Serica Energy Share Discussion Threads

[almsivi] 07/1/2019 09:12

It was a very good write up - I can't imagine it will have escaped the notice of PIs with a medium / long emphasis. I'm actually a little surprised that no II's have had a nibble - maybe it's due to being an AIM share?

[smokieuk] 07/1/2019 08:59

Yes but volumes aren't very high and the bulk of buys are showing as small automated trades. So the ST doesn't yet seem to have spawned hundreds of small investors pushing the share price up.

But I suppose it mostly doesn't matter why the share price goes up, so long as it does!! :-)

[rivaldo] 07/1/2019 08:58

Great to see the Sunday Times coverage and the subsequent rise today. Happy to hold for some time to come.

[captainfatcat] 07/1/2019 08:25

Off to a good start this morning 8-)

[dcarn] 06/1/2019 21:52

Hopefully get some buyers tomorrow off the back of Sunday Times article and get back into the 130's.

We've stood up well to recent market fluctuations but the downward spiral all seemed to start with Baron Daytrader (and his followers) selling before Christmas.

Anyways, all in the price now, onwards and upwards, 2019 year of the Serica.




Serica to enjoy fruits of North Sea
Rachel Millard
January 6 2019, 12:01am,
The Sunday Times

Asia
Middle East
United States
Energy

Serica’s shares nearly trebled to 90p when the North Sea deals completed
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Oil companies are particularly beholden to global political forces, but Serica Energy had a tougher time than most when US-Iranian relations threatened its plans in the North Sea.

Serica’s deal to buy BP’s 50% stake in the Rhum field, northeast of Aberdeen, was nearly derailed by US sanctions on Tehran last year because the National Iranian Oil Company owns the other half of the field.

Rhum— which accounts for about 5% of North Sea gas — risked being shut down, but frantic negotiations followed. Bosses managed to find a solution that satisfied all sides and the deal was completed in late November.


That, along with recently acquired stakes in the Bruce and Keith fields next door from BHP, Total and Marubeni, has increased Serica’s production tenfold in less than a year. It now produces about 26,000 barrels a day, leapfrogging peers such as Cairn Energy and Faroe Petroleum. The portfolio is significantly weighted towards gas, protecting it somewhat from fluctuating oil prices.

Analysts at Peel Hunt believe Serica profits will shoot up accordingly — from an expected $9m (£7.1m) last year to $175m this year. They predict revenues could rise from $41m for 2018 to about $400m in 2019, and the company’s cash will shoot from $43m to about $175m.

Led by former Shell and BP acolytes Tony Craven Walker, executive chairman, and Mitch Flegg, chief executive, Serica has been relatively low-profile but analysts and investors are starting to sit up and take notice. Its shares nearly trebled to 90p when the North Sea deals completed and have continued to climb to 120p. Yet there is more scope for gains, with some analysts convinced they could yet go above 160p.

Serica also has licences in prospective areas south of the BKR fields including the Rowallan, Columbus West, Skerryvore and Ruval fields — all areas of the North Sea.

Drilling started at Rowallan’s exploration well, which is operated by Italian oil giant ENI, on New Year’s Eve, with a better picture of its prospects due early this year.

Serica expects to start producing from the Columbus field in 2021. Management are also believed to be looking at other opportunities.

A business extracting oil and gas in the UK North Sea will have a finite life — the basin is waning along with investors’ enthusiasm for fossil fuels. But Serica looks increasingly well placed to do well for now, even as the world changes around it.

Buy.

[fardels bear] 06/1/2019 21:28

Sadly not. I forgot it was time to take down the hundreds of Christmas lights that we didn't get to see much of because we went to Portugal for the twelve says.

[lord gnome] 06/1/2019 19:54

Did you get to Waitrose Fb? I'd be interested in learning what the Times had to say.

[investoroilandgas] 06/1/2019 15:58

Given the current takeover battle taking place at Faroe Petroleum, will a bid for Serica Energy be tabled during the next 12 months? I think that a bid will be forthcoming if the share price stays at these current levels, what do others think?

[fardels bear] 06/1/2019 09:52

Well, until the deal with bp there was not much cause to buy unless you had faith in Tony...Now I can think of many other reasons.Trip to waitrose for free Sunday Times, methinks..

[pineapple1] 06/1/2019 09:30

I don't like buy tips in papers . Often solicited by a large holder looking to sell into any rise. Where was their buy tip when SQZ was 30p.

[fardels bear] 06/1/2019 09:21

Get some of it spent, then... ;)

[erbullion] 06/1/2019 09:08

Serica buy tipped in today's Sunday Times business section

[farmscan] 03/1/2019 20:29

Sorry to see the turmoil over at IOG, I know some of you are invested there. Fingers xxd.

[bountyhunter] 03/1/2019 12:49

wow never heard of that one!

[bountyhunter] 03/1/2019 12:33

try using incognito mode - any browser

or clear browser cache or use another browser or if all that fails a reboot and if that fails I would clean up any gremlins with ccleaner which I use frequently but of course use at your own risk if you do use that

[steelwatch] 03/1/2019 12:23

The skip facility just jumps past the header. What happens if you scroll up?

[bountyhunter] 03/1/2019 12:21

Yes steel that could well be the case I would think.

[bountyhunter] 03/1/2019 12:20

Hi ta, you could also check my OIL & GAS thread...

There is a clickable link for "UK Gas" right at the end of the header (as here).

[steelwatch] 03/1/2019 12:19

Not sure Serica's gas is sold @ spot front month prices anyway. Could be @ contracted prices reviewed periodically on some formula basis. I'm sure that's how the big offtakers work to even out consumers' bills.