Serica Energy Share Discussion Threads

[fardels bear] 04/9/2019 16:42

You have to wonder at that drop right at the end. Climbing away it was and then suddenly all the little AT trades and it's back to square one.

[winston8643] 04/9/2019 15:58

Have been buying a few shares today , it has never been well offered.

[captainfatcat] 04/9/2019 14:56

dcarn any feedback from ACW or Mitch would be most welcome here, best of luck on your hunt.

[dcarn] 04/9/2019 14:50

Yes all these small efficiency improvements add up to lower cost per barrel as we've seen in the reduction from US$23 to US$15.

I see Serica are one of the main sponsors of the ongoing Offshore Europe exhibition which is an indication of their new found standing within the industry. I'm planning to attend tomorrow and will see if I can track down ACW or Mitch.

I hope they don’t go for any Norwegian acreage, producing assets appear to be the way forward and where they have had all the success over the last few years.

[dunderheed] 04/9/2019 13:56

Hope not CFC.
Unless they are for promote and carry purposes only.

[captainfatcat] 04/9/2019 13:29

I'm wondering of SQZ is one of the 33 bidders eyeing up the Norwegian blocks on offer the bod certainly has prior form in Norway.

[circles of stone] 04/9/2019 13:13

Picked this up on Investing. Com with a date of 27 Aug. Apologies if already posted.

Serica Energy sees buying opportunities amid Brexit, price weakness
in General Energy News 28/08/2019


Companies that keep their costs and debts down should be able to take advantage of pressures such as Brexit and weak prices that are turning some against the North Sea, Serica Energy CEO Mitch Flegg said in an interview.

Serica is one of a few publicly listed independents active in the North Sea following an influx of private equity, and takeovers by the likes of DNO and Delek, as oil and gas majors scale back.

Last year it bought BP’s stakes in the Bruce area fields, including a 50% stake in the Rhum gas field, owned jointly with Iran’s NIOC, and stakes in the area from Total, BHP Billiton and Japan’s Marubeni.

The deals, accompanied by lengthy talks with the US to exempt Serica from sanctions on Iran, lifted the company’s output to 35,000 b/d of oil equivalent in the first five months of 2019, from 2,000 boe/d in 2017. Rhum and Bruce produce 5 million-6 million cu m/d (175 Mcfd-210 Mcf/d) of gas, or about 3% of UK gas demand.

With little debt and a cash balance of $112 million at the end of May, Serica is aiming for acquisitions, and to restore a third well at Rhum that has been shut by a hydrate blockage for over 15 years, as well as to progress the Columbus gas condensate project, Flegg told S&P Global Platts earlier this month.

“We are still trying to find other assets where we can add value that the current operator can’t,” he said.

Flegg acknowledged that Serica’s need to negotiate annual waivers of the sanctions on Iran could constrain its access to debt, but voiced confidence the current waiver would be renewed in October, and that the financial community would get comfortable with the arrangement.

Serica had been forced almost to “hibernateR21; before the Rhum and Bruce deals, having as few as five staff. Its income came from an 18% stake in the Erskine field, which was plagued by pipeline blockages in 2016-18. But with low debt, rising revenue, and a focus on reliable, low-cost operations, growth now looks realistic, he said.

“We’re now building that critical mass that we need, and I think the more you build that, the less you’re likely to be buffeted around by other people’s problems. You become more in control of your own destiny,” Flegg said, adding that Serica is looking to open up Bruce as a hub for other companies’ projects.

BREXIT CONFIDENCE
The nervousness some feel about Brexit, along with weak oil and gas prices, may help Serica, Flegg said. After a period when sellers’ expectations looked “a little bit rich,” oil prices are in a “more comfortable range” that could facilitate acquisitions, he said.

European gas producers have been particularly exposed: NBP day-ahead gas prices more than halved since the end of last year, to around 29.00 p/th in the last week.

However, Serica, with gas accounting for 85% of its production, is more than covering its costs.

It had realizations of $35/boe in the year to the end of May, down from $45/boe for the full-year 2018, and its operating costs have been $15/boe this year, compared with $18/boe last year for the BP assets, he said.

Flegg reiterated his view of the UK North Sea as insulated from Brexit, while acknowledging some have worries. “It’s not Brexit alone, but as a basket of things going on, Brexit is one of the things that causes an issue,” he said.

“We’re fairly relaxed about Brexit. The one thing about the North Sea is that it’s pretty self-contained. We’ve got a really good supply chain, everything we need within reason can be sourced with the UK, all of our employees are UK… None of our major suppliers are in Europe,” he said.

“There are people that would want to do things and they’re struggling with the finance — whether Brexit really is the reason I don’t know, but people use that perhaps as an excuse. The flip side of that is that we’re sat here with no debt in an acquisitive mode,” he said.

Flegg stressed Serica would accrue only “modest” debt in its next acquisition, suggesting it won’t match the recent buying spree of private equity-backed Chrysaor.

The need of private equity-backed companies to recoup their investments could be a buying opportunity, he said. “There’s a lot of those private equity companies that are going to need to get rid of assets at some stage,” he said.

In the meantime Serica is focused on efficiency, he said, noting that in July all 21 of the Bruce field wells were on stream producing at the same time for the first time in over half a decade.

He summarized the approach as “having a focused team that understands the assets, understands the technology and get up every morning and want to work on those assets with no fear of interference from a wider portfolio.”
Source: Platts

[bountyhunter] 04/9/2019 12:07

Interesting article dcarn,

“The Restrata Platform will enable the Serica Energy team to quickly access real time information about their personnel on board, as well as its assets, assuring their safety and providing operational efficiencies.”

[fardels bear] 04/9/2019 11:21

I blame Gina Miller..

[captainfatcat] 04/9/2019 10:08

That may be the case however the auction is open to manipulation. Just ask anyone who was in EEN when it was due to qualify for entry into the ftse250. One single auction well below the trading levels of that day and previous days stopped it from entry into the ft250.

[nigelpm] 04/9/2019 00:04

Oh dear - more misunderstanding of the market and how it operates. UT trades are auction - a period of 5-6 mins where buy/sell orders are matched.

[fardels bear] 02/9/2019 18:44

Oh God, don't rattle his cage.

[fanshaw] 02/9/2019 17:19

nigelpm

2 purchases 5k made this morning not even shown, how do account for that I still

feel this share is being manipulated

[upomega] 01/9/2019 10:04

Well
The only other reason I can think is that lunatic politicians on both sides of the Atlantic are having effect.
The quicker mental institutions are bought back the better inmho so dyor.
Off now bridging and and opening the scrumpy house .in between planting some daffodils.
Chow

[newkotb1] 30/8/2019 13:54

Really, a development that is awaiting third party progress on Arran, scheduled for Q3 2020, and startup thereafter, probably Q2 2021 is holding the share price back atm ...
PS Don't forget our $140m tax pool and approx $120m CoH !!!

[upomega] 30/8/2019 13:19

Has anyone an idea as to how much it will cost to get columbus online. Are we looking at all revenue next year going towards Columbus.If so it probably explains as to why the share price is stagnant

[nigelpm] 29/8/2019 22:50

AT trading is exactly that, automated thus why called AT, as opposed to O trades which are ordinary and the sort of trade that may be made by us via your trading app etc. or by the broker.

Wrong!

You can ask a broker or get a Direct Market Access account and any trades you make appear as "AT"

[upomega] 29/8/2019 18:59

What's wrong with the good old sedol code.inmo it sounds like some kind of us spiv

[lord gnome] 29/8/2019 18:24

What's the EPIC? Sounds interesting.

[fardels bear] 29/8/2019 18:03

There's always Armageddon, I suppose..