Member Info for Tommo1985

Sunset now 2028... may as well be permanent.

I used to own this years ago when it got bought by Delek. It’s now been relisted at double that price, so has a long way to fall before it’s fair value. Although I note it’s already fallen 20% from its IPO.

The answer is simply to empty what wells we have with as little investment as possible, and shift the profits to shareholders and overseas production. Then hang a "closed" sign on UK basin assets.

At least our tax losses mean we can offset North Sea corp tax for the next $3bn of profits, we just need to pay the windfall tax (35% - investment deductions). I feel for the companies paying both corp tax and windfall tax (75% tax rate)!

I’d like to agree but rumours abound of windfall taxes being increased to 30% and extending for 3 more years. That won’t help investor sentiment.

There’s nothing wrong with Enquest and I own a big chunk here. But I’m now looking at Canadian oil plays rather than buying more here. Perhaps US ones too after the mid terms. It’s tiresome when governments steal our profits.

The thievery going on in the North Sea should really see Enquest looking at production options elsewhere in the world. I can’t see a labour government being any better.

So at the start of the year, debt was $1222m and the last RNS said at the end of September it was $750m so a fall of $472m in 9 months. This is an average of $52.4m a month. On this basis going forward ENQ would be completely debt free in 14 months. And generating $630m per year.

Unless oil falls a lot surely this is due a re rate.

The RNS and presentation tell me everything I don't want to know.

What I want to know is how much cash is left, and when the next hugely discounted placing will be needed.

Anyone know what their current position is vs cash burn?

I mean Centamin produces a similar number of ounces a year (415,000 last year) and is 5x the price currently. The bang for your buck here is unbelievable. Albeit it doesn't have a great track record. But in a much higher gold environment I don't think that matters.

Resolute is a high cost producer, but it produces a lot of gold (400,000 oz+ pa), has a lot of gold in the ground, and is very cheap. If the gold price roofs it due to stagflation / bad debts / currency destruction etc, this is a fortune maker.

That was at end of June..

Ps has anyone noticed the hedge numbers? Originally 8.7 million barrels hedged for the year. Second 6 months only 3.4 million. So they have cleared 5.3 million hedged barrels in half 1. Much more than half of the years hedge.

Profit in H2 will be even better, unless oil really collapses.

The other bonus with paying off the debts is that it is also reducing our interest payments on the debt ... no more 7% or 9% interest costs on $343m going forward. That's circa $30m saved or available for dividends in the next 12 months.

It’s £0.05 or 0.62 sek.

Would cost them about $120m a year which given they will no longer be paying interest on borrowings is pretty sustainable IMO. Or they could do a smaller one with a special dividend.

At 8% yield that would be a share price of c60p.

Our boss buying 4 million shares (and potentially counting) is quite a vote of confidence. Of course, he’d want to be fully in and buckled up before any buy backs or massive dividends.

Yep roughly break even in Q2, with significant operational improvements that will hopefully continue. Also a quarter closer to the opening of the new mine.

The debt refinance was £130m with £80m exchanged and £50m as cash. Good chance they are there I think though some hedging at $100+ might not be so bad.

This has finally come back from suspension during which oil price has doubled and it has a deal planned that will quadruple its value. I must admit I am tempted to sell it, mainly so i don't have to listen to AIlliterate.

Share price is reacting to the possibility/ probability they aren’t getting these bonds away. Price of copper + recession = trouble.

Sadly he is right. My average is 1.3p and I had the risk that there would be no project finance / development. You could now buy with those in place at 0.7p, what was the point in investing here previously? HAA has just drilled the market relentlessly. I'll save my celebrations until I actually see any return.

Some ideas as a starter for 10…

Windfall tax only applies to production above 50,000 or 100,000 barrels a day.

Some prior losses, or decommissioning, are allowable against wft.

Tax only applies on profit over £250m.

Tax is halved on heavily indebted companies.

WFT ceases to apply under $75 a barrel.

Etc.

Do or die time for KEFI. I actually bought a few more this morning. Reading the RNS it sounds like Harry is pretty confident he has this in the bag, at least we don’t have long to wait.

Ammu, have you done any research here? Enquest have billions in tax losses to cover off 40% of the 65%. Iirc $3 billion. Given current oil prices that covers many years of production. So it’s only the 25% that is an issue. This can be reduced by capex investments by upto another 91% of that.