Serica Energy Share Discussion Threads

[farmscan] 05/8/2018 11:13

Ha! Fardels your list of shares seems to mirror mine! I dont suppose you had Antrim as well. At least Mitch will make up for Circle now he's back here.(hopefully!)

[fardels bear] 05/8/2018 11:06

Sounds like posturing ahead of his rally. Doesn't want to make it look like the Eyerainians are in charge of the agenda though..

[bountyhunter] 05/8/2018 07:52

Generally I do but some of those fail - remember Oilexco? And CLNR is disappointing right now. However IOG is turning out well so car and FPM is not doing badly either.
Held SOU for a while and jumped ship around the right time - which can be tricky!

[fardels bear] 05/8/2018 00:31

Stick to UKCS oilers ... Plus the odd T&T...

[fardels bear] 05/8/2018 00:28

Neither did the COP share price and I held them for years... And it's the same assets.

[bountyhunter] 05/8/2018 00:13

The recent share price performance of SDX makes no sense to me given newsflow; I'm holding on for a recovery there! ...already overweight in SQZ although happy with that but generally speaking like to diversify my investments widely nowadays.

[fardels bear] 04/8/2018 23:55

Buy more SQZ.

[fardels bear] 04/8/2018 23:52

Yes well come Khan's reelection time I expect the buyer shall be bit.. And I can't wait.Sell SDX, Bh, you'll make nowt there.. Same with EOG.. No advice intended. ;)

[fardels bear] 04/8/2018 23:31

Shame the Scottish were so dreadfully rude to him really. That sign announcing the Edinburgh Festival was truly appalling.

[bountyhunter] 04/8/2018 23:23

the latest on that...



that's not untill Sept.18th though

[bountyhunter] 04/8/2018 23:15

It already is going the same way with Iran. Trump has said recently he would be happy to have talks with Rouhani at any time. The only problem is Rouhani has not yet reciproated.

[fardels bear] 04/8/2018 23:07

From what we are seeing of Trump's tactics, he shouts a lot, makes threats, acts on those threats and then offers to sit down with his bete noire of the moment.I expect it'll be the same with Iran.But how I wish they'd throw in the towel and flog us the rest of Rhum on the cheap.

[pineapple1] 04/8/2018 19:13

Its a good caveat to include as who knows how hard the sanctions screw could be turned which may catch in the net companies/personnel that currently feel they could operate comfortably outside the reach of US sanctions at the moment. Some may get cold feet and that could ultimately effect day to day operations.
imho

[robo175] 04/8/2018 19:03

If you cannot read Telegraph all the article

NORTH Sea oil producer Serica Energy will deepen its interest in two of the region’s most important oil and gas assets in a new deal with French major Total.

The $20m (£15m) acquisition of Total’s stakes in the Bruce and Keith oil assets emerged as the explorer battles to push through a separate deal to buy BP’S stakes in the same fields, which has become mired in US sanctions.

Under the fresh deal, Serica will acquire a 42.25pc interest in the Bruce field and a 25pc interest in the Keith field and its infrastructure for $5m up front, followed by a further three $5m payments. Its shares surged 19.5pc to 84p on the deal.

However, the 11m barrel a day boost depends on Serica’s sanction-hit deal with BP moving ahead. Serica agreed to buy a package of BP assets worth $300m, including stakes in the Bruce, Keith and Rhum fields, which together make up around 5pc of the country’s oil production.

The Rhum field has since emerged as a key stumbling block following the announcement of US sanctions against Iran, because the field is half-owned by the nation’s state-backed oil company. The trio of oil companies are locked in negotiations with US authorities to agree a deal that would allow the acquisition to move ahead, in spite of the crackdown on Iran following the collapse of the nuclear agreement earlier this year. “We’re not underestimating the scale of the challenge,” said Mitch Flegg, Serica’s chief executive. “But things are moving forward.”

He told The Daily Telegraph that he had been “surprisedR21; by the “huge” amount of cross-government support given to the negotiations.

The Oil and Gas Authority and the Department for Business, Energy and Industrial Strategy have been joined by officials from the Treasury and the UK embassy in Washington DC to help in negotiations with the US authorities. “Everyone has been very clear that this is important for UK plc,” he added.

Serica has been on the hunt for acquisitions in the North Sea since oil prices began to lift from their nadir in early 2016. A couple of years ago, this would have been huge news for Serica but this deal is “business as usual now”, said Mr Flegg. “We’ve always said we didn’t want to stop at the BP deal and we continue to look for opportunities. This just arrived slightly quicker than we expected,” he added.

[bountyhunter] 04/8/2018 17:25

At worse I think any potential interruption would mean a short delay while conditions for the OFAC licence such as a temporary management scheme were finalised. Not deal changing imho. I can't see Trump and Rouhani concluding a new deal before 30 Sept (so the IOC revenue from Sept 30 will need to be sorted in a way to satisfy the US) although I think a new deal with Iran and the US will be agreed at some point or Oil prices will be at a level unacceptable to the US.

[farmscan] 04/8/2018 17:09

Total must be reasonably happy that there will be no 'interruption' then. For the payment to them to stop if Rhum is halted, when deal with them is for B&K only.

[bountyhunter] 04/8/2018 16:59

yes the mention of the word "interrupted" is why I said "ultimately conclude" earlier to cover all likely possibilities

[fardels bear] 04/8/2018 16:57

Yes, you're right. That is interesting.

[farmscan] 04/8/2018 16:51

Interesting paragraph from yesterday's RNS.

"Principal terms of the BK Acquisition

The initial cash consideration for the BK Acquisition is US$5 million, to be adjusted for working capital, with further cash consideration of US$15 million to be paid in three instalments of US$5 million. These instalments are payable subject to continued production from the Rhum field (production of which is transported via the BK Assets) with the instalments payable in three tranches approximately 8, 16 and 24 months following completion of the BK Acquisition. Should Rhum production be interrupted due to the application of US Sanctions limiting Rhum operations, the relevant instalments will be deferred, providing Serica with protection in the event that US Sanctions are imposed more widely than currently anticipated."

[bountyhunter] 04/8/2018 16:49

Yes the PE would still be low at £1.50 so once all uncertainty is removed and BKR+BK+Erskine are contributing to the bottom line with Columbus and Rowallan(est. 20 to 60mmboe) on the horizon the sky is the limit (for LG) 🙃

[general george] 04/8/2018 16:34

Once confirmed and in the bag.
Id have thought 150p.

Sqz will be making 100m a year min. I expect in 12 months it will be well north of 2 quid

[bountyhunter] 04/8/2018 16:18

Is that at £2.50? 8-)

by the way I'm very confident that both deals will ultimately conclude at which point I believe that the share price will be significantly higher than it is now