Enquest Share Discussion Threads

[stansmith3] 15/3/2019 08:47

so why did you turn up on the cairn announcement, other than to talk your book?

[deanroberthunt] 15/3/2019 08:29

since the New Year, ENQ has fallen 30%, whilst in the same timeframe PMO has risen 50%...that's some disparity....

[american idiot] 15/3/2019 08:25

15 March 2019

EnQuest PLC ('EnQuest') is pleased to announce its intention to appoint Howard Paver as a Non-Executive Director of the EnQuest Board with effect from 1 May 2019. On joining the Board, Howard Paver will become a member of the Remuneration and Audit Committees and stand for election at the Company's Annual General Meeting in May.

Howard has 40 years' global experience in E&P and was previously SVP, strategy, commercial & business development at Hess.

Jock Lennox, Chairman of EnQuest:

"I am delighted to welcome Howard Paver to the Board of EnQuest. He has many years of industry experience as a petroleum engineer and I look forward to working with him as a member of the Board."

[leoneobull] 14/3/2019 18:48

Good post AI

[american idiot] 14/3/2019 18:29

Leoneobull.

In my ISA

100,000 Average Price 25.5389p

Book Cost £25,538.85

Market Value £16,000

Current Loss £9,538.9 (% Loss 37.35%)

Then a furthur 30412 @ 21p (Rights issue)

Then bought a furthur 50k @ 17p on Monday on CFD.

I'm a very successful investor with nearly 20 years experience behind me and must admit I am left scratching my head at Enquest at the moment.

Brent looking bullish at $67+ and a NAV of double todays shareprice. No liquidity issues. Yes, a non-cash Kraken impairment will lower the NAV (and 2p reserves) but at expected 63k 2019 production and Brent prices on average $65 I refer everybody back to the Moodys upgrade in November.

Looking ahead, Moody's projects that incremental contribution from the 75% interest in Magnus (assumed to be acquired on 1 January 2019) combined with the continuing ramp-up of Kraken should lift EnQuest's average production by around 20% in 2019. Assuming a Brent price of $65 per barrel and capex of $250 million, EnQuest should generate EBITDA and FCF of around $950 million and $450 million respectively in 2019. Moody's expects that this cash surplus will be used to reduce adjusted debt, including inter alia the amortisation of the secured term loan, BP vendor loan and BP's profit share. Overall, Moody's estimates that this will help bring leverage down towards 3.0x at year-end 2019.



The downside risks are Brent falling below $65 and furthur Kraken problems which in turn could lower 2019 production guidance.

[sleveen] 14/3/2019 18:14

Solan .

So if solan is our kraken is magnus their catcher?

[leoneobull] 14/3/2019 17:58

They certainly did with Solan:-)

[sleveen] 14/3/2019 17:04

same here Leo.

PMO had production problems with Catcher if I'm not mistaken and that seems to have resolved.

Kraken will too most probably.

21st March should reveal more!

[leoneobull] 14/3/2019 17:00

What are people's averages? Mine is about 21.75 but 20.5 I'm the sipp.

[profitaker] 14/3/2019 16:56

Stupmy

My only concern (read nervousness) is their OUTLOOK for Kraken (don't care about history it's behind us). If they reassert the Ops Update guidance of between 30,000 and 35,000 Bopd I'll be happy with that and anything more is a bonus.

[stupmy] 14/3/2019 16:47

Profitaker, I feel the same way, but was not intending to wait years!! I'm concerned about the 21st.

[stansmith3] 14/3/2019 12:31

sorry spoke too soon, he has just said on pmo board that pmo now getting towards his jan call suggested levelsi note no similar conceit or posts here, maybe he is hoping you would forget his calls here

[deanroberthunt] 14/3/2019 12:26

this is the dog of the sector....PMO up another 5% 2day, after rising 8% yesterday, now 87p from 57p...….

[stupmy] 14/3/2019 11:48

I don't want to see it that way hsfinch, but I think you have to. POO is strong and other companies are showing signs of share price movement north. Here share price is currently looking more likely to head down. My personal view is that any additional bad news on the 21st will see the share price hit 12.4. Sellers have outweighed buyers for a while now and there doesn't appear to be very much demand currently. Maybe nothing can really happen until the results are out of the way.

[chrismultisante] 14/3/2019 11:33

The fog will clear on 21st march then its blue sky all the way.

[hsfinch] 14/3/2019 11:31

You can't argue with the reserves downgrade. Pretty obvious from production stats to date. And confirmed by Cairn a couple of days ago. share price had to fall to current levels. Sure if oil moves up then enq should move up. But worry about more bad news from Kraken. It can't be ruled out.

[american idiot] 14/3/2019 10:45

A piece on Brent courtesy of IG.



Brent rallies through key breakout level

Brent has managed to rally through the $67.82 resistance level this morning, providing confirmation to the similar move that happened in WTI yesterday. This points towards further upside to come, with a bullish view in place unless we see a break below $66.32.

From a wider perspective, this looks like the beginning of a strong surge for crude prices, and with the price having broken out of its recent consolidation, we are hoping to see the bullish bias really take hold in the coming days.

[sleveen] 13/3/2019 19:38

good post steelwatch

[steelwatch] 13/3/2019 18:41

I would also point out that DC4 should have been drilled immediately after the other drill centres were completed in the Spring of last year. As it was, after arriving on location, the rig developed mechanical problems requiring the rig to be towed to repair facilities in Norway. This allowed Enquest to terminate the contract and renegotiate on more favourable terms and also to take a breather. After repairs were completed, the rig went out on a single exploration contract on the Agar field and should have returned to DC4 in September. However, due to the Agar Plantain well emerging as a discovery and the need for extensive flow testing, the rig finally arrived at DC4 in November.

None of this was allowed for in setting the 2018 production target and DC4 is finally coming on line some 9/10 months late.

[colebrooke] 13/3/2019 17:50

Production guidance from the Ops Update in February for 2019 was forecast between 63,000 and 70,000 Boepd.Debt at 31/12/18 was $1.774 million reduced by $200 million from $1,973 million at 30/06/18. Not bad debt reduction for 6 months. If oil stay where the Saudis want it this debt will reduce significantly again this year.In terms of Kraken even Cairn are saying with the DC4 wells online in Q2 that 40,000 Boepd at the top end is possible. If they can get that sort of sustained production then the share price will recover significantly.

[datait] 13/3/2019 17:32

Ammu how is it going lmao

[colebrooke] 13/3/2019 17:25

Agree this is drastically oversold unless I'm missing something. Production guidance from the Ops Update in February for 2019 was forecast between 63,000 and 70,000 Boepd.Debt at 31/12/18 was $1.774 million reduced by $200 million from $1,973 million at 30/06/18. Not bad debt reduction for 6 months. If oil stay where the Saudis want it this debt will reduce significantly again this year.In terms of Kraken even Cairn are saying with the DC4 wells online in Q2 that 40,000 Boepd at the top end is possible. If they can get that sort of sustained production then the share price will recover significantly.