Serica Energy Share Discussion Threads

[dunderheed] 06/12/2019 14:24

What's that bh 're rre? Potential oil price weakness?

[bountyhunter] 06/12/2019 14:16

That didn't do that for RRE though although admittedly it wasn't just a one off there and RRE are probably more affected by current political factors.

[joestalin] 06/12/2019 11:18

Why not a one-off dividend? That would put a rocket under the share price

[newkotb1] 05/12/2019 19:02

Here's a thought to be considered .... What if SQZ need to reduce their cash position in order to complete a deal ? An acquirer may not want to pay cash for cash, or a PE funded merger/takeover may not need cash either, so a considerable dividend is offered to sweeten a deal for SH's Our board have shown they can be innovative when it come to deals !!!! I know that's a little off-piste to say the least, but imo an option for our board, as they have been quoting the possibility of a maiden dividend for early 2020. Or it could just be a run-of-the-mill maiden dividend ..... 5p/s would be very nice and only cost c£13.25m aimo

[bountyhunter] 05/12/2019 13:57

The directors are probably also awaiting the election result which alongside the licence is part of the political risk. (It was great news on the licence to get two years rather than one by the way!)

[almsivi] 05/12/2019 13:49

Interesting development a few days ago I haven't seen mentioned. The new Russia-China Gas Pipeline was brought online 2 days ago with the two countries agreeing a 30 year supply deal worth $400bn Https://edition.cnn.com/2019/12/03/asia/china-russia-gas-pipeline-intl-hnk/index.html Europe remains Russias biggest market for natural gas - but with this pipeline opening and china swiftly moving away from coal to gas & renewables - I anticipate gas prices to firm up considerably over the next 10 years, especially as European domestic gas production is forecast to fall by 20%

[captainfatcat] 05/12/2019 12:02

Hi almsivi, I certainly am of the opinion there are many benefits for both the company and share holders that come with issuing of a dividend. The old argument that it might stifle growth and cash put towards new growth opportunities is becoming decreasingly less relevant as SQZ's cash pot grows with Columbus coming online and potentially Rhum 3 due to contribute along with the full earn out of BP's BKR share over the next couple of years. With this organic growth in mind and continued efficiencies being made with current producing assets extending production life spans further out the economic outlook for the company looks pretty stable for the foreseeable future. Without a deal Serica's cash position looks like it will be greater than the current market cap inside 24 months!

[lord gnome] 05/12/2019 11:34

I think your assessment pretty much mirrors my own thinking almsivi. Results are due in April (going on last year) so we still have four months to wait, but I will be disappointed if we don't get 5p as the final with a promise of more to come. I have been hanging on here in the hope of another deal to move the share price which, has done nothing this year. A decent divi would at least be some reward for patience.Of course, if they should come up with another deal before then that would be even better.

[roth] 05/12/2019 11:27

I guess it will depend also on what new deals are in the offing. If they go for a big one (here's hoping), and there are currently plenty of opportunities around, they may wish to conserve their cash a little longer. Either way, it should be good for the share price !

[almsivi] 05/12/2019 10:40

Good Morning all Spent a bit of time going over the chairman's AGM statement, the annual report and other sundry communications from Serica this year to shore up an idea of if and when a dividend policy would be announced. TCW mentioned in his statement that any dividend policy needed to be sustainable given the political, economic and technical risks associated with operating our assets and since the AGM, we've already had news of OFAC giving the company an extended licence (political), Erskine operating at full tilt (technical) and burgeoning cash reserves (economic) It would appear that heading into 2020 the company has achieved most of those caveats and all of our directors with the exception of Trevor Garlick have skin in the game. My own thoughts on the face of this is that a maiden divi is quite likely and in line with Tony's non-committal "early next year" Does anyone else have a conflicting opinion where they've come to a different conclusion? While I try my best not to second guess my own intuition, it's always a good idea to ask someone else's opinion.

[bountyhunter] 03/12/2019 19:17

Sorry to hear that, HUR was my largest holding so I was fortunate there, but certainly more by luck than judgement!

[farmscan] 03/12/2019 19:15

Yes! I have quite a lot of Hur as well as SQZ, so not good, but it seems to be the way of investing these days. Very little progress on good news and punished hard on bad. Glad you missed out on that and got a good re-entry point here.

[bountyhunter] 03/12/2019 19:11

Thanks steel. Yes I saw that on the news after I posted. Just another Trumpian wobble I guess. I should be careful what I say though as the Dow is not closed for the day yet!

[bountyhunter] 03/12/2019 19:09

Cheers Farmscan, feeling better now but nevertheless this is my only re-entry so far! Bad couple of days for HUR holders, lucky to have been out of that as I certainly wasn't expecting the latest Warwick result there.

[farmscan] 03/12/2019 18:35

Welcome back bounty.

[bountyhunter] 03/12/2019 17:44

I'm not a chartist but it looks like it could be set for a bounce from here (alongside other positives), bought back in today. I must update that list in post 36! ;-)

[bountyhunter] 03/12/2019 16:58

Cheers all, yes DH a bit or I wouldn't be back, still won't know about the job for a while but things are looking a bit more positive there following weeks of hard and extra out of hours work, at least for now. Also I'm anticipating a Boris bounce assuming the other parties continue to squabble and split the opposition. That's so long as Trump doesn't trump that saying something silly which affects the global markets. ...uncertainties remain.

[dunderheed] 03/12/2019 16:12

Hey BH nice to hear from you. Hope things looking up a bit!

[captainfatcat] 03/12/2019 13:49

BH nice to see you to see you nice About time for a BKR Brucie bonus Cuddly toy, tea maker, DIVIDEND, picnic hamper.....

[fardels bear] 03/12/2019 13:35

Ah, I see you can still talk your book. Welcome back, old chap. ;)

[bountyhunter] 03/12/2019 13:03

Bought a few back after my forced sale @1.35 a couple of months ago. Seems cheap right now with the cold weather approaching and the Rhum licence extended by 2 years, not to mention the extra 10% of BKR revenue from Jan 1st.

[steelwatch] 03/12/2019 10:46

https://www.energyvoice.com/oilandgas/north-sea/213303/focused-team-was-key-to-firms-north-sea-success/

[farmscan] 02/12/2019 19:42

Also worth remembering that we are less than a month away from an additional 20% revenue.

[farmscan] 02/12/2019 18:19

Latest available OGA monthly production data up to 15th Sept 2019 = 30440 boepd. By my calculation it averages out at 29485 boepd/month since 15th Nov 2018.