Serica Energy Share Discussion Threads

[dunderheed] 13/4/2018 14:47

Jimbo agree. Definitely the feel of a buyer 'in the air'.
Bounty liver probs for me anyway mate so have to abstain.

[farmscan] 13/4/2018 14:46

Yes, I like to stick to 21 units/day.

[bountyhunter] 13/4/2018 14:27

according to the news today you will need to limit us all to no more than 5 drinks each or we will be dying 2 years younger ;-( ...I don't really believe that of course, I'll go with the studies which say that moderate drinking is good for you

[jimbo66] 13/4/2018 14:26

a bit of price activity earlier that looked like large sells that were swallowed up in seconds again. Look for more big trades reported EOD. Pretty sure one or more big buyers hoovering up sellers.

[dunderheed] 13/4/2018 14:24

You know full well, from off topic inefficient conversations, that rum is extra LOL!!
Don't get me started!!

[bountyhunter] 13/4/2018 14:22

I fancy some Rhum 🥃

[dunderheed] 13/4/2018 14:20

That's good because I wouldn't want any arguments (or worse fights) over the pizzas and soft drinks!!

[bountyhunter] 13/4/2018 14:17

Yes, I believe so.

[dunderheed] 13/4/2018 14:15

Ah ok cheers but all agreed now I assume?

[bountyhunter] 13/4/2018 14:13

Db, it was the rns wording, which was not clear.
[post edited as I missed a comma ;-]

now I'm really looking forward to those drill results in a few months time

[dunderheed] 13/4/2018 14:11

By the way great deal for sqz AS EVER.
You always always apply a cap on potential non controllables LOL!! Very amateur imho.

[dunderheed] 13/4/2018 14:09

What's the issue though that FB and bounty are debating?
Was it whether the 15% was fully carried or something else? Cheers both for clarification.

[dunderheed] 13/4/2018 14:07

As ever steel you the man!!
I just scan read it and for sure there is no cap.

[bountyhunter] 13/4/2018 14:00

Agreed. The website puts it better than in the RNS:

Serica 15%, ENI 40% (operator), JX Nippon 25%, Mitsui 20%

"The Rowallan prospect is located in the east of Block 22/19c, and comprises a significant structural fault and dip-closed trap analogous to the large Culzean field development located 20km to the SSE.

Serica’s net Rowallan resource is estimated at 20 to 60mmboe (P50 and P10 respectively).

The reservoir comprises high-quality sandstones at both Middle Jurassic and Triassic levels, which are optimally situated for hydrocarbon charge from the direction of the nearby Monan and Mungo oil fields.

In the event of success, there is upside in the nearby Dundonald and Sundrum prospects, which are geologically similar to Rowallan.

Serica is fully carried on a Rowallan exploration well which is planned for 2018."

[fardels bear] 13/4/2018 13:51

It should have said:

"our 15%, fully carried interest"

Despite the educational establishment bleating that it doesn't matter about correct spelling and punctuation as long as everybody understands it, here we have yet another example of proper punctuation being critical.

It's all about the comma.

[steelwatch] 13/4/2018 13:48

Dunderheed - delving back:



edit: presumably the farminee then laid off the bet by farming out to ENI and Mitsui, so not sure how much of the can is carried by whom now. Once the upcoming Rowallan well operation is complete, presumably any further appraisal/development costs will be split by all parties.

[bountyhunter] 13/4/2018 13:39

ok steel maybe did need some clarification as unfortunately written in two different ways in the RNS which could have lead to some confusion, and worth pointing out the potential "19.7 mmboe of P50 Prospective Resources net to Serica", now can we get back to the rum and pizzas ;-)

[dunderheed] 13/4/2018 13:35

Steel got to admit this is an interesting one.
I've never come across a fully carried farm down. Normally this is capped at say $100mm and whilst extremely unlikely to exceed this value sqz would be in hook for anything over $100mm at their new equity percentage post farm out.
But as the rns says 'fully carried' so there you are no potential liability.

[steelwatch] 13/4/2018 13:25

bh - I wasn't splitting hairs, but, also, simply quoting from the RNS in order to avoid any "send us three and fourpence, we're going to a dance" :)))

You need to scroll down beyond the credits:

Exploration

The Rowallan well, will be Serica's first exploration well since 2014 and our 15% fully carried interest brings significant potential with an independently assessed 19.7 mmboe of P50 Prospective Resources net to Serica. A tender process is underway to contract a drilling rig to commence drilling of the exploration well in H2 2018. Though Serica has been careful to manage its exploration commitments during the industry downturn, this well, targeting material hydrocarbon volumes, is close to infrastructure within the general Erskine/Lomond area making it a strong candidate for early development should the well prove successful and will be drilled at no cost to Serica.

Serica intends to continue targeting exploration opportunities where an attractive balance can be struck between financial commitment and risked commercial return and has participated in three applications for new licences in the UKCS 30(th) Offshore Licensing Round.

[bountyhunter] 13/4/2018 13:06

The point I was trying to make was that

BKR meant x16 in reserves to 50m boe for SQZ

If Rowallan well comes in SQZ reserves potentially increase by another 15m+ boe in comparison

(I know it's not as simple as that as BKR already in production etc)

[bountyhunter] 13/4/2018 12:54

no point in splitting hairs but my quote was correct, I didn't write the RNS

"Operationally, we are delighted that work will soon commence on the Rhum R3 well intervention and that preparations continue for drilling a well on the Rowallan prospect in which we have a 15% carried interest. A successful outcome in one or both of these projects will have a material impact on Serica."

I think we all know what that means as explained more clearly elsewhere.

[steelwatch] 13/4/2018 12:52

"our 15% fully carried interest"

[bountyhunter] 13/4/2018 12:48

just quoting from the rns (which could have been worded better); removed the duplicate reference in case of confusion

[fardels bear] 13/4/2018 12:13

Not sure what you mean by a 15% carry for SQZ. Our equity in Rowallan Prospect is 15%, the entire cost of the drill is carried..

[jimbo66] 13/4/2018 12:11

not forgetting also that a hint of another deal would possibly bump the share price more than any of the above...