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Jefferies has reiterated its 'buy' recommendation for Serica Energy PLC (AIM:SQZ) with a share price target of 340p

The current price stands at 244p, up 1%, and the bank remains optimistic about the company's financials and growth, particularly following the £367mln acquisition of Tailwind Energy.

https://www.proactiveinvestors.co.uk/companies/news/1012025/serica-energy-broker-hails-tailwind-acquisition-is-it-reiterates-340p-price-target-1012025.html?viewSource=TwitterUK

https://static.seekingalpha.com/uploads/sa_presentations/579/92579/original.pdf

Serica Energy plc 2022 Q4 - Results - Earnings Call Presentation

https://twitter.com/SericaEnergyplc/status/1646394738101174272

Our 2022 results show outstanding progress, with strong growth in production volumes, a significant upgrade to reserves and increased profitability at all levels, proving our strategy of investment in our UKNS assets to unlock value and prolong their life.

decent update, beteer to be conservative as recovery initiates and ideally placed for further M&A...for investors looking forward over coming months (not days) all looks set and on course....66p a nice buy in price for those with a little patience :-)

face palm !

https://twitter.com/surprised_trade/status/1646408602607841281

brent 87

I am delighted to announce our 2022 results, showing outstanding progress for @SericaEnergyplc
with strong growth all round and the the recommendation of an increased dividend for shareholders. Full results are on our website now https://bit.ly/41qHFiW

https://twitter.com/MitchFleggCEO/status/1646396842517704706

outlook for oil is also very positive and SQZ have it to sell.....oil a very good addition to the business and dividend increase a real bonus....a lot to like and potentially the WFT relief to come in due course

Tailwind acquisition completed in late March 2023 and is already contributing strongly to Serica's combined reserves growth and production rates as well as better diversifying the Group's offtake routes and commodity balance and offering a range of near term investment options:

o updated Tailwind reserves report shows increase in 2P reserves from 41.8 million boe at 1 January 2022 to 55.5 million boe at 1 January 2023, replacing 2022 production four-fold

o Gannet GE04 well onstream in February 2023 at initial production rates above 10,000 boe/d and exceeding pre-drill estimates

o net production for the combined Serica and Tailwind portfolios averaged 46,800 boe/d during Q1 2023

o preparations during 2023 for a four-well Triton area drilling campaign in 2024 starting with the Gannet GE05 well

o integration plans on track, including sharing best practices, prioritising work programmes and high grading investment opportunities.



· Combined Group production guidance range for 2023 maintained at 40,000 - 47,000 boe/d on a full year proforma basis:

o combined operating costs to remain below $20 per boe

o Price hedging under borrowing facility for oil production acquired from Tailwind

§ 2023 from 23 March, approx. 11,000 bbl/d @ average $58/bbl

§ 2024 approx. 4,000 bbl/d @ average $74/bbl



· A second light Well Intervention Vessel campaign to enhance production on BKR wells planned for the summer with a further campaign expected in 2024.



· Subject to shareholder approval at the AGM, a final 2022 dividend of 14p per share will be payable on 27 July 2023 to shareholders registered on 30 June 2023 with an ex-dividend date of 29 June 2023.



· Completion of the acquisition of Tailwind puts the Company in a strong position to maintain and grow its dividend. Following the introduction of an interim dividend in 2022, future dividends will continue to be paid in two annual instalments

Operating profit of £476.2 million (2021: £246.1 million) after:

o realised losses of £45.4 million on 2022 gas price hedging (2021: £56.6 million)

o unrealised gains of £20.9 million on hedge valuations (2021: losses £74.6 million)

o E&E asset write-off of £82.7 million related to North Eigg exploration well.



· Profit after tax of £177.8 million (2021: £79.3 million) after current tax charges of £277.7 million (2021: £15.8 million) and non-cash deferred tax provisions of £32.7 million (2021: £40.0 million).



· Net cash inflow from operating activities of £560.1 million (2021: £157.6 million) including:

o £91.0 million net release of cash security held by gas price hedge counterparties (2021: net payments lodged £113.6 million)

o £143.5 million cash taxes paid in 2022 (2021: nil). Further £140 million of 2022 tax charges paid in early 2023.



· Closing cash at 31 December 2022 of £432.5 million (2021: £103.0 million) plus a further £24.3 million of cash security lodged with gas price hedge counterparties (2021: £115.4 million). Remaining cash hedge security fully released post year end. Closing cash at 31 December 2022 is after:

o £97.1 million exploration and development spend (2021: £52.2 million)

o £93.9 million final BKR cash flow related payments (2021: £81.3 million)

o £46.3 million dividends paid (2021: £9.4 million).

2022 Summary

· Profits increased at all levels with a 93% increase in operating profit and a 124% increase in profit after tax, boosted by the end of BKR net cash flow sharing, increased production volumes and higher commodity prices.

· Average net production of 26,200 boe per day compared to 22,200 boe per day for 2021, an 18% increase.

· Serica 2P reserves increased to 74.9 million boe effective 1 January 2023 (1 January 2022: 62.2 million boe) with Group 2022 production replaced more than two-fold.

· Acquisition of Tailwind Energy Investments Limited announced on 20 December 2022 and completed post year-end on 23 March 2023.

· Final 2022 dividend of 14p per share recommended, bringing 2022 full year total to 22p per share1 compared to 9p per share for 2021

i'm delighted that we can recommend an increased final dividend of 14p per share. The continued strength of the Company underpins the intention to maintain or increase the dividend in future years

https://twitter.com/surprised_trade/status/1646173302283444225

why Buffet likes Oil. “you will be producing more #Oil 5 yrs from now or about the same and if you spent trillions $ now you’d still be needing it. you can’t change the world that fast” says Buffet to ?@JoeSquawk? ask on potential $20T spend on EnergyTransition.

https://twitter.com/surprised_trade/status/1646145652496244738

out of favour stock currently, trading sideways since fall from 35p a few weeks ago...CEO remains bullish & confident of further opportunities & states sp very cheap.......added at 16p...............broker has 40p target

excellent interview feom CEO

https://www.voxmarkets.co.uk/articles/wendy-lawrence-of-totally-the-size-of-the-opportunity-has-never-been-greater-661ec81

https://twitter.com/surprised_trade/status/1646133223037059073

Not since the formation of OPEC+ back in 2016 had net bullish bets on Brent climbed by as much as they did last week.Money managers boosted their net bullish bets on Brent Crude by the second-largest amount on record following the surprise announcement from major OPEC+ producers that they would remove more than 1 million barrels per day (bpd) from the market between May and December.Speculators and traders added as many as 73,000 contracts to the net long position ? the difference between bullish and bearish bets ? in Brent Crude, the second-highest increase in such bets, per data from ICE Futures Europe cited by Bloomberg.

https://twitter.com/surprised_trade/status/1646133223037059073

Not since the formation of OPEC+ back in 2016 had net bullish bets on Brent climbed by as much as they did last week.Money managers boosted their net bullish bets on Brent Crude by the second-largest amount on record following the surprise announcement from major OPEC+ producers that they would remove more than 1 million barrels per day (bpd) from the market between May and December.Speculators and traders added as many as 73,000 contracts to the net long position – the difference between bullish and bearish bets – in Brent Crude, the second-highest increase in such bets, per data from ICE Futures Europe cited by Bloomberg.

https://twitter.com/surprised_trade/status/1646133223037059073Not since the formation of OPEC+ back in 2016 had net bullish bets on Brent climbed by as much as they did last week.Money managers boosted their net bullish bets on Brent Crude by the second-largest amount on record following the surprise announcement from major OPEC+ producers that they would remove more than 1 million barrels per day (bpd) from the market between May and December.Speculators and traders added as many as 73,000 contracts to the net long position – the difference between bullish and bearish bets – in Brent Crude, the second-highest increase in such bets, per data from ICE Futures Europe cited by Bloomberg.

another £650k on top of the start of the larger one detailed below, every £650k adds up ...

storage of emissions and USE of 'fossil fuels' for longer :-)

ccs allows the capture and storage of 'fossil fuels' emissions for longer and actually provides a support for the continued and or expansion of fossil fuels as emissions are the key and if captured and stored removes the arguments many of the eco warriors complain about. For once it is actually a good initiative that the government have promoted here :-)