Serica Energy Share Discussion Threads

[nigelpm] 23/5/2018 10:59

4 areas - helpful

[captainfatcat] 23/5/2018 10:48

Looks interesting maybe we will get a bit more info on these areas via serica's website soon.

[sawney] 23/5/2018 08:33

SQZ have been awarded a share of 5 ? areas...

[matt] 22/5/2018 14:20

BP delays Rhum North Sea work over Iran sanctions clarity

[dunderheed] 22/5/2018 14:10

I think that shows a total lack of understanding about drilling and associated dangers!
Had BP gone ahead and any EHS services companies, that they have yet to reallocate to non US companies, been suddenly told by US administration to with-hold any work to anything Iran related then, they would probably have had no choice but to suspend operations, whilst on the hook for rig and other services. Lives could potentially be at risk - we do not know the potential exposures there are currently?!
In this political environment I am not sure a Force Majeure notice would be accepted for those 'suspension' costs!
If the deal still goes ahead this delay should add as a minimum 2% to the total value of the deal - not taking into account forward curve of potential gas price rises.

[nigelpm] 22/5/2018 13:54

Hmmm.. not sure I completely agree - would have been better to have cracked on with it for me had the situation been different of course.

[rivaldo] 22/5/2018 13:26

Cantor are positive:

"BP's deferral of drilling at the R3 well of the North-Sea Rhum gas field should be seen as good news for Serica Energy, Cantor Fitzgerald analysts say.

Cantor Fitzgerald says this development means that future revenue from the production uplift paid to BP will now be less, as the royalty tapers down.

Investors' reaction to Serica's exposure to possible sanctions on Iran--where it holds a 50% working interest in the Rhum field alongside the Iranian Oil Company--has led to share weakness and an opportunity to buy in at an attractive price to a low-risk producer, Cantor Fitzgerald says."

[nigelpm] 22/5/2018 12:48

I had it as marginally positive as the timeline of Q3 remaining trumps the negative around requiring the OFAC license:

Good bits :


Both BP and Serica remain fully committed to completion of the transaction, which is expected in the third quarter of 2018. Progress on the transition arrangements, under which Serica will take over from BP as operator of the fields on completion of the transaction, is on schedule.


Serica and BP are both committed to resolving the issue of US sanctions as they apply to Rhum with a view to enabling a timely completion of the BKR Transaction in the third quarter of 2018 and safeguarding ongoing operations. The deferral of work on the R3 well, pending resolution of the sanctions position, is not expected to impact the long-term recovery of Rhum reserves, nor the completion of the BKR Transaction.

Not so good:


The US announcement on 8 May is expected to result in a change of US policy in respect of the granting of OFAC licences.





As part of the evaluation process, BP, as the current operator of the Rhum field, has been reviewing operations scheduled to take place during the transition period, prior to the implementation of the new US sanctions. These include work to re-complete the Rhum R3 well, which was due to commence this week. To ensure that all operations can be undertaken to the highest safety and environmental standards during the interim sanctions period, BP has decided to defer the commencement of work on R3 while the position relating to US sanctions is being clarified.

[pineapple1] 22/5/2018 12:46

And it was good to see that a couple of posters monitoring the support vessells for the Blackford Dolphim were ahead of the game re cancellation.
imho

[bountyhunter] 22/5/2018 12:39

I certainly took it as good news in that everything is on track for the deal to complete as planned.

[nigelpm] 22/5/2018 12:32

Once again it is refreshing to see how resilient the share price is, in the face of bad news.

Not convinced it was bad news to be honest. No pushing back of the Q3 timeline was majorly positive - assuming you believe mgmt.

I'm very hopeful of a good outcome here and if the deal goes ahead in Q3 there is absolutely no way we'll be sat in double figures. It's a pretty good investment at these prices - if we fell back to low 60's/high 50's again that would be even better.

[smokieuk] 22/5/2018 12:29

Once again it is refreshing to see how resilient the share price is, in the face of bad news.

[fanshaw] 22/5/2018 12:20

Fardels Bear

Sorry about that I realised as soon as sent it should per week.

[fardels bear] 22/5/2018 12:12

2275000 per week, fans haw. You multiplied the daily total by seven..

[fanshaw] 22/5/2018 12:07

In the meantime assuming serica share per day is 6,500 boep at say 50$ a barrel

= 325,000 x 7 = $2,275,000 per day. perhaps a more accurate figure could be arrived

at. I would be interested.

[nigelpm] 22/5/2018 11:58

You are more deluded than I thought dh - back on filter.

[dunderheed] 22/5/2018 11:51

I think it does Nigel.
If you are insidiously (or actually more so), putting down the share whilst trying to buy surely that is relevant?

Anyway tbh I think it is somewhat naïve to think that bad mouthing the share of a woefully formatted free bb board, will mean you can get in at a cheaper price, just personally find it a bit dishonest and diminishes any free bb reputation you may have.
Enough said from me as I did say I'd ignore Nige. (I still reserve to post the odd quip though, when his agenda is so clear lol).

[bountyhunter] 22/5/2018 11:40

presumably not then lol!

[nigelpm] 22/5/2018 11:40

Does it matter what I do or hold? Is it anyone's business but my own?

[bountyhunter] 22/5/2018 11:39

yes balanced but nothing we don't know already

"...it could be worth taking a looking at buying shares in Serica."

Are you back in yet Nigel?

[bountyhunter] 22/5/2018 11:14

...watching CLNR re that closely, will maybe put me back in the money there finally!

[sawney] 22/5/2018 09:57

30th Licensing round announcements tomorrow....

[dunderheed] 22/5/2018 08:53

You keep away from that post bh!!

[bountyhunter] 22/5/2018 08:48

Lol DH, less nervous about SQZ than hitting post 7500!

Good holding RNS overall, Sept 30 is my guess for completion. US won't want to upset UK and force us to buy that 5% from Russia instead imho. A compromise could be reached with IOC monies held in an escrow account again as a condition of the continuing of the US licence with SQZ rather than BP.

Should know more by post 7777 :)