Nautical Petroleum Share Discussion Threads

[leedskier] 24/1/2012 07:33

Interesting news here this morning.


Steve Jenkins, Nautical Chief Executive Officer, commented:

"I am delighted to welcome EnQuest, as partners, strengthening the joint venture both technically and financially. This transaction provides Nautical with a carry of up to $240 million on our remaining 25% interest in Kraken, significantly mitigating our funding requirements for the development of the field. The Nautical team has made excellent progress towards the development of the Kraken accumulation. We are currently carrying out concept selection (pre-FEED) studies and are in discussions with contractors to provide a leased FPSO. We now look forward with confidence as we move toward Field Development Plan approval in Q4, 2012 and first oil in 2015."

[leedskier] 17/1/2012 11:58

OIL is, as the professionals say, 'in focus' added to which I picked some comment this morning that UK off shore oil may be coming back into fashion, not withstanding the tax hike last year, especially following PMO's take-over of EO. and as you comment, ENQ.

[bugsmoney] 17/1/2012 11:35

Presumably because the markets have been a bit perkier recently as well as the involvement of ENQ.

After the recent drill results, the share price was around 330p before all the angst about the Euro really kicked off.

[horndean eagle] 17/1/2012 11:29

I think a firm change in sentiment can be detected in the market at present. Whereas previously liquidations were causing institutions to sell out I think we are now seeing institutions start buying for the future returns. Shares still substantially below where they were trading last year despite very good news on the main assets. Further re-rating on the cards or even perhaps a belated bit of corporate action.

[steelwatch] 17/1/2012 11:10

Seem to be enjoying a nice little run up here.

[intouch] 12/1/2012 17:51

Views From The Trading Floor Thursday 12th January
4:41 pm by Steve Asfour

[steelwatch] 12/1/2012 09:57

Appointment of Joint Broker

Nautical Petroleum plc (LSE:NPE) is pleased to announce the appointment, with immediate effect, of RBC Europe Limited, trading as RBC Capital Markets, as its joint broker alongside the Company's existing broker, Evolution Securities.

[texas tea] 11/1/2012 13:34

Goldman Sachs says EnQuest could do more North Sea deals
1:19 pm by Jamie Ashcroft

[wiisdomseeker] 11/1/2012 08:44

OILBARREL
January 11, 2012
Imminent Launch Of 27th Licensing Round Expected To Be Test Of Industry Appetite For North Sea Exploration Following Last year's Tax Hike
While most of us were still digesting the mince pies, the Department of Energy and Climate Change was busy issuing new licences to North Sea explorers. These were the licences held back when the results of the UK's 26th offshore licensing round were announced in October 2010, which saw 144 licences covering 268 blocks offered to 83 companies. DECC held back 99 blocks, making up 45 prospective licences, because they required further screening to make sure exploration activities in these areas would not compromise protested nature conservation areas.

[jbtrend2] 10/1/2012 18:57

NPE/ENQUEST
With its shares closing up by 5% to 2.71p, punters are clearly onside with Nautical Petroleum (LON:NPE) following the sale of part of its 50% interest in the Kraken oil discovery to EnQuest. EnQuest will make an initial cash consideration and a further cash commitment upon approval of the Kraken Field Development Plan by the Department of Energy and Climate Change.
Views From The Trading Floor Tuesday 10th January
6:13 pm by Steve Asfour

[horndean eagle] 10/1/2012 15:56

Hefty quantities of shares gone through at 250p. Have had the feeling we have been stuck with an overhang for a while. Market reaction suggests we may have cleared them out for now. More enticing would be a potential suitor taking a stake. Perfect timing if anyone fancies a crack.

[grahamburn] 10/1/2012 15:18

Assuming your source is correct about the sums owed by Cammamens to NPE, this does not mean the Enquest have assumed the debt, especially as it isn't mentioned in the Enquest RNS. Such a fact would usually be highlighted. It may well be that Enquest have acquired the assets of the two businesses (including the 20% Kraken), but not the debts (ie the acquired companies have to settle their own debts out of the consideration money.

However, we can only guess the true position.

[lanaken] 10/1/2012 15:08

Well I don't know if NPE will be fooled by the headline figure.

I have been told by a good source that Cammamens owe some $16m to NPE, some due at FDP approval. This, if true, takes the price to $106m or $265m or 171m quid. Given the certainty that FDP approval will bring and the fact that NPE is not a distressed seller, I can see that this will be worth at least 200m quid come the FDP approval. If the sell the 15% they bought for 12-15m quid for 60m quid and still retain operatorship, that will be quite a result in just over a year.

The question that I've got is, Will FirstOil be a strong holder here and have the money to push the project through to production?

Any views?

repo

[cinbo1] 10/1/2012 14:45

Does anyone know the cash position of the Canamens businesses prior to the sale?

Remeber, if they we in debt then Enquest may well have 'bought' this also. Therefore, the actual value of the Kraken reserves bought would be $90m + debt position. (i.e. you could buy HMV for £1, but your are actually investing a huge amout of cash by taking on the debt....the sale price remains £1 though.

From the Enquest view, keeping the headline $/bbl reserves figure low would be smart given that their next move will probably be for NPE stake.

[bugsmoney] 10/1/2012 09:29

Yes NPE is steady as she goes - one or two posts per day.

I like the look of the Nautical's position, lots to come and will be reflected in the share price in due course.

You should try the GKP board at a post every few seconds of wild excitement.

[bomfin] 10/1/2012 09:05

That's a good point. Canamens were either cash strapped or didn't have much confidence in Kraken at the time. Clearly Nautical have added significant value to the Kraken project since May 2011 which isn't reflected in NPE share price. imho

[bugsmoney] 10/1/2012 08:27

Interesting that Nautical bought 15% of Kraken from Canamens in May 2011 - selling 15% to someone else (for more) would seem like a pretty canny move.

[bugsmoney] 10/1/2012 08:19

Robbie as others have said I think just reading across is at best going to give a ball-park figure, but I guess they meant 160m pounds not dollars?


Also don't forget that the West part of the field, Ketos, and the newly awarded extension block to the west 91/a is 100% owned by Nautical and there is work to be done on Kraken South too, so plenty more opportunity to add resources in that area alone.

[bomfin] 10/1/2012 07:56

Don't know what's making Robbie wonder?
As far as I can see this is a $90 million vote of confidence in Kraken.
A quick look at NPE's other assets along with Kraken and cash! tells me NPE is undervalued. Sector is starting to look pretty cheap with Brent at $112/barrel.