Serica Energy Share Discussion Threads

[flyinghorse1] 27/3/2018 11:08

FB--It was EOG resources that I looked at in the states(shale player). They also have interests in Trinidad and East Irish sea. I should have said resources.
I did by chance come across the BG link you sent when hunting to see if EOG Resources was the same as EOG resources United Kingdon LTD (it seems to be a sub company of EOG)

EOG resources website shows just the East Irish sea and annual report (2017) I did not find anything.
hxxp://www.eogresources.com/operations/division_operations.html

This is what caught my attention re the long time span for Columbus development and the obstinate majors making tiebacks difficult (from personal experience).
hxxps://www.rigzone.com/news/oil_gas/a/67812/serica_submits_columbus_field_development_plan/

[fardels bear] 27/3/2018 10:22

@flyinghorse

The Columbus problems were largely caused by BG International. This has taken some years to sort:



Since you can't find anything about Columbus on EOG website can I draw your attention to the fact that this partner is EOG Resources and NOT Europa Oil and Gas as I suspect you may have assumed.

[sawney] 27/3/2018 07:28

Interesting they are doing a results conference call (first time...??)...must have quite a bit to talk about...

[flyinghorse1] 27/3/2018 03:33

Re Columbus, I was surprised how long Serica have been trying to develop this asset (FDP 2007!), and at times when oil/gas prices were robust. It suggests 3rd party infrastructure issues as being the main problem. I suspect with Chrysaor at Lomond they may fare better.
I also saw on the Serica website that as well as Endeavor as partners they say EOG has 25%. I looked at the EOG Annual report and they dont even mention it so perhaps 2 disinterested partners. (or a mistake on website)

I suspect if Endeavor bail the equity split(of the 25%) will be pro-rata Serica's and EOG's current holding.

[fardels bear] 26/3/2018 23:23

I wasn't talking about the share price we all know that values all the assets at nada. I meant what is the true discounted NAV of Columbus to SQZ?

[chestnuts] 26/3/2018 23:15

Fardel

Columbus is worth nothing to sqz according to the share price but once they announce the development then it begin to show the value

[fardels bear] 26/3/2018 23:05

What's the discounted NAV of Columbus worth to SQZ at present, so we suppose?

[chestnuts] 26/3/2018 22:56

FB/Dunderheed

You are right i jumped the gun, but i bet sqz get it for next to nothing, and to stave off Banckupcy if nobody will buy the 25% and SQZ are close to announcing development they are better off giving it to SQZ to extend there life.

[dunderheed] 26/3/2018 22:38

FB yes. It is only when they default the cash call.
It does get messy I've worked with operators with a smally (promote) company that needed a bit of cash so they brought all procurement (for dev programme) as far forward as possible without it being super obvious lol, just to screw the smally!!
All imho of course!

[fardels bear] 26/3/2018 22:03

Regarding Endeavour seeking protection from bankruptcy. Until they are actually asked to pony up for development of Columbus then they are not going to be in default of the contract terms and thus remain free to attempt to sell the asset. Surely.

[general george] 26/3/2018 21:38

Chesnuts/Dunderheed,

That would be handy!
Heres hoping

GG

[chestnuts] 26/3/2018 21:37

rossannan

You are right about that

[chestnuts] 26/3/2018 20:38

Dunderheed

proactiveinvestors.co.uk/companies/market_reports/107590/oil-north-sea-assets-put-on-the-auction-block-107590.html

[dunderheed] 26/3/2018 20:15

Normally if a partner cannot continue to pay and the liquidator cannot sell in a time frame necessary to pay cash calls and not get pre empted by other partners, then their equity becomes the ppty of the other partners in their relative proportions and then they have to pony up increased cash moving forwards. I think this happened with FirstOil for some of their assets? Corect me if wrong but Cairn took some of their equity at nil value for one of their n sea assets I think? Just b4 going into operations or right at end of large capex costs!?
Whose gone bust on the Columbus project then?

[chestnuts] 26/3/2018 20:08

The partner of Columbus which are bankrupt could end up giving it to sqz if they dont cough up the funds for developing columbus , the terms will be in the contract.

[general george] 26/3/2018 13:51

I guess they are right once every century then hahaha

[fardels bear] 26/3/2018 13:43

Peel Hunt have had this as a strong buy for about a hundred years.

[dunderheed] 26/3/2018 12:52

Almvisi any chance of update news 're Erskine?
Has my 'work' referenced above fed through to operator yet lol?!

[fuji99] 26/3/2018 11:37

A "BUY" at Peel Hunt.

[dunderheed] 26/3/2018 11:35

Georgie, 6243 please see 6242. As I clearly stated I've bashed the pipe around a bit and think I 'felt' the blockage 'loosen' and hence expect for good news soon, certainly by results in April. Mark my words.
I take onboard the fact that oil gas isn't going anywhere and this is merely a blip however shudder to think where share price would be if the bkr deal hadn't been announced!!
All imho and no investment advice intended!
Best of luck all.

[general george] 26/3/2018 11:22

Last I heard they had made a partial breakthrough and were pulsing the line, I think they had used diesel oil previously.

Not sure if this time is the same approach or another solvent or dispersant is being used.

Anyway hoping for a remedy, although the production is delayed, the oil/gas isn't going anywhere. We don't have debt commitments to meet, more of an inconvenience.

GG

[dunderheed] 26/3/2018 11:07

Worrying over the time taken for this minor issue, I actually took it upon myself to do something about it and dived down over the weekend with my hammer. I took a look, did a bit of my own 'repairs' and think I loosened the wax deposits and am thus reasonably confident we will hear positive news on this soon?!
Best of luck all.

[chestnuts] 26/3/2018 10:59

Genral

I agree it would be great for Erskin back on line but i think they will deal with the pipeline in the summer when major maintenance takes place, it will have to be planned.

I favour Wednesday for news this week

[general george] 26/3/2018 10:55

Let's make I a double whammy, with Erskine back online as well.
Or even better, permanent solution is due to be commissioned in the next few weeks!

Failing that, I will pick up some cheap easter eggs early next week :)