Enquest Share Discussion Threads

[master rsi] 30/4/2019 11:22

Markets Too Calm About Oil Price, Morgan Stanley Wealth Says
(Bloomberg) -- Markets aren’t adequately pricing in the risks from higher oil costs, according to Morgan Stanley (NYSE:MS) Wealth Management. - Bloomberg 1 hour ago (Apr 30, 2019 10:17)

Rallies in stocks and Treasuries that have taken the S&P 500 Index to a record high and 10-year yields down to around 2.5 percent illustrate that investors are complacent about crude prices, Morgan Stanley Wealth Management Chief Investment Officer Lisa Shalett wrote in a note released April 29. That’s despite U.S. moves to cut off Iranian exports, a slump in Venezuelan production and Libyan supplies coming under threat.

“Markets continue to celebrate gains in every asset class as a validation of central bank forbearance and the resumption of Goldilocks conditions,” Shalett said. Yet “if oil remains at current levels through year-end, headline CPI could breach 3 percent, creating a problem for the Fed, cutting into consumer purchasing power, pressuring corporate profits and imperiling the growth in China and the emerging markets,” she said.

Brent crude and WTI recently rose to the highest levels in almost six months after the U.S. announced tighter sanctions on Iranian crude, though have retreated slightly since. Brent climbed 0.3 percent to $72.22 a barrel as of 8:59 a.m. in London. Prices may stay elevated or rally further should the Organization of Petroleum Exporting Countries and its allies extend supply curbs when they meet in June, as some observers anticipate.

U.S. energy stocks are underperforming crude to a degree unseen in 10 years, “perhaps the most compelling evidence” that markets aren’t anticipating higher oil prices, according to Shalett. She suggested using cheap oil shares as a defensive hedge in portfolios that are overweight U.S. growth stocks.

Shalett’s not alone in recommending them: JPMorgan Chase & Co (NYSE:JPM). said in early April that energy equities were poised to gain, citing valuations at multi-decade lows.

“While year-over-year price gains for oil and gasoline seem benign, if they remain at current levels, there will be much tougher year-over-year comparisons by the fourth quarter,” Shalett wrote. “That could prove challenging for many asset classes which have yet to price the risk.”

[leoneobull] 30/4/2019 05:16

Serica arcticle ft yesterday. Enquest Magnus. Similar business model innit 40p by xmas etc.

[leoneobull] 30/4/2019 05:14

Relatively unknown, listed minnows such as RockRose Energy and Serica Energy do not have the same deep pockets as the private equity-backed newcomers. But they have been making a mark by doing creative, often complex deals to take over unloved assets from the majors and other groups wanting to either reduce their exposure or exit the mature North Sea altogether.Such deals might involve striking a profit-sharing deal with the current owners over future production, agreeing to take on decommissioning liabilities in return for a cash sum or offering up a stake in exchange for interests in fields.The cold waters of the North Sea may be a far cry from the beaches of the Caribbean but Andrew Austin, founder of RockRose, was lured by the UK's oil and gas basin.In 2015, Mr Austin, former chief executive and a co-founder of UK onshore energy company IGas, returned to Britain from taking time out in the Caribbean with the intention of buying up North Sea assets."There were a lot of people phoning up with asset packages in the North Sea that were no longer in the hands of people who really wanted them," said Mr Austin.?RockRose in February agreed a deal for US major Marathon Oil's two North Sea subsidiaries, which will more than double the UK company's production this year to 24,000 barrels of oil equivalent a day. The acquisition was priced at $140m, although the subsidiaries come with $350m of cash, meaning Marathon Oil is in effect paying RockRose as it will also take on the decommissioning liabilities for the assets.The acquisition, through which RockRose will become an operator of fields for the first time, is the eighth the company has negotiated in the basin in just four years, although one of those - with former Danish company Maersk Oil - failed to complete. Last month it approached London-listed Independent Oil & Gas. Its overtures were rejected but the approach was evidence of further appetite. "Our next move?.?.?.?will be looking at more development assets," said Mr Austin.Serica Energy, which started life in 2004 as an explorer drilling wells, switched strategy in 2015 and began acquiring North Sea assets that were already in production from the majors. That year it struck a deal with BP for an 18 per cent stake in the Erskine field, through which it avoided having to raise capital by handing BP a 5 per cent stake.In November last year, Serica completed a deal involving four complex transactions with BP, Total, BHP Billiton and Marubeni, the Japanese trading and investment conglomerate. Those transactions gave it interests in the Bruce, Keith and Rhum assets and involved a profit-sharing arrangement with BP, BHP and Total. Its production has increased to 30,000 barrels of oil equivalent per day from 2,000 barrels/day at the end of 2017.RecommendedUS decision to end Iran oil waivers puts pressure on oil priceSmall independent oil and gas companies have a long history in the North Sea and Serica and RockRose are not the only independents participating in the latest M&A flurry, with EnQuest recently acquiring the Magnus oilfeld from BP. But both RockRose and Serica argue their case is different, as they are following an unconventional route. RockRose was doing business "the other way round", said Mr Austin, by securing production first rather than drilling wells, appraising a discovery and then trying to develop it. ?Tony Craven Walker, executive chairman of Serica and a North Sea veteran, has been replicating with Serica a model he had already tested with Monument Oil & Gas, once a leading UK independent, which was sold in 1999."We started off [with Monument] by buying production from Petrofina, BP and a couple of other people. After we had the production, we then expanded it into a bigger portfolio of exploration, development, appraisal, all sorts of things that we could fund on the back of the production," he said.Mr Craven Walker cited the 2016 merger between Norwegian independent Det norske oljeselskap and BP's Norwegian unit to form Aker-BP as the kind of deal Serica would like to do next to secure more development and appraisal assets. "We need to merge ourselves together with a portfolio," he said. Mitch Flegg, Serica's chief executive, said he did not see companies such as his in competition with the private equity-backed players such as Chrysaor but rather operating in a "different niche" by taking on assets where there are issues to be resolved - with the ownership structures for example."We are prepared to take things that have real problems that need solving," Mr Flegg said.

[leoneobull] 30/4/2019 05:12

SericaSmall oil groups make waves in North Sea with creative dealmakingCompanies are snapping up majors' unloved assets in an M&A merry-go-roundFt Serica Energy began acquiring North Sea assets in 2015 that were already in production from the majorsApril 28, 2019 10:49 am by Nathalie Thomas in EdinburghIn the UK North Sea, it is a case of out with the old and in with the new.A mergers and acquisitions merry-go-round that has seen a band of new North Sea players snap up fields from the older, established energy groups spun once again last week when Chrysaor struck a $2.7bn deal for the assets of US oil major ConocoPhillips.Much attention has focused on the private equity money driving this change. Chrysaor, for example, is backed by EIG Partners. But a cluster of smaller, listed companies are also making a splash in the mature basin.

[steelwatch] 29/4/2019 23:42

Long or short, this is some in depth analysis of where ENQ is at, how it got there and how the future looks:



Of course, much depends on the oil price...

[andypop1] 29/4/2019 23:38

Steve,
Thanks for answering on behalf of Leon (never trust a poster with bull in their username), you could have included Tullow in there as well.
The point is it is not a regular occurance as was suggested and you had to trawl back three years to when oil was on its knees to find a couple of occasions when it has happened, as you rightly pointed out the other examples didn't actually double.

I don't suppose you could answer the other questions I posted for him could you?
He seems to have gone mute after posting untruths as facts.

On a lighter note, Gregory and Malloca must have entered the decompression chamber and as soon as the master posts about oil dropping below $71 guess what happens?

As I have mentioned before, the tanker watchers do a fantastic job but the market doesn't watch tankers it watches official company releases.
Will Cairn give a positive update on the recent Kraken production before the EnQuest update?
Or will they hedge their bets and just report the Q1 numbers?

[ammu12] 29/4/2019 20:01

Don't say that poor master RSI will another graph showing bounce on

[s34icknote] 29/4/2019 18:19

Pmo 162300 three times .Sicknote

[s34icknote] 29/4/2019 18:17

Four sells 125300 . Same on pmo .Same seller ??Three trades ending with 300 !Sicknote

[jotoha2] 29/4/2019 17:36

$72 and climbing , nobody can predict it , that is what is so exciting about this game !

[master rsi] 29/4/2019 10:55

Brent Oil Prices slip again and moving under $71 at $70.89 -0.74 just now as the war of words goes on. One wants it lower but the other one needs or wants it Higher........

Trump Wants Cheap Oil. IMF Data Show Saudis Need Higher Prices - Apr 29, 2019 10:05

(Bloomberg) -- Saudi Arabia needs oil prices to be higher than what U.S. President Donald Trump may be comfortable with as the government increases spending to bolster economic growth.

International Monetary Fund data released on Monday show the world’s biggest oil exporter needs prices at about $85 a barrel to balance its budget this year, up from a forecast of $73 in September.

The estimates highlight the tricky task facing Crown Prince Mohammed bin Salman as he tries to forge closer ties with Trump and, at the same time, finance a plan to revive economic growth and create jobs at home. The kingdom, which reiterated last week its commitment to balance its books by 2023, plans to increase spending by 7 percent this year.

Trump has repeatedly called on OPEC to keep oil prices low. He tweeted on Friday that he had spoken to Saudi Arabia and other suppliers about boosting oil flows.

Many of OPEC’s biggest producers and partners outside the group are poised to post a government budget surplus if oil prices gain from the average $62 a barrel so far this year. Saudi Arabia expects its budget deficit to narrow to 4.2 percent of gross domestic product this year from 4.6 percent in 2018, a target economists say hinges on higher oil prices.

“Saudi Arabia’s fiscal break-even could be as high as $95 per barrel this year, but the IMF is probably assuming higher cash transfers from Saudi Aramco to the Ministry of Finance,’̵7; said Ziad Daoud, Bloomberg’s chief economist in the Middle East.

[american idiot] 29/4/2019 10:52

Brent falls into key support zone

Brent fell sharply on Friday after the US President Donald Trump announced his approach to the Organisation of the Petroleum Exporting Countries (OPEC) with a plea to push prices lower.

This drop has taken us into a support zone which encompasses both a cluster of previous lows and the ascending trendline dating back to December. With that in mind, it makes sense to look out for whether we can break below $70.53 to spark a new bearish phase for the market.

Until then, we could see bullish move from here.

[master rsi] 29/4/2019 10:02

OIL prices - Apr 29 2019 @ 09:22 - FXstreet

WTI Slips At The Highs
After WTI suffered its most bearish session this year on Friday, we think there could be further downside as part of its correction.

As we noted in this week's COT report, WTI has seen a steady decrease of short exposure this year whilst long exposure has also tracked prices higher. So, despite WTI's wobble at the highs on Friday, we suspect losses are part of a much-needed correction.

RSI(2) was heavily oversold on Friday, so the bias is for a minor bounce before it extends losses, then we'll have the 61.80 low and 60.39 high in focus for potential targets.

[seangwhite] 29/4/2019 09:22

Quiet here today I wonder if Trump will be tweeting today about OPEC giving out fake news. Putin didnt seem to be singing from Trumps songsheet over tge weekend!

[steve73] 29/4/2019 02:52

Can you give an example of an oiler that has doubled in a few months that trades on the main market?

PMO - April '18 - Jun. c.69-135.
ENQ - Nov '17 - Jan '18. c. 25-45.

OK, both not quite doubles if you want to be pedantic, but near as dammit.

And from a previous years ...

PMO - Feb '16 - Jun '16. 19-70.
ENQ - Jan '16 - Apr '16. 11-40
ENQ - Nov '16 - Jan '17. 25-55

Some people have very short memories...

[andypop1] 28/4/2019 21:28

Leon,
Which post shall I tick up then?

You strike me as somebody who doesn't act on his own opinion posted on here.
Did you sell up?
No.
Can you back your claim up that I was booted off LSE?
No.

Can you give an example of an oiler that has doubled in a few months that trades on the main market?

[leoneobull] 28/4/2019 21:22

I dont know. If I did know, I would leverage up. But that is usually a disaster

[svenice7] 28/4/2019 21:02

Great news regarding Kraken , thats another 33 million $ dollars in the bank.

[berber1] 28/4/2019 20:56

Are we doubling in few months then. gone down by over 100%(46p)so far to 21.3p. I hope you are right. HERE'S HOPPING.

[leoneobull] 28/4/2019 20:41

Taken in by rampers, or perhaps the fluctuations linked to Brent in a highly leveraged co? All small and medium sized o and g firms with debt can go down 50% and double in a few months..

[jotoha2] 28/4/2019 17:19

Okay , lets all put our expert views and predict where this will be on 1st June
I am going for 27p

[sleveen] 28/4/2019 13:45

Thanks AI.

[discodave4] 28/4/2019 13:37

Thanks AI,Guess that could be a 45k load, excellent news as you say.