if that means asset sales then that's what needs to happen
Achieving a debt free balance sheet must be the main objective
That's why the price has taken off
ASC have an established business but the market frets over liquidity concerns ie cash flow, cash balance and debt concerns, the three great fears of any equity holder. Sort out the cash, reduce the debt at all costs and cut out the fat. It can be done here. It's heading in the right direction and the market should endorse that progress
LONDON, April 16 (Reuters) - Britain's EnQuest is looking to sell its 27% stake in the Golden Eagle oilfield in the British North Sea as it seeks to reduce debt levels, two sources told Reuters on Tuesday.
It was unclear how much the sale of the non-operated stake would raise. The process is being run by investment bank Jefferies, the sources said.
A spokesperson for EnQuest declined to comment. A spokesperson for Jefferies also declined to comment.
EnQuest bought the Golden Eagle stake from Suncor in 2021 for $325 million - roughly equal to EnQuest market capitalisation at the time - to boost its production capacity by another 10,000 barrels of oil equivalent per day.
EnQuest has struggled in recent years with high debt levels and a drop in profits after Britain imposed a 35% windfall tax on North Sea producers after the surge in energy prices following Russia's invasion of Ukraine in 2022.
The company, headed by CEO Amjad Bseisu, reported a net loss of $31 million in 2023 and a net debt of $481 million, compared with $717 million a year earlier. Its current market capitalization is around 307 million pounds ($382 million).
EnQuest also announced in March its first shareholder distribution in the form of a $15 million share repurchase in 2024.
Shares in the company were up 0.1% early on Tuesday.
The Golden Eagle project is operated by Chinese-owned oil and gas firm CNOOC and includes the producing Golden Eagle, Peregrine, and Solitaire fields.
When the purchase was announced in February 2021, Chief Financial Officer Jonathan Swinney had said it would earn EnQuest around $13 million a month. The company also completed a $750 million debt refinancing in June 2021 to support the purchase.
EnQuest's website says Golden Eagle still has "significant development potential, including further sub-sea and platform infill drilling, with an anticipated field life extending into the early 2030s." ($1 = 0.8033 pounds) (Reporting by Ron Bousso in London and Deep Vakil in Bengaluru; editing by David Evans)