Kistos Share Discussion Threads

[cashandcard] 20/7/2022 16:29

Simply addressing the last point - which is about not selling assets (the deal is structured such that SQZ shareholders are still involved!).Cash

[bountyhunter] 20/7/2022 12:51

Absolutely, it's history already. 🦤

[farmscan] 20/7/2022 12:43

I think we are all aware of the details of the proposal.

[cashandcard] 20/7/2022 12:35

BH,Kist are effectively proposing a cash return and also part share deal for SQZ holders. So they still have access to the assets in a deal scenario. It's just management that'll change.Cash

[bountyhunter] 20/7/2022 12:12

Fair point, assuming nobody is daft enough to sell assets in the next 6-8 months whilst they are raking in the cash then that clearly applies to SQZ, although other factors apply, predominantly price and management.

[bountyhunter] 20/7/2022 11:54

Unused as yet, they are always on the look out for accretive acquisitions and have the cash to strike a quick deal, I suspect we may well see that happening soon.

[alxo82] 20/7/2022 11:38

bountyhunter, Andrew Austin made the non binding offer to put Kistos into the spotlight. The shareprice is speaking, hail to Kistos, meh to Serica. Now Andrew can decide whether he just waits until the share price has reached a higher price to place the final offer, without any premium for SQZ, or use the heightened share price to go for a better company that will not lose almost 25% of the EBT by the EPL. In the process SQZ management and board will be worn out and their lack of ambition will be exposed, they have a lot of money but they are unable to use it and provide value to shareholder, I pity SQZ holders

[mirabeau] 20/7/2022 11:19

Why is this stock termed a 'complex financial instrument' (I am with Interactive Inv)?

thanks

[bountyhunter] 20/7/2022 11:16

I've christened Kist's cash raiding proposal the 'Dodo proposal' as it's dead in the water already! 🦤
It would need to be a much better offer to even be taken seriously by Serica and I don't think that Kist can afford that, even relying on partial funding from Serica's cash pile. There's so much going on at Serica with production increasing workovers, potentially transformational drilling and all that cash available for acquisitions that it makes no sense at all to sell out to a low ball offer and dilute that potential.

[alxo82] 20/7/2022 10:16

ATH after ATH, this morning I saw 529p, SQZ stays in a similar level despite today's positive RNS. The market is talking, and it is saying NO ACQUISITION.

Andrew, Peter or Richard, if you read this, do not offer a penny for Serica!

[mariopeter] 20/7/2022 08:54

SQZ acquisition may well depend on the success or failure of the current SQZ drill. I genuinely hope the drill is a success as Lord knows the country needs help with gas supply. If successful, the AA intervention would likely be seen as a much needed share price booster for both companies and we all move on (maybe not). The other side of the coin, the one with the weighting of 3 heads, puts KIST firmly in play.

Good to see our future assets have had some successful maintenance recently..see SQZ RNS !

[cashandcard] 20/7/2022 08:08

Agree, this year's results will be bumper and the journey higher will be exciting.Cash

[mariopeter] 19/7/2022 15:48

Bit silly being valued at £400m when this year's EBITDA looking like £600+m depending on gas prices second half. Someone else agrees. Not to rule out SQZ.(Ignoring the oil).

[prince7652] 19/7/2022 12:31

No Quote to add with HL

[mariopeter] 19/7/2022 12:04

So far it looks like Schroders the only ones who have offloaded the biggest number of shares from previous disclosed positions. Previous disclosure 7.741m shares. More recent 4.150m. MAitland biggest acquirer of 3.082m.

Think Schroders went in over the top at the start for underwriting purposes.

Biggest shareholder by a long margin is AA with 14.295m shares half of which are in his SIPP. Big SIPP presumably a QNUP.

[mariopeter] 18/7/2022 18:14

Kistos Dutch CO2 emissions are 13g or 0.013kg per boe
Serica CO2 emissions (hoping to achieve in 2022) 17kg per boe.

Time to start asking for premium prices on the Dutch gas. Perhaps better achieved when the KIST new pipeline is complete (planned March 2023). That timing may well link up with the tie back of Q11.

Staggering difference though and SQZ is better than average in the NS.

[mariopeter] 14/7/2022 18:42

Thank you Anley an interesting career although a bit sad that there is no brewing major left in the UK.

Hope both sets of directors are planning a get together to knock out fair terms. Would have thought there was room for both boards on the merged Company. One set can do the organic growth and possibly the KIST team concentrating on acquisitions from the majors who seem happy to exit from viable discoveries to focus on renewables. Plenty of work to be done. Private equity will be all over the North Sea (as is happening in Canada) unless someone steps up.

[thefartingcommie] 14/7/2022 18:35

With TotalEnergies deal all done, firm expands presence in ‘one of the largest gas hubs in the UK’

Posted 14/07/2022 14:30

London-listed Kistos has entered the United Kingdom Continental Shelf (UKCS) thanks to the acquisition of TotalEnergies’ stakes in several gas fields located West of Shetland.

Back in January 2021, Kistos revealed its intention to buy interests in multiple gas fields from TotalEnergies for an initial cash consideration of $125 million.

In an update this week, Kistos announced the completion of the acquisition of a 20 per cent interest in the Greater Laggan Area (GLA) producing gas fields and associated infrastructure alongside various interests in certain other exploration licences, including a 25 per cent interest in the Benriach prospect, from TotalEnergies.

[vino] 14/7/2022 17:09

And must not forget Cnooc are trying to get out

[officerdigby] 14/7/2022 15:51

Surely SQZ, as they have stated, stopped putting hedges on roughly same time to KIST mid 2021 just they had a more extensive structure.with longer period to unwind.

[anley] 14/7/2022 15:40

A wonderful post MARIOPETER.

Mitch and his team floundered recently over hedging when put under the spot light at a recent Stifel brokers session. It was this that pointed towards their weakness and I suspect that AA of Kistos has seized on and will use.

I have no idea who reads these BB but both parties have Rothschild and Merril Lynch on board - heavy gang looking for big fees and no doubt looking for some sort of outcome.

The starting gun for the consolidation of the North Sea gas/oil has started and apart and ther will be about 2 left when this has finished............I was a junior in investment banking in the early 60's and worked on the consolidation of the Breing industry and then again in the 90's again and now there are no big UK brewers left.

[mariopeter] 14/7/2022 10:48

Yes the fact that KIST are cash piling too makes them want to expand while the sun is shining. The SQZ offer for KIST which was clearly unresearched, I feel shows SQZ management might not be very good at acquisitions. I can see the synergy for everyone going forward and everyone needs to think what is left when the sun goes down some. As for a little debt my view is the same as why I took out a mortgage to buy a home and that keeps me, as the manager, on my toes as well as allowing me use of an asset base that happens to grow.

I question why SQZ management are losing millions on hedging and feel they really need to do something better with their cash. Stopping hedging would be a good start.

SQZ management have done extremely well over the last 7 years or so but they should really expand on the success now when the going is good. Organic growth is fine but it is all terribly slow. There is a short window on transitional gas I would propose, possibly 20 years, and speed to production must be paramount to enjoy high prices (not quite as lofty as currently) while the majors bail from hydrocarbons.

I personally would prefer an all share deal and leave some serious expansion cash (and dividend cash) inside. The weighting of the shareholdings going forward should depend on both companys' 5/10 year plans and reserves to include heavy discounting for undrilled resources even ones with the drill bit spinning.

Hopefully the laundry can be done in the wash rooms from here and not in the public eye which I can see KIST were forced to do.