Firering Strategic Minerals: From explorer to producer. Watch the video here.
Before I do some digging can anyone provide details of when we are expected to make significant payments towards the revolving credit facility? At 31 December 2017 this was $1,100 million and $270 million is expected to be paid in October 2018, however I cannot see when any other significant payments are made for this.
Thanks
TW
Hi Jan
Hope you're enjoying your holiday. ENQ has been much better behaved recently; even on days where POO has fallen our losses have been minimal.
Can we expect more in the next 2 weeks? I think anything we do get will be minimal as we await the half-year news.
Agreed E121.. particularly if you consider where we were at 12-18 months ago with POO down in the 40s.
Don't get me wrong I want to see $100 oil again (for the sake of ENQ, not the cost of running my car) but am happy to wait a little while longer.
I cannot see us getting any real spike or re-rate until concrete information is provided via presentation or RNS. Whilst we can see that tankers continue to come and go (thanks to Chilts and MO for continued updates) the II's and brokers that are invested (or are considering) will not be looking at the movements of tankers etc. as much as we do.
They will be looking at:
a) what is the POO
b) what are ENQ's assets producing, and expected to produce in short, medium and long term
c) what is ENQ's debt looking like
Anyone can track a) on a daily basis easily, points b) and c) will not come to the forefront until we get an updated from the Company. I for one am happy to sit tight, knowing that POO is currently in a comfortable position and the tankers see to come and go like clockwork at the moment.
Rome wasn't built in a day, nor is my tiny pot going to turn into a mountain overnight either.
GLA
Is that a hint of optimism there CrustyPete regarding future drilling and AEX's ability to get it all sorted and sell it.
Apologies I have been struggling recently to gee myself up for AEX. Am firmly a LTH but I just do not see any long term plans through all the smoke and mirrors coming from the BOD.
In terms of communications from the Company what is the general consensus of what we can expect coming up and when? The two key pieces I am expecting next are:
- Kraken sign-off
- Half-year update
In previous years the half-year update has come around end of August / early September and I do not expect them to divert too much from this again. Therefore realistically I'm not expecting anything "game changing" before then. Is everyone else on the same page?
TW
All very sensible stuff epiphany. The one thing I would say however is that brent is currently around $75-$76. If we consider where brent was 6 months ago then we're not in too bad a situation currently. I am all for seeing $100 oil again, however I would prefer to see it get there in a controlled manner. I do agree though that it would be nice if the taps get turned off.
- Happy that production is higher than last year, although we already knew this should be the case. Nevertheless it improves the balance sheet. - I'm pleased of the $50 million early cancellation, although I am disappointed that an overall debt figure was not quoted. Leaves too much uncertainty in the air which the market are always set against. - Good to see non-Kraken assets producing OK; total Malaysia only down 3%; Northern North Sea up 15% and Central North Sea down 48% (albeit this is a smaller fish in the grand scheme). What would I like to see going forward? Overall debt figure News on the sign off of Kraken. Or at least a ball park figure of when we can expect (say Q3 2018) Further updates on Magnus Any potential talks on farm out. Does not need to say yes / no but whether they are still considering it Let's see how the market reacts. GLA
Wizard - I agree, this isn't a setback. Simply a feather that we're not able to add to the cap. I'm new to SDX and so do not have the same knowledge as many of the LTH's but even I can see that this company has prospects well in excess of its current price. Just a matter of waiting, taking one drill at a time, monetising the drills that we can and then moving on to bigger and (hopefully) better projects.
Definitely well within your rights to do so. Another question to consider asking is given the external resource we have taken on in the last 12 months what value have they added since their inception? I'm sure they are doing things in the background but how are we to know? Are they really earning their crumb?
DD It is funny how we haven't heard anything from OU and LSE recently. Maybe their out on the North Sea right now with a stick and a few stones trying to stop Kraken from producing. Or maybe in Iran trying to get the oil barons to increase global output again.
That certainly makes for more positive reading than what we've become accustomed to in the last 12-18 months colebrooke1972. I'm still weighing up the pros and cons of a farm out and whether AB would agree to it. If the POO stays where it currently is then by not farming out ENQ would retain greater control of Kraken and receive greater profit. Albeit it would take longer for the debt pile to reduce. My guess it is for AB to decide how "long-term" he is with Kraken and reducing the ENQ debt pile. Thoughts anyone? Interest paid in 2017 was �46,052k (2-3% of total debt) and so what I'm trying to figure it very roughly is what does POO need to be for keeping the 20% stake in Kraken (say 20%) to outweigh the extra interest payment as a result of not having the immediate cash to pay down the debt?
That is the million dollar question Foiluser and unfortunately one that the company do not seem to have disclosed. People will have their own opinion as to the break-even. Unfortunately not disclosing the information may in someway be holding us back as a ii may be more likely to pick the company where they have greater transparency over costs, even if it less of a prospect than Enquest. You have to remember that it is not just Kraken that is producing and the other assets will need to be taken into account. The only thing I can say is that with oil at $77 a barrel we are most certainly "in the money". Happy to hear what others think the break-even will be.
Shakeypremis - do you not think that there could be enough "new" interest to close the gap anyway? An RNS such as this one often gets heads turning around the market. Being new to this one myself I can see enormous potential. GLA