Member Info for ZippyFrood

I do wonder if AB and JS will feel any pressure from the market to offer returns to shareholders, lest shareholders bail out? If such returns are on offer from HBR and others you don’t wonder what would be the attraction in holding EQ, unless there’s another major expansion story - Bressay/Bentley area development - but that would be expensive.

If neither, then you have to query why the institutions would continue to hold - according to the website (and assuming none of these are nominees) then that’s ~30% of issued shares.

Apologies for the spelling errors - I don’t think anyone is going rockstar here. Maybe private.

We all have our suspicions about the share price and it’s lack of progress, no positive updates despite a slew of good news.

If the company was to go private how would this happen?

Is it as with a TO, the acquiring party has to declare their position at 30% and the get 80%+ or whatever of shareholders approval?

Is it possible that AB could conspire with the other leader holders that have more than 30% combined to launch a move to go rockstar at some point when debt is down and the acquisition would pay for itself in a year?

How would us poor saps be recompensed? Is it simply a case of our shares are surrendered and we are paid whatever is agreed as the private placing price?

If AB needs to tweet “funding secured” after smoking jointly on an LBC interview or something. Though maybe that would have the alternative effect??

Thanks for any thoughts on this

Do you ever get the feeling that ENQ is trying to keep their own share price low??

To what end we can only speculate, but it does seem like if this was any other organisation they would be publicising all the good news!!

Production to be upped by 20% soon?
Selling half your production for a Brent premium?
Huge FCF at current brent?
Massive reductions in debt from H2 21 to end 22?

You get the idea….

WWTBOOTW!!

Something I’ve not seen posted on a share board since 2013 I think, when we were riding high at $115 and all was well with oil investing!

Great shout KO

Great move today, up close to 9% as I type, people catching on and recognising EQ as a great prospect now. Long may it continue and then we can leg up to 30p and smash through it!

Roll on 60p party!

I know, I've been pleasantly surprised a lot recently seeing red on Brent and blue on ENQ - long may it continue, also ENQ being blue on a Brent blue day is also good!!

Hi Himmatsj,

On the FPSO lease it’s possibly been structured like that due to;

25 year LoF expectation;
Cost of FPSO likely to be fully amortised after 8 years (rate would drop off in the first option year);
ENQ likely have options to purchase the FPSO (which would be massive in the first eight years) for a more nominal figure once the fixed period ended;
Lease and purchase both likely to be a step change lower in the first option year and beyond reflecting the fully recovered CAPEX and then age of the vessel.

I’d say it would be unlikely that ENQ would ever purchase the FPSO unless service and uptime from Bumi was so appalling that they would buy and then outsource duty holder to Petrofac or Wood maybe? We’ve seen how Amjad and team manage Bumi as per early days of Kraken so that makes it seem more unlikely.

Thanks

www.cnbc.com/amp/2021/08/12/low-wind-speeds-hurt-profits-at-two-of-europes-major-energy-firms.html

Orsted and RWE reporting reduced revenues from their wind and onshore solar.

Wind wasn’t blowing enough you see. Should cart Nicola sturgeon and her cabinet out there to talk in front of them.

It always amuses when the green lobby has us throw ourselves headlong in to wind/solar only. Of course the answer is “more batteries”, that environmentally friendly solution.

The best solution surely is to stick with hydrocarbons whilst getting the nuclear mini fleet up to speed thus reducing our reliance on hydrocarbons out to 2050 and also and possibly more importantly not relying on teh Chinese state for our energy security.

Then we can turn the nuclear up and down to account for weather changes on wind and solar.

Until then, ENQ and other oilies remain great investments on a medium-term time frame.

BR do you want him back on the TLW board?

We'd be happy to donate him!

Hi Ammu

Great posts Romaron, thanks.

I'm convinced that in the UK/EU flying will soon become the preserve of the wealthy middle class and above - just look at the recent exemption from fuel tax on private jets. Utterly appalling.

Taxes on flights will be hugely hiked, wealthy middle class will be able to absorb the increases and the super/ultra rich will not notice due to private jet usage.

Poorer folks will be shafted and not allowed to have foreign trips any more as they will become cost prohibitive either due to excessive carbon taxing or increase in the cost base of flying. I cannot see how artificial, zero carbon fuel could ever be cheaper to produce than extraction of crude oil and refinement in to Jet A-1. Not with all the other new processess that will be fighting for a share of renewable electricity generation.

Maybe the second half of the 20th century was a simple anomaly for wealth creation for the masses and most can look forward to being poorer in future.

One thing is that any of these changes are unlikely to happen in a short time frame, so ENQ remains a great investment for the medium term.

This board is quiet, but it's good to keep discussion going.

The new seismic dataset is a great step forward, further questions that maybe someone more knowledable could answer;

Would there be updates to the CPR in due course if there is a material change to reserves/resources?
Would it be likely that this would be reprocessed with existing data to create a new model for the whole area? I don't think Axis would do that, but I could be wrong

Thanks

Agreed Chilts, oil at $70-$80 is probably the best level for all, despite the wet dream we all have of it being $125 - the world would probably implode which wouldn't be great for enjoying the gains of a £3 share price....!

Bit of an own goal eh?

However, as usual the media are cretin when it comes to reporting facts, other than "wot social meja sed"

Climate campaigner Tessa Khan was dismayed by Mr Brown’s comments on Twitter, saying: “It should raise alarm bells for all of us because the government has entrusted the contribution that this industry will make to helping us get to our net zero targets and these are the sorts of people that it has entrusted that to.”

Tessa should perhaps actually read the Orcadian presentation before mouthing off in an uneducated manner.

As per the recent ORCA presentation, slide 13 clearly details that the current development proposals for Pilot are in the bottom 5% of CO2 emitters for O&G projects.

Unless Tessa is advocating an instant end to O&G and the inevitable societal collapse that would result, then this sort of development should be welcomed with open arms as a stepping stone in the energy transition.

Hope it doesn’t tank too much therapist, I was keeping my powder dry to see how things develop on their plans and approvals.

In the recent presentation there was an couple of interesting graphs on slides 31&32, highlighting the historical link between energy and GDP and the future disparity between the two. The growth in renewables doesn’t look like it will manage to fill the gap between the reduction in fossil fuels and increase in GDP driven energy demand.

Steve made reference to this in the presentation.

I suppose this is the background to his comments.

This disparity is a big concern for me, how will GDP grow without the growth in energy to support? Especially as these are IEA charts. So we’re either on course for an energy/GDP crunch of substantial propositions or we need a big green swan to sort us out.

I am not one for conspiracy theories, but you could almost see how the nutters are managing to form tenuous links between Covid lockdown, vaccines, governmental control, reduced travel, the need for reduced world population, potential for reduced energy consumption and reduced GDP to save the environment……. As always the super rich and elites who are clamouring for change are the ones who would be least (un) affected.

Green Swan?

Is this where we collectively realise that this farcical push for energy transition is putting the human race on course for a massive reduction in living standards if we don't push out the timelines?

Or will it be technological singularity/bestowing of alien technology upon us that solves all energy needs, completely removes the hydrocarbons for all other uses and 100% eliminates battery, mining and other forms of pollution?

Seems like a positive price reaction for a dilution. Let’s hope we go blue soon!

GLA!

Hi,

I asked the first seven or eight questions as I watched the “why polymer” presentation in advance and submitted all those questions. It was good to see the RNS in advance providing the info.

It was also great to hear Steve making positive noises about protecting shareholder value and wanting to keep market comms going. That would be a great direction to take and probably one of the EQ problems, certainly in days gone by.

I’d hope they do some clever vendor financing (vendor loans?) for all the kit and similar to Kraken FPSO in terms of pay a higher OPEX rate to minimise CAPEX expenditure.

The topside tech sounds great, only 18MW to operate seems very efficient. They would be daft to take the EP for this - topsides would need to be completely replaced. Remember the length of time it took to destruct in Hamburg and then rebuild with all the new kit? Years behind schedule. Plus as these vessels get older you get all sort of hull, ballast tank and storage tank issues. Not great. Especially if you can get a new build, like kraken, and get the vendor to finance it.

Hope Crondall do the business for them. I don’t know what their track record is like though.

GLA all!

Steve,

Thanks for the presentation, it was really good.

Appreciate your taking the time to answer all of the pernickety questions and also for being passionate about share holder value!

It's great to hear of your intention for a lot of market engagement and news flow as this should generate a good bit of interest in your plans, the development and the share price.

Good luck for the next steps, we'll be watching and investing accordingly.

Great article Jeffrey.

I am not clever enough to plot it, but where would ENQ appear in figure 1 of of FCF yield v leverage? We must be tending toward the right hand end of that chart?