Serica Energy Share Discussion Threads

[bountyhunter] 09/2/2019 22:00

Such as, in the North Sea, with minimal debt?

...and don't mention EOG!

[fardels bear] 09/2/2019 21:53

There's loads of small Oiler's big on assets but lacking funding right now. I expect we will see in due course.

[bountyhunter] 09/2/2019 21:50

Re IOG

...clearly a risk re financing but if that can be sorted then this would multibag imho

I'm reassured by the CEO's recent statement on 8 Jan...

Andrew Hockey, CEO of IOG commented:

"The integration into our Core Project of 108 BCF 2C Contingent Resources at the newly awarded Goddard discovery makes what was already a very strong investment case even more compelling; our fully-owned and operated Southern North Sea gas development project now carries a base case IRR of 40% and post-tax NPV of over GBP350m. The award of Goddard to IOG in the highly competitive 30(th) licensing round was a big win for us - we consider it one of the most valuable remaining undeveloped UK SNS fields and an ideal fit for our portfolio, lifting our Core Project's projected peak production rate as high as 146 MMCF/d (c.25 kBoe/d). We assess the main part of the Goddard structure to be technically ready for development and with 108 BCF 2C Contingent Resources it will be the largest field in our Core Project, which can now deliver a total of over 400 BCF of gas into the UK market.

At the outset of 2019, our focus is to deliver funding for Phase 1 of our Core Project thereby reaching FID at the earliest opportunity. We are technically and commercially prepared for project execution having made a head start on relevant offshore site surveys. In addition, the Core Project does not yet include the potential upside of Harvey, which subject to successful appraisal could add another 129 BCF Best Estimate Prospective Resources. We look forward to providing further updates on Harvey in due course."

With a current market cap of just GBP19m I reckon this is a reasonable risk/reward play. Would make a tasty morsel for SQZ? Or possibly they can swap some of their assets for financing to make the gas pipeline project a joint project, or farm out some of Harvey even at this late stage?

[bountyhunter] 09/2/2019 21:44

Bought more at the close. Weekend press coverage has not disappointed.

[fardels bear] 09/2/2019 21:38

Well done on the CLNR punt btw. I looked but didn't believe.

[fardels bear] 09/2/2019 21:35

How far is the pipeline from RRE SNS gas assets?

[fardels bear] 09/2/2019 21:34

How much gas does iog have? I keep forgetting. Is it 70mmboe?

[bountyhunter] 09/2/2019 21:32

One day!
IOG had it all together until the funding crisis but their assets are worth several times their market cap.

[fardels bear] 09/2/2019 21:29

I do keep suggesting it to them but Mitch is tight-lipped.

[bountyhunter] 09/2/2019 21:10

Yes I know in which case they should be bought out given the value of their assets in comparison to their market cap?
Re the pigs they didn't need any intelligence to fly through an empty pipeline!

[fardels bear] 09/2/2019 20:52

I think the pipeline has already been tested. The problem at iog is funding, as is becoming the problem at more and more small oilers. I'd have thought that non-cash deals with the likes of Total and BP better for our bank balance though. Having said that, undeveloped proven assets should be getting cheaper as we go through the year.

[bountyhunter] 09/2/2019 20:26

By then SQZ should have diversified? Nord won't affect us in any case for at least another year and even then the EU will control prices if the US do allow things to get that far without sanctions. This is all priced in in any case and why the price isn't way higher already compared to piers. Sqz will not be sitting on it's laurells post R3 regardless of the outcome, as the quality of management has already demonstrated.
I would like to see SQZ buy the assets from IOG for a song. The Erskine 'intelligent' pigs would fly through that pipeline!

[dunderheed] 09/2/2019 20:24

Russian gas could be an issue?
Plus a lot of lng coming to market next year.
Sqz is still a keeper for me though.

[dunderheed] 09/2/2019 20:08

12428 hear hear.
That steely has obviously got too much money for his own good!!

[bountyhunter] 09/2/2019 19:52

Lol, no need to pay any hard earned cash, just capitalise the leading 'h' to 'H' and spend the money saved on a decent pint down the local Wetherspoons!

[steelwatch] 09/2/2019 19:15

LOL FB 😁

Alternatively, stump up to get all your links working without tinkering 🎃

[fardels bear] 09/2/2019 17:51

Bloody phone

[fardels bear] 09/2/2019 17:51

If you change hops to hTTps then you can post it and we can click on it and read it much more easily. Just sayin' like.

[manicat] 09/2/2019 15:59

hxxps://www.energyvoice.com/oilandgas/north-sea/192228/serica-preparing-to-go-to-tender-for-columbus-project/ lots more to come from serica

[general george] 09/2/2019 15:16

Amer was gd value, but the reserves needed a boost, they certainly got that with the recent strike. Also a great farm out as well. Should be 25p.

Offers great value, I will buy on weakness, see if i can bag some on monday.....

[bountyhunter] 09/2/2019 14:54

So right Dh!

Yes GG Amer appears to have a share of huge potential resources in relation to it's market cap, with a major as operator, just wish the assets were in the NS!

I would expect Sqz hedging for 2019 to be higher than the figure you mentioned as they used the prepayment facility of up to £16 million 'to provide for drawings to cover the cost of gas price hedging instruments purchased by Serica' or why buy them in late 2018 when gas prices were high, but haven't managed to dig out the exact figures.

[dunderheed] 09/2/2019 13:45

Ha lol mate enjoy your times with daughter now, the times when they are young and angelic change (too) quickly!

[general george] 09/2/2019 13:36

Hi BH.

I hold Amer, that looks great value. I also have some gkp genel and sia.

I agree with ur post the hedging cost is unclear, all we know is sqz sell to a BP entity, which is hedged at a 35p floor.

DH. Not looked at RRE in detail yet. Will do so if my daughter gives me a chance!