Member Info for TerryM1

shakeypremis

"NewKOTB, if massive dividends are extracted, ALL shareholders are going to get them, not just Mercuria."

That is true but current shareholders get 72% as Mercuri will get 28% as opposed to current situation where we get 100%

Some of those in favour of the deal seem to be basing their decision on faith, undisclosed information that may or may not exists and if does may or may not be beneficial to the deal.

I cannot base my decision on faith and maybes, this deal from all metrics it is bad and passing the control of our company to a third party who have form shafting us is seems crazy.

I tend to believe given the desperate situation the BOD have put themselves in they are more likely to withhold information which is bad for the deal rather than information which is good.

NormaStits

"A lot of the potential in this deal is simply not in the public domain and you won’t discover it."

Are you saying you know something that we don't, if so please share it will help us understand.

However if you do not have this information you are voting based on information that may or may not exists and if does may or may not be beneficial to the deal.

IMO if there was any information that is beneficial to the deal SQZ BOD would have been shouting this from the rooftops given they want this deal to go ahead and all the information given/uncovered which is very comprehensive makes this look like a complete stick up.

Jeffery1979

Just had a new message from HL for voting

"Please note that you are now able to submit your voting instructions online.

You can do this as follows:
· Log in online at www.hl.co.uk
· Select ‘view shareholder meetings’ which you’ll find under the link to your secure messages.
· Click the ‘give instruction’ link next to the relevant shareholder meeting
· Give your vote for the resolutions and hit submit"

I took a look and found it easily with the status of "Instruction Given" as I already voted by over the phone to HL.

jazbo

"In the event of a no vote being successful, where does that leave the credibility of the BoD going forward ?"

In the gutter and in an untenable position, I for one want some of all of the BOD gone with as little compensation as possible and a vote of no confidence in the BOD should happen PDQ.

They have proved they are not fit to run a company and if this is overturned we need a BOD who can be relied upon not to take us into awful deals as well as keep their promises like return of money to shareholders and not shaft the private shareholders.

From this report

https://quoteddata.com/research/abrdn-european-logistics-income-negotiating-choppy-waters-qd/

Looks like ASLI is well under valued.

Message from HL

"I hope you're well and thanks for getting in touch.

Following on from our telephone conversation, you can submit a voting instruction for the proposals outlined by Serica Energy plc by either sending us a secure message with your voting choice or by calling our Helpdesk on 0117 900 9000."

So anyone with account at HL can use one of these methods to vote and strongly encourage you to please vote. Also anyone with another provider can contact them and vote now.

It will come as no surprise but for the record I voted NO, I only have a small holding but every vote counts, let get this stopped!

Coming to the end of a similar process for RDL which is now private, almost all money returned with a reasonable amount hopefully still to come.

The process has been going on for about 3 years but has been slowed down by covid.

If all goes well I would expect VSL run down to return a reasonable profit but would prefer to if they kept going with good dividends.

Was also in PSSL which got taken over at a decent profit, the problem is the markets undervalue these companies so are ripe for takeover or wind down, I think only Honeycomb (now Pollen) will be left.

moniman

Here are some facts

1. The cost of electricity in the UK using gas, biomass wind and solar is far more than China using mostly fossil fuels. In June 22, kWh, U.S. Dollar, UK 0.472, China 0.079.

2. From European Journal for business Science Revised: March 14, 2022. It is concluded that in an electricity supply system based on wind and solar power, it is not the electricity generation that causes the greatest costs, but the storage.

3. LNG is not a economical compared to piped gas as there is the cost if the liquefaction and transport.

4. Nuclear is a base load source as it produced the same amount 24/7 and not a backup

5. The most energy consumption is in an anticyclone in the winter when there is no wind and very little sun as we have had recently

6. Electric cars don’t work very well in cold weather and some do not work at all as seen in the latest freeze in the USA

7. Large generators are most efficient when run 24/7, much more efficient and cheaper to run than backup systems so a fossil fuel generation is far cheaper running 24/7 than being brought up and down to fill in the gaps for Wind and Solar

8. Hydrogen is still a long way off perhaps one day,

9. No matter how you look at it you need twice the generation capacity if using Wind, Solar and backup has to be something like gas, batteries can help a bit for a few hours but are another additional cost to this system. So to sum it up you need O&G backup system which inefficient compared to ones run 24/7 especially in the worse case of an anticyclone in the winter.

There are many causes of inflation but the one guaranteed way (never fails) is to print huge amounts of money as western countries have been doing for 20 years or more and on steroids during covid, what did they think would happen, O&G goes up, so does inflation less is used so O&G goes down bring inflation down with it. However there is only a certain amount of assets in a country, double the amount of money assets rise to twice their price.

Not sure if this was planned to inflate away some of the huge debt (most now owned by Bank of England bought with printed money) or just incompetence. If it was planned the government forgot about all those inflation linked gilts Gordon Brown sold which has left us in more debt. Now try to get some money back by taxing O&G into the ground, not working too well as they reduce/stop all new developments in the UK.

moniman

Renewable will have it’s time but not yet the more the west push this agenda the more industry will move to China India etc. The west may go green but also broke, as the saying goes go WOK go Broke. The O&G will be extracted and sent to the countries with most energy intensive industries which is of the ones mentioned and the west for all their virtue signalling can do nothing about it.

For every gigawatt of Solar and Wind farm generation you need a gigawatt of conventional power for when the sun does not shine and the wind does not blow. This effect of an anticyclone in the winter is the best example; we were in our coldest period with the least amount of renewable power. This means in financial terms you have to build twice as much generation capacity for half of it to sit idle all the time. Also as I leaned when working for CEGB a long time ago the most expensive way to generate electricity is to use intermittent sources, a power station running 24/7 is much cheaper than keep running up and down backup generation. Add in the fact that it costs more to store electricity than to generate it making wind and solar even more expensive.

Even all these electric cars require charging and there is nowhere near enough power generation to power an all the electric cars if they replace other cars, Switzerland is now looking at limiting electric car usage due to lack of electricity generation. The vast proportion of the electricity powering electric cars comes from sources other than wind and solar, i.e. during the cold snap only about 5% of generation comes from these sources.

Just listened to Anneliese Dodds on GB News where she stated Labour would close the loopholes in the in the WFTs but no details. Clear message O&G leave the UK. She also thinks this will raise more revenue, dream on.

Good move of BP to put more into Gulf of Mexico and Texas, stop all new investments in the UK until we get a stable UK Government which comes to its's senses, perhaps one day.

Just listened to Anneliese Dodds on GB News where she stated Labour would close the loopholes in the in the WFTs but no details. I would imagine this is aimed at the offset on new developments but I would also expect them to come for deals like this one so these tax losses cannot be used. In this hostile environment from both conservatives and labour only a fool would bank on tax losses.

Interestingly Anneliese Dodds stated this is how labour is going to raise more money to help the poor (paraphrasing). Of course labour like the conservatives will lose tax and income for the UK by over taxing as well as put our energy at risk but these are political decisions not financial driven by an insane green agenda.

Billybigwig

"This won't help glencore SP"

This is just a short term glitch, virtue signalling from companies who are jealous of the gains of GLEN against their own share price.

They have 2 choices stay in miners, oil and gas and see their investments rise or go fro ESG/ethical investments and explain to their investors why they have made little , no money or loses. If they move out and share price drops I will be happy to buy more.

NewKOB

"Giving Mitch benefit of doubt, it's clear Mitch is oblivious to the real intentions of Mercuria or refuses to see what is in front of him afaic."

Don't think I can give him any benefit of doubt, he is either doing this for his own reasons or is plain stupid. I tend to believe that there will be something more in it for the Directors even the ones departing if the deal goes ahead otherwise the same applies to them either for self gain or plain stupid. Either way they are not fit to be directors.

If this deal is voted down as it should be it will leave the directors with egg on their faces and lot of explaining to do

1. Why £7 million was wasted.
2. Why the Kistos deal was rejected out of hand for a very poor alternative.
3. Why they reneged on return money to shareholders.
4. Why they have not looked outside the UK like other NS O&G companies.
5. What was promised to them in this deal.
6. How they can justify their positions as directors.

They will fight tooth and nail to get this through as they know it is only a matter of time they will be history without the support of their new best friend.

This IMO it will become a struggle for power either this goes through or the directors are removed.

I doubt if Kistos are interested, partly I think this was done to get SQZ off their back and partly for value but as the board and shareholders (or at least it seems from the chat boards) were against it at the time they just moved on. IMO if AA got his hands on SQZ assets and cash he would have made it work far better than the current BOD and we would have all benefited except the BOD. Once the deal fell through I suspect AA has moved onto new deals as he does not hang around and these will come to light at some point.

On another point BP are increasing their O&G in the US but a significant amount while cutting back on the NS, says it all.

GL

"That would lead to Mercuria losing money on their 28% Serica holding"

Yep, but if they owned more than 28% in another one of their losers just pass onto SQZ and cut their % loss. They have proved this can do this once with a compliant BOD when they had no controlling interest, much easier now.

Be fully aware Mercuria only have Mercuria interests at heart.

GL

"What could Mercuria do to harm other shareholders that doesn't harm Mercuria out of interest? I'm intrigued"

As a majority shareholder drag SQZ into another deal with one of their less than perfect investments so end up with SQZs cash .

Part 2

The majority of Tailwind’s fields are tied-back to the Dana Petroleum-operated Triton FPSO
But with a more solid foundation, Serica also has the opportunity to get after cleaner energy sources.
“We’ve always said that we ultimately have ambitions to do more than just oil and gas. We want to be more involved in the energy transition and different energy sources.

“Whilst we were effectively a single-asset company we were never comfortable with making that step. But now we’ve grown our scale and we’ve got more solidity to the company we can also start looking at eventually moving some of our attention from oil and gas.

“We see a good future in oil and gas, and we will be an oil and gas company at heart, but I think there’s going to be an increasing number of opportunities to do a other things.
“I believe Mercuria are on board with that and want to help us to do that.”

Windfall tax and Belinda
Though Serica is against the windfall tax from the UK Government, Mr Flegg notes that the investment allowance linked to it does mean some projects are now more attractive.
“The windfall tax is not good, but there are some projects, I think, are enhanced a little bit by the investment allowances that are available under the windfall tax. There are some things, perhaps a year ago, we might not have looked at which are worth having a look at now.”

Which projects might be more attractive? Mr Flagg points to a pair of infill wells which Tailwind was planning to carry out anyway over the next 18 months.
But there’s also potential in the Belinda discovery, another tie-back to the Triton FPSO, as so many of Tailwind’s fields are, which has potential.

Serica Energy CEO Mitch Flegg.
Wood Mackenzie has assumed an FID for the scheme in Q4 2023 following the first phase of the nearby Evelyn field.
Mr Flegg says: “That’s the sort of thing the investment allowances under the windfall tax make that project look far more attractive.
“And so we are looking forward to accelerating that if we possibly can. There are lots of short-term opportunities in that portfolio to invest.”

Licensing round
With a mixed impact from the windfall tax, Serica is keeping schtum on whether it would follow fellow independent Harbour Energy into shunning the ongoing UK licensing round.
Whichever decision Serica comes to, Mr Flegg is clear that his company is approaching it from an objective standpoint.
“We’re looking at that licensing round objectively and from a commercial perspective. Is it the right thing to do for Serica, for our assets and our shareholders?
“We’ve got a lot of people working very hard on is there something in there that works for us in the current tax regime.
“The tax regime does impact the attractiveness of some of the opportunities, but we will consider the opportunities on their merits.”

They are not stopping here
From EnergyVoice
https://www.energyvoice.com/oilandgas/north-sea/470824/serica-energy-tailwind/

Part 1

Tailwind ‘is not the endgame’: Serica eyes up more deals and projects
After Tailwind, Serica Energy eyes new projects in the UK like the Belinda discovery, along with more deals and a potential energy transition shift.

CT Media
Serica Energy (LON: SQZ) will get after new projects in the UK and chase more deals after announcing the acquisition of fellow operator Tailwind Energy.

CEO Mitch Flegg told Energy Voice: “I’ve been describing it as a springboard going forward. This is not the endgame.
“We’re not sitting back and saying ‘oh well that’s it, we’ve done this deal, we’re made for life’.
“We see this as a much better springboard to do more consolidation, more expansion and grow the portfolio even more.”
On Tuesday, Serica unveiled the £367m deal for Tailwind Energy – a cash and shares offering expected to complete in March.

The new combined Serica Energy will become one of the top 10 UK producers when it concludes, but in return is taking on £277m of Tailwind’s debt.

Serica’s Bruce platform
On that front, Mr Flegg says it is “manageable” and his firm will remain with “significantly more cash on the balance sheet than we have debt” post-completion.
Shareholders have also voiced some concern over dilution, as another 111 million new shares will be issued – nearly a third of Serica’s equity.
Why not just pay more cash for Tailwind than dilute shares? That was never on the table. Tailwind’s key shareholder – commodities and energy group Mercuria – wanted to stay in.
“From the outset they made it clear that, if there was to be a deal, they wanted to stay in and they wanted to take shares in the resulting company,” says Mr Flegg.
“So we felt the combination of assets was such that we would be creating a much stronger company, and we feel it’s an appropriate solution at a good price.”
Serica Energy wants more deals after Tailwind
With Mercuria on board, Mr Flegg says Serica has a shareholder with “good alignment” on the strategy for growth.
The current tax regime – the windfall tax – does impact matters, but Serica is looking at the UK and abroad for growth.
“We are still are looking at a couple of good opportunities in the North Sea.
“The windfall tax does have a big bearing on our strategy. So we are looking at overseas opportunities as well as the UK – but we are still very much looking in the UK.”
With Tailwind, Serica has a more diversified asset base and exposure to more oil as well as gas.
© Tailwind Energy