Member Info for Tigar

"BP's profit sharing in magnus"
Biggest handicap to production in H1 has been at Magnus so it has least effect on FCF
In 2021 we have opex down to $265m and $120m capital/abandonment for the full year, so with 8.4m barrels in H1 = $550m I don't see were you get $120m FCF?

9843 is me, top up under 23p this morning. probably will fall further today? but expect next week to be active before results.

Cash in account today am bit surprised that Bond price held steady, but my cash may go into more equity if they drop below 23p.
Accounts should trigger re-rate.

AB probably reads this BB and that was enough to convince him to stump up another£5m + if it's good enough for Pelle it's good enough for him.

That means the figures for US production are down and US has no intention to cut its consumption to save planet they want cheap oil and lots of it. They talk with forked tongue's on climate control.

Market shows no logic, market is saying cheap oil equals pollution cuts? if the west was able to suddenly switch to renewable energy sources and cut its demand for fossil fuels so price of oil fell. the countries that can't afford renewables would buy cheap oil and grow. We need dear oil to limit its use so that equates to higher taxes by the west on dearer oil. Poorer countries will have to go without oil growth till hopefully technology makes renewable's cheaper.
In this country we do thing like put vat on gas and electric but them give help to the poorer families that cant afford higher bills so we get a round robin effect of not using less gas. Right or wrong some one is going to have to use less and that boils down to oil having to be too dear for all to use.

Hi Chilting
I doubt many fields will be shut down in Iran , Russia or Saudi for that matter while we have demand for oil. And USA and UK will keep our oil independence, from being energy blackmailed.
The only answer is to use expensive oil for plastics and chemicals and find cheap non polluting energy for heating and transport new Fusion plant may do that? absorb the Co2 into sea shells as nature has done in past (Limestone)
We need expensive oil to drive new technology on.

Notice Posted cash payment as expected, above $65 oil average for period good sign for FCF in H1
ENQUEST PLC
(the "Company")
Notice to holders ("Noteholders") of the Company's
£190,534,573 7 per cent. Extendable PIK Toggle Notes due 2023
(ISIN: XS0880578728, Common Code: 088057872)
(the "Notes")
Notice is hereby given that the Cash Payment Condition (Condition 5A(a) of the terms and conditions
of the Notes (the "Conditions")) in respect of the Interest Payment Date falling on 15 August 2021
has been satisfied and interest due on the Notes on such Interest Payment Date will be paid in cash
(in accordance with Condition 5(a) of the Conditions).
The Record Date for determining the entitlement of individual Noteholders to the interest paid in
cash will be the close of business on 13 August 2021.
Words and expressions defined in the Conditions shall have the same meaning when used in this
notice.

It was decided that was the safest thing to do after the Nuclear power station accident wiped out 90% of Europe's population. I got off the same Time machine. It was painted green so it could get through the time portal and was powered by nothing but hot air.

L3
I agree we will know much more on H1 figures, but doubt Enquest gave Moody's the realised prices of our oil sale's for their update, or our cash position at 30th June. They run a tight ship. Bond payment should be confirmed Monday and Moody's update may give them a boost.

L3 you wrote so, FCF of $400+$40-$36.5 (as the other half was paid in kind in Feb and April) = $396.5M full year. Note they use hedges in place, only use $55/bbl for the 4MMbbls not hedged for 2021. So, difference would not be more than another $60M. So, adjusting for that the figure would be $460M...
But surly they are assuming $55 oil. Our hedges have collars on them that allow for oil to be sold above that $55 and the non hedged oil can be sold at current spot price above $55 if oil sold for $55 then your assumption that -$36.5m would not take place as the next bond payment would be deferred also, so FCF would be at $55 oil $496.5m so if oil is $65 and our hedge collars are $65 then we get another $180m - £36.6m FCF to add to Moodys $496.5m

Hi L3
With respect it is like that. Hedging companies do it to make a profit. We should have hedged more before the 2020 covid crash with hindsight. But the hedging companies are now lining up to make huge profits from oil without having to use a drill bit. Because they think oil is going higher? It's as you say Insurance. AB failed to call it right last year but was able to use that low oil price to pick up cheap replacement oil for the lost production because of not hedging. They have changed strategy it is plain to see and many think it is right. I am just saying hedging companies do it for the money at the expense of oil companies on average.
I

AB is of course a shareholder who wins or loses on his decisions, he obviously was taken aback at Covid lockdown which caused oil price crash in 2020 just as oil was about to boom and was light on hedges, hindsight is a wonderful thing, hedges are made by another party thinking they will make money out of them and next year many will hopefully be calling for AB's head because oil was $100 and we had hedges at $70 so have lost a fortune.

I would have thought it was about time for RNS with Director share position updated soon. Will be interested to see if AB took up many in Placing. At least we know he will be hanging on to them and not taking a quick profit!
Don't know when but we will meet 30p again soon. ( fingers x next week )

Pelle
Of course I didn't that is why I said unfair.
But I have added another 70k shares since OO was announced that had no rights on them.

Squiff
But to do a deal you have to honour the commitment that you signed in 6-8 months time AB made it possible with his Guarantee for the $50m and Suncor will honour the sale with oil at $73. If that is not doing your best? Perhaps you should have invested in PMO as they say its not over till the fat lady sings Enquest at least are still here. And I think I hear a song coming.

The placing and open offer share do not exist till 26th July they put a book to receive the subscriptions for the full number of shares with the proviso that the open offer shares can be clawed back by shareholders, AB guaranteed the whole share offering so if nobody took up any shares he would have to buy all of them.
In practise they had subscriptions for all the shares so AB is not needed and the shareholders who were able to take up the OO will get their shares and the placing subscriptions will be reduced and the new share will be generated on 26th July.
AB was able to participate in the OO and the placing so did have some advantage over PI but he also put up the Guarantee
just imagine if oil was $35 a barrel no one would have taken up and AB would have had to put up the $50m

All new shares were subscribed for in the placing, the OO shares will be clawed back from the placed share's it is all a matter of cost the placing would have been a lot cheaper if there was no OO and to have had an OO in the EU as well would have been a lot more costly AB put up a guarantee but it was not required so he does not pick up all of OO shares not claimed from non eligible shareholder not in UK. Unfair but costs make it best for company and all shareholders had plenty of warning and chance to buy shares well below 19p after GE deal was announced.

Hi Pelle
$32 break even seems a bit high for 2022 GE will bring that down, we had higher production in 2020 but much was at breakeven and we still managed $211m FCF the 59k barrels a day included the BP and Malay element. So for L3 to infer 47k with GE after BP & Malay is a huge drop is I believe wrong GE will replace high cost oil with very low cost. $800m is very possible if oil holds up and Hedges should ensure loans are repaid anyway.

Working on theory the placing shareholders pulled price down to choke off late PI from clawing back the OO but will now be happy to let it fly I have added again at 20.94p was gutted money was not added to my ISA till this morning, yesterday was the day let it fly please!!