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I think that we can safely say that the market discounted and ignored that rns from Enquest and relied on the rns from Cairn. I think this also confirms that the market's confidence in AB as CEO is gone. He does not enjoy the confidence of the major shareholders and has created a complicated conglomerate where companies with significantly slimmer balance sheets are more highly valued. He has to leave.

Dont really understand whats going on. Invredible! Speculation on another site that cairn might sell up

BNb - yes this is what barclays and rbc were calling. Note that enquest writes no material impairment which could indicate an immaterial impairment which should be under 30m. IF they hadnt come out the conclusion had been a writedown of 385m

Good that dc4 is producing

This is what the market has been speculating over for a good 5 months i would say. This will be a strong point of contention. Indeed, enquest as operator will have access to more information than cairn. They have written down by 19% or 6,8 mmboe. That means they had kraken on their books at 35,7 mmboe. This would mean that enquest have kraken booked at 85,5 mmboe. Maybe someone can remember. They may have found more reserves during drilling operations so a reserve upgrade as others had speculated on that would counter the impairment charge. Pure speculation

Enquest has just released an rns saying that they will not be making an impairment charge due to varying methods. Well all i can say is finally enquest has shown a level of proactivity that i and krakenoil have long requested. Aviid speculation! Great work Ian Wood!

Reports an impairment charge of 166m for kraken. Question is whether this is in line with market expectations...

Not sure what you mean Krak but I guess you are being sarcastic :-). It is what it is. Of course oilies are out of favour but something is vexing the market regarding Enquest and that something is more than likely Kraken. Most likely RBC and Barclays have got wind of something that has motivated their price targets that we have not got wind of or we are just getting wind of. In the best case they are implementing a permanent solution and this has needed them to slow down production. The frustrating thing is thís scenario has repeated itself multiple times with Enquest.

My take is it is not a shorter but rather an institutional owner wanting to sell the Ri shares they were forced to buy last year. Who is the question

Yeah i know. Just praying we dont go down to 0

I think that we can safely say after 2,5 months this year that any upward movements in Brent have zero impact on Enquest however downward movements have an elevated impact. Brent up 30% since low of 50 and Enquest up 3%. The big question is around Kraken. Magnus is probably keeping the sp from falling to zero hence I understand why AB called the deal compelling. AB better have a good story on the 21st.

Hi. Read the presentation but see no mentioned of enquest just Maersk drilling.

Can imagine that Trump will countertweet and we will see 62 next week....

Sounds reasonable hitman and i think that bumi is doing a lot of the work at cost as you write. They have written down kraken fpso by 500m so that is a substantial hit. Nevertheless, as others write, we minions have not been informed of what is going on - have to reason amongst ourselves but rbc and barclays have been informed (perhaps from inside knowledge) as they have pointed to issues with kraken since january whereas we have believed for a long time what AB Said that it was a few minor issues. These have been major issues and the Magnus deal was necessary to again stop the company going to the Wall.

I can also see that sp behaviour is following the old addage - sell on the rumour buy on results. We will see

I suspect that analysts are expecting an impairment charge against Kraken. I read that Bumi has taken an impairment charge of 2,4 bn ringgit against their assets and given that most discussion centered around FPSO Kraken I assume that that is the one taking the greatest hit. This equates to roughly 500MUSD. Now Bumis asset is the FPSO where all the problems are assumed to be so this may not equate to an impairment of the field. Their asset is future income and this is also a liability for Enquest (Future lease commitments which was valued at 772 MUSD). An asset corresponding to this liability was entered as an asset so at the very least that asset should be written down but a corresponding long term liability will also be written down. Complicated stuff. Anyway, I think that production is most likely constrained as work is ongoing to implement a long term fix which should be good if they can do it.

Krak - was looking through the pmo results. Agree that it looks Shaky. Paid down debt with 400 but as you say it came from sale proceeds, borrowing and lower cash on hand

Well i am hanging in there - thanks for the rallying cries krak and pelle. Lets take weekend and hope it is a Quick loading

What you write is a bitter pill but undoubtedly true. I might be wrong but hope that we arr at the bottom of the Ladder but i think AB should step down

Yes that is my deduction as well