Serica Energy Share Discussion Threads

[stemis] 06/3/2024 08:13

the Treasury will make the decision …does not matter who is in power

It's the Chancellor who makes the decision, which will be Labour's Rachel Reeves

[nigelpm] 05/3/2024 21:44

The Treasury are directed by the Government - that's how it works.

[mariopeter] 05/3/2024 20:53

No Nigel the Treasury will make the decision ...does not matter who is in power. Labour will not rip up the extension of WFT from 2025 to 2028 ...to be announced tomorrow.

[nigelpm] 05/3/2024 19:34

I watched his video at the time and it was full of errors.

[nigelpm] 05/3/2024 19:34

Think you will find the Treasury makes the decision.

Err, yes for the time being - not in October when the new Labour government will rip it up.

[sageofonion] 05/3/2024 19:22

Explain this - it makes no sense.

Well...

They picked up a nice big dividend, despite not holding shares on the ex div date prior to the deal, and we paid them at least double what their assets were worth. Watch the Jeremy Raper video for further insight.

[mariopeter] 05/3/2024 15:23

Think you will find the Treasury makes the decision.

[nigelpm] 05/3/2024 15:06

Irrelevant - Labour will totally flip this up when they get into power.

[mariopeter] 05/3/2024 14:50

The Treasury has it lips firmly stuck to three teats of the North Sea cow and likes it. Rumoured WFT extension 3 years that means forever if you ask me. Majors need to tell NS licence authority to shove their new licenses up their ….

Ps I think the best accountants are those that can’t count. Numbers can detract from creativity ….saying that the numbers on Tailwind were bloody awful.

Rule of thumb never ever ever turn a bid down unless you have a counter bid.

[nigelpm] 05/3/2024 12:37

Most of our cash has now been transferred to Mercuria

Explain this - it makes no sense.

[ashkv] 05/3/2024 11:40

More likely forced out rather than "resign"!!!!

[sageofonion] 05/3/2024 07:03

None of those companies were in the cash-rich position of SQZ. Most of our cash has now been transferred to Mercuria for the sake of a few execs keeping their jobs. Ironically they have now resigned.

[nigelpm] 04/3/2024 23:16

How have the other NS producers faired? i.e. Enquest, Harbour and Kistos.

[sageofonion] 04/3/2024 22:27

The value destruction here is horrendous.
In hindsight, it looks like Mr Raper was right.
Seems like a fiduciary failing.
hxxps://youtu.be/A8eG7Pw3X_4?si=c0_ln3Ar4jWl54Rj

[cowie19] 04/3/2024 18:31

That is quite the letter, no ambiguity there. Look at the share price today. Tells its own story.

[ashkv] 04/3/2024 18:18

At the time of the deal - Tailwind 2p figures were the end End 2021 figures Circa 39-40mn barrels!!!

The total consideration for the Proposed Combination of 703 GBPmm represents a multiple of ~$20/barrel of 2P reserves, with 52% of the purchase price being settled with Serica shares. But our Serica shares trade – referencing the acquisition mark of 278p – at an implied EV/2P reserves of ~$6/barrel, a 70% discount to the price being paid!

[nigelpm] 04/3/2024 17:24

And what has any of that got to do with a counter to Al's $20 for Tailwind? - that I note he or anyone else hasn't been able to counter-counter.

[ashkv] 04/3/2024 16:25

NigelPM change from USD to GBP for Tailwind is a sleight...

Firstly GBP has appreciated against USD - making a USD purchase less onerous if backdating figures.



Secondly Decommissioning costs are not included in NigelPM calcs

Thirdly Dividend paid to Tailwind in H1 2023 should also be included in the deal cost as Tailwind holders in effect received funds that accrued from pre-deal SQZ gas assets!!!

An onerous deal... just google the facts and figures from Jeremy Raper letters / analysis!!!

It is all there,...

[stemis] 03/3/2024 10:22

I didn't say in any of my posts in this discussion whether this was a good or bad acquisition. That's a matter for opinion. But let's at least use the right numbers. No way did SQZ pay £20/boe or anything like that for Tailwind, as I've clearly demonstrated.

[nigelpm] 02/3/2024 22:13

No one said it was a great acquisition. We just questioned your numbers and rightly so.

[oilinvestoral] 02/3/2024 21:19

The PM is absolutely riled up with rage! Unlucky for him I can't read his posts.I give up! The bean counters are right! Tailwind is the best North Sea acquisition in living memory, great assets negotiated at a perfect price! Fleggy deserves to be knighted for his efforts! We should've paid the private equity mob more money as £644 wasn't enough! Now does everyone see why he called himself PM: Pugnacious Mendacious? Very fitting name! Good night all

[oilinvestoral] 02/3/2024 21:17

On a more positive note, at least the accountant now knows the difference between the 2007 film thriller and the definition of 2P reserves as defined by the Society of Petroleum Engineers. Anyway speaking of films, there's a film I'm going to watch with the family!