Member Info for Squif

Does enquest still have an IR?

Merry christmas all long time holders. Don't know what else to say but hopefully AB buying more shares indicates that Enquest has started to get Magnus and Malaysia in order....

lol - you are an idiot

Why not buy them off me right now @40p a share given you are so damn sure?

So this is Enquest and Bumwad that we are talking about? In my absolute fantasy Enquest will reach 40p and I dare say I am stretching it. There are so many moving parts that he can touch and fluff up like absolutely everything else he has touched but if the Brent gods smile upon us and Poo averages over $85 during 2022 and 2023 then I can see 40p and then I will be absolutely gone from this rat infested investment

I am not investing any more hard earned money in this dog of a share until Bumjad can show that he can create something from all the monies that he have been invested by shareholders over the years. During the last 5 years $291M has been recapitalised into the company and the market cap is £334.3M or $440M. Back in 2011 the Retained Equity was $934M and at year end 2020 it was -$64.6M so Bumjad has destroyed $1BN in equity in just under a decade.

I have investigated the Alma Galia investment and that was a greater disaster than even I could imagine. Write-offs totaling $1,27BN (during 2014 and 2015) so one doesn't need to look much further than that. Other write-offs were largely due to the Oil price cratering and I agree we can't saddle him with that. But one can see in the cold light of day exactly how much damage and carnage that investment caused. He should really dig into his own pocket and recompense investors.

I suspect this was sleepy joes cunning plan. Lets make up a new variant and collapse the oil market which once again is the worst hit. I hope this comes back and bites him on the bum

Thanks Pelle. I recognise that you and i am in the same boat. With that Said, ab has to go. He is not putting all shareholder interests at the center

Been doing some detective work on this dog.
RNS 24th Jan 2017: This was the acquisition of the 25% for $85M which was a loan to be paid out of cash flows. The remaining 75% will cost $300M.
RNS 3rd Dec 2018: Magnus completed. $100M paid out of RI and there is remaining $100M in loan. 2P reserves of 60M and it is claimed that NPV is $500M at $70 Brent.
Production in 2017 and 2018 was roughly 16k boepd and the asset was taken over in december 2017 so that month generated 4,2k.
In 2018 Annual Report Vendor loan repayments on Magnus financing was $48.6M
In 2019, EnQuest repaid $88.4 million to BP, including repaying the remaining $34.8 million in the year associated with the initial 25% interest vendor loan, with the remainder reflecting the partial repayment of the 75% interest vendor loan and interest, and BP’s entitlement to share in the cash flows from the 75% interest. "
In the 2020 Annual report it was noted that Magnus generated 17,416 boepd. In that year repayments on Magnus financing and profit share were $61.8M.
In the 2021 half-yearly it was reported that Repayments on Magnus and Financing was $12.3M and $58.7M was paid to settle the loan.

So the amount paid to BP thus far for Magnus including financing costs is $100M + $48.6M (2018) + $88.4M (2019) + $61.8M (2020) + $71M (2021) which is $370M. Now $85M was 25% so 100% was $340M so that is roughly $30M in interest. If I am not mistaken Enquest was entitled to 100% of production from the economic date at the beginning of december 2017. In that month, average production was 4,2K, in 2018 it was 16K, in 2019 I couldn't find exact figures, in 2020 it was 17,416 and in 2021 up to end june it was 13,847. Assuming it was 16,4K in 2019 that gives a total production of 21M. BP had access to 37,5% of cash flow from Magnus. Removing the finance charges and the $100M consideration that represented roughly $11,4 per barrel and that Enquest would have earnt $19 per barrel or $400M over the period.
I am not sure if that includes capex or not.
Now assuming that Magnus can get back up to close to 16k when matters are addressed production should be totalling close to 58K per day. It would have been better if they had put that in the rns instead of the disastrous rns they put out.

That in my mind is a material miss and should have been reported. This is gross mismanagement and in a normal working company the CEO should be shown the door.

Good point L3- even more AB speak. Anticipates, approximately, around, should and could be. No definitive language whatsoever and so in the end one doesn't know what has been communicated. It is all wishy washy.

I wonder what normal production at Magnus now generates and what normal production at Malaysia is expected to be.

Thanks for the post Tigar. I appreciate the note on Enquest getting fcf from Magnus up until APril next year but as I said I would really like to understand the goings out and comings in from that investment from day 1.

What I can't understand with you Romoron - you are pushing 75 and you never know what tomorrow holds. Either you are not invested here or you are one of ABs cronies who is getting a tip off and acting upon it and having a good laugh at the rest of us who are invested and for us this actually hurts. Either way you are a ****.

KO - I don't think that we can focus on this OU as being poorly written. They all are and not just this one in particular. I am actually quite worried for the lack of oversight and governance within Enquest. This has more and more become ABs private company and we have been promised fairy floss and been given peanuts. If I look at the Market Cap and subtract the capital raises we have pumped in over the last 5 years what is left is barely £100M. And lets not forget that this company was once upon a time capitalised on the market with over $600M in retained profits. So the sum total of ABs time at the helm is close to $500M in accumulated losses.

How bad does it need to get? In the cold light of day he cannot make a profit out of his investments. I have tried to analyse the Magnus investment and try to determine how good (or bad) it has been but it is nigh on impossible as Enquest does not report figures clearly.

I think that Enquest is like a drunk going to AA who says every meeting that they will behave and stop drinking and then next day they are back on the turps.....

Now L3 - I think you are somewhat disingeneous with your post. The $75M was the amount knocked off the purchase price to account for the economic returns of owning the asset from the start of the year so I disagree with you on that point. It is not an accounting adjustment.

Agree that the working capital movements will be interesting to follow as that is also somewhere where AB hides what he steals....

Pelle - I feel absolutely as low as I imagine you may feel as does Kraken. Tbh I have my doubts about how genuine Romoron is as an investor (I think he also trades) and Mrc is a paid Enquest poster so I have filtered him.

I also feel that every time a bad OU comes (which tbh is every time) it is like a cold shower and then the Woke Enquest brigade start posting positive spins to make it all warm and fuzzy again. I want a true and sensible presentation of the situation at Enquest and it is never forthcoming and all I can conclude is that they do not want to present it to shareholders.

The concern that I have is that (and I agree with Pelle) that November and December production is 49K but that includes Golden Eagle at 10.4K so what in blazes is going on with Magnus, Malaysia and Kraken.

The lack of information is breathtaking. Doesn't the Chairman have the ability to remove the CEO when he is not doing a good job?

WHat would be even more interesting is to see the true profit (loss) Enquest has made on Magnus. Enquest obviously lied a few years back when they stated at the CMD presentation that NPV(10) for Magnus was $450M+.

AB is a master at keeping the real story hidden from investors and positioning news in a negative way to bomb out the share. Anyway, trying to taking a look behind the numbers at our debt paying ability.

Net Debt start of year including Magnus loan: $1.36 BN
Net Debt at end of year: $1.28 BN based on extremely loose wording in the RNS (as always....)
So on the face of it we have reduced net debt by $80M. Add to that we have bought Golden Eagle for $275M (after removing the dilution payment of $50M). This should mean that we have paid down $355M. For the purposes of simplicity and given that the deal was signed almost at the start of the year I will say that production has been 45k + 10k (Golden Eagle) = 55k (Pelle please correct me if I am wrong as you have buried yourself deep into the details). Average Brent was $66. What I get is a fcf of $17.7 a barrel. Now average Brent up until 31 October was $69.4 so Enquest has managed to give away $3.4 a barrel despite the supposed Kraken premium.

So in essence what this means is that we need $48 a barrel to make break even. What that also says to me is that at $80 and 55k production we would be making $640M. Please correct me if I am wrong Pelle.

Someone who is invested here with a better understanding of the posting rules please comment. In my mind there has definitely occured a breach by not reporting the problems with Magnus, Malaysia and Kraken in time and this information has been driving the sp action over the last few weeks. In my mind the chat board has been infiltrated by a large number of people who are commenting with misleading posts and simply trying to lead away from the issues at hand.