Member Info for ukbbbbbb

Hi Kamrat, my friend ;-), as you know I like to keep you both honest and hardworking..
With regards to the excellent Golden Eagle deal completed with Suncor in October 2021 there is the provision for an additional payment in 3Q 2023( $0 /$25M /$50M) which is dependent on the price of oil and I wondered if you had made provision for this in you s/s ?. If not perhaps in your next update ?. I've attached below the text of the announcement..

'The initial consideration is US$325 million (which is subject to working capital and other adjustments), with additional contingent consideration of up to US$50 million. The contingent consideration is payable in the second half of 2023, if between July 2021 and June 2023 the Dated Brent average crude price equals or exceeds US$55/bbl, upon which US$25 million is payable, or if the Dated Brent average crude price equals or exceeds US$65/bbl, upon which US$50 million is payable.'

https://oilprice.com/Energy/Energy-General/Israel-Sends-Battleships-To-Escort-Drilling-Rig-In-Disputed-Gas-Field.html

Excellent point Roma, meeting this lot In a pub would certainly be interesting as well as entertaining, as it happens I'm currently enroute to Glasgow to visit a few such establishments. I'll not be at the AGM but hope those that do attend enjoy a beer after it. To answer your specific question on how I would respond, I'd probably ask them why they were here and not in the vegan wine bar across the road and take it from there.

I'm not as long in the tooth, in bulletin board terms at least, so will bow to your greater experience where past history is concerned.

What I would say is that the green agenda is real and all oil companies are invested in it even our beloved ENQ is nodding to it. BP and Shell are working even harder on it so from my perspective it is not an invalid topic. I'd also add that were it not for the green agenda and subsequent under investment in O&G we wouldn't be looking at $123 oil today.

You pays your money and takes your pick.

Hi, yes there is a disputed border between Israel and Lebannon in the Med which impacts on Karish gas field. I think and hope that it can be quite easily sorted out in arbitration.

All, I like this Board a lot of good work, views and opinions on it. It's healthy to have differing views and opinions otherwise it would lose some balance.

I do think it's best to disagree whist trying not to be disagreeable...not always easy I know but perhaps worth a try.

Thanks again Kamrat, I appreciate that your numbers are conservative (with a small 'c' only :-) ) and understand why. I agree with you that the noise around the Levy is overblown. We only need to look at the s/s to put the Levy in perspective.
I think the 1H results will be very positive, there may even be a decent update at the agm next week for those in attendance.

Cheers

Thanks Kam, I'm happy with $10m for 2022 we are on the same page. If it's more ( and it could be) it'll be because we've made even bigger profits.

For 2023 with reduced and reducing interest payments and hedges falling away it will be more but, as I think Savemore has said, this is not an issue big enough at an operational level to be a major cause of directional change.

As I've said before, it's my belief that 2023 will be a transformational year but the heavy lifting is being done in 2022 and is going well.

Thanks for the update Kamrat. You're s/s's are excellent and I appreciate the work you do on them for everyone's benefit.

Thanks Kamrat, one question on your Tax calculation. Did you only tax the UK portion of profits?

VoR, just had a look on tipranks at James Hosie, he is ranked 7610th out of 7950 analysts. That takes some doing. :-).

Don't worry Krak, 2023 will be a transformative year for ENQ share price, but 2022 is the year the heavy lifting will be done.

Ammu, $450m over 2023 to 26 is 4 years. This Levy ends in 2025 so not sure why they've stretched it out to 26. Let's assume they are correct with their sums and let's also assume ENQ are correct with their sums. This give us an average levy of $112m and means taxable profit of $500/Yr (Malaysia is not subject to tax).

Debt will be 0$ in 2023.

I'm more than happy with a net profit of around $400m being distributed.

We are not at 25p yet Ammu, though the battle at 29p has been lost for the mo. You may be correct and we could get there tomorrow we will see.
Irrespective of whether we go there or or not the share price represents great value with oil 100$ plus and debt melting at a rate hitherto unseen.

Tigar, My money would be on Equinor .

I think there are strong forces at work in the background on the share price holding it down and perhaps aligned with Barclays. It will all become clear I'm sure in due course be it shorters or a bid in the offing. Back in at 28.2

https://www.offshore-energy.biz/crossing-of-energean-power-fpso-marks-first-of-its-kind-in-history-of-suez-canal/

Folks, I agree with some others on here that think we are getting too worked up about this Levy ( I don't 't like calling it a windfall tax - it's not). 
Very simplistically, In Jan this year before Vlad started his 'exercises' oil was at 75$/barrell, cost of prod, etc was say 50$ which gave us 25$ profit taxed at 0$ = 25$ in our pocket to pay down debt, etc.Today oil is at 116$, giving 66$ after costs, lets's say that's taxed fully at 25% (no offset ) = 50$
So we, after-tax, will have doubled our profits in a few months.
If you'd have asked me before kick-off if I'd take a doubling of profit I'h have taken it.

What I think AB and other O&G companies will be challenging the Gov on will be the hedges. If oil and gas are being sold in the present and future through existing contracts set at pre-price raise prices it is unfair to add an additional tax to these unless the contracts allow an increase in the contracts due to the tax. Any such rise even if possible would drive up gas&oil prices which is not what the Government wants so it will be interesting to see how this pans out.

Thanks Boggi, that's the best summary on the Levey I've read.

Interesting article which compares the price of oil to S&P 500, Tech, Gold, & House prices. Perhaps that's why we are seeing at Levy on oil out to 2025.

https://moneyweek.com/investments/commodities/energy/oil/604922/think-the-oil-price-is-high-now-you-aint-seen-nothing-yet?utm_campaign=moneyweek_newsletter_20220601&utm_source=moneyweek_newsletter&refid=49152D288BED64B33D3076FF466E9E89&utm_medium=email

From a technical/trading perspective an interesting battle over the past two days around 29.0. With the large trade away it will be interesting to see which way it goes tomorrow. My suspicion is it'll go north but we'll need to wait and see.