Serica Energy Share Discussion Threads

[oilinvestoral] 01/3/2024 16:43

I think at this stage even the most ardent of happy clappers & supporters have conceded that the deal at SEVENTEEN pounds a bbl was egregiously expensive! You need a special type of blinkers to view it any other way IMHO! Is tailwind a terrible company ? No ! The rational of adding oil isn't a bad one IMHO! Paying $21.5 / bbl is shockingly bad! Worth $8/bbl max and should've been done without dilution ! Then again you don't need to be a genius to work out that buying from oil trading houses / private equity is never a smart move !

[nigelpm] 01/3/2024 16:26

upomega - because the board don't just think about the next year and also don't have perfect hindsight. Their decision may well still turn out to generate more shareholder value than the alternative. I think it's too early to say either way.

[oilinvestoral] 01/3/2024 15:52

Upomega The deal was about snouts in the trough and about Fleggy keeping his job! As demonstrated by the dalliance with KIST, SQZ cash was very attractive to other companies and he would lose his £1 million / year salary if someone took over the company. So either the cash has to go or he has to find another job!

[oilinvestoral] 01/3/2024 15:49

Please don't "shudder"! The cash in hand would've been more than the current market cap. Simples !Without the dilution incurred , we would've had 250p in NET cash & ZERO debt!Now even with a terrible gas price, surly the BKR assets must be worth 50p, or 30p/ share worst case scenario? That's 280-300p / SQZ share!

[ashkv] 01/3/2024 14:13

It was 26k of gas plus liquids production for SQZ!!!

Moreover, prior to increased windfall tax in Nov 2022 cash post 2022 tax was equal to 205p of SQZ share price - if I recall SQZ cash was this high even after a significant Windfall Tax payment that was made in Oct 2022.

Also SQZ share holders paid 2022 dividends for the shares issued to Mercuria in Early 2023!!! Should be included in the deal cost along with Decom costs!!! Close to USD 1Bn in toto for paltry 15-19k high tax decrepit FPSO production that was hedged for peanuts!!! A scam!!!

2023 dividend to Mercuria shares was in addition to deal costs and not earned from any of their assets - as it accrued from SQZ assets!!!

Let me reiterate the onerous Tailwind 2023/2024 Capex and Decom costs and tragically that the majority of 2023 Tailwind production was hedged at mid 50s Brent...

You should shudder at the Tailwind Deal - not at the low Opex SQZ gas which would still have been hugely profitable and manageable final WFT taxes given the expensive $100mn duster in end 2022

Farmscan1 Mar '24 - 10:25 - 5705 of 5705
0 2 0
A large chunk of the cash has gone in tax (139m) and divis (89m). I shudder to think what the share price would be today with just c23k boepd of gas at £36 boepd before deducting op ex.

[farmscan] 01/3/2024 10:25

A large chunk of the cash has gone in tax (139m) and divis (89m). I shudder to think what the share price would be today with just c23k boepd of gas at £36 boepd before deducting op ex.

[upomega] 29/2/2024 21:06

Without the tw deal we would be not far of cash Vs mkt cap due to the tw deal. Serica had numerous chances to amend or cancel this deal when the wft and epl landed,but chose not to. Why?. Many holders including myself opposed this deal and were ignored. Why?. To make matters worse the largest holders voted this through and even in some cases increased their holdings. Why?
Very odd all round inmho dyor etc

[sageofonion] 29/2/2024 19:40

Before the TW deal, cash in the bank was heading towards market cap, providing a solid floor for the share price. Now the share price is 40% lower and in freefall. What a fantastic deal!

[ashkv] 29/2/2024 16:46

Just a lazy guy who doesn't like to venture from the UK - Tailwind was a lazy foolish deal and now share price of SQZ nearly half prior to when deal was announced!!!

Good riddance to this empire builder share holder value incinerator.

Board should hasten his exit!!! Perhaps share price will then recover from the doldrums!!! SQZ trading at present below the Enterprise Value ascribed to the Tailwind Deal...

Bonfire of share holder cash by Flegg... His bonus and vested options etc should be clawed back for Fiduciary abdication!!!

Lost big on a spread bet and forever a grudge will I bear!!!

pineapple126 Feb '24 - 16:19 - 5699 of 5701
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Sounds like he is working for the government....lol
Mitch Flegg, comment

"We are pleased to have completed this transaction which creates the possibility of adding a third production hub to Serica's North Sea portfolio. As a potential domestic source of oil and gas with a low level of production emissions, a provider of quality jobs for UK workers and a generator of much needed future tax revenues, Buchan is the sort of project the UK needs as part of the energy transition."

[74sjh] 27/2/2024 03:02

Unfortunately the tweets put out by politicians - Labour in particular, demonstrate absolutely no understanding of the consequences of removing the investment allowances. Sadly out of the often hundreds of replies from the public, only one or two actually challenge them properly. Twitter is overrun by JSO, greenpeace etc who make unbelievably distorted comments that go unchallenged. I don't know if these political accounts are actually run by the MPs themselves or if it's delegated, but given the crazy possibility that Labour might actually implement these plans, the best resistance will come from people who actually know what they are talking about ie the investment community.Everyone should get a Twitter account and start bombarding these gormless politicians!

[officerdigby] 26/2/2024 16:23

Well NS producers at 75% are.

[pineapple1] 26/2/2024 16:19

Sounds like he is working for the government....lol

[squibno1] 26/2/2024 15:20

Mitch Flegg, comment

"We are pleased to have completed this transaction which creates the possibility of adding a third production hub to Serica's North Sea portfolio. As a potential domestic source of oil and gas with a low level of production emissions, a provider of quality jobs for UK workers and a generator of much needed future tax revenues, Buchan is the sort of project the UK needs as part of the energy transition."

[scepticalinvestor] 26/2/2024 08:29

This shld be up. The UK mkt is a sick, tired old dog

[monet] 26/2/2024 08:24

It's a good job we are not paying with new shares. We would be issuing nearly 20% more shares, on the agreed price in November.

[bountyhunter] 26/2/2024 07:24

Just noticed the RNS!

Acquisition of Interest in Greater Buchan Area completed.

[bountyhunter] 26/2/2024 07:19

As a consequence by overtaxing the total tax income will only reduce in future years. Unfortunately politicians don't have a clue as they look beyond the next election.

[texaspete2] 26/2/2024 07:13

Oil rigs are now being moved away from the North Sea, can't see much chance of them ever coming back, so much for energy security!

[bountyhunter] 26/2/2024 07:11

Exactly right, a 75% tax is already excessive and even more so now that O&G prices have dropped back significantly since the WFT was implemented. In fact it's not a "windfall" tax any more as those days are gone.

[74sjh] 25/2/2024 22:27

The amount of distorted tweets put out on Twitter regarding the windfall tax/EPL is shocking. The electorate lap it up blaming the majors for profiteering but appear to demonstrate zero understanding of the impact that removing investment incentives or as some describe - "loopholes" - will have on the smaller firms that actually operate in the North Sea. I'm surprised the industry and investment community is not fighting back more

[bountyhunter] 25/2/2024 16:58

Looking at the long term oil chart comparisons on my OIL thread it's interesting to note that only AXL, PTAL, WEN, CNA, SQZ and UPL are up on 2020 with by far the majority down. Good to see that some have done well, although I only hold two of them. I did have some CNA and did ok on those despite not so well elsewhere.

[bountyhunter] 25/2/2024 09:53

That last sentence is key and often overlooked in general comments on buybacks.

[ashkv] 25/2/2024 05:06

Buffet on Stock Buybacks in his recently published annual investor letter ->

On indirect impact of stock buybacks:

Both AMEX and Coke will almost certainly increase their dividends in 2024 – about 16% in the case of AMEX – and we will most certainly leave our holdings untouched throughout the year. Could I create a better worldwide business than these two enjoy? As Bertie will tell you: “No way.” Though Berkshire did not purchase shares of either company in 2023, your indirect
ownership of both Coke and AMEX increased a bit last year because of share repurchases we made at Berkshire. Such repurchases work to increase your participation in every asset that Berkshire owns. To this obvious but often overlooked truth, I add my usual caveat: All stock repurchases should be price-dependent. What is sensible at a discount to business-value becomes stupid if done at a premium.

[seekinvalue] 23/2/2024 10:17

Wel I trimmed it yesterday put it into coal, i'll sell down into rallies to a niminal holding and take a final decision later. Dissapointing, bought in at 400 averaged down to 280 can't see the light in this tunnel currently.
Holidnig for a dividend is pointless if the capital is getting destroyed.