Serica Energy Share Discussion Threads

[stemis] 27/3/2024 10:47

I'm merely responding to those who says it's just the sort of deal SQZ should have done. Funny, when I posted the actual numbers, suddenly it's too early to know. Certainly it's a bigger deal than Tailwind but it costs more and potential involves a lot more dilution, at quite a depressed share price (over 40% lower than it's listing price just over 16 months ago) and comes with no losses. Perhaps you need to borrow my 'abacus'...

[oilinvestoral] 27/3/2024 10:20

Aren't we going to wait until the deal closes in many moths time? Just like you did with SQZ? What if the Ithaca share price falls to 100p? Or 70p?Also what if they upgrade reserves later in the year ? Or next year ? Using your abacus Calculate how much they would've paid please ! That's the twisted logic you used to justify tailwind after all...

[oilinvestoral] 27/3/2024 10:16

The 38% of the issued share count is just indicative! It's subject to further DD and further negotiations. But if they manage to secure it it's a brilliant offer! Given the choice, I certainly know between ENI UK & Tailwind which one I would choose! You obviously disagree lol! People are saying it's good because:1) It provides significant scale (double the production and 2P of tailwind)2) it wasn't purchased from private equity! 3) it doesn't come with mountains of PE loaded debt ! Comprehende?

[stemis] 27/3/2024 10:10

First of all that’s not true! The financial details are still to be fully agreed (as per the RNS)!

So why are people coming on here claiming it's a great deal. Actually what the announcement says is

Eni will contribute its UK business in exchange for the issuance of new Ithaca Energy shares to Eni, with Eni anticipated to hold between 38% and 39% of the enlarged issued share capital of Ithaca Energy following completion

39% amounts to 649m new shares to add to the 1,014m shares currently in issue. I'll do the maths for you; 649/(1014+649) = 39%. Current share price 146p. 649m x 146p = £950m.

[coffeecanportfolio] 27/3/2024 10:06

I agree as well . Looks much better than Tailwind on first glance.

[oilinvestoral] 27/3/2024 10:05

First of all that's not true! The financial details are still to be fully agreed (as per the RNS)!Secondly and more importantly: Aren't we going to wait until the deal closes in many moths time? Just like you did with SQZ? If the ITH shares collapse (just like the SQZ shares did) you can do the same financial engineering to pretend we didn't get raped by private equity ...

[oilinvestoral] 27/3/2024 10:01

A neighbour buys a brand new Porsche 911 3.7L turbo that has better specs than his neighbour's older Porsche 911. When the neighbour with the lower spec Porsche finds out he overpaid by a factor of 2x , he becomes green with envy and mumbles & mutters to his more prudent compatriot "but but but is yours blue"!

[stemis] 27/3/2024 10:00

According to the announcement, the cost is potentially £950m in ITH shares for c 100mmboe or £9.50/boe with no tax losses. That compares to £10.41 for Tradewind, with tax losses. Doesn't look that fantastic a deal to me.

Some on here have lost a sense of perspective

[mariopeter] 27/3/2024 09:54

Agree with that.

[oilinvestoral] 27/3/2024 09:44

Hopefully not! Hopefully just a clean balance sheet of historically profitable assets that haven't been raped and swindled by private equity...

[stemis] 27/3/2024 09:43

Does it come with any losses?

[mariopeter] 27/3/2024 09:38

Yes Oil investor it looks neat.

[oilinvestoral] 27/3/2024 09:33

More importantly : thoughts on the massive proposed deal by Ithaca to acquire Eni UK! 100 million 2P reserves and 45,000 BOPD production! Looks pretty substantial! Financials are still TBC but if they can secure it at around £700-800 , it's a solid piece of business! That's the kind of deal we HAD the fire power to do before we bolstered the pockets of private equity...

[hunter154] 27/3/2024 09:29

Thoughts on what Ithica’s results do for SQZ?
Good cash generation and interesting that they will reduce production due to EPL.

[stemis] 26/3/2024 14:18

So, some shares were held back to cover warranties issued by Tailwind as part of the acquisition. Since there have been no claims under the warranties, these shares have now been released.

Not sure what your point is...

[ashkv] 26/3/2024 14:02

Salt on the wound more share to Tailwind / Mercuria for the dog of an acquisition - WHAT THE HECK IS GOING ON? IS FLEGG LEAVING SQZ FOR A CUSHY JOB AT MERCURIA?

Issue of Shares and Total Voting Rights

London, 26 March 2024 - Further to the announcement of completion of the acquisition of Tailwind Energy Investments Ltd on 23 March 2023, Serica Energy plc (AIM: SQZ) announces the issue to the Seller of 1,438,849 new ordinary shares of US$0.10 each in the capital of the Company. These new shares are the second and final tranche of the 2.9 million Consideration Shares[1] that are being issued in accordance with certain warranty provisions of the SPA.

[1] As stated in the announcement of the Acquisition on 20 December 2022, the total number of Consideration Shares was up to 111,048,124 and is now confirmed to be that amount.

[pineapple1] 26/3/2024 11:15

Good....
Should this be a surprise to the fools in govt. Probably, as they are that detached from reality

[bountyhunter] 23/3/2024 20:21

11 April or thereabouts, re the dividend it will be a disappointment if they don't at least maintain the current level.

[popit] 23/3/2024 17:08

When are the results due here?

And is the dividend expected to be kept at the current level for this year and next year?

[farmscan] 23/3/2024 11:13

Well Enhancer en route to Bruce Field. ETA this afternoon.

[stemis] 22/3/2024 11:09

Jez Ashkv, you're like a broken record...

[mrscruff] 14/3/2024 17:32

Investors need to accept the loony tax is forever and move on. All negative sentiment eventually gets factored into a share price and then the share price can move forward as the revenue after tax is still very strong.

We also need to move on from the high priced Tailwind acquisition that is now at today SQZ share price more than factored in!

A better Chief Executive Officer will be announced at any point would help to change sentiment and drive us forward. I can see any new CEO changing the direction of SQZ and the share price react positively.

This combined with the gas price bottoming should change sentiment and I look forward to 2024 where this looks like a recovery play. As investors we need to think 3+ months ahead.

[slicethepie] 12/3/2024 17:58

That would require politicians to have a brain cell! Both parties are clueless wrt energy, one cold winter and we will be importing gas. Exploration in the North Sea is a long term game and stopping exploration is crazy. The believe that we can rely on wind and solar is cloud cuckoo land.