Member Info for Tigar

Hi londoner7
I see from 11th June 2021 press release on new RBL it stated that it ran till June 2023 unless Bonds were refinanced so we have till the Spring of 2023 in reality not at Sept 2023, so Sept 2022 seem my bet.

Hi londoner7
As I understand Enquests stated wishes they would like $500m Bonds and have the option to extend the 2023 RBL for 5 years and reset at $600m if done this year at a reduced interest rate. I feel they have shown with the Issue of new RB they intend to do it this year, They have raised $70m new money they had $230m available from the RBL in Feb plus FCF from Feb till they do the HYN that stand off memory at $830m so if they do $370m new bonds they need $200m from FCF to repay HYN or $312m if they also repay 2023 RB to tidy up debt book. That FCF looks doable even with some drilling going on.
I remember comments that the Bond had restriction on Enquests ability to declare a dividend, that was from the ability of Enquest to not have to pay cash but PIK instead.
I am not a fan of hedges but I suppose if you keep layering them when the price rises you will eventually profit when the oil price falls as it will at some point.
When I said I was surprised about take up of RB I meant take up of the swap, as my logic was if you were not happy with the swap you may as well have sold as the price will be likely to fall when the 9% ones are listed. But each to their own.
ATB

Hi londoner7
I was very surprised at low take up but fully agree the important bit was the $70m new money I think they can now do a $370m HYN refinance in time to extend the Bank loan. The 2023 RB's, as long as they don't still act as a block to Dividends are no problem. Just surprised the holders didn't take the sweetener and increased interest they could still have sold on open market if they wanted the money back.
ATB

Hi romaron
ENQ1 have been trading about 99.3p sell, but till 20th carried 1.5p sweetener to swap + early interest to date that has ended and I expect mm will re-adjust soon. Then when ENQ2 get issued they will set a trading price I would suspect just below the face value to start with but doubt they will then offer the same for ENQ1 though they will carry some unpaid interest so may? if that makes sense. Enquest could let them run and concentrate on reducing HYN on refinance but I am not sure that will free the share's to pay dividends?

It will be interesting to see how the 7% and the 9% RB's will be priced by the market. 7% bondholders may regret not taking up offer? 94p and 98p my guess.

Surprisingly low take up yes I thought 80%+ but poorly marketed at Easter? anyway looking forward to my 1.5p + early outstanding interest on 27th.

I am looking forward to those crumbs, will probably be a 5% divi on the £1 share price in 2023

iii listed the Bonds as an IPO so I suspect many others did the same, then it is easy to just subscribe.

Hi Stupmy
I suspect you are correct 42p is a bargain, my decision on 38.1p is based purely on my holding out of a Tax shelter will give me a clean 12.5k profit at that price, seems an achievable short term target. And will still have plenty in the game.

Everyone has a target sell price (or should have) I sold a few in wife's ISA at 32.5p to sign up for 9% Bonds she likes income, shoe's! my next lot will be at 38p hopefully soon as that will be my capital gains tax limit used. Will diversify in ISA with the money but am looking for 50p before making anymore rash decisions. Its all about a profit!
ATB

Hi L3 & Pelle
I have solved it now thanks, it was because I was reading it as we drew down $360 and then the $58.7m for BP loan but have realised the $360m included that so the $329.7m as of Feb now makes sense.
ATB

Hi L3
I am hoping L7 has the answer on what Enquest is trying to do lose the HYB we have until the extension date on RBL.
I hate accountancy sums, I use fag packets as you know, I can't understand Enquest update on outstanding RBL they said the following, but my fag packet does not add up to their figure of RBL in Feb perhaps you can make sense of their statement.

"In July 2021, $360.0 million was drawn down from the Group's new RBL facility. The proceeds were used to repay the entire outstanding balance on the RCF, which at the time of repayment was $354.5 million, including PIK and accrued interest. Also in July, $58.7 million, representing the full amount of the outstanding principal and interest on the Magnus vendor loan, was repaid and the Group successfully completed an equity raise consisting of net proceeds of $47.2 million.

In October 2021 and following shareholder approval of the Golden Eagle acquisition, a further $125.0 million was drawn down against the RBL to partially fund the $249.7 million cash consideration with the acquisition completing on 22 October 2021. In December 2021, EnQuest made a voluntary early repayment of $70.0 million on the RBL and with further early voluntary repayments totalling $85.3 million made in the first quarter of 2022."
Are they saying they have made other compulsory payments and the $155.3m is on top of those?
ATB

I see that GE on 31/12/21 had 17.5m 2p reserve's so the drilling last year almost replaced production very good. Also noted that Bentley has $975m ring fenced Tax loses not recognised yet.

My thoughts on RB swap and open offer at 9% am very surprised but as a holder of them very happy with it and may even buy more, 9% is so tempting. Why? suppose if it attracts enough uptake they may well just repay the HYB Summer, in time to extend RBL using the new cash and the $600m headroom. Or a new deal is on the cards, they are very secretive with their plans only just spoke to investors and no hint what they have in mind.

Hi L3 your comment " Therefore ENQ will make further repayments of the RBL before issuing new bonds. My expectation is that when the amount drawn down from the RBL facility is down to c. $200M, the new bond will be issued." end of Feb it stood at $329 then they say we repaid $85m in March so we must be close to that point in April a good time to do it, so JS can depart having closed the loose ends. That will clear restraints on a Dividend going forward.
ATB

Late trade of £1m could get this moving next week?

well spotted Londoner7 that sounds like what AB was suggesting he would be interested in.

We need news with the Finals on Thursday, the refinance of Bonds they still hold us back not so much our ability to repay them as that they are the key to shareholder returns. We have to get new 5 year deal to free us to pay that dividend, and bring on more drilling to up production in 2023 Debt is not the problem timescale is, 5 years with $100 oil we will get that 60p in no time.

Sounds like you have become a LTH instead of an in out day trader? Welcome aboard till 30p +

Perhaps they have info on Bressay being fast tracked? We are moving onto a war footing assets will not be allowed to just sit there.