Serica Energy Share Discussion Threads

[general george] 13/2/2020 20:57

Gas at 20p per therm, doesn't leave much for Sqz.

What was opex $13.

20p X 58 = £11.16 or $14.50

Add in plc cost and cost of Bruce repair, not much money being made.
Of course 15% is liquids so better return there. Should be about breakeven I guess.

I'm surprised it is holding up above £1.

GG

[roth] 12/2/2020 10:57

Latest on premier Oil proposed acquisition:

LONDON, Feb. 12, 2020 /PRNewswire/ -- ARCM will vote against Premier Oil's Scheme proposal at the creditors' meetings today as it believes the proposed acquisitions expose the Company and its stakeholders to significant incremental risks. As a majority of creditors have already contractually locked themselves into voting in favour of the Scheme proposal, we would expect that the requisite majorities for the scheme vote will be obtained.

However, and regardless of the outcome of the creditors' vote, the Schemes will not become effective unless they are sanctioned by the Court. The sanction hearing, which is scheduled to take place on 17 March 2020, is not a 'rubber-stamping' exercise and the Court will consider issues beyond the outcome of the vote at the creditors' meetings in determining whether or not to sanction the Schemes.

At the sanction hearing, creditors who object to the Schemes may raise their opposition. Examples of the type of objections that may be raised include issues such as the constitution of varying classes of creditors, and the accuracy and adequacy of the information disclosures made in the scheme documents. Above all, the Court must be satisfied that the statutory requirements have been met, the vote is fairly representative of the creditors concerned, there is no 'blot' on the Schemes, and that the Schemes are fair.

As stated previously, ARCM will vigorously oppose the Schemes and will take all necessary steps to do so, including opposing the sanctioning of the Schemes. As such, ARCM will file with the Court substantial evidence and submissions which it believes will establish that the Schemes, which contemplate transactions that are unprecedented in their proposed application to a solvent company, should not be sanctioned by the Court.

Over the last few months, ARCM, as the Company's largest creditor, has sought to engage constructively with the Company and other creditors to find an appropriate strategy which comprehensively addresses the Company's leverage and 2021 debt maturity. Instead, the Company has opted to pursue a high-risk acquisition strategy in lieu of addressing its highly levered balance sheet.

ARCM first made public its opposition to the proposed acquisitions in its response to the Company's announcement on 7 January 2020. In recent weeks, ARCM has also posed a number of critical questions to the Company's management on various aspects of the proposed acquisitions, answers to which ARCM believes are required to enable stakeholders to properly evaluate the merits of the transactions (available here). To date, these questions remain unanswered. ARCM will continue to pose further questions here over the next few weeks.

[general george] 11/2/2020 22:16

I am suggesting they need to be careful upon restart, so they don't have the same gas hydrate problem as they did on Erskine.

No how's that gas price doing?

[reallyrich] 11/2/2020 21:44

Can eead it in full here no need to subsceibe.

[almsivi] 11/2/2020 18:44

Well find out sooner rather than later if it's even a possibility.Https://amp.ft.com/content/79ebbab2-3d27-11ea-a01a-bae547046735

[bbluesky] 11/2/2020 18:26

They seem to be promoting the green, clean energy line, so a gas deal seems more likely to me. Surprised IOG hasn't come up on the thread, or maybe not recently.

[dcarn] 11/2/2020 12:58

So are you suggesting another 50% increase in production upon restart GG?

[bountyhunter] 11/2/2020 12:17

Steel - you have mail :-)

[newkotb1] 11/2/2020 12:16

Are yes, Erskine, went from <2kboepd before shutdown to average daily production since restart in excess of >3kboepd net, >50% increase.

[general george] 11/2/2020 11:38

Sqz seems to be headed to below £1 as most of the production is shut in.

Another risk is the restart, remember when they restarted Erskine last time?

[upomega] 10/2/2020 22:11

Chestnuts. You may be partially right with regards to yanks ignoring climate change with regards to man. Howethete they are used to low energy prices so will do anything to preserve this inmo.the current administration constantly saying America first may come back to haunt them asthey may well end up America last

[chestnuts] 10/2/2020 21:52

upomega

If you look at Nasa data they confirm that solar flares do effect the climate, why do you think the yanks dont agree with climate change.

There is another good example , we have had 4 or 5 ice ages did man cause any of these.

And another thing last yr spring the blossom on the trees was breathtaking and in all the years i can recall i can not recall a better spring now if the trees are flourishing is that nature saying we like the climate change.

[upomega] 10/2/2020 21:26

Very interesting chestnuts.posdibly new ice age dawning. I have also thought that the fact we are nearer to the sun than we have been in centuries is having a global temperature effect. The frightening thing is . This will turn and Inmo quite quickly.

[chestnuts] 10/2/2020 21:16

upomega

In the USA gas is a by product and it is in lots of countries so there is a massive glut ( and if Serica reworks Rhum 3 it will add to the glut), and with oil and i dont agree with this its bad for the enviroment and we have oil companies divesting and go into solar and wind power, then we the climate change brigade putting pressure on governments to stop using oil and gas, I personaly think its to do with solar flares, and we have just started a solar minimum but it could take a couple of yrs to change to colder weather. And once it does and it might take 6/7 yrs to alter the attitude of the climate change brigade, so yes gas prices will rise but not for a couple of yrs.

[upomega] 10/2/2020 20:39

Ah but chestnuts there is always a possitive with a negative
It is in no one's interest if prices stay low for too long.prices will bounce they always have done. The difference now is that we are in such a fast passed environment things tend to turn more quickly. If I was a major producer I would wind down operations.maybe then governments should realise that a consistent supported price is in everyone's interest. Rather than boom and bust

[chestnuts] 10/2/2020 20:13

upomega

Gas is top of the shorted stocks /commodities so there will be a bounce but there is a glut so it will come down, also with China and corona virus and the shutting down of factories it wont be long before it shuts factories who rely on parts from China so there will be a big drag on oil and gas for some months, it wont be good for oil and gas companies.

[upomega] 10/2/2020 17:38

So where do you predict it will go from here. My prediction is back up to 40.inmo this is going to catch alot of gas traders out during the next 12 months

[chestnuts] 10/2/2020 17:01

Last yr i predicted Natural gas would go to 18p when it was 58p its now 20.8p wish i had shorted it but hey very pleased with that call.

[pineapple1] 10/2/2020 13:58

Can't see TCW wanting to take on £400m for the purchase. A Rhum type deal may be a possibility but i believe BP is looking to reduce gearing so they may want cash buyers only.
imho

[lord gnome] 10/2/2020 13:46

As long as we don't bite off more than we can chew, then we should go for it. Would some form of deferred payment be possible or another production sharing deal? My one concern would be operational and management capacity. What staff would come with any deal?Lots of questions but if we have the right answers I would be in favour.

[almsivi] 10/2/2020 13:23

Afternoon everyone - I won't bother commenting on where the price is as the moment as I'm sure it's self-evident - what I am interested in is the Andrew / Shearwater deal that Premier Oil pulled off last month.

Since then, the share price of PMO has dropped to below where they announced the sale - do we believe the oil price / coronavirus is the cause of this - or (as has been reported in the telegraph) do ARCM have the clout to kill the deal stone dead?

Assume the latter and that ARCM kibosh the deal - could Serica afford to stump up the £460m (estimated) price PMO were willing to pay? We couldn't have been out of the running totally for the shearwater stake and while I appreciate we are a Gas Company - having an oil asset as a hedge would potentially be of benefit to us in diversifying away from gas.

Keen to hear other thoughts and suggestions

[scaff55] 08/2/2020 12:20

They are all self-service upomega l take the Good and leave the bad.The secret is noing the difference still working on it. Good luck.

[upomega] 08/2/2020 11:11

Scaff55
Thanks for your reply.very interesting. Be careful if you post on one of the other threads. They tend to ban people if you don't fit into their clicks group. They seem to forget that this is a share bulletin board trying to exchange possitive and negative views. However much it may hurt. If your interested in a more balanced view lse bulletin board seems quite good inmho