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How Many days is that since last therapist?

Jan - dont feed the troll!

Ah well good luck then

Whats happening tomorrow?

Why would AB do that hitmania?

I really hope that Enquest can do another Magnus style deal with zero up front commitment. With so many companies trying to sell their assets they should be paying the buyers to take them of their hands :-).

Agreed smokinAccess and Hitman. If this model is not for the liking of the seller then Enquest can bid for others. This may explain why they are currently engaged in 3 bids. 1 of them may come in. AB wants to protect his investments and with the Magnus style acquisition he has shown that Enquest can be trusted to deliver returns to the seller. Could well be that Bressay was a similar set-up

It was interesting reading the transcript of the Cairn half-yearly presentation. Simon Thomson highlighted that their financial flexibility affords potential to make further shareholder returns. The call was well attended and I noticed a few familiar names who don't seem to bother turning up to Enquest's calls any longer... :-( I haven't found the transcript of the latest earnings call for Enquest. Maybe they don't bother any longer.

Anyway, I started looking at the Enquest website again - About us. Their comment on Investors was a little worrying "Our investors support management in the execution of EnQuest’s business strategy, including the provision of capital for management to develop the business". No mention of returns just a capital source :-(.

Under Value Enhancement " EnQuest employs a cost conscious approach and implements innovative initiatives to add value to its operations. Innovative transaction structures facilitate getting the right assets into the right hands " It seems that if they are going to do anything in terms of a financial transaction it will be innovative. On reflection, there does not appear to be an appetite to make a capital outlay on fields when the future for oil is so uncertain. I would imagine a profit sharing scheme where Enquest is incentivized to drive field life and efficiencies.

Finally, under Investors>Debt I found this "The maturity date of the new high yield notes will be automatically extended to 15 October 2023 if the credit facility is not repaid or refinanced in full prior to 15 October 2020". The 15th seems to be a key date. Some form of refinancing maybe in the offing after the 15th October.

Enquest have been pioneers in that sense. I have not registered any other Magnus type deal in the North Sea so it could well be the case. Many of these companies are getting out simply because they can't make the fields profitable at these levels and Enquest has shown the way. Admittedly even Enquest has had to decommission some assets of late at these levels so I imagine they will be using their models to see which ones make sense and which ones do not. I saw that the Scott platform had experienced difficulties and shut-ins but I am not well placed to comment on its viability.

Hitman - I agree with your point that these leaks are most likely done with the intent of boosting the interest and price and quite possibly indicates desperation from the agents. I have not seen this level of "leaks" in the past tbh and 3 leaks involving the one company in one and the same week is probably unheard of. I could well imagine AB "sniffing" around but given the way he has structured deals in the past with Magnus and Bressay I imagine he has learnt a number of incredibly hard lessons which means that if any deal was to be concluded it would be a Magnus style deal. I think the Bressay deal could quite involve some structural deal with Cairn given they have an ownership share in Kraken. There are a lot of irons in the fire as they say however I will oppose any call on shareholders given that this has been done twice and our market cap is below the two rights call combined. I would imagine that Enquest would meet considerable resistance from shareholders and they are probably aware of this as well.

Hi smokin. They are all around us i agree. I suspect that there is some level of engagement in negotiations from enquest side but Having secured bressay i Don’t see the real need to do the deals and maybe a magnus style deal for one may be achievable if the fpsos can be regarded as equity in the deal. We are actually in a good position i feel so of management were to do something detrimental to shareholders it could be grounds for legal action.

Thanks for your input L7. I have always viewed yours and L3 inputs with an increasing degree of scepticism I must admit and your post does seem to confirm that. Your agenda is it seems to seed doubt in shareholders minds over the long term validity of Enquest and what you are advocating is potentially a complete wipe-out of existing shareholders by doing one or all of the deals (!) without impacting the target debt levels v leverage. Naturally anyone who didn't have a stake in the game or at the most a minimal one would be advocating such a course of action to come in.

Hi Jan - please don't missunderstand me. I am fully in line with your thinking. I don't want any more equity calls and will vote against that if my vote is heard. But agree with Romaron's thoughts. Our competitors are in an absolute mess and for some reason our name is being bandied around in all sorts of contexts. If assets are being given away and the major's need a partner with strong execution capabilities maybe that puts us in some position of strength (I pray)

There are also the 2 FPSOs which have been mooted as being potentially used in any M&A activity. Could be that this is on the radar.

So this week was full of speculation of Enquest bidding for Exxon's 15 aging fields (37k boepd), CNOOC's Scott platform (both deals in competition with Sinopec) and Exxon's assets in Malaysia for 3bn USD. We have of course no money really to do any of these deals if they were not to find a Magnus style deal I would imagine. I do remember that as long as the SFA is not refinance by October 2020 that the bonds will roll over to October 2023 which is a given and possibly creates a compelling reason for Enquest to do something now in October and November 2020.

What is the boards opinion? I am hoping that there is not another equity call and enquest does seem to have control of the financial situation and maybe could increase the SFA somewhat to pursue additional growth opportunities ahead of the rebound in oil prices. Malaysia does not appear to be realistic and Scott unreliable but maybe Exxon's North Sea assets that were expected to grow production to 60K are more likely.

Hi L3 - please send the link to the article where ab says “There’s around 30 million barrels we have had to kiss goodbye to.” Another ageing field, Alma, is also due to shut in the coming months and the Dons, a further higher-cost collection of fields, will be reviewed."

Hitman - what I read is the following. "Net 2P reserves decreased by 13.3% compared to 2018. During the year, the Group produced 9.6% of its year-end 2018 2P reserves base, with downward revisions at Heather/Broom and Thistle almost entirely offset by additions at the Group’s growth assets, Magnus, Kraken and PM8/Seligi.
So what I read there is that they have already included write-downs at Heather/Broom and Thistle in the figure of 213 not in addition. There were additions at Magnus, Kraken and Malaysia that offset these write-offs.

Hitmania - read the Annual report!!!

Sorry L3 - what have you been drinking? Turps? Enquest had 213MM barrels at the end of 2019 but that was after they had removed 2P reserves for Heather/Broom and Thistle. You would have seen that yourself if you bothered to read the annual report before starting to speculate. During H1 they have produced 12M barrels. You can take a little off for Dons but they are no where near the figures you are quoting. Enquest did not publish 2P reserves at the H1 report last year.

I found the following on Worcester published lat week "At Kraken, the company completed drilling at the Worcester accumulation, with the new producer-injector pair coming online late in 2Q." So what an earth are you on about?

Hi Londoner,
I am confused over Petronas. I will need to read back through the H1 report again. You through up a new angle.
2. No clue. I don't think they have accounted for any Decomissioning thusfar this year so 50m maybe on the high side for H2.
3. I would be glad of Oz net debt at $56M at year end. Taken.
4. Lets see
5. Agree