Serica Energy Share Discussion Threads

[fardels bear] 15/12/2018 22:44

But the people we are taking onboard from BP will have been doing this for BP with the latest technologies. It's not like a whole new team is taking over the running of the BKR assets.

[steelwatch] 15/12/2018 22:06

There is considerable continuity with many of the personnel transferring with the assets.

[xxx] 15/12/2018 21:47

Hmm thanks, RR does appear cheap even now, but the balance of finance industry v technical ppl. deters me.

@FB...the BKR assets will need work overs, appraisals, step outs etc...all things SQZ has not done in a while and technology has moved on, so will need their careful and full attention imv.Those who have been here for a while will remember that their exploration record was poor, so personally not keen for them to go there.

[bountyhunter] 15/12/2018 12:40

Yes that was it, so the question is does Rockrose have any TTH to apply and more significantly if so how much. This question is also relevant to a lesser extent to Serica.

The TTH will allow a seller of an interest in a UKCS oil licence to transfer some of its tax history to the buyer of the field. The buyer will then be able to set the decommissioning cost of the field against the TTH.

TTH will be available for licence transfers that receive Oil and Gas Authority (OGA) approval on or after 1 November 2018.

[bountyhunter] 15/12/2018 12:23

Pineapple, I recall that some new rules came into play on Nov 1 to assist with decommissioning; I think it was something to do with offsetting in relation to tax liabilities but don't remember the details.

[pineapple1] 15/12/2018 12:04

BH......Not sure.
Are decommissiong costs tax deductable. I would suspect so.
Irrespective, the restricted cash available to do so is added too, or subtracted from, annually depending on the operators assessment of the cost to currently decommission.
Costs are allegedly falling currently . That may change of course.
imho

[bountyhunter] 15/12/2018 11:40

Do you know if Rockrose can offset or get any government help towards the decommissioning costs?

[pineapple1] 15/12/2018 10:31

Yup i, m in there as well. Cheaper than cheap. Guess the decommissioning liabilities scare some off. Not as if they don't have the restricted cash available already.
Quite illiquid though and spread daft.
Can see much much higher prices in the future if market starts to value correctly.
imho

[lord gnome] 15/12/2018 10:09

I bought a few Rockrose recently. I think that it is even cheaper than SQZ on a pe of about 1.2 and I can see it paying a decent dividend next year. It will do other deals, as well, as will Serica. Lots to go for in the North Sea.

[fardels bear] 15/12/2018 09:23

It depends. If it's a prolonged, or even a real cold snap, then ye I expect so. But it could just be the Met office trying to scare traffic off the roads and given that snippet the BBC are mad for it given that they love to lord it over we stupid public and talk down to us at every opportunity.

[bountyhunter] 15/12/2018 09:22

UK natural prices did jump up a bit yesterday but have been quite volatile as has the oil price of course...

[bountyhunter] 15/12/2018 08:55

Rockrose I have been watching for some time now but think I've missed the boat there now as like most O&G stocks barring further newsflow I see it as likely to be geared to the price of oil from here, imho

Back on topic given the lack of gas storage in the UK do others see UK natural gas prices rising with the onset of this cold weather?

[fardels bear] 15/12/2018 08:43

Er, when you say they haven't planned or drilled for five years, you weren't meaning the work drilling Rowallan taking up planning and administrative time were you? Because it's ENI that's drilling it, not us. And since it's a free carry I don't think we really need to consider it a burden on the staff. If you mean that we should be wildcatting rather than buying assets then in a buyers market I just think that's plain daft, but YMMV.

[xxx] 15/12/2018 08:12

Personally, I think they have enough on their plate getting to know the new assets and organising work streams. They haven't planned/ drilled many wells in the past 5 yrs so would not favour further asset acquisition yet.
Whilst waiting for Rowallan and a little off topic, Rockrose also had an asset injection and seems to have a number of fans. I dont hold, but do ppl here have a view [either way]?

[captainfatcat] 14/12/2018 14:04

Nice hopefully not long to go now then.

[fardels bear] 14/12/2018 12:06

Oil discharge would be good.. :D

[bountyhunter] 14/12/2018 08:29

yes quite possibly;
the deadline for bids is before Xmas but that may not be in the public domain at that stage I guess

[captainfatcat] 13/12/2018 18:23

bh I think the odds are good they will be crunching numbers and seeing what may fit.

[robo175] 13/12/2018 16:32

Yes can't see PMO taking on more debt its killing them now and they are trying to pay it down.

[pineapple1] 13/12/2018 16:22

Amongst other suitors.......hmmm.
Are we absent in the process or are we involved.??????
I wonder.

[rogerlin] 13/12/2018 16:21

But PMO is grossly indebted already, how could they afford that?

[captainfatcat] 13/12/2018 16:02

New partner in Erskine maybe

[captainfatcat] 13/12/2018 15:46

robo I hope that's the case.