Enq 23 �pik Tog Discussion Threads

[hpcg] 23/1/2015 12:47

Thought about pulling the trigger on more at 62. Oh well. I would also say Euro QE is a positive. Low rates means that banks can be more liberal with their lending, that is the point of QE. It also makes high yield junk debt more attractive. Which is the point of QE.

[badtime] 23/1/2015 12:33

Fek...actually in profit now ..what a difference a day makes

[envirovision] 23/1/2015 12:32

I think the point is this is too big and far too productive to be thrown out with the bathwater, that they have the full backing of their banking syndicate, who are happily offering what ever flexibility may be required to scale up or down their capex as the price of crude waxes and wanes.

I think the significant difference between ENQ and many of the tiddlers including Afren are many of these indebted tiddlers with business models based on ever increase oil prices is many of them are small enough to fail, whats more they have all been caught with their pants down in the face of the oil price crash and many will have to fall victim of their creditors.

[briggs1209] 23/1/2015 12:25

Oddly I only bought these as the Afren notes came in bundles of 200,000 Yet the Afren bonds are markedly down!

RNS today had no nasty surprises. Although these guys have no idea of the price of oil in a few years (does anyone honestly) they must be working pretty hard on plans for a wider range of oil prices.

[hpcg] 23/1/2015 11:47

I am also much much happier now, though I have to say I had anticipated the capex reduction. Covenant relaxation was welcome. The company should still sensibly be buying back its debt at this price.

[badtime] 23/1/2015 09:39

Well done on those who bought at recent lows...i'm now a tad happier at my 66p..underwater but not quite as much.

[cwa1] 23/1/2015 08:34

LOL enviro! I'm sitting here with a large dose of relief writ across my forehead and wondering if I should sell to bank a very decent profit and sleep easier at night ;-)

[envirovision] 23/1/2015 08:24

Excellent update, increased creditor report, increasing only low cost wells with increased output, massive capex scale back, all looking comfortably manageable for the foreseeable future.

BUY BUY BUY!

[envirovision] 21/1/2015 13:40

Come back in 2 years time to find out imo

[solarno lopez] 21/1/2015 13:20

Is this likely to go the way of Afren ?

[tiltonboy] 16/1/2015 16:20

speeds,

Correct. Looks like they had a disappointing Xmas, but I still think it will pay off. I'm not inclined to average at the moment, but am carefully monitoring.

Sorry for OT to others

[speedsgh] 16/1/2015 16:17

tilts - "I'm wearing a few Iceland Foods at the wrong price..."

by a 'few' i assume you mean a min of 100,000 few? likewise my timing could have been better on that one. however i am not inclined to double up!

[redartbmud] 16/1/2015 15:04

tilt

Thanks. Cash will remain in my pocket.

red

[tiltonboy] 16/1/2015 15:01

red,

Very much how I feel. I dislike commodity based plays in any case, but a hugely indebted one, then not for me. Now, if I fancied a punt on a recovery in the oil price, then I would contemplate using these, but it's a case of willpower to make sure I do not get sucked in.

I'm wearing a few Iceland Foods at the wrong price, but happier that I might get a return there.

Irredeemables are incredibly well bid at the moment. GACA were showing 134-9, but were 138 bid when tested.

I still think there is room for further upward movements over there.

[redartbmud] 16/1/2015 14:48

tilt

I don't hold and feel it is a risk too far, but I have to stop myself from temptation. Potential return too good to be true?

red

[tiltonboy] 16/1/2015 14:45

red,

Not much more to add...lol...

[redartbmud] 16/1/2015 14:45

tilt

Do you have a view?

red

[redartbmud] 16/1/2015 14:44

tilt

Emphatic.

red

[wyken] 16/1/2015 14:23

If you buy it now and pay the accrued interest would you get this back from the seller in the event of default?

[envirovision] 16/1/2015 13:43

Only took 2.5ks worth. Should have waited till today !

[badtime] 16/1/2015 12:16

Lol Enviro u mad fool..I saw your earlier post re selling good decision I thought ..I haven't got too many I won't be adding..but I've decided to stick.

[simon gordon] 16/1/2015 11:59

WSJ - 15/1/15:

LONDON--A slight recovery in the price of oil sent shares in U.K. oil producer EnQuest PLC (ENQ.LN) higher on Thursday, recovering some ground lost in recent months.

Shares in Enquest have lost over 80% of their value since mid-June, as the price of crude oil fell more than 50%. Thursday saw shares in the company gain as much as 13%.

Thursday's recovery, which ended a four-day run of losses, reflects a modest recovery in oil prices as the Organization of the Petroleum Exporting Countries said there was slightly stronger global demand for crude, according to Stephane Foucaud, managing director of institutional research at FirstEnergy Capital LLP.

But a dramatic recovery to $80 a barrel is needed if EnQuest is to be spared the need to take drastic action to fund its capital expenditure program, Mr. Foucaud said.

"They could sell some assets but selling assets takes time and in the current market there are not many buyers," he said. An equity raise of $200 million to $300 million is the probable outcome for shareholders, he said.

Prices began to slide at the worst possible moment for Enquest, Mr. Foucauld said, just as it took on debt to fund its development projects. The company issued a $650 million high-yield bond in April, adding to its $1.7 billion revolving credit facility.

Enquest's Alma/Galia field is due to produce first oil in mid-2015, while the Kraken field should come on-stream in 2017. In November EnQuest said U.K. capital expenditure would be between $700 million to $800 million this year.

Enquest's producing assets turned out over 27,000 barrels of oil a day for the first 10 months of 2014, mostly at its North Sea production hubs.

[simon gordon] 16/1/2015 11:57

16/1/15 - Dow Jones--U.K. North Sea-focused oil producer EnQuest PLC's portfolio was built for $100/barrel oil and is already feeling the pain, says Barclays in a note. Maximizing recovery from mature and relatively high-cost fields while pursuing marginal development opportunities is capital intensive but profitable at $100/bbl, the note says. "At $50/bbl we believe some of EnQuest's existing production fails to cover operating costs, while ongoing developments are sub-commercial," the note adds.

[cwa1] 16/1/2015 11:53

It doesn't go ex dividend. You pay interest when you buy it so it trades "clean".

PS: I've just taken a minuscule punt on it, to say it is high risk probably understates it though ;-)