I'd be very unsurprised if Enquest made a bid here. |
News came out 3 days ago and volume has been increasing every day since. |
Two steps up , one step back , then go again Ladder formation until market prices it correctly |
Had a friend who is a much better chartist than me have a look at this. Target is pretty much bang on 44p which should then become support for the next leg, ceteris paribus as they say. nai, dyor, this is aim junior oilers so don't bet the house on it but that is our initial target share price |
Would be good if the changing of the guard of the IIs following our departure from the North Sea has now turned to new IIs buying, instead of the old IIs selling, which has been preventing any serious rise for months imo. |
I think a large buy is being worked. Should know after the bell. |
Dont sell stock when the sap is running up the tree
Jesse Livermore |
Exactly this Jungmana |
Market cap at GBP 13 million ( 23p) is too low.UPL as an example went to GBP 50 Million market cap not long ago on a hope and prayer with no psc.The 2D seismics on 2A block alone could be worth more than today's market cap. |
Zengas, in the presentation yesterday they mentioned "15.75% and up" retained interest. |
At 24p this has a market cap of £13.7m, Now ask yourself, if another junior oilier had spent £10m on drilling, 3D and announced they just found 14-19mmboe what value would that stock have. Now this is just for the DEWA. I don't even want to think about the 9.1Tcf block 2A |
 The budget to run the company has been cut right back after the streamlining in June and they had enough to run it to end of Q1 2025.
I can't see them giving investors a share price valuation of 75p-100p for DEWA and £14.65 for Kertang one day and dilute that figure the next imo.
Why so confident on saying a 'near term' announcement by year end on the 2A (Kertang) farmout. They've also based that on retaining 15.75%. I would expect negotiations must be well advanced when they are touting those figures.
The question is can they pick up a few $million as part of the farmout process that they are hoping for.
I looked at the deals G Murphy was involved with for Active Energy re the farmouts to Total and CNOOC (led to the Venus discovery) but as Active is a private company the details weren't divulged that i can find.
It's her skill/contacts i hope that lands us a good deal given the industry interest and her wide advisory role.
As for DEWA financing - perhaps RBL and cash isn't needed until a year away yet.
Once a project is sanctioned the 2C will become actual 2P reserves. The CPR and valuation on DEWA is to be ready by end H1 next year so i think only then will we see the financing route but as they say they intend to get a financing deal rather than dilution so RBL perhaps.
Where perhaps a raise could come from would be on the basis of a producing asset if it's deemed value accretive but when that could happen is anyones guess - but i don't see that on the horizon just yet. They are looking at building a train of similar opportunities to DEWA so i would assume they would still continue to come at Zero cost and likewise be debt financed - is the next one 6+ months away/summer next year ? As they said, Petronas is sending a lot of stuff their way and have more than enough to look at.
DEWA production should give us around 5,000 boepd based on the 100 mmcf/d expectation along with the up to 2,500 bls condensate/day and given they have to make the most of the PSC 10 yr production timescale i expect that to be up and running/producing in 24 months. Development plan to be completed H1 next year.
All in, this is materially under rated of what's in store just on the DRO front re DEWA, DEWA material upside expectation and any further assets like that - where we pick these up at zero cost - compared to spending $$$$ drilling actual wells to find gas is a rare opportunity. Effectively booking reserves and resources at zero cost and i can see us having north of 50 mmboe in time regardless of block 2A. |
yes looking very good here.not going anywhere in a hurry gl |
Block 2A + DEWA make SEA a no brainer of an investment pick under 30p (GBP18 million market cap) imo.
James and his team assembled are the best in this business. |
As pointed out yesterday, this week's award of DEWA PSA is transformational. But the share price has moved relatively little yet. That will surely change soon |
Had to pay 22.4p for my 50k top up. |
New to this one but thought the presentation was excellent, definitely some risks in there especially given their cash balances but the risk reward is reasonably compelling so had a decnet nible this morning. |
Taken another 50k, no brainer at these levels GLA |
TBH this should be nearer £1 with 2A looming. |
Farm out still incoming. Pick your entry |
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