Member Info for Tigar

Hi AIMOilking
How about the taxman applying a windfall Tax on the excess Tax receipts from oil?

Am slightly confused on our Debt, from Page 83 bond prospectus can be accessed from romarons link https://www.bourse.lu/search
30th June as adjusted for Repayment & transaction costs
RBL 400m
SVT WCap 8.3m
7% Notes 136.1m
9% Notes 163.1m
New Bonds 305m
Total Debt $1012.5m - cash left $253.1m Leaving $759.4m as of 30th June
That to me is a lot better than the $880m net debt in the half year accounts and we are now at
26th Oct

Hi BTFAITH1
Your views on Enquest are of dubious value but your political views have absolutely no place on the Enquest BB
New bonds complete today hopefully onwards and upwards.

It is simple we have to pay Moodys for a report to support our request to Bond market for a new bond they are in the pockets of the bond market so will give them the report that justified the 12% interest they will charge us. Just like they gave those AA ratings to the US corrupt mortgage bonds.

I wonder if the recent falls have more to do with market looking to get conformation all has gone through. Hoping we see a bounce next week? Have put money behind that view.
(the "New Notes") due for settlement on 25 October 2022"

L7 thanks for more insight from account notes, it is fair to say we should look at Magnus as BP has that 32.5% share of the profits ongoing but it is a share of profit not FCF it was taken on at $100m and even that was recoverable from FCF the deal never put us at risk if it failed and from the bond update claims to have produced $350m of net FCF to us. I would say our debt residue is more to do with the not so good Alma, but that may supply EP for a phoenix project to repay us soon.
BW

Hi L7
Yes 1 well is how I read it; Magnus was a low-risk way for us to takeover field I take it if we estimate our net at $350m BP have had the $300m purchase price + interest during the clawed back loan repayment + my attempt at the 37.5% profit share of about $100m so they have roughly had $400m
I agree with your point on costs of Kraken project but that confirms the low cost of Magnus and the GE perfectly timed deal.

The Sept 8th update stated that it was in the planned shutdown hence L3's lower August production and confirms that the new well was successful and is due online end of Sept so we await October production figures to show the latest production figures it also said further drilling will be in 2023 so looks like no second well this year, have drilled longest well ever so perhaps looking for results before next drill? Good to see in latest update a reflection on our benefits from Magnus net to us $350m at 31/12/21 we owe BP nothing but that share of net profits.
"Magnus
Average production for the first six months of 2022 was 12,754 Boepd, 7.9% lower than the first half of 2021. Production was
impacted by a seawater lift pump failure and a well integrity failure in June. The pump was replaced in July with additional
spares purchased to mitigate potential future risks. The Group’s well intervention programme is ongoing, with two wells
successfully returned to service in the first half of 2022. The North West Magnus production well, which is the longest reservoir
section drilled this century at 1,914 metres with the longest liner ever run at Magnus, has been successfully drilled and logged in
late July and is expected online around the end of September. The programme in the second half of the year continues to
evolve as EnQuest focuses on the most value-accretive opportunities, resulting in the Group prioritising a number of
interventions to mitigate well failure risk and the return to service of the June well failure. Further infill drilling is now expected in
2023.
The planned three-week maintenance shutdown is underway, with production expected to resume later this month."

The RBL had an interest rate of SOFAR + 4.5% that works out at 7.25% today but SOFAR rate has been well below 1% until July with the accordion $300m in the RBL should rates fall in 6-12mths
we are well placed to repay the HYN to take advantage.

Hi romarom
Slightly ambiguous if the $15m is part of RBL then it will be drawn down in line with other banks commitments repaid as the others and presumably increased should they use the $300m accordion option short term? He shows total commitment to the company. I would have thought it would have been $15m HYN but that is not what is in update.

A small point I just spotted; I think. It sounds like AB has lent $15 on the same terms as RBL lenders I initially thought he had taken up HYN but on reading again sounds like RBL related, not sure if he is part of $500m facility or in addition?

Banks are buying the new £1 bonds at 98.6p with 11.6% yield they will offer less for 9% or 7% bonds in the same company as simple as that, PI are the main buyers of the RB a good time to pick a few up for that income?

In mortgage language that 1.4% less than face value is the product fee? or bankers' bonus
just hope we don't have to use their mates to arrange hedges.
It looks as though it is behind us and FCF has meant we now have $977m gross debt? with only $124m RB repayable in 2023 + of course the $50m to Suncor FCF means we are in drilling business again next year up production, dividends, then repay rest of debt.

Have the Government not thought that the problem is with the price of gas so that it what the Government should underwrite if they effectively agree to buy the gas and resell it at a fixed price then all the other forms of production don't need the subsidy.

Barclays don't pay him to get it right, he must have other uses.

The senior credit facility has defined interest rates $146m at Libor + 1.8% then second tranche $200m at Libor + 4.75% then we have a $25m Contingency at 13%, before any drawdown they had to approve a re-run of the numbers needed, because of 12%+ inflation they have insisted on a further Equity $70m contribution we actually have done $80m this may prove advantageous if we now do not have to dip into the contingency fund but I doubt the rerun of the numbers allow for that event. Many of the contracts are now set so expect the final bill should be a lot more visible than at the start of the project. Time will tell the end game will be the price of Nickle when it comes off the production line and if it is delivered on time. I don't think the interest costs rising had too much to do with the issue of more Equity as we haven't started paying any yet.

" Once I could accept it (finance deal), twice now it's almost as if they are telling the PI - We do not care you've invested already and if you think about investing again then we'll gladly take your money"
That is a load of Bull afraid Contrarian the PI have not been asked for more money when you buy shares on open market the company see's none of it! we trade between ourselves. The market gave us all a chance to buy yesterday below the fundraise, but the big boys oversubscribed for those shares so are not going to let PI get hold of them so if you were looking for a quick profit you sold out at a loss if you follow the money, you either bought your dilution or just held.

Hi wasarunner
I hope there is going to be a profit but have felt this one is best to drip feed into as the project progresses contrarian is right that things are likely to happen that will give opportunities to possibly get in lower, but they may also not, so he never buys in. I have just taken another bite and will be happy to keep dripping in as and when. Any buy below £1.20p is a better bet than Institutional Investers made.

The big boys hold most of the shares at an average of £1.20p I hold mine at £1.03p and anybody has the chance of buying in lower than the latest fund raise. This will only play out in about 18-24 months if we lose then so will the big boys, the director who just took up a few k could buy lower on open market. And the main bod options are set at above the first fund raise price so although this is a pain not expected I don't see a conspiracy to defraud as some do, if it needed doing then always best to do it ASAP

It must be getting close to the perfect time for oil to bounce up for Enquest, Hedges must have just about been used up this month so Nov & DEC at spot prices could be the game changer for us.