Serica Energy Share Discussion Threads

[im5] 31/5/2024 08:35

Mine was a genuine question, based on trying to understand what's driving price action in this company, which I presumed the forum might be useful for.
I've been invested here for a few years - with a modest position by the standards of many on this and other fora I imagine - and witnessed quite choppy performance though the underlying business looked reasonable, at least until the TW acquisition; though at least that had one significant positive effect of pivoting away from an almost exclusive gas focus.
My reading on the company unearthed this 'rumour'/concern several months ago, and I haven't jumped on trying to disseminate it previously, but as time passes I wondered whether anyone knew more.
Too bad that you seem to have interpreted my question as some sort of bad-faith enquiry.

[yasx] 30/5/2024 14:49

That made me chuckle.

[farmscan] 30/5/2024 14:34

I would assume you do as it's you that has mentioned rumours.

[im5] 30/5/2024 14:01

There are rumour circulating that Mercuria would like to take the company private, and the price action reflects those ambitions, to drive price down until it becomes a cheap buy...does anyone have any insight into this?

[wallywoo] 30/5/2024 12:37

On Tuesday, Ithica energy was struggling at 113p. Today it's 132p.


Sqz has had a really poor run, and if you take the 14p dividend off, the share price has hit 3 year lows today. Despite production averaging over 45k bopd (2023 average just over 40k, 2022 was 26.2k, 2021 was 21k).


What does it all mean? Imho, it shows how easy these UK oil producer's are to manipulate currently. Lots of hot short term money flowing in and out. Would not be surprised to see this back over 190p before they go XD (27/6/24).

In the 70s, 80's, 90's 00's oil producer's were easy to understand. If production grew, so did profits and share prices. Certainly not the case now!! Will the investment sector / UK government ever revalue these companies again? I believe they will, because they have an important part to play for the next 30 years.

[yasx] 30/5/2024 09:31

Sqz bidding for Ithaca - well, that would be a disaster and I doubt they are intending to go down that line.

What SQZ need to do is begin the process of diversifying - HBR have taken great strides in terms of diversification over the past year or so and SQZ need to absorb some lessons from that approach.

Starmer will just implement the agenda provided to him from his bosses at the last meeting in Davos - he has no say in the matter and Co's pleading with him to see sense are simply wasting their time - it is not different to how Charles or the late Queen have no choice but to tick whatever box they are presented with by the Government of the day.

[mickinvest] 30/5/2024 09:24

There was an outage at Buzzard a few days ago and haven't seen anything to say it's sorted, will that have any impact on Forties or does the rest of the oil get loaded as normal albeit presume it's sweeter without the Buzzard sour stuff?
Maybe looking at Deltic if the drill rig is in no danger of being cancelled as pretty much a free hit if can get both drills done this year, no sign of any buying of the shares there though.

Certainly wouldn't touch Ithaca with a bargepole though Nigel.

[nigelpm] 30/5/2024 09:13

Odd move on Ithaca last few days. Sqz couldn't be launching a bid could they?

[sawney] 30/5/2024 09:00

Unless production has stopped somewhere...this has been well and truly trashed by Politicians and the Greta Brigades...can't see much happening without a T/O or buying production...wouldn't be surprised if it was taken privately...that said, happy to take the dividends until something happens...

[croasdalelfc] 30/5/2024 07:09

Did anyone notice that nearly 5m buybacks shares will be used for long term incentive scheme . FfS

[croasdalelfc] 30/5/2024 07:03

No - they are doing buybacks and seemed to have had a very long bank holiday . No buybacks on 23rd or 24th but resumed on 28th

[mickinvest] 29/5/2024 17:31

Possible swap into Ithaca from some holders, suspicious looking move there today?

[sbb1x] 29/5/2024 15:29

What did peel hunt do Downgrade?

[croasdalelfc] 29/5/2024 07:02

Peel Hunt had a long weekend - lazy fugs :)

[undervaluedassets] 28/5/2024 09:19

Since Feb North sea gas price has been trending up .

hxxps://tradingeconomics.com/commodity/uk-natural-gas

[dcarn] 27/5/2024 08:38

Subsea7 to supply Serica Energy with Belinda pipeline

Serica Energy (AIM: SQZ) has awarded Subsea7 a “sizeable” contract to supply a pipeline for the company’s Belinda field development south-east of the Triton FPSO.

The contract, which Subsea 7 said is between $50m and $150m, scope includes project management, engineering, procurement, construction and installation (EPCI) of a five kilometre eight-inch production pipeline with a three-inch piggy-backed gas lift line and an electro-hydraulic controls (EHC) umbilical.

Subsea7’s scope also includes associated subsea structures and tie-ins to the Triton Floating Production Storage & Offloading (FPSO) vessel operated by Dana Petroleum, via an existing production manifold near the Triton riser base and for controls at the Evelyn valve skid.

Project management and engineering work will commence immediately in Aberdeen. The offshore activities are scheduled for the third quarter of 2025.

Serica Energy took a final investment decision on the project last month, though it warned that UK fiscal policy had delayed the move, and the company is now waiting for NSTA approval of the field development plan.

The Belinda field is operated by Serica Energy and located approximately 190km east of Aberdeen in the UK Central North Sea, with a water depth of 95m.

It is estimated to hold P50 reserves of about four million barrels of oil and five billion cubic feet of gas, Belinda is set to be developed as a tie-back to the Triton FPSO.

As the 100% owner, making a final investment decision (FID) would have been easy to justify under normal conditions. That being said, the windfall tax, or energy profits levy, has created instability in the UK market, the firm outlined.

Steve Wisely, senior vice-president of UK and global inspection, repair and maintenance, Subsea7, said: “We are pleased to have this opportunity to supply Serica Energy with EPCI knowledge and demonstrate the extensive North Sea expertise we have amassed over 50 years. We look forward to supporting the safe, efficient and timely execution of this project.”

[arlington chetwynd talbott] 27/5/2024 07:40

I have seen that happen in e.g. Trinidad in recent years (past losses ceasing to be 100% allowable). In the moment politics increasingly trumps established tax principles.

[waterloo01] 26/5/2024 18:37

Much will be priced in. They are talking about a 3% increase over the existing tax. Cannot see how they could not allow past costs to be used against tax. It would undermine the whole business tax regime it would do the opposite if what reeves wants, which is appear a stable hand. It would be her kwazi kwarteng, liz truss sort of moment.

[bountyhunter] 26/5/2024 18:20

A Labour victory must be well and truly priced in by now, surely nobody thinks Sunak has a chance in hell, not even him I suspect. He's probably already booked a long summer holiday!

[arlington chetwynd talbott] 26/5/2024 18:07

Difficult to see how they could meaningfully diversify in time to achieve anything (in the short term at least). Presumably a Labour victory will see this closer to £1 than £2.

[pineapple1] 25/5/2024 23:47

So Serica according to Latin are looking at investments overseas too.
Guess they won't be the only ones....

[dcarn] 25/5/2024 14:03

Perhaps waiting to get them cheaper.

[davethehorse] 25/5/2024 10:05

165 -170p looks on the cards soon here, why no buy backs yesterday?

[kibes] 25/5/2024 08:50

The imbecile Ed Miliband in charge of energy policy would certainly be a problem. However, we are going to come to a crunch when people realise how expensive it is to rely on electricity. There is no plan to generate anything like what will be needed, net zero is complete nonsense when subject to a reality check. We will eventually be forced to fall back on gas and when this becomes apparent the small oil and gas companies will come roaring back up. This could take time however, at the moment we are led by stupid is as stupid does.

[sbb1x] 24/5/2024 21:52

Dripping because we will get a labour goverment ?