Serica Energy Share Discussion Threads

[jimarilo] 06/2/2020 16:41

Big oil still investing large, in oil and gas

Battery powered EV's don't compute, let alone commute imo. To stop selling new petrol cars by 2035 in the UK is deluded. While the rest of the world carry on as usual

Does that include haulage vehicles, planes and shipping ?

Car parts manufacturers will be having a field day keeping old bangers on the road

[joestalin] 06/2/2020 16:15

"But ask yourself where all the leccy is going to come from to charge europes move to electric vehicles"

It is worth noting that most of Europe lives in rented 'wohnenblocs". So, they will need to find a street charger somewhere to recharge these vehicles. Hybrids are the only option for the next decade. They will, therefore, still need some fuel to get themselves mobile.

[lord gnome] 06/2/2020 15:15

Offshore wind is our specialty offshore Norfolk FB. We have huge fields under development.

[bountyhunter] 06/2/2020 13:56

>> Pot going up and down twenty grand a day. More some days.

FB keep off that stuff is my advice ;-)

[fardels bear] 06/2/2020 13:35

Where is all the electricity going to come from? Nobody wants to build power stations and all the offshore wind is owned by Jimmy Krankie. Where is all the rare earth and esoteric metals coming from to make the batteries for all these tens of millions of electric vehicles every year. DRC? Yeah, right. I'm getting a bit bearish on gas. Effing politicians never think things through.

[captainfatcat] 06/2/2020 13:13

FB forecast is for the gas market to be over supplied for the next couple of years.

But ask yourself where all the leccy is going to come from to charge europes move to electric vehicles plus if we have to move to electric central heating there is still going to be high demand for electric generating. LNG is also a rapidly increasing fuel for ships considerably more eco friendly than diesel oil.

What would help is the outlook for global growth to perk up. China and USA tariff war getting sorted etc.

Happy to add further here if it gets silly. Resumption of production and maiden divi going to help the share price Divi is going to turn SQZ into a reasonably safe and attractive place to park funds for a number of tax related reasons.

PS having a fun day over on TXP ;-)

[fardels bear] 06/2/2020 11:31

No good for my nerves with two years until HMG gets its hand in its pockets for my hopefully extended dotage. Pot going up and down twenty grand a day. More some days. And while I realise that's a nice problem to have, if you look at the oil price chart in 2014 you'll see the difference between a Fezza and the no. 22 bus.

[fardels bear] 06/2/2020 09:57

Can anybody offer any comfort on the gas price? Winter's nearly over and it's still dropping fast which makes me think there must be massive oversupply to the market from somewhere. Are we safe at our ultra low OPEX or is Mitch a Jonah?

[captainfatcat] 06/2/2020 07:23

Was really hoping the so would get to double figures here looking to add further prior to the Divi.

Ot TXP rns this morning worth having a look at. 5000boepd plus 54deg API liquids.

Ducks lining up for it soon to be a mid cap and one of the major producers in Trinidad/Tobago

[general george] 04/2/2020 22:04

Abbot, have no interest is RRE.

Why buy gas assets currently? The price is on the floor worldwide.

Of course gas is required, will have a look at SQZ if/when it reaches 100p

Thanks and enjoy your sour grapes

[upomega] 04/2/2020 20:59

Maybe the rhume element frightens them off.could be they are worried about upsetting us clients

[chestnuts] 04/2/2020 20:36

Goblin

Any investment fund will invest in any thing if they believe in the idea and the management and Sqz have both, but even with a divi coming through we don’t have the investment companies queuing up.

[goblin99] 04/2/2020 19:23

The aim market is restricted by definition on funds investing - the funds that do venture into small cap investment have a vast choice. I would suggest Sqz would tick numerous boxes for said fund manager(s), should they invest in O&G. A list of the major shareholders as of Dec 19.https://www.serica-energy.com/shareholder-information

[chestnuts] 04/2/2020 18:58

Goblin

Other than axa which big name as invested In Serica . The big hedge funds are not invested in oil and gas companies , and the pension funds,
When I first came interested in Serica I thought they would of should have been at least £3.50 by now but the market is not interested in oil and gas companies.

[goblin99] 04/2/2020 16:38

I would humbly disagree - again if that model were to be applied across the board then o&g investing amongst peers would be static. It's where value can be attributed and potential harnessed. Projecting ahead, sqz has the potential with the fcf and producing assets in hand. It however has not progressed post deal with BP over the n/sea assets. There is some work in the pipeline (Columbus) granted. Currently it's price range is justified- as Columbus and other potential orojexmxts approach, then the next leg up will undoubtedly follow

[chestnuts] 04/2/2020 13:32

Goblin

The main reason why serica share price is not making expectation is the divestment out of oil and gas by the big boys, and while this continues oil and gas companies share prices will be subdued

[goblin99] 04/2/2020 13:03

To view the gas spot price and make assumptions is somewhat simplistic. Investment decisions are not made short-term. Yes, it may impact revenue, short term or perhaps longer if the price hovers around current levels, but there is more to the North Sea & Serica than that. Offset tax losses, of which Sqz still has a sizeable amount, and stable environment/low OPEX are I'm sure one of the reasons why they are and will continue to invest. Conversely a harsh winter and increase in demand for gas does not make this a reason for investment!

[chestnuts] 04/2/2020 12:53

The abbot

No one as ever said Uk gas is worthless just that it was going to get cheaper I think I predicted 18p a therm and it won’t bounce for a couple of yrs until the climate change numties realise they are wrong.
As far as rre buying cotton gas we have no idea at what price they have paid , also they will have to invest millions before they will realise any profits

[general george] 04/2/2020 10:53

UK gas 22p a therm. This isnt great for SQZ. With alot of downtime for Rhum and 85% gas, I'd expect this to drift down to 100p or less. No surprise why the majors were/are dumping NS assets, in particular gas assets.

[binghall] 31/1/2020 10:58

Having re-read the RNS I suspect (and hope) that the depth of fall in the share price was shallower as the financial impact is mitigated by the field purchase agreement, i.e. there may well have been continuity clauses that would cover loss of earnings against hardware failure for a set time - hence the calmness of the RNS. Can't see anything in news around this but there should be a 'hedge' in any purchase contract.

[almsivi] 31/1/2020 10:24

Most operators have an "opportune shutdown" list where they can get after maintenance that would require system outages normally required for full production - think ccgt 8k, 24k and 48k services, compressor overhauls, Mol Pump seals (less likely on Bruce), any safety critical backlog i.e. esdv's, fire suppression systems and the like.

Should be plenty to keep them busy if they've planned it well enough.

[smokieuk] 31/1/2020 08:19

It'd be good (and rather obvious I suppose) if they used the forced downtime to do any other maintenance which may be required.